An Analysis of the Financial Liquidity Management Strategy in Construction Companies Operating in the Podkarpackie Province

The activity of each construction company in conditions of high competitiveness is exposed to a number of risks that make it difficult to maintain high financial liquidity. In order to provide the continuity of ongoing economic processes and to be able to develop, entities are forced to build optimal financial management strategies for them. Enterprises can choose between a conservative, moderate and aggressive strategy, which is largely determined by the way they manage their current assets and short-term liabilities. In the case of construction companies, it is also not without significance that they are particularly sensitive to fluctuations in the economic situation and changes in the macroeconomic environment, which imply the availability of funds. The purpose of this paper is to analyze the financial liquidity management strategy of construction sector Polish enterprises from the Podkarpackie Province in 2017–2019 and the impact of this strategy on the profitability of the surveyed entities. In order to achieve the goal, the issues related to the classification of financial liquidity and individual liquidity management strategies are discussed. The issues and the goal set determined the choice of research methods. Literature studies, the Mann–Whitney U test, cluster analysis and Ward’s method were used. The research was carried out on a group of the 10 largest construction companies from the Podkarpackie Province. The selection of entities for the research was deliberately based on enterprises that submit their financial statements to the National Court Register. The conducted research showed that small and large enterprises applied different liquidity management policies even though they operate in the same industry and region. The small entities preferred a conservative strategy, while large entities preferred a moderate strategy. The existence of an inverse relationship between the phenomenon of financial liquidity and profitability of economic entities was also confirmed.

The financial condition of selected enterprises from the Świętokrzyskie voivodeship during the COVID-19 pandemic – A survey analysis

Purpose of the study: This article aims to assess the financial condition of selected enterprises from the Świętokrzyskie Voivodeship during the ongoing COVID-19 pandemic. Methodology: The article presents the results of proprietary surveys on the usefulness of the economic entities' cost accounting system to manage their costs in the conditions of the COVID-19 pandemic. These studies were carried out using the Computer-Assisted Web Interview method. Economic entities from the Świętokrzyskie voivodship with an entry in the National Court Register were invited to the survey via email. They were commercial law companies, mainly limited liability companies, joint-stock companies, etc. Main Findings: The main conclusion from the conducted research is the statement that the difficult economic situation of the market sector in Poland does not always translate into the financial condition of enterprises. The common opinion about the financial problems of Polish companies caused by the COVID-19 pandemic turns out to be wrong. The examined economic entities do not struggle with the issue of losing financial liquidity at all. On the contrary, over 40% of them indicated an improvement in the financial result in 2020 compared to 2019. Applications of this study: The results of the conducted research confirm that the COVID-19 pandemic in Poland did not significantly worsen the financial situation of the surveyed business entities; on the contrary, the vast majority of them do not and have had no problems with maintaining financial liquidity. The originality of this study: The analysis of the literature on the subject showed that there is no data on the assessment of the financial condition of enterprises in the conditions of the COVID-19 pandemic, taking into account at the same time the organizational and legal form of the studied entity and the area of ​​its operation.

MANAJEMEN PIUTANG VENDOR DI BANK SAMPAH INDUK SURABAYA

Abstrak. Bank Sampah Induk Surabaya (BSIS) merupakan bank sampah pusat di Kota Surabaya yang menerima dan menyetorkan berbagai macam jenis sampah anorganik yang telah terpilah dari lingkungan.Bank Sampah Induk Surabaya selain memberikan edukasi dibidang pengelolaan lingkungan kepada masyarakat juga turut berperan serta menjaga kelestarian lingkungan dengan menyerap sampah anorganik dari masyarakat yang kemudian disalurkan kepada industri untuk didaur ulang menjadi produk baru. Sumber pendapatan utama Bank Sampah Induk Surabaya yaitu hasil penjualan sampah terpilah. Akan tetapi saat ini sumber pendapatan tersebut belum optimal dalam menopang operasional, disebabkan penjualan yang terjadi tidak seluruhnya dalam bentuk tunai beberapa diantaranya dalam bentuk kredit. Jumlah piutang yang cukup signifikan tentu berpengaruh besar terhadap likuiditas keuangan BSIS terutama di masa pandemic, sehingga manajemen piutang sangat diperlukan untuk mengatur likuiditas keuangan dan mencegah kebangkrutan. Kata kunci: Bank Sampah Induk Surabaya, Manajemen Piutang Abstract. The Surabaya Waste Bank (BSIS) is a central waste bank in the city of Surabaya that accepts and deposits various types of inorganic waste that has been separated from the environment then distributed to the industry to be recycled into new products. The main source of income for The Surabaya Waste Bank (BSIS) is the sale of separated waste. However, at this time the source of income is not optimal in supporting operations, due to sales that occur not entirely in cash, some of which are in the form of credit. The significant amount of receivables certainly has a big impact on BSIS's financial liquidity, especially during the pandemic, so that receivables management is very necessary to regulate financial liquidity and prevent bankruptcy. Keywords: Surabaya Waste Bank, Receivable Management

Application of Canonical Variate Analysis to Compare Different Groups of Food Industry Companies in Terms of Financial Liquidity and Profitability

Financial liquidity and profitability are two critical phenomena present in the financial economy of a company, whose relations depend on each other and may course in different directions. At the same time, they are an example of the complexity of the problem, which demands a proper approach, allowing one to reconcile two opposing objectives of any enterprise, i.e., maximizing the benefits for the owners and minimizing the risk of losing financial liquidity. Until now, the relationship between liquidity and profitability has not been examined explicitly, using multidimensional methods in particular. Nevertheless, the links between profitability and financial liquidity maintenance ensure the sustainable development of enterprises in different branches. This paper formulates two aims: scientific and practical. The scientific one concerns adopting the canonical variate analysis method to visualize the differences and relationships between food industry companies regarding financial liquidity and profitability. The practical one relates to indicating the relationship between financial liquidity and profitability in different groups of food industry companies. To study the relationships between the selected groups of enterprises and describe them, the liquidity and profitability ratios were utilized, involving canonical variate analysis based on transformation by linear combination and singular value decomposition. The analysis found that the most important feature highlighting the group of the examined entities regarding financial liquidity was the cash conversion cycle. The research results showed the existence of multidirectional relationships between liquidity and profitability. The research indicates that they depend on indicators describing financial dependencies and the industries in which they operate. This led to a much deeper and broader interpretation of the assessment of the financial situation of companies to support their sustainable development.

