Equity Investments vs. Debt Investments – What Drives OFDI in Polish Industry

Polish economy witnessed enormous changes over the past 25 years. Systematic economic growth, increasing market openness, legal stabilization and integration with EU have substantially improved Poland’s global competitive position. That is reflected, among others, in intensified flows of long-term capital in the form of foreign direct investment (FDI). What is worth stressing, the last decade (regardless the economic crisis) brought a significant rise of investments made by Polish companies abroad (Outward FDI). It should be mentioned however, that the FDI flows are usually analyzed (in both theoretical and empirical literature) as if they consist only of equity investments, when in fact they consist also of intracompany loans. As the latter may not be driven by the same factors as equity flows, the real structure of FDI flows should be taken into consideration while evaluating the investment potential of companies. The paper examines selected issues concerning international expansion of Polish companies in the form of foreign direct investment. It provides theoretical background of the problem, explores the reasons for expansion and presents the structure of foreign direct investment by Polish industrial companies in the period 2003-2012 with regard to the equity and debt components of the flows. The study is based on the data provided by the National Bank of Poland (NBP).

Management – Forecasting the Future Cognitive Challenges in Management Science 3

This paper is the third publication from the series of three articles about cognitive challenges in management science. It is the result of the further discussions and reflections concerning the cognitive problems of management after publication of the books about epistemology of management. The paper is a trial to forecast the main cognitive trends and tendencies on the basis of the diagnosis made in two papers in series “Cognitive challenges in management science”. The chosen trends in development of management sciences are: expansion of natural sciences, growing inter-disciplinarity of research, growing specialization, net-marketing in management discourse, challenge of cultural relativism, growing criticism and reflexivity. Response of management sciences to the challenges connected to: interdisciplinary nature, growing specialization, and expansion of natural history can lead to further development of our discipline, but the possibility of disintegration also should not be ruled out. Deepening specialization, lack of long-range theory, and growing significance of natural history could lead to disintegration of our discipline, whose fields would be incorporated by other domains. I think that in order to avoid this possibility it would be desirable to uphold the cohesion of management sciences through deepening the cognitive reflection and openness to inspirations originating in other areas of science. But future is difficult to predict and maybe other trends that are not too visible now will change management sciences in future.

Efficiency of Using Research and Development Expenditures at Voivodship Level

One of the most important criteria dividing countries on developed and developing is technological level of the economy which is a derivative of R&D. We showed in the article, that only a rather small group of voivodships was characterized by a full efficiency of converting the expenditure into effects. Low values of efficiency indices pay attention for all ineffective provinces. It won’t be possible to say about none of them, that it found near the efficiency border which accompanied by large differences between decision making units. The non-radial DEA model showed that both the internal expenditures (in converting into the thousand residents) and the personnel employed in the R+D work are not used efficiently and what’s more in the considerable degree wherein a first of said inputs research units managed by a little more effectively.

Application of Finance Management Instruments in Business Entities for example of PGE and Tauron Companies

Running a business involves the risk borne by the owners. They are most often identified with failure to achieve expected rates of return by investors. The same mechanisms apply to business entities whose one of the main objectives is to maximize the profits level. Equally important task, and according to the larger group of professional literature authors the most important is the increase of the company’s market value. Both purposes have common ground, involving the selection of indicators and instruments for the assessment of the financial condition and the value added of analyzed business entity. The objective of this paper is to compare mechanisms used to assess the financial condition of enterprises and indicate imperfections of measures based solely on bookkeeping data derived from an annual financial report. Characteristic features and the more objective nature of economic measures, in particular such as the Economic Value Added (EVA), are presented.

Methods and Marketing Instruments of Logistic Processes

Knowledge about a logistic process in SMEs can be the way to growth of competitiveness of a company by improving those processes. One of the ways can be use of marketing as a support of a logistic process. Identification of logistic activities, logistic process and management should be based on full knowledge about market and its participants. Achieving knowledge and accumulation as a resource allow increasing logistic standards such as supply process, production, storage and distribution. It can contribute to recognize possibilities of competitor´s opportunities. Using marketing methods and instruments in logistic processes can increase competitiveness of SMEs.

Long-Term Borrowing and Intergenerational Redistribution of Public Debt. The Case of Central and Eastern EU Member States

The paper analyses the burden on the future generation resulting from the need to repay public debt in Central and Eastern EU Member States. The main theme is accompanied by the following research hypothesis: imbalance in public finances makes public authorities use long-term government securities more intensely. The hypothesis was verified based on the analysis of statistical data from Eurostat, European Central Bank and the OECD.

Casino Taxation in a Normative and Economic Context: the Case of Poland

The aim of this article is twofold. First, it provides an overview of theoretical background of casino taxation. Second, it analyses the provisions of the Act regulating casino taxation in Poland and evaluates the consequences of the new Gambling Law in force since 2010. The first section of it discusses motives, outcomes and forms of casino taxation, taking into account inter alia the assumptions of optimal tax theory. It then deals with Polish regulations concerning the organisation of gambling in casinos and gambling tax design. The last section of the article analyses the scale of operation of Polish casinos, their revenues and the tax due on gambling activities.

Shareholding Structure and Dividend Policy as Exemplified by the Stock-listed Industrial Companies

This article is aimed at evaluating the influence of the forms of controlling stock-listed companies upon the decisions being taken in regard of the distribution of profits and the payout of dividends in the unstable macro-economic environment. The form of the ownership supervision reflects the relations between shareholders and managers of the company. The conflicts resulting from the separation of ownership and management of a company concern, among others, the dividend payout. The dividend constitutes a shareholder’s reward for rendering his capital available to the company, while for a company it is a cost in the form of the capital’s reduction and the limitation of investing abilities. Whereas the macro-economic environment influences the financial standing of companies and their profits, which are then used for paying out dividends, and simultaneously defines the investment needs of companies. A hypothesis can be put forward that the economic slowdown limits the access to attractive investment projects, which results in companies being interested in the payout of relatively high dividends. This hypothesis is verifiable on the ground of the decisions taken in regard of the distribution of the profit made by the stock-listed companies of the processing industry between 2007 and 2012.

Stock Exchange Recommendations and Economic Realities

The aim of this paper is to present the impact of stock recommendations on the prices in the context of excessive optimism heuristic. The main goal of the conducted analysis is to show that investors on the Warsaw Stock Exchange seem to ignore the economic information that comes with the recommendation report. Also, as the analyzed recommendations are set in the specified economic conditions, authors would like to show that reports are biased with excessive optimism. The research of the structure of recommendations was issued for the biggest companies of the Polish market listed on the Warsaw Stock Exchange from 2009 to 2012. The investigation showed that the ambiguity of the creation methods of analytical reports and differences in valuation of companies causes subjectivism in analysts’ assessments, which leads to heuristic effects. According to the authors, the structure of reports and their specificity shows that excessive optimism is an important factor in creation of stock exchange recommendations.

Managers’ Consideration about Behavioural Factors that Influence their Decision Making in Liquidity Management

The paper presents selected fragment of the outcomes of qualitative research led by the author. It concerned factors influencing decision-making in liquidity management, associated with human traits (human as an acting person of such choices) both in terms of mental processes’ characteristics peculiar to the entire human species (features of human mind) as well as the specific attributes of individual decisionmakers. The aim of the study was to discover how managers perceive determinants of liquidity decision-making process, basing on their professional experience, and whether in their consideration on the subject had ever appeared the determinants related to the person of the decision-maker.