Financial Factors Explaining Value Migration: Evidence from Central Europe

Kubiak, Jarosław; Czapiewski, Leszek; Lizińska, Joanna

Financial Factors Explaining Value Migration: Evidence from Central Europe

Central European Economic Journal

Volume 10 (2023): Issue 57 (January 2023)

By: Jarosław Kubiak

, Leszek Czapiewski

and Joanna Lizińska

Open Access

|Jun 2023

Figures & Tables

Research conceptSource: Authors’ own study

Cash ratio as operating activity value driver

Year	Industry	CS			CD			HC			In			IT
Year	Tercile / Value	L	U	*U-L*	L	U	*U-L*	L	U	*U-L*	L	U	*U-L*	L	U	*U-L*
2016	Mean	0.3 ***	0.5 ***	0.2	0.6 ***	0.4 ***	−0.2	0.4 ***	0.7 ***	0.3 *	0.4 ***	0.4 ***	0.0 ***	0.6	0.6 ***	0.0
2016	Median	0.2 ***	0.3 ***	0.1	0.3 ***	0.3 ***	0.0	0.3 ***	0.7 ***	0.4 *	0.2 ***	0.3 ***	0.1 ***	0.5	0.5 ***	0.0
2017	Mean	0.5 ***	0.4 ***	−0.1	0.3 *******	0.4 *******	0.1	0.5 *******	0.8 *******	0.3	0.3 *******	0.4 *******	0.1	0.5 *******	0.7 *******	0.2 *
2017	Median	0.3 ***	0.3 ***	−0.0	0.2 *******	0.2 *******	0.0 *	0.3 *******	0.5 *******	0.2	0.2 *******	0.3 *******	0.1 **	0.3 *******	0.6 *******	0.3 **
2018	Mean	0.3 ***	0.4 ***	0.1	0.3 *******	0.4 *******	0.1	0.6 *******	0.6 *******	−0.0	0.4 *******	0.3 *******	−0.1	0.6 *******	0.4 *******	−0.2 **
2018	Median	0.2 ***	0.2 ***	−0.0	0.2 *******	0.2 *******	0.0	0.4 *******	0.3 *******	−0.1	0.3 *******	0.1 *******	−0.2 ***	0.5 *******	0.3 *******	−0.2 ***
2019	Mean	0.3 ***	0.4 ***	0.1	0.3 *******	0.3 *******	−0.0	0.4 *******	0.7 *******	0.3 *	0.3 *******	0.4 *******	0.1	0.6 *******	0.6 *******	−0.0
2019	Median	0.1 ***	0.2 ***	0.1 *	0.2 *******	0.2 *******	0.0	0.2 ***	0.4 *******	0.2 *	0.1 *******	0.2 ***	0,1 ***	0.3 ***	0.4 *******	0.1
2020	Mean	0.5 ***	0.8 ***	0.3	0.5 ***	0.4 ***	−0.1	0.9 ***	0.6 ***	−0.3	0.5 ***	0.5 ***	0.0	0.6 ***	0.7 ***	0.1
2020	Median	0.2 ***	0.6 ***	0.4 ***	0.3 ***	0.2 ***	−0.1	0.6 ***	0.3 ***	−0.3 *	0.3 ***	0.4 ***	0.1	0.5 ***	0.6 ***	0.1

Return on sales as operating activity value driver (%)

Year	Industry	CS			CD			HC			In			IT
Year	Tercile / Value	L	U	*U-L*	L	U	*U-L*	L	U	*U-L*	L	U	*U-L*	L	U	*U-L*
2016	Mean	11.0 *******	7.0 *******	−4.0	6.4 *******	6.1 *******	−0.3	10.2 *******	7.1 **	−3.1	4.2 *******	5.8 *******	1.6	4.1 *******	7.0 *******	2.9
2016	Median	8.0 *******	6.3 *******	−1.7	5.4 *******	4.5 *******	−0.9	10.4 *******	9.4 **	−1.0	3.8 *******	5.9 *******	2.1	4.1 *******	5.5 *******	1.3
2017	Mean	4.6	7.9 *******	3.3	5.7 *******	4.8 *******	−0.9	9.6 *******	9.4 *******	−0.2	4.6 *******	7.6 *******	3.0 ***	3.5 **	8.5 *******	5.0 **
2017	Median	4.3 **	8.5 *******	4.2	5.6 *******	5.1 *******	−0.6	13.0 *******	12.7 *******	−0.3	3.1 *******	7.2 *******	4.2 ***	3.2 *******	7.9 *******	4.7 ***
2018	Mean	8.8	3.0	−5.8	4.6 *******	1.9	−2.7	9.1 *******	2.6	−6.5	7.2 *******	2.3 **	−4.9 ***	8.1 *******	2.1	−6.0 ***
2018	Median	9.5 *******	4.6	−4.9	5.3 *******	3.7 *	−1.6	11.6 *******	4.8	−6.8	6.6 *******	3.8 *******	−2.8 ***	6.6 *******	3.3 **	−3.3 ***
2019	Mean	8.9 *******	8.6 *******	−0.3	4.5 *******	1.7	−2.8	2.6	11.0 *******	8.4 ***	4.9 *******	6.5 *******	1.6	2.8 *	5.5 *******	2.7
2019	Median	8.1 *******	6.0 *******	−2.1	4.7 *******	3.5 *	−1.2	2.0 *	7.4 *******	5.4 ***	4.0 *******	6.1 *******	2.1 **	4.5 *******	6.0 *******	1.5
2020	Mean	6.0	6.9 **	0.9	0.5	3.2	2.7	8.3 ***	8.2 ***	0.1	1.8	4.7 ***	2.9 *	4.2 **	8.7 ***	4.5 **
2020	Median	10.5 **	6.3 ***	−4.2	3.9 **	3.1	−0.8	10.2 ***	7.7 ***	−2.5	3.3 ***	4.9 ***	1.6 *	4.3 ***	8.0 ***	3.7 ***

