Investment decisions based on the financial performance of related parties

The article aimed to identify and differentiate the financial results of related parties (holding companies and groups of companies) presented in separate and consolidated financial statements. In the first stage of the study, six financial ratios were used and calculated based on 94 separate and consolidated financial statements for the years 2009-2019, in which the financial results of affiliated companies listed on the Warsaw Stock Exchange were presented. In the second stage of the study, analyses were performed using descriptive statistics methods; in the third stage of the study, correlations were quantified by Pearson's index; and in the final stage of the study, the F-test, Levene's test, the Brown-Forsythe test, t-test, and U test (test for independent variables) were used. The results of the study suggest that the null hypothesis is 95% accurate, i.e., the financial performance of the group is influenced by the financial performance of the holding companies, while the financial results of affiliated companies positively affect the financial results of the group as a whole (consolidated results). This is confirmed by the synergy effect, which is the driving force behind the formation of capital groups, providing the opportunity to make correct investment decisions based on the financial results of the affiliated companies.