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Financial Factors Explaining Value Migration: Evidence from Central Europe

Author

Listed:
  • Kubiak Jarosław

    (Poznań University of Economics and Business, Department of Corporate Finance, Al. Niepodległości 10, 61-875 Poznań, Poland)

  • Czapiewski Leszek

    (Poznań University of Economics and Business, Department of Corporate Finance, Al. Niepodległości 10, 61-875 Poznań, Poland)

  • Lizińska Joanna

    (Poznań University of Economics and Business, Department of Corporate Finance, Al. Niepodległości 10, 61-875 Poznań, Poland)

Abstract

The objective of this article is to identify the relationship between financial factors and value migration on a yearly basis. The data cover nonfinancial firms listed on exchanges in Central European (CE) countries from 2016 to 2020. To evaluate the migration of value between industries, the share in the industry migration balance was estimated. Next, averages in three industry terciles, set on the basis of the change in market value added, were calculated and compared using both parametric and nonparametric tests. It allowed us to analyse the economic and statistical significance of the value drivers in the value migration process. The value migration in the largest Central European industries intensified during the COVID-19 crisis. The largest sectors were not negatively affected by the pandemic. It seems that, at least for some industries, there was a positive relationship between the growth of market value and sales profitability, sales growth, and cash levels. The market value drivers did not significantly change in the first year of the pandemic.

Suggested Citation

  • Kubiak Jarosław & Czapiewski Leszek & Lizińska Joanna, 2023. "Financial Factors Explaining Value Migration: Evidence from Central Europe," Central European Economic Journal, Sciendo, vol. 10(57), pages 133-147, January.
    • Handle: RePEc:vrs:ceuecj:v:10:y:2023:i:57:p:133-147:n:9
    DOI: 10.2478/ceej-2023-0008
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    More about this item

    Keywords

    value migration; value drivers; market value added; macroeconomic crisis; G65; G15; G32;
    All these keywords.

    JEL classification:

    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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