Globalization and Its Socio-Economic Consequences, Volume II
23rd International Scientific Conference Proceedings
Summary
Designed to spark interdisciplinary dialogue, these proceedings bring together contributions from scholars, researchers, and business professionals, fostering a deeper understanding of globalization's dynamics. By highlighting research and practical perspectives, this book aims to inform and inspire those engaged in navigating the globalized landscape.
Excerpt
Table Of Contents
- Cover
- Halftitle Page
- Title Page
- Copyright Page
- Contents
- Examining the effects of minimum wage growth on flexibility in employment in European Union: Catalyst or constraint?
- Ataraxia of corporate profitability in V4 countries
- The impact of the Covid-19 pandemic on the transatlantic stock market dependence
- The impact of globalization on the evolution of foreign direct investments in Romania
- Railway passenger market liberalization in EU – what are the consequences and future development vision?
- May the force be with construction in the V4 region!
- Evaluation of the effectiveness of active labour market policy instruments: Globally-utilized methods
- COVID-19 as a global phenomenon and its impact on corporate debt level in Slovakia
- What changes occurred in the cash conversion cycle of industrial enterprises during the covid pandemic?
- The economic efficiency of Visegrad group Spas
- Consequences of COVID-19 on financial markets
- The role of intermediaries in the development of inflation in the Russian economy
- Position of the informal private primary schools in Nairobi after the reintroducing universal primary education
- Ex-ante analysis of selected multinational companies operating in the engineering industry
- The connection between working capital and the performance of selected enterprises in the Slovak Republic
- Financial management of municipalities during the covid-19 crisis
- The impact of the current geopolitical situation on retail companies in Latvia
- Analysis of changes in stock price correlations before and during the COVID-19 pandemic
- Life cycle in the context of corporate finance: Bibliometric analysis
- Impact of education on well-being in OECD in the European countries
- Identification of financial performance due application of factor analysis on companies in the waste industry in countries of the Visegrad group
- Does ESG have an impact on a company’s financial performance? Evidence on European listed companies and ESG Analytics.io AI database for the COVID-19 period
- Information beyond the borders: HFCS data and financial analysis of private business in Slovakia
- Slovak and Czech flat market analysis
- Phonetic analysis of inaugural address of Harry S. Truman with global economic and political aspects
- The global impact of the COVID-19 pandemic on public health care expenditure in relation to economic performance
- Knowledge of financial literacy found on the model of the Slovak Republic as a global starting point for application in the countries of the Vysegrad Four
- The impact of globalization on the Czech Republic’s net international investment position
- Unravelling the threads: Exploring determinants of unemployment and the COVID-19 crisis impact
- Do the changes in international relations have a significant impact on the economy?
- The effects of direct and indirect taxes on economic growth from the aspect of globalization: Evidence from the Republic of North Macedonia
- Consequences of COVID-19 on labour market in Slovakia
- The impact of global challenges on crime committed by foreigners in Slovakia
- Analysis of the impact of applying the new international standard IFRS 17 – Insurance contracts on the financial statements of insurance companies
- The impact of the global pandemic crisis on inflation in the Czech Republic
- Analysis of selected stock before, during and after the Covid-19 pandemic, using the GARCH model
- The relevance of globalisation to authenticity of marketing in the sales process of assurance products
- Employees perception on home office in the period after the COVID-19 pandemic
- Human resources management – the impact of firm size, gender and education on entrepreneurs’ attitudes
- Localization or globalization? Which approach is better for places branding?
- The importance of strategy implementation and control in effective management decision-making processes
- Sales expansion at S.C Foldo Creative Studio SRL in the context of globalization
- Online customer relationship management in the decision-making processes of potential cultural tourism visitors
- Interim management in conditions of Slovak Republic
- Strategic management tools and their application in the conditions of globalisation in the Slovak Republic
- Dialogue of cultures in the global economy: Territory branding and promotion of cultural values
- Consumer purchase intention in the metaverse: A generational approach
- Strategic analysis of learning and growth based on balanced scorecard in present-day global economic environment
- Milk and dairy products consumption and possible future development regarding global consumer trends
- The impact of globalisation on customer purchase behaviour and its relationship with customer lifetime value in an international e-commerce environment
- The influence of key factors on delivery service provider selection Amidst Global trends
- Understanding consumer behaviour in fast fashion: A cluster Analysis Approach
- Changing consumer behaviour in the gastro sector in Slovakia after the global pandemic COVID-19
- The influence of sensory marketing on consumer purchasing behaviour in the age of globalization
- Organization and security: Public interest disclosures and whistleblowing
- Ensuring continuity and preparedness of the enterprise for adverse situations by connecting processes of business continuity management and risk management
- Content marketing as relationship marketing tool: Study of consumer purchase intention in the context of e-commerce
- Slovakia – a small plucky Ruritania?
