Artykuł przeglądowy Review Article
Data wpływu/Received:25.08.2020
Data recenzji/Accepted: 10.11.2020/30.11.2020 Data publikacji/Published: 31.12.2020
Źródła finansowania publikacji: potencjał badawczy 2020 UE w Katowicach DOI: 10.5604/01.3001.0014.8063
Authors’ Contribution:
(A) Study Design (projekt badania) (B) Data Collection (zbieranie danych) (C) Statistical Analysis (analiza statystyczna) (D) Data Interpretation (interpretacja danych)
(E) Manuscript Preparation (redagowanie opracowania) (F) Literature Search (badania literaturowe)
Katarzyna Żak, PhD A B C D E F
University of Economics in Katowice ORCID 0000-0002-9212-7206
CHALLENGES IN THE SPHERE OF THE FULFILMENT OF INFORMATION OBLIGATIONS BY PUBLIC COMPANIES
IN THE FACE OF THE CORONAVIRUS THREAT WYZWANIA W ZAKRESIE WYPEŁNIANIA OBOWIĄZKÓW
INFORMACYJNYCH PRZEZ SPÓŁKI PUBLICZNE W OBLICZU ZAGROŻENIA KORONAWIRUSEM
Abstract: The crisis caused by the covid-19 coronavirus has caused economic stagnation and financial problems for many companies. Due to the unstable situation in the global economy, companies faced the challenge of proper, reliable reporting of their results in ac-
cordance with the principles of corporate governance according to OECD standards.
Therefore, the study highlights the obligations of managers of public companies related to providing information about the financial and non-financial situation for various players on the capital market. The directions of the search and ad hoc proposals for solutions that may be helpful in current and future investor decisions are also indicated.
The study appliessuch research methods as the review of current domestic and foreign pu- blications and desk research analysis.
Keywords: pandemic, coronavirus, covid-19, investor relations, capital market, crisis, reporting Streszczenie: Kryzys wywołany koronawirusem Covid-19 spowodował zastój gospodarczy i finansowe problemy wielu firm. W związku z niestabilną sytuacją w gospodarce światowej spółki stanęły przed wyzwaniem właściwego, rzetelnego, zgodnego z zasadami corporate governance wg standardów OECD raportowania swoich wyników. W opracowaniu zwró- cono więc uwagę na obowiązki menedżerów spółek publicznych związane z dostarczaniem informacji o sytuacji finansowej i pozafinansowej dla różnych graczy rynku kapitałowego.
Wskazano także kierunki poszukiwań i doraźne propozycje rozwiązań, które mogą być po- mocne w bieżących oraz przyszłych decyzjach inwestorskich. W opracowaniu zastosowano metody badawcze takie jak przegląd aktualnych publikacji krajowych i zagranicznych oraz analiza typu desk research.
Słowa kluczowe: pandemia, koronawirus, Covid-19, relacje inwestorskie, rynek kapitałowy, kryzys, raportowanie
Introduction
The echoes of the 2008 global economic crisis have not yet vanished, when socie- ties, economies and entities operating in them have faced a new challenge of COVID 19 coronavirus spreading around the world, and the outbreak of the pandemic. It seems obvious that the operational, tactical, and strategic business goals determined many months ago must be redefined, as the coronavirus has revised most of the com- panies’ plans. The current crisis makes many entities face the need to change their way of operating. In addition, it seems that for the next year or two, or maybe even longer, we will be affected by a number of additional restrictions regarding the way we move, communicate or conduct business relations, and this in turn will force changes in the way of functioning. This is particularly important in the case of public compa- nies operating on the capital market, which are facing specific requirements regarding relations with shareholders, investors, and other stakeholders. These principles are included in the OECD recommendations concerning corporate governance.
Therefore, the purpose of the study is to draw attention to the obligations of managers of public companies related to providing information about the financial and non-financial situation for various players on the capital market. This is of cru-
cial importance in the context of a pandemic crisis and the resulting uncertainty.
