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Influence Threshold Margin on Value Migration Processes

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Information Systems Architecture and Technology: Proceedings of 40th Anniversary International Conference on Information Systems Architecture and Technology – ISAT 2019 (ISAT 2019)

Part of the book series: Advances in Intelligent Systems and Computing ((AISC,volume 1052))

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Abstract

The paper presents results of empirical research on the relationship between reaching threshold margin by the companies and value migration processes. The analyzes were conducted based on companies listed on the Polish capital market, data from 2001–2014 were used. The dependence between the surplus of the company’s profitability and threshold margin determined according to the Rappaport formula and the assignment companies to the value migration phase according to Siudak was examined. The research has shown that achieving ROS over the minimum margin is not the only factor conditioning value creation, other non-financial factors can be decisive. In the group of companies qualified for the value building phase, there were companies that did not reach the threshold margin. Moreover, on average in the entire research sample, the operating profitability was lower than the threshold margin by over 3% points, although the median in the group of companies included in the value building phases is positive. It was also noted that companies which are qualified for value building phase showed a lower negative difference between profitability and threshold margin than companies qualified for the stabilization phase and value destroying phase. The statistical significance of these results was confirmed.

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Notes

  1. 1.

    We didn’t decide to use this data for analysis because this approach significantly reduced the research sample size.

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Authors and Affiliations

  1. Wroclaw University of Science and Technology, Wroclaw, Poland

    M. J. Kowalski & Ł. Biliński

Authors
  1. M. J. Kowalski
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  2. Ł. Biliński
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Correspondence to M. J. Kowalski .

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Editors and Affiliations

  1. University of Applied Sciences in Nysa, Nysa, Poland

    Zofia Wilimowska

  2. Faculty of Computer Science and Management, Wrocław University of Science and Technology, Wrocław, Poland

    Leszek Borzemski

  3. Faculty of Computer Science and Management, Wrocław University of Science and Technology, Wrocław, Poland

    Jerzy Świątek

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Kowalski, M.J., Biliński, Ł. (2020). Influence Threshold Margin on Value Migration Processes. In: Wilimowska, Z., Borzemski, L., Świątek, J. (eds) Information Systems Architecture and Technology: Proceedings of 40th Anniversary International Conference on Information Systems Architecture and Technology – ISAT 2019. ISAT 2019. Advances in Intelligent Systems and Computing, vol 1052. Springer, Cham. https://doi.org/10.1007/978-3-030-30443-0_3

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