- Online reputation management of Slovak teaching hospitals during the global pandemic
- Strategic management of bus transport companies in the Slovak Republic and its global specifics during the COVID-19 pandemic
- Challenges and perspectives of globalization in the current business world: Analysis of marketing approaches in business organizations
- Honey in the digital age: Understanding purchasing behaviour among the igeneration in a globalized world
- Coaching approach as a sustainable means of improving communication skills of management students
- Ethics education world-wide: How to boost its impact on organizational culture
- The perception of effects of selected internet marketing communication tools on consumer purchasing behavior
- Competency model of top-management employees bringing value for customer within automotive industry in term of globalization
- Customer 3.0 – the importance of marketing tools in his purchasing behavior
- Innovative approaches to researching consumer purchasing behaviour
- The importance of the product market expansion strategy for the development of Latvian premises cleaning companies due to the impact of globalization processes
Matus Barath1,*, and Dusana Alshatti Schmidt2
Examining the effects of minimum wage growth on flexibility in employment in European Union: Catalyst or constraint?
Abstract:
Research background: Minimum wage regulations hold the potential to affect various dimensions of the labor force, going beyond just economic effects to include social, demographic, and employment-related factors. The European Union, as a diverse conglomerate of member states, each with unique economic structures and social environments, provides an interesting context for exploring how minimum wage policies interact with flexible work arrangements.
Purpose of the article: The purpose of the paper is to identify the relationships between minimum wage regulations and the distribution of part-time, temporary, and work from home workers. This knowledge presents a chance to provide empirically based insights to the ongoing conversation about labor market strategies and is essential for creating informed policies that balance economic progress and worker well-being.
Methods: Data were collected from Eurostat database for years 2019 and 2022. Regression, correlation analysis, and descriptive statistical methods were employed to analyze how the variables are interrelated.
Findings & Value added: The findings suggest a significant positive correlation between minimum wage and the proportion of part-time and work from home workers. On the other hand, the connection between minimum wage and the percentage of temporary workers is less pronounced. While there is still a correlation, it is relatively weaker compared to the correlation observed with part-time and work from home workers. This suggests that changes in minimum wage have a less direct impact on the prevalence of temporary employment within the studied context compared to part-time or work from home employment.
Keywords: minimum wage, part-time employment, temporary employment, work from home, flexible working
JEL Classification: J8, J81, M16, M54
1. Introduction
Turbulent changes in the field of employment are always associated with changes in the labor market and other economic variables that significantly influence development. However, the reasons can be different. Countries in the European Union (EU) must subsequently respond to these impacts in order to maintain sustainability and economic growth. The uncertainty of development is partly influenced by flexible forms of work, which can somewhat solve the rigidity of the market.
The benefits of labor market flexibility provide new opportunities for employees and employers with an emphasis on striving for a better work-life balance or solving employment crisis. A pivotal aspect of this dynamic lies in the prevalence of part-time employment, temporary work arrangements, and the burgeoning trend of remote work. The proportion of part-time and temporary workers has demonstrated variances across EU nations, influenced by factors such as productivity, labor market flexibility, industry structures, and legal frameworks (Morikawa, 2023). Simultaneously, the advent of remote work, accelerated by technological advancements and the global events of the past years such as pandemic (Nyberg et al., 2021), has redefined traditional notions of workspaces and employment modalities.
The principle of flexible work can be perceived as a compromise advantageous to both parties. However, it turns out that the wage level exerts the most significant influence, depending on other environmental factors (Maarek & Moiteaux, 2021). In many countries, governments raise the minimum wage annually, considering it the best tool and an established trend to combat rising prices and potential poverty (Neumark & Corella, 2021). Flexible work helps involve groups with other social obligations in the work process. Nevertheless, when wages are too low to cover basic needs, these positions remain unfilled. In this context, various questions arise that do not have clear answers due to influences such as the minimum wage amount, inflation, or overall employment in the country (Majchrowska, 2022).
Based on various research studies, this issue has been investigated for a long time, and because of these phenomena, the question arises: Is the constant change in the minimum wage a catalyst or constraint on flexibility in employment?
One of the main purposes of this research is to identify possible relationships between minimum wage regulations and the distribution of part-time, temporary, and work from home workers.