Hence the search and proposals for ad hoc solutions that may be helpful in current and future investor decisions.
The research methods applied in the study include a review of current domestic and foreign publications and desk research analysis.
Chapter I: COVID-19 pandemic – the business environment perspective
The COVID-19 pandemic is the first in modern times to cover almost the entire globe in such a short time. The world is currently experiencing a new type of eco- nomic and health crisis that is putting severe pressure on the global economy and all enterprises. According to the experts of Allianz Research and the Economic Analysis Department of Euler Hermes, the global GDP in the second quarter of 2020 will re- port a decline by (-15%) year to year, and the global GDP forecast for the whole year has been adjusted downwards from 2.5% in 2019 to 0.5% at the end of 2020 (tab. 1).
Table 1. Real GDP growth (%,y/y) Tabela 1. Wzrost PKB (%, r/r)
Specification 2017 2018 2019 Forecast
2020 2021
World GDP growth 3.3 3.1 2.5 0.5 3.1
USA 2.4 2.9 2.3 0.5 2.7
Eurozone members 2.7 1.9 1.2 -1.8 2.1
Latin America 0.9 1.0 0.1 -1.8 1.6
Asia 5.4 4.9 4.4 2.3 4.7
Middle East 1.2 1.1 0.6 0.1 2.2
Africa 3.1 2.7 1.9 0.4 2.4
Source: developed on the basis of L. Subran (ed.), COVID-19: Quarantined Economics, Al- lianz SE, Munich, 2020, p. 3.
It is predicted that the world economy will experience the deepest recession since the end of World War II, although it will affect various regions of the world to a different extent. In connection with the pandemic, it is also estimated that there will also be an increase in the number of bankruptcies of enterprises worldwide by 14% in 2020, and 65 million workers throughout the European Union may need support due to the loss of a job1.
1 L. Subran (ed.), COVID-19: Quarantined Economics, Allianz SE, Munich 2020, p. 2.
Since March 2020, prestigious consulting companies, such as Ernst & Young or PwC Global, have been conducting surveys among managers regarding their assess- ment of the impact of the pandemic crisis on the economy and the entities managed by them. Still in January this year, about 47% of managers assessed the perspective on the global economic growth very positively, while 18% of them had negative expectations. The situation changed dramatically in the next few months, when the crisis related to the pandemic became a fact, i.e. only 23% of the surveyed managers are expecting economic growth in the near future, and as many as 46% of them have pessimistic expectations in this regard (Fig. 1)2.
Figure 1. Managerial perspective on the global economic growth
Rysunek 1. Menedżerskie przewidywania dotyczące globalnego wzrostu gospodarczego
Source: developed on the basis of S. Krouskos, How do you find clarity in the midst of a cri- sis?, The Global Capital Confidence Barometer 2020, Ernst & Young, p. 2.
The sudden and unexpected nature of COVID-19 has compelled executives to re-evaluate operating models. While building agility and resilience have been domi- nant themes for much of the past decade, the unique nature of the current situation has left many companies unprepared. Hence the first reflections on which areas of the enterprise management system and to what extent, should be rethought and modified (Fig. 2) occurred.
2 The Ernst & Young study was conducted among 2,900 managers from 46 countries. They represent- ed 14 sectors (Financial Services, Consumer Products and Retail, Technology, Life Sciences, Automo- tive and Transportation, Oil & Gas, Power & Utilities, Mining and Metals, Advanced Manufacturing, and Real Estate, Hospitality and Construction), with a diversified organizational and legal form and different revenues.
47 23
35 31
18 46
0% 20% 40% 60% 80% 100%
before the impact of COVID-19 after the impact of COVID-19
positive stable negative
Figure 2. Areas of management system that require changes because of the COVID-19 pan- demics
Rysunek 2. Obszary systemu zarządzania wymagające zmian z powodu pandemii CO- VID-19
Source: developed on the basis of S. Krouskos, How do you find clarity in the midst of a cri- sis?, The Global Capital Confidence Barometer. 2020, Ernst & Young, p. 3.