Capex ratio as investment activity value driver (%)

Year	Industry	CS			CD			HC			In			IT
Year	Tercile / Value	L	U	*U-L*	L	U	*U-L*	L	U	*U-L*	L	U	*U-L*	L	U	*U-L*
2016	Mean	5.0 ***	2.9 ***	−2.1	4.5 ***	3.9 ***	−0.5	3.4 ***	2.7 ***	−0.8	3.3 ***	3.9 ***	0.6	3.6 ***	3.3 ***	−0.3
2016	Median	2.4 ***	2.7 ***	0.3	3.8 ***	3.2 ***	−0.6	2.6 ***	2.5 ***	−0.1	2.4 ***	3.2 ***	0.8 **	2.6 *******	1.9 ***	−0.7
2017	Mean	2.7 ***	5.2 ***	2.5 **	3.7 *******	4.5 *******	0.7	3.0 *******	2.9 *******	−0.1	3.3 *******	3.9 *******	0.6	2.9 *******	4.2 *******	1.3 **
2017	Median	1.2 ***	3.9 ***	2.7 **	3.3 *******	3.4 *******	0.2	2.5 *******	1.8 *******	−0.6	2.5 *******	3.3 *******	0.9 *	2.0 *******	3.0 *******	1.0 **
2018	Mean	3.8 ***	2.8 ***	−1.0	5.1 *******	3.5 *******	−1.6 *	3.1 *******	3.4 *******	0.3	4.4 *******	3.2 *******	−1.2 **	3.9 *******	2.4 *******	−1.5 **
2018	Median	1.8 ***	1.8 ***	0.0	3.2 *******	2.3 *******	−0.8 *	1.7 *******	2.5 *******	0.9	3.7 *******	2.1 *******	−1.6 ***	2.6 *******	1.3 *******	−1.3 ***
2019	Mean	4.3 ***	2.3 ***	−2.0 *	4.2 *******	3.3 *******	−0.9	3.1 *******	3.7 *******	0.6	3.6 *******	4.0 *******	0.4	3.2 *******	3.3 *******	0.1
2019	Median	2.5 ***	1.1 ***	−1.5 *	2.9 *******	2.1 *******	−0.8	1.7 ***	3.4 *******	1.6	2.5 *******	3.1 ***	0.5	1.5 ***	1.6 *******	0.1
2020	Mean	3.3 ***	2.8 ***	−0.6	3.0 ***	2.3 ***	−0.7	2.5 ***	2.9 ***	0.4	3.3 ***	2.9 ***	−0.4	2.3 ***	2.8 ***	0.5
2020	Median	1.9 ***	1.5 ***	−0.4	1.9 ***	1.6 ***	−0.3	1.4 ***	2.3 ***	0.9	2.3 ***	2.4 ***	0.0	1.3 ***	2.0 ***	0.7

Leverage as financing activity value driver (%)