1.1. Minimum wage in compliance of flexibility
According to the ILO (1970), the minimum wage is defined as the legally established lowest salary that an employer can pay to its employees. This amount is typically determined based on economic conditions, the cost of living, and social factors in the country or region. The minimum wage can affect the living conditions of workers and their ability to meet basic needs, which cannot be reduced by collective agreements or an individual contract. However, in some cases, the minimum wage could play a role in catalyzing an increase in the cost of living conditions (Yamagishi, 2021).
A traditional issue in the area of the minimum wage is its impact on employment and unemployment. Some studies suggest that an increase in the minimum wage may lead to lower employment, as organizations may have difficulty financing higher labor costs and their economic profits may not keep up with the increased costs of the new wage level or the expected work done in relation to the wage disrupts the relationship (Sousounis & Lanot, 2022; Andriopoulou & Karakitsios, 2022; Glasner, 2023). In many cases, the minimum wage is not decisive because it can vary between industries or sectors of the economy. This can
lead to different impacts on employment and the economy depending on cities, regions, and industries (Dong-Hee & Seongman, 2020).
The minimum wage is often associated with inflation. There are concerns that raising the minimum wage could cause inflation, as firms could raise the prices of their goods and services to cover the cost of increased wages. However, most research has not confirmed a strong relationship between the minimum wage and inflation (Brummund & Strain, 2020; Kolodii et al., 2021).
Other studies have found that the impact on employment is not as negative as assumed, and that raising the minimum wage can improve the living conditions of low-wage workers by providing them with better wages and working conditions. In many cases, the minimum wage does not reach the living wage, so increasing it can help reduce worker poverty (Tkacova et al., 2022; Fedorets & Shupe, 2021). These authors primarily focused on the connection of macroeconomic indicators with the minimum wage, which is traditionally used as a benchmark in various comparisons. Comparisons with flexible forms of employment are not as conventional, and therefore, there is not enough research and evidence in this area that specifically focuses on the relationship between work from home or temporary work and the minimum wage.
For some employees, flexible working can be a means to reach or exceed the minimum wage. They may work more hours or combine multiple jobs to attain the income they need. In some cases, a low minimum wage can lead to an increased popularity of flexible forms of work, such as part-time work, freelance work, or self-employment. Individuals may choose flexible work options to augment their income by combining various work opportunities. However, workers in flexible forms of employment may sometimes have less protection in terms of the minimum wage and other social benefits (Heimberger, 2021; Asadpour et al., 2023).
The most well-known flexible form of work from the perspective of time flexibility is part-time employment, which is often associated with the average wage rather than the minimum wage. As the average wage for individual employees increases, the desire to work fewer hours or in shortened or half-time positions becomes more prominent (Wojcak & Barath, 2017). However, the impact of minimum wages on the use of part-time jobs can also have an effect from the opposite side. Some individuals who were previously not in the workforce or had chosen not to work, primarily due to the inability of their income to cover basic needs and housing expenses, may decide to join the employment process (Yonezawa et al., 2022).
2. Methods
The primary objective of this study was to investigate the relationship between minimum wage changes and the prevalence of various forms of flexible work arrangements within EU. Specifically, the study focused on understanding how variations in minimum wage rates might affect the percentages of part-time workers, temporary workers, and individuals working from home in EU countries.
2.1. Data
Data were collected from Eurostat database for years 2019 and 2022. Minimum wages were implemented in 21 out of the 27 EU Member States. For the minimum wage, two amounts, S1 and S2, were set in individual years, which could vary according to the legislative regulations of the respective country. For the purposes of the research, an average value was calculated for the values of S1 and S2 in the years 2019 and 2022.
Some countries do not have an officially or legislatively established national minimum wage, a recommended or local wage is mentioned instead. For research purposes, these countries were excluded – Austria, Denmark, Italy, Cyprus, Finland, Sweden.
Table 1. ISO 3166-1 Alpha 2 country codes EU
Belgium |
Bulgaria |
Czechia |
Germany |
Estonia |
Ireland |
Greece |
Spain |
France |
Croatia |
Latvia |
Lithuania |
Luxembourg |
Hungary |
Malta |
Netherlands |
Poland |
Portugal |
Romania |
Slovenia |
Slovakia |
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
BE |
BG |
CZ |
DE |
EE |
IE |
GR |
ES |
FR |
HR |
LV |
LT |
LU |
HU |
MT |
NL |
PL |
PT |
RO |
SI |
SK |
Source: Iban (2023) https://www.iban.com/country-codes
In this study, ISO 3166-1 Alpha 2 country codes were utilized to represent the countries under examination within the figures and tables (Table 1).
