Polish Investors Research Articles

Ocena ważności informacji przy diagnozie trendów giełdowych przez inwestorów indywidualnych

Celem badania było: (1) ustalenie, które wskaźniki rynkowe i makroekonomiczne są wykorzystywane przez indywidualnych inwestorów do oceny trendów na rynku papierów wartościowych oraz (2) sprawdzenie efektywności technik pomiaru ważności informacji wykorzystywanych do podjęcia decyzji nt. trendu. W pierwszej części badania 176 inwestorów spośród 16 wskaźników wybierało 7, ich zdaniem najważniejszych. Następnie respondenci rangowali wybrane wskaźniki oraz dzielili między nie 100 punktów (bezpośrednie pomiary ważności). W oparciu o podane przez inwestorów rangi wyliczano wagi aproksymacyjne z zastosowaniem dwóch metod: sumy i porządku rang. W drugiej części badania zadaniem respondentów było określenie, jaki jest trend na rynku papierów wartościowych, w oparciu o samodzielnie wybrane informacje z puli 16 dostępnych wskaźników (pośredni pomiar – tablica informacyjna).

Stimulants of FDI Flows Between Poland and Ukraine

The main goal of this paper is to diagnose the stage of economic relations between Poland and Ukraine in the scope of Foreign Direct Investments with a particular emphasis on factors that stimulate the inflow of Polish capital to the Ukrainian economy. The research focuses on the analysis of institutional factors and policy incentives as well as the analysis of statistical data broken down into sectors of industry and geographical distribution of FDI. The presented outcomes of this research also focus on factors that might motivate Polish investors to establish their businesses in Ukraine, and (what might be particularly relevant for Ukraine) factors that discourage FDI inflows.

Podejście sieciowe w procesie internacjonalizacji polskich przedsiębiorstw

The aim of the article was to verify the network model of internationalization on the example of Polish outward foreign direct investment. Conducted study (based on CSO data) confirms the assumption of stronger position of enterprises belonging to groups of companies, however, it is difficult to see a wider range of behaviors characteristic of network expansion strategy. Polish investors are reluctant to start a cooperation with others, treating joint ventures projects rather as a remedy for the risk resulting from the lack knowledge of the target market, than as a way to gain some additional advantages and improve global efficiency. Investment projects were focused primarily on the acquisition of new markets, rather than vertical integration of the value creation process in a globally active network

The Challenging Task of Governing Cross-Border Investment in Peripheral Regions: Polish Investors in Northeast Germany

Abstract The article investigates the challenging task of governing cross-border investment in peripheral regions. The main objective is to identify common opportunities and obstacles in the Pomerania Euroregion by taking the case study of Polish citizens/ entrepreneurs investing in northeast Germany. This relatively new phenomenon is accompanied by large uncertainties and risks, and lacks further empirical insights. At the same time it breaks new ground, creates alternatives, calls for the development of efficient modes of cross-border cooperation and addresses mutual governance issues on an inter-regional basis between manifold stakeholders on both sides of the border. The case study summarises findings from fieldwork, elaborates a quantitative and qualitative assessment of cross-border governance measures within formal and informal institutions, and tries to formulate policy recommendations for prospective approaches

Construction Of Hedonic Price Index For The “Most Liquid” Polish Painters

Abstract Art market has been developing in Poland and the first Art Fund was established in 2011. Therefore it seems that investment in art can be considered as alternative form by Polish investors. In order to decide whether art is a good investment, it is necessary to evaluate expected returns which might be obtained from such investment thus an art price index should be developed. The aim of the paper is to discuss artworks as investment assets and evaluate price index of paintings produced by 11 Polish artists whose artworks were traded the most often on auctions that were held in Poland in the years 2007–2010. In our research, employing data concerning 750 objects, we apply the hedonic index methodology to estimate returns from the paintings market. The results of our investigation show that hedonic quality adjustment essentially influences evaluation of artwork prices therefore we propose the aggregated hedonic index which might better describe situation at the art market than the hedonic index biased by the specification of a single model.

Comparison of practitioners' views on managing equity investments

Purpose – The purpose of this paper is to examine the extent to which Central European emerging stock markets (focusing on Poland) have been affected by the recent international financial crisis, and how the current investment climate (barriers, risks, challenges and opportunities) influences appetite for investments in Polish equities. In doing so, the study aims to report timely findings in relation to the determinants of the safety and profitability of international portfolio diversification to the Polish stock market. Design/methodology/approach – Based on qualitative empirical research, the authors analyse the differences between the foreign (UK) and domestic (Poland) investors' views on equity investments in Poland. The study builds on questionnaires and interviews with practitioners associated with the Polish stock market. Findings – The authors report that the global financial crisis influenced changes to domestic and international investors' appetite for risk related to equity investments in emerging stock markets: investors are more prudent about emerging markets but the Polish stock market has shown substantial growth potential and positively distinguished itself from other Central European stock exchanges; particular types of investment risks associated with equity investments in the Polish stock market have abated. Polish equities are an attractive component of the international portfolio diversification, provided that trading strategies are adjusted to the contemporary investment environment. Originality/value – This paper addresses the absence of the academic literature devoted to the analysis of equity investments in the contemporary Central European emerging stock markets. The authors discuss the differences in appetite for risk between the UK and Polish investors and assumptions about investments in Poland. The authors also contribute to the international debate on investor protection and regulations that can improve investment processes.