The complete or partial closure of some countries or parts of them (e.g. China) caused that decisions regarding companies’ supply chains are considered first, i.e.
52% of managers want to reconfigure them, and 40% plan to re-analyse them. The result of a pandemic is not only a disease or quarantine of many people, but also staying at home due to the lockdown. Therefore, 39% of surveyed managers started to change the management of human resources in their enterprises, 36% of them consider the acceleration of changes in the field of automation a priority, and 31%
decided to undertake digital transformation projects.
Many conducted studies show that company managers have very pessimistic forecasts concerning revenue and or profit in this year (Fig. 3).
Figure 3. Expectations of managerial staff regarding changes in profits / revenues in 2020 due to the COVID-19 pandemic (%)
Rysunek 3. Oczekiwania kadry menedżerskiej dotyczące zmian zysków/przychodów w 2020 r. z powodu pandemii COVID-19
Source: developed on the basis of PwC, COVID-19 CFO Pulse, 1-11 June 2020, https://www.
pwc.com/gx/en/issues/crisis-solutions/covid-19/global-cfo-pulse.html [accessed: 20.07.2020].
52 36 31 39
40
41 38 35
8 23 31 26
0%
20%
40%
60%
80%
100%
global supply chain speed of automation digital transformation managing worforce
no change
we need to re- evaluate
we are taking steps to change
7 8 4
7 6
14
31 23
0 5 10 15 20 25 30 35
Increase revenue/profits No expected impact to revenue/ profits Difficult to assess at this point Decrease but range unknown Decrease > 50%
Decrease 25% to 50%
Decrease 10% to 24.9%
Decrease < 10%
%
In a survey conducted in June 2020, as many as 81% of the managerial staff in- dicated a smaller or larger decline in the profitability of the enterprises they were managing. In the opinion of 54% of the respondents of the PwC Global consulting company, the revenues / profits may decrease by as much as 25% this year, while the extremely pessimistic forecasts, i.e. a decrease in revenues / profits by over 50%, represent 7% of surveyed managers. But also 7% of them count on an increase in the profitability of their enterprises. Differences in opinions about the growth or decline of revenues and / or profits mainly result from two reasons, i.e. the region and the industry in which the business is conducted (automotive and transporta- tion, advanced Manufacturing and consumer are most affected by the pandemic)3.
On the basis of the presented synthetic diagnosis of the impact of the covid-19 pandemic on the business environment, it should be clearly stated that we currently live in a time when it cannot be predicted what will actually happen to the economy and the entities operating in it. The scenarios that economists were creating at the beginning of the year assumed economic growths, and we were concerned about how much lower these growths would be in comparison with the last year. Actually, those scenarios are dreams today. Most likely there will be no economic growth in 2020, and in fact we have to face the recession.
Chapter II: The capital market and public companies in the face of the covid-19 pandemic
The pandemic we are facing is changing the world economy. Due to its scale, unprecedented in at least 100 years, it is a source of macroeconomic shock. Its range and force of impact affect not only the activity of market mechanisms, but also so- cial behaviour and individual people4.
Despite rather gloomy prospects presented in Chapter I, it should be noted that we are dealing with a very unusual phenomenon on the stock exchanges during a pan- demic. As H. Marks notes, the world is struggling with a pandemic, and the economy with a recession. Meanwhile, the stock market at the time has recovered from the beginning of the pandemic and is approaching the historic heights it was at, when the economic outlook for the world and the US was very good5. We can also observe a similar phenomenon on the Polish capital market. In February this year, the mar- kets began to experience a coronavirus crash, which resulted in the worst quarter of the WIG20 in history. Later, however, the companies began to strongly recover. After
3 PwC Global, COVID-19 CFO Pulse, 1-11 June 2020, https://www.pwc.com/gx/en/issues/crisis- solutions/covid-19/global-cfo-pulse.html [accessed: 20.07.2020]; L. Subran (ed.), COVID-19…, p. 3.
