Published : 2015-12-30

The Relationship between Risk and Profitability - Based on the Example of Joint Stock Companies of the Chemical and Pharmaceutical Industry

Monika Pawłowska



Maria Roj



Joanna Szymańska



Sylwia Walczak



Abstract

Risk and profitability are inevitable elements of leading trade activity. Each entrepreneur increasing or decreasing the risk expects suitable profitability changes. In the following article an attempt is made to determine the power and direction of dependence between the profitability and risk for companies with similar economic activity profile. The research was carried out based on eight chemical industry joint companies and seven of the pharmaceutical industry. The time range includes the years from 2011 to 2013. The main aim of the article is examining a connection between financial risk and profitability based on the example of the chosen stock exchange companies of chemical and pharmaceutical branches. The main goal is accompanied by detailed objectives which are: the assessment of the financial risk level of chosen subjects (chosen aspects); the assessment of chosen subjects profitability; the examining of direction and relativity strength between chosen risk financial measures and chosen profitability measures.(original abstract)

Keywords:

Risk, Profitability, Stock market companies, Chemical industry, Pharmaceutical industry



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Pawłowska, M., Roj, M., Szymańska, J., & Walczak, S. (2015). The Relationship between Risk and Profitability - Based on the Example of Joint Stock Companies of the Chemical and Pharmaceutical Industry. The WSB University in Poznan Graduate Research Journal, 15(15), 129–142. Retrieved from https://journals.wsb.poznan.pl/index.php/dnswsb/article/view/448

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Uniwersytet WSB Merito w Poznaniu
ul. Powstańców Wielkopolskich 5
61-895 Poznań
e-mail: journals@poznan.merito.pl
University
Uniwersytet WSB Merito w Poznaniu / WSB Merito University
ul. Powstańców Wielkopolskich 5
61-895 Poznań

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