Financial Benchmarking on the Example of Energy Sector Companies in Poland
Purpose: The aim of the article is to indicate the possibilities of the application of financial benchmarking in supporting management, on the example of companies from the energy sector in Poland, using descriptive statistics and the TOPSIS method. Design/Methodology/Approach: Achieving the research goal defined in the article requires the use of a comprehensive research approach, carried out in several stages, and combining several research methods. At the beginning, a critical review of the literature on the subject is conducted and the method of reasoning by analogy is used. Then, a financial benchmarking proposal is presented (on the example of companies from the energy sector in Poland) including selecting the subject and object of comparison, collecting external data, calculating indicators and analyzing results using descriptive statistics, the TOPSIS method, and creating appropriate rankings. Research methods such as literature review, reasoning by analogy, Spearman's rank correlation descriptive statistics (mean, median, minimum, maximum, standard deviation, variation coefficient, kurtosis) and TOPSIS method are used in the study. Findings: The analyses carried out indicate large application possibilities in the context of using financial benchmarking in companies from the energy sector. Properly selected areas and indicators in financial benchmarking can support management in additional financial dimensions. This, in turn, translates into more effective creation and implementation of strategies, and an increase in the efficiency of operational management (focused on business processes) in companies from the energy sector. Practical implications: The implementation of financial benchmarking can lead to an improvement in the quality of the management process in companies from the energy sector. Properly selected areas, measures (indicators), methods and objects of comparison in financial benchmarking allow for drawing valuable conclusions (including in the scope of the strengths and weaknesses of the company compared to the competition, inefficient use of resources, inappropriate actions) and setting new directions or methods of development. This allows for improving the process of creating, implementing and monitoring strategies in companies, and increasing the efficiency of operational management (focused on business processes). As a result, these activities lead to an increase in the value of companies from the energy sector for shareholders (including an increase in the capitalization of companies from the energy sector on the stock exchange). Originality: The article presents the possibilities of the application of financial benchmarking in supporting management, using descriptive statistics and the TOPSIS method. The financial benchmarking proposal is based on the example of companies from the energy sector in Poland, but it contains general assumptions that can be implemented in any entity regardless of the sector in which it operates.