Globalization and Its Socio-Economic Consequences, Volume II

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

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.