A managerial approach to the financial sustainability of a company derives from the principle of value maximization for shareholders at an acceptable level of risk, using the best combination of investments and available sources of financing. The research presents the concept of financial sustainability measurement in the example of food companies from Northern Europe. We applied fuzzy logic to quantify complex interrelations among various financial factors and classify companies according to the level of their financial sustainability. A unique combination of factors formed a single complex indicator, which measured a relative level of financial sustainability of food companies. Considering the duality of financial sustainability in terms of risk and return, the relationship framework for synthetic evaluation included the vector of value and the vector of continuity that consisted of such variables as profitability, market capitalization, productivity, operating efficiency, debt, liquidity, interest coverage, and retained earnings. We received evidence that the level of financial sustainability of entities changed in 2005–2015 and was statistically different among sample companies. The proposed method can be applied as a practical tool in a decision-making process to evaluate financial sustainability or other aspects of business performance in larger groups of entities on the basis of various financial criteria.

Financial literacy plays a crucial role in individuals’ decision-making processes. The paper aims to thoroughly identify the financial literacy needs and challenges of adults with low financial literacy living in rural areas. The paper presents the results of a focus group study conducted among a target group (35 people) and interviews with financial experts (14 people) in the first quarter of 2023. The study allows us to identify common areas of financial knowledge crucial for adults with low financial literacy living in rural areas. The study was conducted in seven European countries as part of the Erasmus+ project “Learning by Experiencing Escape Rooms: Financial Literacy for Adults (FLER)”. Key findings from the study revealed that participants exhibited low awareness of financial fraud and expressed a need to protect personal information when using digital platforms. There was a clear demand for improved knowledge in certain areas, such as budgeting, emergency funds, balancing risk and reward, and planning for retirement or long-term savings. Participants consistently viewed gamification as a valuable tool for enhancing their understanding of financial topics. The contribution of our study is that we narrow the research gap on the needs and challenges related to financial literacy among rural residents. The results will help pinpoint specific areas of financial knowledge and competencies that are particularly important for adults with low financial literacy. Moreover, these insights are crucial for developing educational content integrated into a virtual escape room to improve financial literacy through engaging, scenario-based learning.

By studying M&A deals completed by European energy and power companies between 2002 and 2021, the paper inquires into the impact of corporate consolidation on the competitive positioning of individual energy firms and the concentration of market power on the national energy markets in the EU countries. Our evidence suggests that the European energy market may be moving towards a greater concentration of market power as market leaders are shown to primarily acquire their peers from national markets, while outsiders are more likely to diversify into non-energy sectors, which may further endanger their competitive positioning in the future. We also find that M&As allow energy and power companies to substantially increase their market share within national markets. The said impact is stronger in case of cross-border deals, including those within and outside of the EU. At the same time, only cross-border deals are associated with sufficiently strong revenue growth to advance firms’ relative positioning within national markets. The relative positioning of firms in the EU market remains unaffected by M&A activities, which may be indicative of extreme rigidity and segmentation of the EU market. While at the country level, M&As are found to contribute to a reduction in market concentration measured by a number of indicators, this negative link is documented to be entirely driven by non-core acquisitions involving targets from non-energy industries.

The present study documents a positive market reaction to mergers and acquisition (M&A) deals involving renewable energy companies. Acquirers record positive post-deal cumulative risk-adjusted returns upon taking over a renewable energy target, especially if the former also operates in the renewable energy sector. Such deals often involve purchases of majority equity stakes financed with acquirers’ stock rather than cash. Acquirers of renewable energy firms tend to be more profitable and cash-rich than their industry peers, yet they are less likely to be serial acquirers and channel cash reserves towards M&As. We evidence that the quality of corporate governance in the energy sector may play a substantial role in shaping the choice of targets; a director’s outside affiliations increase the likelihood of takeovers of non-energy firms, while the presence of outsiders on board appears to incentivize diversification into renewable energy. While acquisitions of renewable energy firms feature lower-than-average acquisition premia and generate positive short-term stock returns, they are found to exercise an overall negative short- and medium-term impact on the combined entities’ operating performance. Overall, capital markets appear to attach a sizeable premium to risky deals involving renewable energy firms, possibly in expectation of wealth accrual in the long term.

In the article the relations between opposite approaches to working capital management and chosen financial ratios are defined on the example of stock companies from food processing industry. In the enterprise Kofola S.A. using an aggressive working capital strategy a low level of liquidity, short cycles of current assets’ conversion and negative cycles of cash conversion appeared. Profitability of business and the value of EVA were low in this company. In the enterprise Wilbo S.A. using conservative strategies, high level of liquidity ratios, longer cycles of current assets’ conversion and cash conversion. Conservative strategy of Wilbo S.A. was characterized by negative rates of profitability and negative rate of return for owners built on EVA. Opposite approaches to working capital management do not ensure required rates of return from invested capital for shareholders. That is why the synchronization of partial strategies of the enterprise is very important.