The FDI Behaviour of polish Companies: Equity Based Entry Modes and their Impact on Performance

The purpose of this paper is to show how joint ventures and wholly owned subsidiaries contribute to building companies’ competitiveness. It begins with a brief discussion of the theoretical approach to foreign direct investment (equity based modes). Next, the authors present the results of research carried out among Polish companies investing abroad during the period 2007-2008 by a team of researchers from Nicolaus Copernicus University. The research focuses on two main FDI entry modes and attempts to identify the relative impact of the entry mode on the competitiveness of investors. Although the level of international involvement of polish investors is still relatively low, their awareness of the benefits from internationalization is growing. Factors that may influence the choice of entry mode are studied, including the target host country, the economic activity of the company, the FDI diversification mode and the number of investment projects undertaken by a company, the latter a measure we take to reflect the international experience of the respondents. The research is also the first to highlight how the contribution to competitive potential may vary depending on the ownership structure adopted, offering a comparison of the relative benefits accruing as a result of internationalisation among companies operating on the basis of solo equity (wholly owned subsidiary or branch office), joint ventures or a mixed strategy.

International portfolios and currency hedging: viewpoint of Polish investors

PurposeThe purpose of this paper is to empirically examine the benefits of international equity portfolios from the viewpoint of Polish investors.Design/methodology/approachEight national stock markets are included in the sample and three different portfolio forming strategies – Equally‐Weighted Portfolio (EWP), Minimum Variance Portfolio (MVP) and Tangency Portfolio (TP) – are adopted to construct the international diversified portfolios. In order to reveal the impact of currency hedging, the performance of a non‐hedged versus a fully‐hedged strategy is estimated. Finally, for comparison purpose, performances of the international portfolios from US investors' perspective are also examined.FindingsUsing monthly data from 1999 to 2008, the results show that from an ex post basis, an equally‐weighted global portfolio offers risk reduction opportunities for Polish investors and performance improvement potentials for US investors. In addition, US investors seem to fare better leaving their foreign investment unhedged, while Polish investors benefit from currency hedging. However, ex ante analysis reveals that when short‐selling is allowed, TP outperforms other portfolios and the risk‐adjusted portfolio performance could be enhanced by currency hedging.Originality/valueIn summary, the ex post analysis suggests that global portfolio either reduces risk or improves return. Compared to the domestic portfolio, the international portfolio reduces the portfolio risk while maintaining certain level of portfolio return for Polish investors who experience unusual high volatility in domestic market. On the other hand, an international portfolio yields higher portfolio return with similar risk level, as compared to the domestic portfolio, for US investors who suffer losses in the domestic market. A full currency hedging strategy benefits Polish but not US investors. Hedging or not, the risk of the local stock market is the major contributor to the risk of the equally‐weighted portfolio for both Polish and US investors.

Assessment of cross‐border implications of economic and financial information for central European emerging stock market of Poland in times of the current financial crisis

PurposeThe current paper aims to expand an empirical assessment of correlations of the stock exchange in Poland with other stock markets and foreign economies. The paper attempts to explore international spillover effects during the current financial crisis.Design/methodology/approachThe study builds upon questionnaires and interviews with practitioners associated with the Polish stock market. The interviewees represent both the advanced and emerging European economies. At this point, analyzing the notions of a cross‐section of experts from different geographical regions increases the value of the findings. The interviewees were asked to comment on a wide range of examples mirroring the reaction of the Warsaw Stock Exchange (WSE) to economic and financial information derived from foreign markets in times of the current financial crisis. An empirical model evaluating the cross‐border implications for the Polish stock market was specified. The model encompassed a wide range of variables and events influencing the performance of the Polish stock market and investors' uncertainty during the nascent financial crisis. Semi‐structured interviews complemented the quantitatively obtained findings and allowed for a gap between theory and practice to be bridged. The qualitative approach injected a dose of realism into the empirical model utilized in the paper and contributed to the value of general findings.FindingsThe current paper reports initial responses of the WIG20 indexed equity prices to 41 economic and financial information sets, originating from systemically significant markets. The influence of these sets is ranked in accordance with their influential powers. The ranking indicates which information events are more likely to be prioritized by investors associated with the WSE and which news are ignored in times of the current financial crisis. Henceforth, the findings outline the crisis‐induced changes in the uncertainty of equity investors and the implications for investment decision making processes. Comparing the responses to economic and financial information sets among different stock markets and industries delivers insight into the profitability of the international portfolio diversification based on either the country or industry specific factors.Originality/valueThe paper focuses on the Polish stock market, which is relatively under‐researched by the existing body of literate. However, Poland's stock market became a leading central European bourse during the current financial crisis. Reporting a number of useful and important implications for the practitioners associated with the WSE constitutes the core value of the paper.

