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The Financial Situation of Enterprises in the Clothing and Footwear Sector in the Face of the COVID-19 Pandemic

Author

Listed:
  • Iwona Bak
  • Beata Szczecinska

Abstract

Purpose: The purpose of this article is to try to assess the impact of COVID-19 on the financial situation of enterprises in the clothing and footwear sector. Companies listed on the Warsaw Stock Exchange were used as a case study. Design/Methodology/Approach: The study used a synthetic measure based on the zero unitarization method, which allowed for the classification of the surveyed enterprises from the point of view of their financial condition. Findings: The methods used in the paper turned out to be a helpful tool in determining the financial condition of companies. They showed significant changes resulting from the spread of COVID-19. As the pandemic situation is still not stabilized, such analyses as in this article should be continued in the coming years. That will enable the observation of regularities or their absence, especially after the pandemic has ended. Practical Implications: The results of this kind of research can help managers, as well as current and potential shareholders, understand how the pandemic affects the company and its financial implications. Such information will help make decisions about future activities. Thus, the study fills the research gap in this area. Originality/Value: The article contributes to the current scientific discussion on the impact of the COVID-19 pandemic on the financial situation of companies in the world.

Suggested Citation

  • Iwona Bak & Beata Szczecinska, 2021. "The Financial Situation of Enterprises in the Clothing and Footwear Sector in the Face of the COVID-19 Pandemic," European Research Studies Journal, European Research Studies Journal, vol. 0(4 - Part ), pages 233-245.
    • Handle: RePEc:ers:journl:v:xxiv:y:2021:i:4-part1:p:233-245
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    References listed on IDEAS

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    1. Robert J. Barro & José F. Ursúa & Joanna Weng, 2020. "The Coronavirus and the Great Influenza Pandemic: Lessons from the “Spanish Flu” for the Coronavirus’s Potential Effects on Mortality and Economic Activity," NBER Working Papers 26866, National Bureau of Economic Research, Inc.
    2. Boot, Arnoud W. A. & Carletti, Elena & Haselmann, Rainer & Kotz, Hans-Helmut & Krahnen, Jan Pieter & Pelizzon, Loriana & Schaefer, Stephen M. & Subrahmanyam, Marti G., 2020. "The Coronavirus and financial stability," SAFE Policy Letters 78, Leibniz Institute for Financial Research SAFE.
    3. Neil Bhutta & Jacqueline Blair & Lisa Dettling & Kevin Moore, 2020. "COVID-19, the CARES Act, and Families’ Financial Security," National Tax Journal, National Tax Association;National Tax Journal, vol. 73(3), pages 645-672, September.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    COVID-19; pandemic; financial situation; taxonomic analysis.;
    All these keywords.

    JEL classification:

    • C38 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Classification Methdos; Cluster Analysis; Principal Components; Factor Analysis
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • L67 - Industrial Organization - - Industry Studies: Manufacturing - - - Other Consumer Nondurables: Clothing, Textiles, Shoes, and Leather Goods; Household Goods; Sports Equipment

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