4 D. Standerski, A. Wójtowicz, Koronawirus. Gospodarka wstrzymuje oddech [Coronavirus. Economy holds its breath], Fundacja Kaleckiego, Warszawa 2020, p. 3.
5 H. Marks, The anatomy of rally, Oaktree Capital Management, L.P. 2020, p. 1.
a long stagnation in the brokerage industry, recent months have brought the strongest increase in the number of accounts opened for nearly a decade. Equity funds were also trembled, and after a long period of bear market they could finally boast of inflows. All this resulted in a breakthrough in trading on the WSE. Although the Warsaw market had been experiencing a serious crisis before the pandemic, in March the average session turnover exceeded PLN 1.1 billion, which is an unprecedented value in re- cent years. Derivatives were also gaining in popularity, and the New Connect market began to experience a real boom6. The situation on the Polish capital market was un- doubtedly influenced by the aid in the form of the anti-crisis shield. It is estimated that by the beginning of July 2020, about 30 listed companies had already benefitted from it, while other large companies are planning to use it after the consent granted by the European Commission. his situation certainly contributed to the fact that so far we do not have a wave of bankruptcies in the entire economy, also among listed companies7.
This corona-boom is explained by such facts as: investors’ confidence in the driv- ing power of governments and international institutions in recovering the economy after lockdown (monetary and fiscal policy), optimism in the sphere of reducing and overcoming the pandemic (e.g. thanks to invention of a drug/vaccine) and the loss of investment attractiveness by bonds, which pushes capital towards shares, and the activation of the FOMO mechanism, i.e. fear of missing out an investment op- portunity on the stock market8.
However, excessive optimism of investors should be hampered by reflections on the risks brought by the pandemic and lockdown, i.e.9:
− There is a high probability of a second wave of Covid-19.
− Governments will not want a second lockdown, so the second wave will have much worse health, social and economic effects than the first.
− There is a concern that an effective drug/vaccine will not be invented soon..
− There will be disastrous macroeconomic data for the next quarters and for the entire 2020. It is also difficult to estimate whether they are already reflected in prices.
− The implementation of the aid policy will be halted or discontinued.
− Many sectors (e.g. airlines, retail, catering, tourism) – can have huge prob- lems for more than a few months.
− There may be a wave of bankruptcies of large listed companies.
− High inflation may appear as a result of actions of central banks.
6 A. Torchała, Koronawirus napędza przychody GPW [Coronavirus increases the WSE revenues], https://www.
bankier.pl/wiadomosc/Koronawirus-napedza-przychody-GPW-7884701.html [accessed: 24.07.2020].
7 J. Bies, Prezes GPW: Powrót do wzrostów na giełdzie może świadczyć o wierze inwestorów w miarę szybkie odbicie gospodarek [WSE President: The return to the increases on the stock exchange may prove investors’ belief that the economies will recover quickly], Monitor Rynkowy, https://monitorrynkowy.
pl/prezes-gpw-powrot-do-wzrostow-na-gieldzie-moze-swiadczyc-o-wierze-inwestorow-w-miare- szybkie-odbicie-gospodarek/ [accessed: 27.07.2020].
8 H. Marks, The anatomy…, p. 4.
9 Ibidem, p. 5.
In view of the presented facts and the high probability of overestimation of the value of many listed companies, it seems appropriate to recall the role of reliably presented information about the company’s operations. At this point, itis important to emphasize the importance of applying the principles of corporate governance according to OECD standards, under which joint-stock companies should create conditions for transparency and comprehensiveness of publishing financial and non-financial information in accordance with stringent, internationally recognized standards. The corporate`s information system should ensure that timely and accu- rate disclosure is made on all material matters regarding the corporation, including the financial situation, performance, ownership, and governance of the company.
