The Economic and Financial Standing Assessment of Energy Sector Companies During the COVID-19 Pandemic

Purpose: This article aims to assess the financial standing of energy sector companies, specifically focusing on the effectiveness of selected corporate bankruptcy prediction models in evaluating the risk of corporate bankruptcy during the COVID-19 pandemic. Design/Methodology/Approach: The study employs various methods, including theoretical review and the resource-based view (RBV), financial ratios analysis, discriminant models, and comparative and descriptive analysis. Findings: The empirical results of the analyzed discriminant models of corporate bankruptcy prediction show that the F model presented a negative value in the case of company B in 2020 and the case of company D in the 2019-2020 period, and the G model indicates the risk of corporate bankruptcy in the case of company B in 2020. The findings not only point out that the selected energy sector companies survived during the COVID-19 pandemic but also provide valuable insights for future financial planning and corporate bankruptcy risk assessment in the energy sector. Practical Implications: The lockdown of economic activity directly impacted the real sector of the economy. The energy market plays an essential role in the Polish economy. The research shows the crucial role of corporate bankruptcy prediction models for financial practitioners and governmental representatives in monitoring and evaluating the economic and financial standing of the energy sector companies. Originality/Value. This article shows how the resource-based view (RBV) and discriminant models approach can overcome the knowledge gap of current conceptual and methodological attempts to evaluate energy sector companies' economic and financial standing during the COVID-19 pandemic. The analysed discriminant models are a valuable tool for assessing the risk of corporate bankruptcy. Finally, the results may also serve as a basis for further research in economics and finance.