Trading strategies of individual investors in times of financial crisis

PurposeThe purpose of this paper is to investigate equity appraisal techniques employed by non‐professional investors from the Central European emerging stock market (CEESM) of Poland. The paper examines investment decision‐making processes in the context of the current financial crisis in a pioneering attempt to shed some light on crisis‐induced changes in investment strategies. In addition, the study tests the usefulness and predictive abilities of analytical tools employed by non‐professional investors when faced with unstable stock‐market conditions.Design/methodology/approachQuestionnaires and experiments conducted with a large group of Polish investors – trading equities in their home market – in order to gain information on the most commonly used investment strategies. Their views are contrasted with similarly obtained opinions expressed by UK non‐professional investors to highlight differences in approaches to investments. Finally, a series of semi‐structured interviews was conducted to discuss how the current financial crisis has affected investment strategies among Polish and UK investors.FindingsTechnical analysis (TA) is the preferred tool utilized by non‐professional investors in Poland. However, the current financial crisis caused the majority of Polish practitioners to adopt fundamental analysis which, in this case, is undertaken to support initial conclusions derived from TA. At this point, investees' financial statements coupled with analyses of the main macroeconomic indicators for CEESMs became the main source of decision‐influencing information.Practical implicationsThe paper addresses an area which is gaining in importance and is of interest to both practitioners and service providers for non‐professional investors. Further investigation is recommended of nascent challenges to investing in CEESMs with practical implications for policy makers and investors.Originality/valueThe current paper refers to the global financial crisis which occurred in the years 2008‐2010. To date, there are no previous studies devoted to an investigation of how investors' trading strategies were influenced by the international financial crisis. Moreover, there are relatively few studies which target practitioners from CEESMs. The paper focuses on the non‐professionals, as this group of investors seems to be relatively under‐researched. Therefore, a number of important implications can be drawn from the current paper with regard to investment strategies tailored to overcome a financial crisis.

Et si la privatisation échouait ? Menaces sur la démocratie et la liberté en Europe centrale

Privatization Now or Else. — The Impending Failure of Democracy and Freedom in Central Europe. By 1992, the Common Market may have removed all barriers to internal flow of people and goods, while raising a new Berlin Wall between it and the former East Bloc Countries. Stagnation, deteriorating economies, and lack of opportunities in Central Europe are likely to produce a massive illegal immigration. The former communist countries of central Europe are facing hard times. Their economies are saddled with bloated, inefficient enterprises. Officials in Czechoslovakia, Hungary, and Poland understand that moving to a market-based economy requires reducing the proportion of their economies owned and controlled by the state. Private ownership of the means of production is necessary in order to produce the appropriate incentives for good economic performance. The problems facing countries attempting to make the transition from a communist society, where the state owns 80 to 100 percent of all assets, to a private market economy are unprecedented. Western countries that have privatized a very small portion of their economy have had the benefit of widespread markets, stock exchanges, meaningful accounting records, labor markets, and a substantial number of individuals with extensive assets who could purchase a significant number of shares in new companies. None of these conditions exists in countries attempting to throw off Marxism. These countries envision privatizating small enterprises through an auction of such businesses. However, employees of these concerns have asserted their claim to the properties and demand that they be given priority in purchasing the assets. Privatization of large enterprises presents even more difficulties. In none of these countries does a working capital market exist. The underlying problem is that the public does not have the assets to purchase large firms. The government could sell these firms, at least the profitable ones, to foreign investors ; but this raises xenophobic feelings. Poland and Czechoslovakia have both proposed using voucher schemes to distribute ownership to their citizens. In addition government ministers plan on selling stock to locals and foreigners, selling the company in a joint venture, and using employee stock option plans. Although authorities in these countries assert the importance of moving fast in privatizing assets, these methods are likely to take years. Although all three countries project an ambitious program of privatization, only Hungary and Poland have actually begun to privatize any large firms. Most of the privatizations in Hungary has been of the spontaneous type. In Poland the first privatization took place in early January 1991 with the sale of stock in small lots of five concerns to individual Polish investors. Czechoslovakia has announced no major privatizations yet, although it finally passed legislation authorizing privatization in February 1991.