Analysis of the Medical Companies Operating in the Polish Capital Market
Authors:   University of Szczecin, Poland, Mioduchowska-Jaroszewicz Edyta , Szczepkowska Malwina 
Published: March 2021

Purpose: The aim of the paper is to analyse the activity of medical companies operating in the Polish capital market through the analysis of their investment attractiveness. Two measures taking into account two different perspectives were used for efficiency evaluation: financial-internal (EVA) and external-market (TSR). Design/methodology/approach: Two measures of evaluation of financial and market results of medical companies were used to achieve the aim of the paper. These two measures take into account two different perspectives: financial-internal (EVA) and external-market (TSR). Economic value added (EVA) is based on a preconception that maximisation of the value of an enterprise is the best possible way to increase competitiveness. The second formula, Total Shareholder Return (TSR), measures shareholder value creation in the most direct way: not only shareholders’ value but also their wealth. The second part of the paper focuses on the characteristics of the private medical sector in terms of the family influence on the functioning of the selected companies. The Substantial Family Influence indicator proposed by S. Klein was used, which determines the level of ownership and the involvement of the family in the researched companies. Findings: The analysis of the results of the examined group of medical companies, using two different measures from two different perspectives, shows different results. Hence, it is difficult to determine which of the examined companies is an attractive investment – a reliable source of income from investment. The second part of the paper identifies the listed medical companies in terms of their family nature. The SFI index was used, in which the participation of family members in management boards and supervisory boards was additionally taken into account. The calculations allowed for identifying four family businesses, one of which, Enel-Med, may be specified as a company with a significant family impact. The EVA measure was used for comparison of the financial results obtained by the companies, dividing them into family and non-family enterprises; however, no differences have been observed between the groups. The findings obtained do not confirm that family businesses achieve better financial results. Research limitations/implications: The private medical market is going to develop and may be attractive from the point of view of investors not only for patients. Globalisation of the market, emergence of big businesses and, the need to consolidate the sector make it necessary for the Polish medical companies to search for external sources of financing and to enter the stock market. Hence the question whether investing in capital medical companies is profitable. The paper looked for the answer by conducting research on 19 companies and their financial results from 2016 and 2017. Two measures were used, taking into account two different perspectives: financial-internal (EVA) and external-market (TSR). The results obtained were different, so it is difficult to determine which of the examined companies is an attractive investment – a reliable source of income from investment. In light of this, it is worth considering whether the analysis carried out in the long term or with the use of other indicators would give more unambiguous results. Originality/value: The aim of the paper is to analyse the activity of medical companies operating in the Polish capital market through the analysis of their investment attractiveness, which is a new approach in the assessment of the operation of the private medical sector. Also, the analysis of the private medical sector, taking into account the influence of the family and using the SFI indicator on the functioning of individual companies, is an original approach.