In many countries a large amount of information, both mandatory and volun- tary, is compiled on publicly traded and large unlisted enterprises, and subsequently disseminated to a broad range of users. Public disclosure is typically required, at a minimum, on an annual basis though some countries require periodic disclosure on a semi-annual or quarterly basis, or even more frequently in the case of material developments affecting the company. A strong disclosure regime that promotes real transparency is a pivotal feature of market-based monitoring of companies and is central to shareholders’ ability to exercise their ownership rights on an informed basis. The dis- closure can also be a powerful tool for influencing the behaviour of companies and for protecting investors. A strong disclosure regime can help to attract capital and maintain confidence in the capital markets, while a weak disclosure and non-transparent practices can contribute to unethical behaviour and to a loss of market integrity at great cost, not just to the company and its shareholders but also to the economy as a whole. Shareholders and potential investors require access to regular, reliable and comparable information in sufficient detail for them to assess the stewardship of management, and make informed decisions about the valuation, ownership and voting of shares. Insufficient or unclear in- formation may hamper the ability of the markets to function, increase the cost of capital and result in a poor allocation of resources.
There are not expected to disclose information that may endanger company’s com- petitive position unless disclosure is necessary to fully inform the investment decision and to avoid misleading the investor. In order to determine what information should be disclosed at a minimum, many countries apply the concept of materiality. Material information can be defined as information whose omission or misstatement could in- fluence the economic decisions taken by users of information. There is very important to simultaneous reporting of information to all shareholders in order to ensure their equitable treatment. In maintaining close relations with investors and market partici- pants, companies must be careful not to violate this fundamental principle of equitable treatment. The OECD guidelines also emphasise the creation of appropriate ICT infra- structure and solutions so that the access to information is real10.
10 OECD, The OECD Principles of Corporate Governance, 2004, .https://oecd.org/corporate/.../cor- porategovernanceprinci. pdf [accessed: 6.12.2020].
Chapter III: Financial reporting of public companies during the pandemic – selected issues
The turmoil related to the outbreak of the pandemic resulted in the fact that many enterprises, especially public companies, faced the challenge related to pro- viding reliable and careful information about their operation – both for the previ- ous year (2019) and for the current periods (e.g. subsequent quarters of 2020). The European Securities and Markets Authority (ESMA) issued a recommendation for issuers in this matter. According to it, issuers should ensure transparency of infor- mation about the actual and potential effects of the pandemic, on the basis of reli- able qualitative and quantitative analysis of their operations, financial situation, and financial results11.
The current observations and experiences allow for indicating the critical areas related to the operations of companies that have been currently affected by the pan- demic crisis. These are in particular: a decline in the activity of consumers and en- trepreneurs, downtimes in factories, problems with maintaining the supply chain, complete suspension of activity in some industries, volatility on foreign exchange market (sudden weakening of the Polish zloty against EUR and USD) and capital market (sharp drops and increases in stock quotes), high price fluctuations on mar- kets of raw materials (e.g. crude oil), challenges related to remote work, problems with recruitment for jobs in certain industries and the risk of breaking contracts with customers, suppliers and corporate financing institutions. In the long term, the functioning of companies will be affected by the spectre of a long-term global recession and unemployment, many bankruptcies in the company’s environment (concerning customers, suppliers or subcontractors) as well as more difficult access to financing sources and the need to renegotiate concluded contracts. Considering the above-mentioned areas, attention should be paid to the key elements that may affect the company’s financial situation and its financial statements (Tab. 2).
11 ESMA’s position on the impact of the COVID-19 epidemic on half-yearly financial reports, 20 May 2020, https://www.knf.gov.pl/aktualnosci?articleId=69812&p_id=18 [accessed: 21.07.2020].
Table 2. Areas related to the impact of the Covid-19 coronavirus pandemic on financial po- sition and financial statement of a company.
Tabela 2. Obszary związane z oddziaływaniem pandemii koronawirusa Covid-19 na sytu- ację finansową spółki i jej sprawozdania finansowe
Sphere Comment
Impact on business operations
Many Companies, directly or indirectly, will experience the effects of the cur- rent situation in the country and in the world, however the impact on each of them will be different. When assessing the operational situation, often also including the possibility to continue the business activity, it is important to rely on rational facts, estimates and expectations concerning the future,and openly communicate with the market so as not to lose credibility.