Year	Industry	CS			CD			HC			In			IT
Year	Tercile / Value	L	U	*U-L*	L	U	*U-L*	L	U	*U-L*	L	U	*U-L*	L	U	*U-L*
2016	Mean	47.6 ***	42.4 ***	−5.2	50.5 ***	503. ***	−0.2	38.4 ***	33.8 ***	−4.6	55.3 ***	53.4 ***	−1.9	45.3 ***	52.4 ***	7.1 *
2016	Median	53.8 ***	42.6 ***	−11.3	52.3 ***	54.0 ***	1.7	38.6 ***	30.0 ***	−8.6	57.6 ***	53.1 ***	−4.4	47.2 *******	55.4 ***	8.2
2017	Mean	43.2 ***	48.6 ***	5.4	49.5 *******	51.2 *******	1.7	35.3 *******	36.7 *******	1.4	52.2 *******	58.3 *******	6.1 **	49.2 *******	45.5 *******	−3.7
2017	Median	46.4 ***	50.5 ***	4.1	50.2 *******	53.5 *******	3.3	32.7 *******	31.6 *******	−1.1	54.5 *******	59.3 *******	4.8 **	51.1 *******	42.7 *******	−8.4
2018	Mean	57.4 ***	41.7 ***	−15.6 **	54.2 *******	50.9 *******	−3.3	38.4 *******	39.2 *******	0.8	59.6 *******	50.7 *******	−9.0 ***	44.6 *******	49.9 *******	5.3
2018	Median	56.0 ***	40.7 ***	−15.4 *	55.0 *******	55.2 *******	0.2	37.5 *******	38.5 *******	1.0	60.9 *******	50.7 *******	−10.2 *******	43.9 *******	48.1 *******	4.2
2019	Mean	43.8 ***	60.7 ***	16.9 **	54.3 *******	63.7 *******	9.4 *	38.0 *******	45.8 *******	7.9	55.3 *******	58.8 *******	3.5	44.1 *******	49.0 *******	4.9
2019	Median	42.9 ***	60.0 ***	17.1 **	55.0 *******	61.4 *******	6.4	28.9 ***	45.7 *******	16.8	55.7 *******	61.9 ***	6.2	35.9 ***	50.0 *******	14.1 **
2020	Mean	57.4 ***	48.3 ***	−9.1	58.1 ***	56.4 ***	−1.7	45.4 ***	45.4 ***	0.0	54.6 ***	54.9 ***	0.3	45.7 ***	45.8 ***	0.1
2020	Median	59.8 ***	45.0 ***	−14.8 *	53.9 ***	55.7 ***	1.8	43.0 ***	44.6 ***	1.6	56.9 ***	56.1 ***	−0.8	46.8 ***	44.9 ***	−1.9

Fixed asset productivity as investment activity value driver

Year	Industry	CS			CD			HC			In			IT
Year	Tercile / Value	L	U	*U-L*	L	U	*U-L*	L	U	*U-L*	L	U	*U-L*	L	U	*U-L*
2016	Mean	0.6 ***	0.5 ***	−0.1	0.4 ***	0.3 ***	−0.1	0.8 ***	0.7 ***	−0.1	0.4 ***	0.4 ***	0.0	0.4 ***	0.4 ***	0.0
2016	Median	0.4 ***	0.3 ***	−0.1	0.3 ***	0.3 ***	0.0	0.8 ***	0.4 ***	−0.4	0.3 ***	0.3 ***	0.0	0.4 *******	0.2 ***	−0.1
2017	Mean	0.7 ***	0.5 ***	−0.2	0.4 *******	0.4 *******	0.0	0.8 *******	0.9 *******	0.0	0.4 *******	0.4 *******	0.0	0.3 *******	0.4 *******	0.1
2017	Median	0.2 ***	0.3 ***	0.1	0.2 *******	0.3 *******	0.0	0.7 *******	0.7 *******	0.0	0.3 *******	0.3 *******	0.0	0.3 *******	0.3 *******	0.0
2018	Mean	0.6 ***	0.5 ***	−0.1	0.3 *******	0.6 *******	0.2 **	0.9 *******	0.9 *******	0.1	0.4 *******	0.5 *******	0.1	0.4 *******	0.3 *******	−0.1 *
2018	Median	0.3 ***	0.4 ***	0.1	0.3 *******	0.3 *******	0.0	0.7 *******	0.8 *******	0.1	0.3 *******	0.3 *******	0.0	0.2 *******	0.2 *******	−0.1
2019	Mean	0.8 ***	0.4 ***	−0.3 **	0.5 *******	0.4 *******	−0.2 *	0.8 *******	0.8 *******	0.1	0.4 *******	0.4 *******	0.0	0.4 *******	0.4 *******	0.0
2019	Median	0.5 ***	0.3 ***	−0.2 *	0.4 *******	0.3 *******	−0.1	0.7 ***	0.7 *******	0.0	0.3 *******	0.3 ***	0.0	0.3 ***	0.3 *******	0.0
2020	Mean	0.6 ***	0.5 ***	−0.1	0.7 ***	0.4 ***	−0.3 **	0.8 ***	0.8 ***	−0.1	0.5 ***	0.5 ***	0.0	0.5 ***	0.4 ***	0.0
2020	Median	0.4 ***	0.2 ***	−0.2	0.4 ***	0.3 ***	−0.1 *	0.7 ***	0.8 ***	0.1	0.3 ***	0.3 ***	0.0	0.3 ***	0.4 ***	0.1

