Wpływ COVID-19 na kondycję finansową i wycenę giełdową spółek WIG.GAMES5
The Impact of COVID-19 on the Financial Health and the Stock Market Valuation of the WIG.GAMES5 Companies

Summary/Abstract: Purpose: The article aims to assess the impact of the COVID-19 pandemic on the companies included in the WIG.GAMES5 index that is listed on the Warsaw Stock Exchange, for the period 2019–2021. Design/Methodology/Approach: In order to conduct the study quarterly and annual financial statements were used. The financial condition was examined by ratio analysis, while the valuation was carried out using financial multipliers’ analysis. Findings: The results of the ratio analysis led to the conclusion that COVID-19 and the restrictions associated with it had a positive impact on the financial health of the companies included in the WIG.GAMES5 index, inter alia after the outbreak of the pandemic COVID-19 excess liquidity of the companies increased, and the companies recorded the highest values of the return on the sales ratio in 2020. By analyzing both the increase in the market value of the shares of the WIG.GAMES5 companies over the period considered and the decrease in multipliers it was stated that the coronavirus pandemic had a positive impact on the market valuation of the companies over the period considered. Research limitations/Implications: Throughout the studies, some limitations were identified, i.e. the small research sample related to the number of the WIG.GAMES5 companies. Moreover, it was observed that described in the literature on the subject optimal values of ratios used in financial analysis do not apply to video game producers’ companies. Originality/Value: This article deals with the important topic of the impact of the COVID-19 pandemic on the financial health and the stock market valuation of the WIG.GAMES5 companies.

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