Browse

1 - 10 of 955 items :

  • Public Finance and Fiscal Theory x
Clear All
Hypothetical bias and framing effect in the valuation of private consumer goods

Abstract

In a laboratory experiment, I examined two behavioural effects: hypothetical bias and the framing effect. I elicited willingness to pay (WTP) for a cosmetic product, and manipulated framing conditions (positive vs. negative attribute framing) and incentives to reveal the actual valuation (hypothetical vs. real). I demonstrated that hypothetical bias has a significant impact on WTP values; however, the framing effect has no effect on the valuation of the product. Similarly, I found no interaction between the two effects. This observation contributes to claims that hypothetical research methods lead to equally reliable data as those based on consequential choices.

Open access
Solving Systems of Linear Equations under Conditions of Uncertainty on the Example of the Leontief Model

Abstract

The paper presents various methods of solving systems of linear equations under conditions of uncertainty. In a situation when the parameters of such systems cannot be precisely determined with real numbers, they can be represented by interval numbers, fuzzy numbers or ordered fuzzy numbers. Solutions of systems of linear equations with such representations of parameters are shown in the example of Leontief input-output model. It has also been shown that when ordered fuzzy numbers are applied, their additional feature – orientation – can broaden and deepen economic analysis.

Open access
Credibility of foreign Discriminatory Models in Relation to the Assessment of the Financial Condition of Polish Enterprises. Case Study of E. Altman’s Method

Abstract

The article is an attempt to assess whether foreign discriminatory models can be used in conditions of the Polish economy. To date, there is no one voice on this issue. There are views that this approach is wrong. It results from different factors affecting a given economy, or another character of the economy itself. Another issue is also differences in financial reporting of individual countries, which is translated into financial data. In turn, a different view is presented by the trend that foreign models can be used in the conditions of the Polish economy, while the differences that appear do not significantly affect the quality and reliability of the received diagnosis. Accordingly, the article attempts to verify both above positions. For the purposes of the study, the article presents the results of research on a sample of 25 bankrupt companies from the years 2012 to 2017, which declared liquidation bankruptcy, and their 25 healthy counterparts. The diagnosis of their financial situation was made using E. Altman’s model of 1983. The results of the study confirm the validity of the thesis that a more correct solution is to adopt the second thesis, namely foreign models can be used in the conditions of the Polish economy, but only after suitable modifications and consideration of the Polish economic conditions. In contrast, the use of foreign models without such a procedure should not take place. Such an approach may have an impact on receiving an incorrect diagnosis which does not correspond to the real situation in the surveyed entity.

Open access
Determinants of Corporate Dividend Policy in Polish Companies Listed on WSE

Abstract

The purpose of this paper is to identify the factors influencing the level of dividend payments in the companies listed on the Warsaw Stock Exchange in 1998-2017 as well as to provide empirical evidence for their significance, using a panel data approach. The object of research comprised the companies listed on WSE, as of February 01, 2019. The subject of the analysis are the dividends paid by the companies and the factors potentially influencing the decisions regarding profit distribution. The models estimated for the panel data, based on the theory, allowed selection of the best model, which is the random-effects model. Moreover, these models allowed identification of the factors determining the changes in the level of dividend per share. The best model was the random-effects model. This model allowed identification of the factors impacting the changes in the level of dividend per share, that is, the value of the company’s total assets and the history of the company’s operation on the stock exchange market. All structural parameters (except the intercept) were positive. It means that growth of each of these variables causes an increase in the dividend per share.

Open access
The Efficiency of a Supplementary Old-Age Pension System – the Case of Polish Voluntary Pension Funds

Abstract

The aim of this article is to evaluate the effectiveness of voluntary pension savings plans in Poland, based on the principles of operation and rates of return of voluntary pension funds (pol. Dobrowolne Fundusze Emerytalne, DFE). The selection of those funds from a whole range of solutions available in the 3rd pension pillar is due to the fact that only this type of voluntary pension saving plan provides complete and transparent information about the actual investment policy, the composition of pension investment portfolios, and the achieved rates of return. In order to evaluate the investment policies and the effectiveness of DFEs, the following research methods were used: a literature analysis, an analysis of financial data, and basic methods of investment efficiency assessment. The results of the evaluation lead to the conclusion that despite their adoption of similar investment strategies, the DFEs have achieved very different values of effectiveness. In the years 2013-2018, selected funds achieved higher than average rates of return, while others achieved returns that were no better than the interest rates of standard bank deposits.

