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Impact of Macroeconomic Shocks on Financial Performance and Risk Management: A Case Study of LPP SA During the COVID-19 Pandemic and the Ukraine War

Author

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  • Ewelina Sokołowska

    (Department of Digital Economy and Finance, Faculty of Management and Economics, Gdańsk University of Technology, 80-233 Gdańsk, Poland)

  • Mariusz Chmielewski

    (Department of Business Economics, Faculty of Management, University of Gdansk, 80-309 Gdańsk, Poland)

  • Anna Dziadkiewicz

    (Department of Marketing, Faculty of Management, University of Gdansk, 80-309 Gdańsk, Poland)

Abstract

This study analyses the impact of two major macroeconomic shocks—the COVID-19 pandemic and the Ukraine war—on the financial stability of LPP SA, a leading apparel company in Poland and Central and Eastern Europe. This research uses the coefficient of variation to assess changes in financial volatility and evaluates the effectiveness of LPP SA’s risk management strategies. The findings reveal that, while the COVID-19 pandemic had a more destabilising effect on the company’s performance, the Ukraine war’s impact was mitigated by strategic diversification and resource reallocation. The study’s implications are relevant for risk management practices in the apparel industry and other consumer-driven sectors.

Suggested Citation

  • Ewelina Sokołowska & Mariusz Chmielewski & Anna Dziadkiewicz, 2024. "Impact of Macroeconomic Shocks on Financial Performance and Risk Management: A Case Study of LPP SA During the COVID-19 Pandemic and the Ukraine War," Risks, MDPI, vol. 12(12), pages 1-23, December.
    • Handle: RePEc:gam:jrisks:v:12:y:2024:i:12:p:195-:d:1536064
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    References listed on IDEAS

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    2. Abel Brodeur & David Gray & Anik Islam & Suraiya Bhuiyan, 2021. "A literature review of the economics of COVID‐19," Journal of Economic Surveys, Wiley Blackwell, vol. 35(4), pages 1007-1044, September.
    3. Fama, Eugene F, 1970. "Efficient Capital Markets: A Review of Theory and Empirical Work," Journal of Finance, American Finance Association, vol. 25(2), pages 383-417, May.
    4. Izzeldin, Marwan & Muradoğlu, Yaz Gülnur & Pappas, Vasileios & Petropoulou, Athina & Sivaprasad, Sheeja, 2023. "The impact of the Russian-Ukrainian war on global financial markets," International Review of Financial Analysis, Elsevier, vol. 87(C).
    5. Sharif, Arshian & Aloui, Chaker & Yarovaya, Larisa, 2020. "COVID-19 pandemic, oil prices, stock market, geopolitical risk and policy uncertainty nexus in the US economy: Fresh evidence from the wavelet-based approach," International Review of Financial Analysis, Elsevier, vol. 70(C).
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