Figure 1. Minimum wage in EU countries (Euro)
Source: own elaboration
In most of the listed European countries, there was an increase in the minimum wage levels from 2019 to 2022 (Eurostat, 2023a). This suggests a general trend of upward adjustments in minimum wage rates across the region.
Figure 2. Employed persons working part-time in EU (%)
Source: own elaboration
The magnitude of the increase varies from country to country. Some countries, like Luxembourg (LU), Belgium (BE), Slovenia (SI), and Lithuania (LT) witnessed significant increases, while others, such as Malta (MT), Hungary (HU), or Bulgaria (BG) experienced minimal increases. On the other hand, Luxembourg (LU) consistently had the highest minimum wage in both 2019 and 2022, followed by countries like Ireland (IE), Belgium (BE), and Netherlands (NL). Bulgaria (BG) had one of the lowest minimum wages in both years, along with countries like Latvia (LV) and Romania (RO). (Figure 1).
The data reveals variations in the percentage of part-time workers across the listed European countries for both 2019 and 2022 (Eurostat, 2023b). Several EU countries saw an increase in the percentage of part-time workers. Notably, Estonia (EE), Netherlands (NL), and Luxemburg (LU) had a substantial increase, possibly indicating a change in labor market dynamics. On the other hand, while Hungary (HU) and Croatia (HR) maintained relatively stable percentages of part-time workers, Germany (DE) experienced a significant decrease, followed by the other studied countries (Figure 2).
Figure 3. Employed persons with temporary contract in EU (%)
Source: own elaboration
The data demonstrates fluctuations in the proportion of temporary workers among the European countries listed for both 2019 and 2022 (Eurostat, 2023c). Germany (DE) and Estonia (EE) had relatively stable percentages of temporary workers. Only three countries saw a slight increase in the percentage of temporary workers, including France (FR), Romania (RO), and Lithuania (LT). Conversely, Poland (PL) and Spain (ES), and the other studied European countries experienced a significant decrease in the percentage of temporary workers (Figure 3).
Figure 4. Employed persons working from home in EU (%)
Source: own elaboration
The data reveals an upward trend in the percentage of workers adopting work from home arrangements across the European countries listed, both in 2019 and 2022 (Eurostat, 2023d). These shifts in percentages may have been influenced, at least in part, by the COVID-19 pandemic. While Greece (EL), Romania (RO), and Poland (PL) maintained relatively consistent work from home percentages, countries such Ireland (IE), Belgium (BE), or Germany (DE) notably saw a substantial rise in the percentage of work from home workers, followed by other listed countries (Figure 4).
2.2. Data analysis
The research methodology employed a comprehensive set of analytical techniques to investigate the association among variables. Initial exploration involved calculation of an average for minimum wage in studied years (2019 and 2022). Subsequently, descriptive statistical methods and advanced statistical techniques, including regression analysis, analysis of variance (ANOVA), and correlation analysis were applied to uncover the underlying associations.
The primary objective of the study was to assess how minimum wage levels influence the percentage of part-time workers, temporary workers, and individuals engaged in remote work within the EU. To achieve this objective, a statistical modelling approach was adopted as the analytical framework. Given its wide accessibility and user-friendly interface, the study employed the Analysis ToolPak, an MS Excel add-in program, for conducting data analysis.
The study’s central research question was formulated as follows: Does the increase in minimum wage support or hinder the adoption of flexible work arrangements?
Accordingly, the hypotheses were formulated:
H01:The minimum wage has no effect on the percentage of part-time workers.
H02:The minimum wage has no effect on the percentage of temporary workers.
H03:The minimum wage has no effect on the percentage of work from home workers.
3. Results
The key parameters derived from the regression analysis, ANOVA, and correlation analysis of part-time, temporary, and work-from-home workers with respect to the minimum wage in EU countries for two different years, 2019 and 2022, which are essential for assessing the acceptance or rejection of the hypothesis are summarized and presented in Tables 2, 3, and 4.
3.1. Minimum wage and the percentage of part-time workers
Table 2. Minimum wage and part-time workers in EU [2019 and 2022]
Part-time workers |
Parameter |
2019 |
2022 |
F |
39.257 |
37.713 |
|
df |
20 |
20 |
|
r |
0.821 |
0.815 |
|
p-value |
0.000005 |
0.000007 |
|
t |
6.266 |
6.141 |
Source: own elaboration
H01:The minimum wage has no effect on the percentage of part-time workers.
