Analysis of corporate insolvency trends in Poland between 2021 and 2024

Abstract

PURPOSE: This paper analyzes the escalating trend of corporate insolvencies in Poland within the 2021-2024 timeframe, focusing particularly on the dynamics between economic pressures, regulatory frameworks, and global market conditions that contribute to corporate insolvencies.

DESIGN/METHODOLOGY/APPROACH: The research methodology involves a mixed-methods approach, integrating quantitative analysis of corporate insolvency statistics with qualitative assessments of legal and economic factors influencing corporate financial stability. The study analyzes official records from COIG and MGBI.

FINDINGS: The findings indicate a significant rise in corporate insolvency proceedings, with the most affected sectors being manufacturing, construction, and services. The findings mark an increase in insolvency activity, including a significant year-on-year rise in restructuring proceedings, and underscore a growing reliance on the proceeding for approval of an arrangement due to its popularity among SMEs and its susceptibility to procedural abuse.

PRACTICAL IMPLICATIONS: Strengthen early warning systems, optimize regulatory tools, and adapt financial risk management strategies to reduce insolvency risk; aimed at businesses, policymakers, corporate managers, and investors.

ORIGINALITY/VALUE: This study contributes to the existing literature by providing a comprehensive analysis of bankruptcy trends in Poland, highlighting the limitations of traditional prediction models, and advocating for the integration of advanced analytical tools to improve risk assessment and forecasting accuracy.