Development of financial performance of food retailers as an
attribute behind the increase of food insecurity in selected
Central and Eastern European Countries

J 2023

Development of financial performance of food retailers as an attribute behind the increase of food insecurity in selected Central and Eastern European Countries

DUBANYCH, Oksana; Jan VAVŘINA and Josef POLÁK

Basic information

Original name

Development of financial performance of food retailers as an attribute behind the increase of food insecurity in selected Central and Eastern European Countries

Authors

DUBANYCH, Oksana; Jan VAVŘINA and Josef POLÁK (203 Czech Republic, belonging to the institution)

Edition

Investment Management and Financial Innovations, 2023, 1810-4967

Other information

Language

English

Type of outcome

Article in a journal

Field of Study

50204 Business and management

Country of publisher

Ukraine

Confidentiality degree

is not subject to a state or trade secret

References:

Web časopisu s odkazem na článek

Organization unit

AMBIS University

DOI

https://doi.org/10.21511/imfi.20(4).2023.33

EID Scopus

2-s2.0-85180523850

Keywords in English

food retail chains;business financial performance;food poverty;foodstuff market distortions

Abstract

In the original language

Food insecurity is not a new phenomenon even in leading European economies, but this complex problem area is facing new global challenges. This article traces the research gap in addressing food insecurity by focusing on the role of food retail chains in the former “Eastern Bloc” in light of unprecedented food price inflation and the resulting scale of demand for the services of food banks. Through empirical analysis of secondary financial corporate data, a low level of their profitability in the period of 2011–2019 was revealed, which preceded the synchronicity of two unexpected global economic downturns. Specifically, Return on Sales for food retailers located in the Czech Republic and Hungary was generally below 2%, offset by higher Total Asset Turnover figures, consistent with the need to extend the volume of goods for sale. Development in profitability in selected newer EU member states is just as significantly similar to the situation in Ukraine. The mutual interaction of factors of economic size and the country of residence of business was analyzed regarding a possible influence on their financial performance. This study concluded that the presence of unresolved market distortions can both lead to increased food insecurity and, paradoxically, contribute to increased food waste.

Cite

DUBANYCH, Oksana; Jan VAVŘINA and Josef POLÁK. Development of financial performance of food retailers as an attribute behind the increase of food insecurity in selected Central and Eastern European Countries. Investment Management and Financial Innovations. 2023, vol. 20, No 4, p. 416-433. ISSN 1810-4967. Available from: https://doi.org/10.21511/imfi.20(4).2023.33.

@article{490921,
   author = {Dubanych, Oksana and Vavřina, Jan and Polák, Josef},
   article_number = {4},
   doi = {https://doi.org/10.21511/imfi.20(4).2023.33},
   keywords = {food retail chains;business financial performance;food poverty;foodstuff market distortions},
   language = {eng},
   issn = {1810-4967},
   journal = {Investment Management and Financial Innovations},
   title = {Development of financial performance of food retailers as an attribute behind the increase of food insecurity in selected Central and Eastern European Countries},
   url = {http://dx.doi.org/10.21511/imfi.20(4).2023.33},
   volume = {20},
   year = {2023}
}

TY  - JOUR
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AU  - Dubanych, Oksana - Vavřina, Jan - Polák, Josef
PY  - 2023
TI  - Development of financial performance of food retailers as an attribute behind the increase of food insecurity in selected Central and Eastern European Countries
JF  - Investment Management and Financial Innovations
VL  - 20
IS  - 4
SP  - 416-433
EP  - 416-433
SN  - 18104967
KW  - food retail chains;business financial performance;food poverty;foodstuff market distortions
UR  - http://dx.doi.org/10.21511/imfi.20(4).2023.33
N2  - Food insecurity is not a new phenomenon even in leading European economies, but this complex problem area is facing new global challenges. This article traces the research gap in addressing food insecurity by focusing on the role of food retail chains in the former “Eastern Bloc” in light of unprecedented food price inflation and the resulting scale of demand for the services of food banks. Through empirical analysis of secondary financial corporate data, a low level of their profitability in the period of 2011–2019 was revealed, which preceded the synchronicity of two unexpected global economic downturns. Specifically, Return on Sales for food retailers located in the Czech Republic and Hungary was generally below 2%, offset by higher Total Asset Turnover figures, consistent with the need to extend the volume of goods for sale. Development in profitability in selected newer EU member states is just as significantly similar to the situation in Ukraine. The mutual interaction of factors of economic size and the country of residence of business was analyzed regarding a possible influence on their financial performance. This study concluded that the presence of unresolved market distortions can both lead to increased food insecurity and, paradoxically, contribute to increased food waste.
ER  -

DUBANYCH, Oksana; Jan VAVŘINA and Josef POLÁK. Development of financial performance of food retailers as an attribute behind the increase of food insecurity in selected Central and Eastern European Countries. \textit{Investment Management and Financial Innovations}. 2023, vol.~20, No~4, p.~416-433. ISSN~1810-4967. Available from: https://doi.org/10.21511/imfi.20(4).2023.33.

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