Operating risk of polish public companies – sectoral differences

Sławomir Kalinowski

Abstract

All companies which have to pay fixed costs face the problem of operating risk measured by operating leverage. In the case of sales growth (fall), the mechanism of operating leverage accelerates a rise (decrease) in operating profit. The strength of the impact of the operating leverage effect depends on the share of fi xed costs in the structure of operating costs. The bigger the share, the stronger the change in the sale volume multiplies the change in operating profit. This is the reason why companies that are heavily burdened by fixed costs, specifically depreciation, should be characterized as those having a higher level of operating risk. The aim of the research the results of which are presented in this article was to test two hypotheses: firstly, production companies are characterized by a higher level of operating risk than service and trade enterprises and, secondly, the lowest level of operating risk characterizes trade companies.
Author Sławomir Kalinowski (WZ / KM)
Sławomir Kalinowski,,
- Department of Microeconomics
Journal seriesEconomics & Sociology, ISSN 2071-789X, e-ISSN 2306-3459, (B 15 pkt)
Issue year2017
Vol10
No1
Pages22-34
Publication size in sheets0.6
Keywords in Englishoperating risk, degree of operating risk
ASJC Classification2000 General Economics, Econometrics and Finance; 3312 Sociology and Political Science
DOIDOI:10.14254/2071-789X.2017/10-1/2
URL http://www.economics-sociology.eu/files/ES_10_1_Kalinowski.pdf
Languageen angielski
Score (nominal)15
Score sourcejournalList
ScoreMinisterial score = 15.0, 19-03-2020, ArticleFromJournal
Publication indicators WoS Citations = 0; Scopus SNIP (Source Normalised Impact per Paper): 2017 = 1.228
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