Appraisal of non-fi- nancial as- sets
Temporary suspension or limitation of business operations, decline in demand, decrease of generated profits both for the company and its contractors may lead to the emergence of premises for impairment of assets.
The approach to valuation applied so far may not be appropriate, and the adop- ted assumptions require revision and updating, which is especially difficult in such an unpredictable situation as the covid-19 pandemic.
Impairment of financial assets
The approach of expected credit loss, introduced by IFRS 9, in the situation where many entities face liquidity problems, may be particularly difficult to ap- ply. It is therefore even more important that it is made correctly and reflects the company’s expectations for the future as much as possible.
In most cases, the models and scenarios adopted by the companies did not an- ticipate the situation which the companies are struggling with due to the pan- demic.
Fair value fluctuations
Large fluctuations in market prices affect the value of assets carried at fair valu- es. In particular, those solely based on market values are subject to significant changes and may have a significant impact on the structure of the balance sheet.
Fair value measurement models from level 3 * may need to be updated, and consider market volatility, which requires further assessments and estimates.
Disclosure of informa- tionin reports and finan- cial state- ments
Doubts may arise as to when the impact of events caused by the pandemic sho- uld be taken into account, what scope of disclosure is appropriate in such a si- tuation to properly inform stakeholders about the company’s standing, whether to postpone the reporting deadline and in what form to provide information.
Due to the high uncertainty of the current situation, the presented reports, especially with regard to the assumptions, estimates and judgments made, may significantly affect the understanding and perception of the financial situation, the impact of COVID-19 on the company’s operations and the possibility to continue its business operations.
*The Company classifies fair value measurements using the fair value hierarchy, which takes into account the significance of the input data for the measurement. The fair value hierarchy is made up of three levels: 1, 2 and 3.
Source: based on Wpływ COVID 19 na raportowanie finansowe spółek publicznych [Impact of COVID 19 on financial reporting in public companies], PwC 23.04.2020, https://www.pwc.pl/
pl/artykuly/raportowanie-finansowe-w-dobie-covid-19.html [accessed: 24.07.2020].
There was a solution among the practical proposals that made it possible to post- pone the following by two months in relation to the existing regulations:
− the date of preparation, approval, and publication of annual separate and consolidated financial statements for the financial year ended December 31, 2019,
− conducting an Ordinary General Meeting,
− approving the remuneration policy for members of the management board and the supervisory board.
This recommendation of the Polish Financial Supervision Authority is also to be applied for reports for the first quarter of 2020, which may be published 60 days later than the existing regulations, according to which it had to be done within 60 days from the end of the quarter12.
Taking into account the identified areas related to the impact of the COVID-19 coronavirus pandemic on the company’s financial situation and its financial state- ments, management boards of companies should initiate specific actions in the sphere of financial reporting, which include13:
• Establishing key financial indicators for the company and their continuous monitoring,
• Review and implementation of changes concerning the impairment model and adopted assumptions and estimates,
• Development of information related to the impact of COVID-19 on the company’s operations in financial statements for 2019 and interim reporting (2020),
• Taking into account the impact of COVID-19 on the methodology and adopted assumptions regarding revenue estimation,
• Review and implementation of changes related to impairment models for non-financial assets and adopted assumptions and estimates,
• Development of information provided to the market as part of current reports,
• Taking actions related to the restructuring of financing (e.g. changing the structure of financing sources, modifying financing conditions, or renegotiating leasing agreements),
• Analysis of instruments within hedge accounting,
• Including other issues in the financial data, such as: penalties for failure to meet contract terms, the influence of the government’s „anti-crisis shield” (obliga- tory reduction of rents, received support, etc.).