The F-statistic, correlation coefficient ®, and low p-values in both 2019 and 2022 indicate a strong and highly significant positive linear relationship between the percentage of part-time workers and minimum wage in EU countries (Table 2). In the context of regression analysis, a positive correlation coefficient in 2019 (r = 0.821) and in 2022 (r = 0.815) suggests that as the minimum wage increases, the percentage of part-time workers also tends to increase. The p-values in 2019 and 2022 indicate that this correlation is statistically highly significant (p < 0.001).
Considering that, the minimum wage is in a positive correlation with the percentage of part-time workers in both studied years and the linear relationship is highly significant (p < 0.001), hence the null hypothesis can be rejected.
3.2. Minimum wage and the percentage of temporary workers
Table 3. Minimum wage and temporary workers in EU [2019 and 2022]
Temporary workers |
Parameter |
2019 |
2022 |
F |
2.216 |
3.524 |
|
df |
20 |
20 |
|
r |
0.323 |
0.396 |
|
p-value |
0.152 |
0.075 |
|
t |
1.489 |
1.877 |
Source: own elaboration
H02:The minimum wage has no effect on the percentage of temporary workers.
In both years (2019 and 2022), the F-statistic suggests that there is some level of significance in the relationship between temporary workers and minimum wage in EU countries (Table 3). The correlation coefficient ® is positive in both years, indicating a positive linear relationship between temporary workers and minimum wage. However, the relationship is stronger in 2022 (r = 0.396) compared to 2019 (r = 0.323). The p-value is above 0.05 in 2019 (0.152), suggesting that the relationship is not statistically significant at a conventional significance level (e.g., 0.05). However, in 2022, the p-value (0.075) is closer to 0.05, indicating that the relationship may be statistically significant (p < 0.05). The t-statistic is greater in 2022 (1.877) compared to 2019 (1.489), suggesting that the relationship is more statistically significant in 2022.
The correlation coefficients ® are positive, but they are not exceptionally high. This suggests that while there may be some correlation, it is not a very strong one, which supports the idea that the minimum wage may not have a significant effect on the percentage of temporary workers. While these results may provide some support for the hypothesis, further research and analysis may be necessary to draw more conclusions that are definitive.
3.3. Minimum wage and the percentage of work from home workers
Table 4. Minimum wage and work from home in EU [2019 and 2022]
Work from home workers |
Parameter |
2019 |
2022 |
F |
28.722 |
45.034 |
|
df |
20 |
20 |
|
r |
0.776 |
0.839 |
|
p-value |
0.00004 |
0.000002 |
|
t |
5.359 |
6.711 |
Source: own elaboration
H03:The minimum wage has no effect on the percentage of work from home workers.
The F-statistic has increased from 2019 to 2022, suggesting that the relationship between the percentage of work from home workers and minimum wage is more statistically significant in 2022 (Table 4). In both years, there is a positive correlation between the percentage of work from home workers and minimum wage, with the correlation being stronger in 2022 (r= 0.839) compared to 2019 (r = 0.776). This indicates a stronger linear relationship between these variables in 2022. In both years, the p-value is very small (p < 0.001), implying that there is a highly significant relationship between the percentage of work from home workers and minimum wage in EU countries. The p-value in 2022 is even smaller, indicating a stronger relationship compared to 2019. The t-statistic is higher in 2022, further confirming that the relationship between the percentage of work from home workers and minimum wage is stronger in 2022 (6.711) compared to 2019 (5.359).
Given the strong positive correlation between the minimum wage and the percentage of work from home workers in both years of the study, and the highly significant linear relationship (p < 0.001), the null hypothesis can be rejected.
4. Discussion
In many countries, the flexible arrangements examined in this paper are being replaced by other options aimed at improving work-life balance for employees. Differences in minimum wage levels, legislation, regulations, and labor codes contribute to variations in the adoption of flexible work arrangements. These differences can either promote the use of flexible forms in some countries or hinder it in others. Additionally, political, and legislative changes, though challenging to quantify, play a significant role. A low minimum wage combined with flexible work can lead to discussions about the necessity of enhancing working conditions and ensuring sufficient income for all workers. This research confirms the logical inference and economic interdependence of individual variables.
When the minimum wage increases, there is a tendency for the percentage of part-time workers to also rise. This correlation is statistically highly significant. Conversely, increasing the minimum wage can help individuals who are on the brink of poverty find employment, improve their financial conditions, and housing opportunities, leading them to decide to work rather than remain unemployed due to low income.
