IDEAS home Printed from https://ideas.repec.org/a/vrs/finiqu/v14y2018i1p39-48n3.html
   My bibliography  Save this article

Analysis of the Financial Situation of Selected Respect Index Companies

Author

Listed:
  • Stawska Joanna

    (Department of Central Banking and Financial Intermediation, Finance Institute, Economics and Sociology Faculty, University of Lodz,ORCID: 0000-0001-6863-1210.)

  • Grzesiak Lena

    (Human Resources Department and PhD Student, Accounting Department, Management Faculty, University of Lodz, ORCID: 0000-0001-5078-1675.)

Abstract

The concept of Corporate Social Responsibility (CSR) has become popular among organizations, the public, and external stakeholders. Recently, it has been appreciated by capital markets the indexes of which are constructed in such a way as to account for companies’ CSR. One of these indexes is the Respect Index of the Warsaw Stock Exchange. This paper analyses the financial condition of Respect Index companies in Poland using the desk research method. The analysis utilizes indicators of the so-called Du Pont’s pyramid (for all companies under consideration) and stock market indices such as a book value per share (BVPS) and a price-to-earnings ratio (P/E) (for the banking and insurance sectors and all other sectors, respectively). The analysis shows that the financial condition of the studied Respect Index companies in the years 2013 – 2015 was stable in the period of analysis, despite the not-so-optimistic financial situation of their industries. Socially responsible management can often result in good financial position and increase in the company’s rate, which may be indicated by the fact that the Respect Index increased by 40% in 2009-2015 compared to a lower increase WIG (18%) or WIG20 (-20%) decline. To find out more about the relationship between the stability of companies’ financial results and their CSR, more investigations and analyses of companies included in the Respect Index as well as other companies dedicated to CSR issues need to be conducted.

Suggested Citation

  • Stawska Joanna & Grzesiak Lena, 2018. "Analysis of the Financial Situation of Selected Respect Index Companies," Financial Internet Quarterly (formerly e-Finanse), Sciendo, vol. 14(1), pages 39-48, March.
    • Handle: RePEc:vrs:finiqu:v:14:y:2018:i:1:p:39-48:n:3
    DOI: 10.2478/fiqf-2018-0004
    as

    Download full text from publisher

    File URL: https://doi.org/10.2478/fiqf-2018-0004
    Download Restriction: no
    File URL: https://libkey.io/10.2478/fiqf-2018-0004?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    Respect Index; Corporate Social Responsibility (CSR); financial analysis;
    All these keywords.

    JEL classification:

    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • N20 - Economic History - - Financial Markets and Institutions - - - General, International, or Comparative
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vrs:finiqu:v:14:y:2018:i:1:p:39-48:n:3. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.sciendo.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.