Finally, it should be added that the situation caused by the pandemic, prompts managers to make radical decisions about restrictions in various areas of their busi-
12 Supervisory Impulses Package for Safety and Development. in the area of capital market – additional information – Urząd Komisji Nadzoru Finansowego [The Polish Financial Supervision Authority], March 27, 2020, https://www.knf.gov.pl/aktualnosci?articleId=69300&p_id=18 [accessed: 21.07.2020].
13 Wpływ COVID 19 na raportowanie finansowe spółek publicznych [The impact of COVID 19 on the financial reporting of public companies], PwC, 23.04.2020, https://www.pwc.pl/pl/artykuly/rapor- towanie-finansowe-w-dobie-covid-19.html [accessed: 24.07.2020].
ness operations. Most often they concern operational activities and activities related to the workforce, where cost cuts or postponement of investments are planned by 47% and 40% of them, respectively. On the other hand, realizing that OECD cor- porate governance rules impose obligations to ensure high standards in terms of information and infrastructure necessary for the continuous submission of reports on the situation of the company, managers are reluctant to adjust budgets related to investor relations, digital transformation and communication (Fig. 4).
Figure 4. Areas of cost cuts or postponement ofinvestments due to the COVID-19 pandemic Rysunek 4. Obszary objęte cięciem kosztów lub odroczeniem inwestycji z powodu pandemii COVID-19
Source: developed on the basis of PwC, COVID-19 CFO Pulse, 1-11 June 2020, https://www.
pwc.com/gx/en/issues/crisis-solutions/covid-19/global-cfo-pulse.html [accessed: 22.07.2020].
Conclusions
We are all waiting to see what direction the global economy will move towards, what shape the rebound will take (V or U), how quickly it will happen, and in which industries. The epidemic forces both the companies and their stakeholders to adapt to a different reality, and at the same time to think about how to prepare for the so- called “New normality”.
Research shows that despite negative forecasts for the near future of the global economy, many investors already plan for the future, after the current crisis. As many as 61% of them expect an increase in the interest in mergers and acquisitions (M&A) in the market in 2021, 30% of them expect that they will remain unchanged, and only 9% expect a decrease. This means perceiving the current crisis as an op- portunity for many of them to obtain underestimated valuable assets, especially in the field of modern technologies or innovative start-ups14.
The analysis of the results of stock exchanges shows that the pandemic brought a rather unexpected change. This is because the increased interest in the stock market
14 L. Subran (ed.), COVID-19…, p. 11.
47%
40%
31%
14%
11%
10%
8%
3%
Operations Workforce IT R&D Digital transformation Environmental, social and governance activities Customer experience Cybersecurity or privacy
does not result from a fundamental improvement in the situation of companies and the market environment, but rather from fashion and special (hopefully – quickly passing) circumstances, which are not solid foundations for development and growth.
In dealing with the current crisis, companies should therefore pay special atten- tion, firstly – to those areas of operational activity that were particularly affected after the outbreak of the pandemic (e.g. supply chains), and secondly – to commu- nication. In the latter case, it means making efforts to provide reliable and verifiable information (about their situation) and creating conditions (primarily electroni- cally) to be obtained by interested groups of recipients.
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Author’s resume:
Katarzyna Żak – the author›s scientific interests focus on the issues of corporate governance, management in international business, the use of controlling as a method supporting the man- agement of a modern enterprise and green economy. Interested in the meanders of politics, good music, and books.
Nota o Autorze:
Katarzyna Żak – zainteresowania naukowe autorki skupiają się na tematyce dotyczącej corpo- rate governance, zarządzania w biznesie międzynarodowym, wykorzystania controllingu jako metody wspierającej zarządzanie współczesnym przedsiębiorstwem oraz zieloną gospodarką.
Interesuje się meandrami polityki, dobrą muzyką i książką.
Contact/Kontakt:
Katarzyna Żak
Uniwersytet Ekonomiczny w Katowicach Katedra Zarządzania Przedsiębiorstwem ul. 1 Maja 50
40-287 Katowice tel. +48 32 257 7304
e-mail: katarzyna.zak@ue.katowice.pl