This research indicates a positive linear relationship between temporary workers and the minimum wage. The relationship is more statistically significant in 2022 but not significant enough to establish causation. The proportion of temporary workers can also be influenced by factors such as seasonality or the duration of the contract when participating in projects.
Based on the results, a highly significant relationship exists between the percentage of work from home workers and the minimum wage in the EU, with the minimum wage having a stronger influence in 2022 compared to 2019. This dependence is primarily a result of the impact of the COVID-19 pandemic, which led to a transformation of many lower-paid positions into irregular or regular work-from-home arrangements after nearly two years of disease-related measures. This shift also affects the net income of the worker, who no longer needs to commute for work, making these positions more advantageous.
4.1. Limitations and future research directions
Positive correlation provides information about the general trend or pattern in the relationship between the variables (minimum wage and the percentage of part-time, temporary, and work from home workers). However, it is important to note that correlation does not necessarily imply causation. While there is a statistical relationship between these variables, other factors or variables could be influencing this relationship, and further analysis would be needed to determine the underlying causes.
Furthermore, the regression analysis suggests that there is a statistically significant and positive relationship between minimum wage and work from home workers in EU countries. This relationship appears to have strengthened from 2019 to 2022, as indicated by the higher correlation coefficient, F-statistic, and lower p-values in 2022. These findings can be valuable for policymakers and researchers interested in understanding the dynamics between remote work and minimum wage in the EU.
Acknowledgements
Authors, Matus Barath and Dusana Alshatti Schmidt are grateful to all researchers and participants for their contributions in this research paper.
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* Corresponding author: matus.barath@fm.uniba.sk
1 Comenius University Bratislava, Faculty of Management, Odbojarov 10, 820 05 Bratislava, Slovakia
2 Kuwait College of Science and Technology, Doha Area, Kuwait
Roman Blazek1,*, and Pavol Durana1
Ataraxia of corporate profitability in V4 countries
Abstract:
Research background: The company’s profitability serves as a comprehensive instrument for conducting a thorough financial and economic analysis of a business entity. In addition to encompassing aspects of liquidity, activity, and debt, profitability sheds light on various crucial facets of an organization’s financial health. By delving into the nuances of profitability, analysts can derive objective insights that are fundamental to understanding the overall performance and sustainability of the business.
Purpose of the article: Profitability is mistakenly interpreted as a secure tool, which is a significant error. These instruments have a significant impact on corporate profitability because corporate liquidity, activity, and debt all have an impact. This article examines the state and evolution of corporate profitability, which other business analysis tools might threaten.
Methods: For the purposes of this article, internationally recognised methods of financial and economic analysis as well as statistical analysis tools implemented via the Excel XLStat add-on were utilised. The financial statements were retrieved from the ORBIS database. Each business was required to possess a minimum of €200,000 in assets.
Findings & Value added: The article’s added value consists of a summary of the evolution of corporate profitability in selected enterprises of the V4 nations, which demonstrates their effectiveness in generating profits from the subject of business.
Keywords: profitability, Visegrad Four, ataraxia
JEL Classification: G32, L25, M21
1. Introduction
In an era characterised by rapid globalisation and dynamic economic landscapes, the pursuit of corporate profitability stands as a paramount objective for businesses across the globe. The Vysehrad Group (V4) countries, comprising Hungary, Poland, Slovakia, and the Czech Republic, have emerged as significant players in the European economic framework. Their strategic location, skilled workforce, and robust industrial bases have propelled them onto the international stage, inviting a closer examination of the factors that contribute to corporate success within this dynamic region.
This study embarks on an exploration of a concept fundamental to corporate equilibrium: ataraxia. Borrowed from ancient Greek philosophy, ataraxia signifies a state of serene equanimity, a harmonious balance achieved through a judicious interplay of internal and external forces. In the context of corporate profitability, ataraxia connotes the attainment of a sustainable, steady-state condition where business enterprises navigate through challenges, capitalise on opportunities, and maximise their financial gains.
Against this backdrop, this article endeavours to dissect the intricate tapestry of ataraxia within the context of corporate profitability in V4 countries. By delving into the multifaceted dimensions of economic policies, market dynamics, and industry-specific nuances, we aim to discern the key determinants that facilitate a state of equilibrium conducive to robust financial performance.
Furthermore, this contribution also focuses on presenting the overall profitability of the V4 countries and their specified NACE codes through computational software and graphical representations. This approach aims to provide a more precise approximation of the state of corporate profitability ataraxia in the V4 countries, making it more comprehensible not only for the expert audience but also for the scientific community.