FINANCIAL-ECONOMIC ANALYSIS OF FRUIT AND VEGETABLE PRODUCER GROUPS IN POLAND, AND CONDITIONS FOR THE FUNCTIONING OF PRODUCER GROUPS

Poland occupies a high position in both global and European fruit and vegetable production. The large number of small-sized farms has been one of the problems of Polish agriculture for years.National and EU financial help has increased interest in associating producers into groups. The effective functioning of these groups is conditioned by many factors related to the specificity ofhorticultural production, legislation and the market situation. Organizations on the fruit and vegetable market show significant variation in functioning as well as in the production andeconomic results achieved.The aim of the article is to assess the financial and economic situation and provide strategic analysis of the conditions for the operation of fruit and vegetable producer groups in Poland.Research was conducted on the basis of data contained in the financial statements from 2016-2017 and the financial liquidity and profitability ratios calculated on their basis. A general assessmentof the conditions needed for the functioning of producer groups is also presented in the paper.Low profitability and financial liquidity of producer groups were noted in the analyzed years. Key strategic factors for the functioning of producer groups included: the visible impact offinancial assistance, the functioning of producer groups and economies of scale resulting from greater aggregation of competition, and the fact that farmers are still reluctant to associate andoften have limited business competences to run producer groups.

Meta-study on the relationship between profitability and liquidity of enterprises in macroeconomic and institutional environment

The main aim of the paper is to determine the relationship between profitability and financial liquidity of a company using meta-analysis. This method is based on a synthesis of many previous studies with the application of econometric tools. The results of the study show that, taking into account 16 economies, it is not possible to identify a common effect describing the relationship between the profitability of enterprises and their financial liquidity measured by the current liquidity ratio. The results of individual empirical studies that underlie the meta-analysis are diverse. This means that there are moderators of the strength and direction of this dependence associated with macroeconomic and institutional conditions. We attempted to separate them by means of meta-regression. This method involves the use of a regression model, where data are derived from both meta-analysis and external sources. We diagnosed two statistically significant moderators of the strength and direction of the relationship between profitability and liquidity. These are two factors: (i) private sector crediting and (ii) capital market development. Our paper contributes to the development of the existing knowledge by summarizing and binding previous individual empirical studies on the relationship between profitability and liquidity of enterprises and identifying factors affecting this relationship. This knowledge can assist financial managers in making more efficient decisions related to liquidity and working capital management.

SUPPORT FOR PROPERTY TAXPAYERS IN CONNECTION WITH THE COVID-19 PANDEMIC

The increase in the number of COVID-19 cases has forced the legislator to quickly adopt legal solutions that will reduce the negative effects of the pandemic. For entrepreneurs whose financial liquidity has deteriorated, there is a property tax exemption for land, buildings and structures related to running a business, and it is also possible to extend the terms of property tax installments. The commune council has the right, and not the obligation, to introduce, by resolution, the above tax preferences on its territory. It was assumed that a significant degree of generalization of the new competence provisions for communes was to contribute to their adaptation to the conditions of a given commune. However, in practice it has led to a disproportion in the situation of taxpayers depending on the place of residence and conducting business activity.

Znaczenie zasady adekwatności dla funkcjonowania jednostek samorządu terytorialnego

The principle of adequacy is one of the rules constitutes the method of financing local government units. Due to the insufficient degree of detail in the normative regulation of the discussed principle, the significant role of the jurisprudence of the Constitutional Tribunal should be emphasized. The principle of adequacy is a postulate aimed at shaping the rules of supplying the budgets of local government units in relation to the scope of their tasks. The implementation of the adequacy principle may be influenced by objective factors (e.g. fluctuations in the economic situation resulting in lower tax revenues) and factors in the form of changes in the law or changes related to its application (impact of jurisprudence). The economic downturn related to COVID-19 required the legislator’s intervention to reduce the risk of a lack of financial liquidity in local government units.

Ideali universalistici o fiscalismo imperiale? Decima hereditatium e constitutio Antoniniana de civitate

Was the constitutio Antoniniana enacted to establish a cosmopolis or to solve a dramatic financial liquidity problem? The joint examination of two texts – one by Cassius Dio, the other by the Ulpian’s Institutes – suggests that Caracalla decided to speed things up by granting citizeship to all the inhabitants of the Empire to increase tax revenues. However, the need to finance the aerarium militare and to pay, in this way, the praemia to the veterans, does not exclude the possibility that Caracalla cultivated, at the same time, the project of establishing, in the entire ecumene, a single civitas. In any case, contestually to the issuing of constitutio de civitate, Caracalla subverted the political line followed, for more than a century, by his predecessors. Not only did he avoid granting to the new Aurelii, that is the new citizens, the so-called cognationis iura, but he also restricted the scope of this provision to those who had already been counted among the cives for a long time, by subjecting as many people as possible to the payment of the inheritance tax (decima hereditatium).