Macroeconomic Conditions of the Financial Efficiency of Food Industry Enterprises

Abstract

Subject and purpose of work: The subject of this research was the financial efficiency of large food industry enterprises in Poland, and its aim was to determine the strength and direction of the impact of key macroeconomic factors on the level of financial efficiency of those enterprises.

Materials and methods: Data from the Central Statistical Office, the results of own research as well as literature on the problem were used. The research period covered the years 2005-2018. Dynamic panel models were applied in the study.

Results: The results of the statistical analysis showed, inter alia, that the explanatory variable responsible for the increase in financial efficiency in the food industry was primarily the consumption dynamics in the preceding year. Its growth by 1 pp. ceteris paribus was related to an increase in the EBITDA margin of food industry enterprises by over 0.23 pp on average.

Conclusions: The main conclusion concerned the statement that the rise in the inflation rate had a negative impact on the financial efficiency of food industry enterprises, while the increase in GDP, consumption and accumulation had a positive effect.