Through this exploration, we endeavour to not only deepen our understanding of the intricate dynamics at play but also provide a strategic roadmap for businesses seeking to thrive in this vibrant economic region. In doing so, we aim to contribute to the evolving discourse on corporate profitability by adding a nuanced perspective rooted in the specificities of the V4 economic landscape.
1.1. Literature review
In the pursuit of understanding corporate profitability within the V4countries, a spectrum of studies has emerged to unravel the multifaceted determinants of financial success. At the heart of this inquiry lies the intricate relationship between intellectual capital and financial leverage, as investigated. Their findings shed light on the pivotal role played by firm profitability in shaping financial structures, highlighting the significance of intangible assets. Emerging economies, a pivotal focus of Xu et al. (2022) research, confront the interplay between energy crises, firm profitability, and productivity. This perspective offers critical insights into the challenges faced by businesses in resource-intensive sectors, emphasizing the dynamic nature of economic environments. Distinguishing between voluntary and mandatory CSR disclosure, their research unveils the potential for responsible business practices to drive profitability. Expanding the horizon to consider broader economic contexts, Kafouros et al. (2022) navigate the influences of formal and informal institutions on firm profitability. Their investigation illuminates the intricate web of institutional environments and their consequential effects on corporate performance, underlining the significance of regulatory frameworks.
In a realm where technological progress is pivotal, Li and Fu (2022) provide a dynamic analysis of abatement technology innovation, worker productivity, and firm profitability. This study situates technological advancements as pivotal drivers of profitability, particularly in industries characterized by rapid technological change. Complementing these studies, Habib et al. (2022) examination of the influence of operating capital and cash holdings on firm profitability adds a crucial dimension. Their insights into the strategic management of liquidity highlight its crucial role in navigating financial stability. Audit quality attributes and firm profitability, as explored by Aljaaidi (2023), deepen the understanding of the role of auditing practices in ensuring financial robustness. This dimension of financial management is critical in maintaining the integrity of financial operations. Nguyen et al. (2023) unique perspective on the relationship between capital structure and firm profitability in Vietnamese listed companies adds a contextual layer. This study provides context-specific insights into financing strategies within a specific economic milieu. Alnaim and Kouaib (2023) examination of inventory turnover and firm profitability in Saudi Arabia further contributes to the understanding of operational efficiency and financial performance. This study highlights the importance of efficient resource utilization in driving profitability. Ahmed et al. (2023) exploration of the effect of firm size on the association between capital structure and profitability underscores the nuanced interplay between corporate scale and financial strategies. This dimension is particularly relevant in understanding the financial dynamics of businesses at varying scales. As the landscape of business operations evolves, Vitolla et al. (2023) exploration of circular economy disclosure in sustainability reporting provides critical insights. Their study enriches the understanding of sustainability reporting practices and their impact on firm profitability. Demiraj et al. (2022) investigation of the impact of working capital management on profitability in the European automotive industry considers both pre- pandemic and pandemic periods. This temporal dimension provides insights into the resilience of financial operations in the face of significant economic disruptions. Vukovic et al. (2023) use of regression and machine learning methods to predict the performance of retail market firms further enriches the discussion. Their study provides valuable insights into the factors influencing retail sector profitability. Ghardallou and Alessa (2022) investigation of the relationship between corporate social responsibility and firm performance in GCC countries employs a panel smooth transition regression model. This methodological approach adds depth to the understanding of the dynamics between responsible business practices and financial outcomes. Bui et al. (2023) study on the effect of capital structure on firm value in companies listed on the Vietnamese Stock Market introduces a financial valuation perspective. This study provides insights into the mechanisms through which financial decisions influence firm value. Zhu et al. (2023) examination of the effect of open innovation on manufacturing firms’ performance in China, with consideration to the moderating role of social capital, brings innovation dynamics into focus. This study highlights the intricate relationship between innovation strategies and financial outcomes. In the realm of specific industries, Candeias and Dias (2023) explore the impact of working capital on wine companies’ profitability in the Old World. This sector-specific analysis provides insights into the financial dynamics of the wine industry. Wang et al. (2023) investigation into sustainable innovation and firm performance, driven by FinTech policies and moderated by capital adequacy ratio, sheds light on the evolving landscape of financial technology. This study provides critical insights into the interplay between technological advancements and financial performance. The unprecedented disruptions brought about by the COVID-19 pandemic are at the forefront of Blazek et al. (2023) analysis. Their study assesses the impact of firm size and profitability under new management, offering insights into the changing dynamics of business profitability in the face of external shocks. Syafrizal et al. (2023) analysis of the effect of capital adequacy ratio, non-performing financing, financing to deposit ratio, operating expenses, and operational income on profitability at PT. Bank Aceh Syariah provides a window into the financial dynamics of the banking sector. This study offers critical insights into the financial health of banks. Mirza et al. (2023) exploration of the role of fintech in promoting green finance and profitability in the banking sector in the euro zone brings forth a forward-looking perspective. Their research highlights the intersection of financial technology and sustainable finance, offering a glimpse into the future of financial services. These studies, collectively, form a rich tapestry of research contributing to the understanding of factors influencing corporate profitability. Each study provides a unique lens through which to analyze the intricate dynamics of financial success. By synthesizing these insights, this study endeavors to elucidate the nuanced dynamics of corporate profitability within this dynamic economic region.