Industry year distribution of the sample

Sector / Year	CS	CD	HC	Ind	IT	Total
2016	78	138	83	275	173	747
2017	82	145	84	281	175	767
2018	88	150	86	292	183	799
2019	99	154	93	293	192	831
2020	106	153	97	289	191	836

Change in sales as operating activity value driver (%)

Year	Industry	CS			CD			HC			In			IT
Year	Tercile / Value	L	U	*U-L*	L	U	*U-L*	L	U	*U-L*	L	U	*U-L*	L	U	*U-L*
2016	Mean	6.2	4.1	−2.1	0.7	3.6	3.0	−7.0	3.2	10.2 *	−6.1 *******	1.2	7.3 ***	−4.6	4.0	8.6 **
2016	Median	3.9	2.5	−1.4	0.5 *	4.1	3.7	−1.3	4.0	5.3	−3.9 *******	0.9	4.8 ***	−1.0	5.5 **	6.5 *
2017	Mean	12.2 **	17.1 ***	4.9	19.2 *******	22.3 *******	3.1	24.8 *******	23.1 *******	−1.7	23.7 *******	22.4 *******	−1.2	21.7 *******	25.6 *******	3.9
2017	Median	8.7 **	17.8 ***	9.1	19.7 *******	24.3 *******	4.6	19.2 *******	19.1 *******	−0.1	22.1 *******	19.3 *******	−2.7	13.8 *******	25.8 *******	12.1 **
2018	Mean	0.7	−1.1	−1.8	−0.4	−0.9	−0.5	4.9	−1.4	−6.3	4.8 *******	−0.6	−5.4 **	6.5 *******	−1.9	−8.5 **
2018	Median	−0.5	−1.9	−1.4	−0.5	−3.6	−3.1	−0.1	3.6	3.8	3.5 *******	0.0	−3.5 **	4.6 *******	0.0	−4.6 ***
2019	Mean	−1.8	7.2 *	9.0 *	3.7	0.0	−3.6	2.1	7.5 **	5.4	−2.6 *	1.4	4.1 *	−3.3	9.7 *******	13.1 ***
2019	Median	−0.9	5.3 *	6.2 *	1.9 *	1.0	−0.9	2.4	6.9 **	4.5	−2.0 **	1.3	3.3 ***	−1.9	9.0 *******	10.9 ***
2020	Mean	−8.2 *	5.6	13.7 *	−10.1 **	−4.0	6.1	−5.1	6.9 *	12.0 *	−5.4 **	−0.6	4.8	1.1	10.3 ***	9.2 **
2020	Median	−1.4	8.8	10.2 **	−6.9 ***	−2.3	4.5	3.8	8.9 **	5.0	−2.8 **	0.1	2.8	0.0	13.2 ***	13.2 **

Share in the Industry Migration Balance (%)

Year / Industry	CS	CD	HC	In	IT
2016	15	12	21	31	16
2017	42	60	62	63	79
2018	−62	−91	−65	−89	−95
2019	48	2	22	22	69
2020	63	47	81	43	68

DOI: https://doi.org/10.2478/ceej-2023-0008 | Journal eISSN: 2543-6821 | Journal ISSN: 2544-9001

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Language: English

Page range: 133 - 147

Published on: Jun 23, 2023

Published by: Faculty of Economic Sciences, University of Warsaw

In partnership with: Paradigm Publishing Services

Publication frequency: 1 issue per year

Keywords:

Related subjects:

Business and economics,

Political economics,

Economic theory, systems and structures,

Microeconomics,

Macroeconomics,

Economic policy

© 2023 Jarosław Kubiak, Leszek Czapiewski, Joanna Lizińska, published by Faculty of Economic Sciences, University of Warsaw
This work is licensed under the Creative Commons Attribution 4.0 License.

Previous article Volume 10 (2023): Issue 57 (January 2023)Next article

Financial Factors Explaining Value Migration: Evidence from Central Europe

Figures & Tables

Figure 1.

Figure 2.

Cash ratio as operating activity value driver

Return on sales as operating activity value driver (%)

Capex ratio as investment activity value driver (%)

Leverage as financing activity value driver (%)

Fixed asset productivity as investment activity value driver

Industry year distribution of the sample

Change in sales as operating activity value driver (%)

Share in the Industry Migration Balance (%)

Paradigm

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