Open access
Financial Health of small and Medium-Sized Companies in the Visegrad Countries

Abstract

SMEs are a major provider of jobs, contribute to promoting the social and economic cohesion of regions and, in particular, they are important for regions facing high unemployment or lower economic development. The importance of assessing a company’s financial performance has been steadily rising in recent years. The paper aims to evaluate to what extent the financial situation of a company, especially the risk of financial distress and bankruptcy, is influenced by the macroeconomic environment defined by fundamental macroeconomic variables. The analysis of the interrelationships will be carried out at the national level for Visegrad countries. The criterion for financial distress is defined not only by capital restructuring of the company or extensive layoffs, but also as the results of the negative effect of the macroeconomic environment. To achieve the goal of the paper, predictive bankruptcy models of financial distress based on financial analysis of enterprises will be used as well as regression analysis and correlation analysis. The observed period for analyses will be from 2009 to 2016. It seems appropriate to pay particular attention to examining the impact of economic growth, and the exchange rate on the financial situation of the enterprise. These indicators play an important role in defining internal and external economic equilibrium, which is also reflected in the functioning of individual businesses and sectors. Based on the results of the GMM analysis, it was found that only in the case of the Czech Republic was it possible to follow statistically significant relationships between the selected indicators.

Open access
The Impact of Crises on the Intellectual Capital of Companies in the Food Sector

Abstract

Both the financial crisis of the first decade of the 21st century, as well as the deterioration of trade relations between the European Union and the Russian Federation were events that significantly affected the functioning of the largest listed companies on the food market: on the one hand, aggravating the conditions of economic functioning, on the other hand creating a stimulus to seek new innovative solutions to help companies survive on the market. The aim of the work was to present the impact of crises on the intellectual capital of WIG-Food index companies, which is an indirect measure of innovation. The MV/BV and q-Tobin index were used for the study, as well as selected quantitative methods: multiple regression, Ward’s method and seasonal additive decomposition. The results of the work indicate that the companies are divided into two groups, within which similar trends in shaping intellectual capital are observed. In addition, one of the groups clearly noticed the impact of the financial crisis and the introduction of an embargo on the shaping of intellectual capital.

Open access
The Polish Model of a Social Economy with the Financial aspects and Profits at Background – from the General Theory to Practice

Abstract

This article contains main trends, assumptions and thesis about the social economy in Poland, which the author agree with. The main goal of it, is to bring together fundamental facts depicting the situation of the social economy in Poland (in theory and in practice) with the conditions that must be fulfilled in order for it to grow (also from the financial side). In the article, the aspect of profit in a social enterprise, was especially emphasized. To describe the topic the descriptive methods were used. The graphical analysis refers to the last three years, but to understand how the social economy operates in practice, author uses description of the data from 1999 to now, in this paper.

Open access
Spatial and Institutional Analysis of the Voivodships Expenditure on Culture in the Years 2003 – 2015

Abstract

Following the completion of the process of decentralisation of public administration in Poland in 2003, a number of tasks implemented previously by the state authorities were transferred to the local level. One of the most significant changes to the financing and management methods of the local authorities was the transfer of tasks related to culture and national heritage to the set of tasks implemented by local governments. As a result of the decentralisation process, the local government units in Poland were given significant autonomy in determining the purposes of their budgetary expenditures on culture. At the same time, they were obliged to cover these expenses from their own revenues.

This paper focuses on the analysis of expenditures on culture covered by the voivodship budgets, taking into consideration the structure of cultural institutions by their types, between 2003-2015. The location quotient (LQ) was applied to two selected years (2006 and 2015) to illustrate the diversity of expenditures on culture in individual voivodships.

Open access