2. Materials and methods
Following is a description of the methodology employed in this study to analyse the ataraxia of corporate profitability in the V4 nations. This rigorous methodology was developed to guarantee accurate and trustworthy insights into the economic performance of these nations. The utilisation of median profitability values, sourced from reputable state and international economic databases, formed the bedrock of our analysis. Through systematic data collection, meticulous verification, and exhaustive processing, we aimed to provide a comprehensive understanding of the V4 region’s economic landscape.
Figure 1. Process overview
Source: own elaboration
Data collection
For the analysis of corporate profitability ataraxia in the V4 countries, we utilized median profitability values obtained from accessible data sources. These data provided a comprehensive overview of the economic performance of states within the specified region. We considered the median values for each of the following countries: Hungary, Poland, Slovakia, and the Czech Republic.
Data sources
The median values were acquired from official state and international economic databases. These data were meticulously verified and processed to ensure accuracy and reliability. We adhered to standards and methodologies widely accepted in the field of economic analysis.
Data Analysis
Data analysis was carried out using Microsoft Excel software. This tool afforded us the requisite flexibility for visualizing and comparing median profitability values for each state. We employed Excel’s functions and tools to generate graphs, tables, and statistical methods necessary for comparison and pattern identification.
Classification by V4 countries
For a more specific analysis, each median value was associated with its corresponding V4 country. This categorization allowed us to group individual values according to the respective countries within the V4. This classification system was instrumental in evaluating performance disparities among the V4 nations.
Statistical Measures
For the purpose of analysis, we employed standard statistical methods, focusing exclusively on medians. Additionally, in the statistical software Excel, we utilized future value predictions to demonstrate both positive and negative trends in the profitability of each country. These trends were then compared, based on actual results in 2021, with the forecast.
3. Results and discussion
Within the chapter titled “Results and Discussion,” our focus was on developing graphical representations of individual outcomes, as well as forecasting the future state of profitability in 2021. This was accomplished through the collection and comparison of selective data spanning from 2016 to 2020.
First, we calculated the median values for the Slovak Republic in each respective year. The data is captured in the table 1.
Table 1. The Development of Profitability Values in the Slovak Republic Over the Monitored Period
2016 |
2017 |
2018 |
2019 |
2020 |
|
---|---|---|---|---|---|
ROA |
0.032146 |
0.030736 |
0.031078 |
0.029108 |
0.031275 |
ROE |
0.113648 |
0.111932 |
0.107456 |
0.093690 |
0.095081 |
ROS |
0.021377 |
0.022183 |
0.021390 |
0.020085 |
0.023144 |
Source: own research
Subsequently, median values were computed for the Czech Republic in individual years. The data is documented in the table 2.
Table 2. The Development of Profitability Values in the Czech Republic Over the Monitored Period
2016 |
2017 |
2018 |
2019 |
2020 |
|
---|---|---|---|---|---|
ROA |
0.047620 |
0.049555 |
0.046792 |
0.041994 |
0.042978 |
ROE |
0.107386 |
0.106168 |
0.097802 |
0.090702 |
0.085510 |
ROS |
0.033978 |
Details
- Pages
- XII, 884
- ISBN (PDF)
- 9783631924761
- ISBN (ePUB)
- 9783631924778
- ISBN (Hardcover)
- 9783631924662
- DOI
- 10.3726/b22206
- Language
- English
- Publication date
- 2025 (May)
- Keywords
- circular economy sharing economy marketing research decision-making management finance globalization economics innovation digitization sustainability
- Published
- Berlin, Bruxelles, Chennai, Lausanne, New York, Oxford, 2025. xii, 884 pp., 133 fig. b/w, 148 tables.
- Product Safety
- Peter Lang Group AG