INVESTORSʼ REACTIONS FOR SUSTAINABILITY INDEX INCLUSION – IS CSR A GOOD NEWS?

This article presents the problem of measuring the impact of information disclosure aboutCSR activities on stock performance. The research was performed on two indexes which representPan-European capital market and local Central and Eastern European capital market. Differentmarket characteristics could limit the application of results presented in numerous studiesperformed on well-established markets. The information with relatively strong signal for investoris the inclusion to CSR index. In order to measure the investors’ reaction the event study analysiswas performed. It was proved that the short–term reaction was very similar on each market. Thereaction to announcement of CSR index inclusion was slightly negative, but this effect was offsetby the opposite reaction in the day of inclusion. The total reaction in the seven days event windowwas close to zero. However, the long-term reaction measured in 30 trading days window wasnegative for two markets, but the local market investors show more discontent

THE IMPACT OF A SURPRISE DIVIDEND INCREASE ON A STOCKS PERFORMANCE. THE ANALYSIS OF COMPANIES LISTED ON THE WARSAW STOCK EXCHANGE

The reaction of marginal investors to the announcement of a surprise dividend increase has been measured. Although field research is performed on companies listed on the Warsaw Stock Exchange, the paper has important theoretical implications. Valuation theory gives many clues for the interpretation of changes in dividends. At the start of the literature review, the assumption of the irrelevance of dividends (to investment decisions) is described. This assumption is the basis for up-to-date valuation procedures leading to fundamental and fair market valuation of equity (shares). The paper is designed to verify whether the market value of stock is immune to the surprise announcement of a dividend increase. This study of the effect of a surprise dividend increase gives the chance to partially isolate such an event from dividend changes based on long-term expectations. The result of the research explicitly shows that a surprise dividend increase is on average welcomed by investors (an average abnormal return of 2.24% with an associated p-value of 0.001). Abnormal returns are realized by investors when there is a surprise increase in a dividend payout. The subsample of relatively high increases in a dividend payout enables investors to gain a 3.2% return on average. The results show that valuation models should be revised to take into account a possible impact of dividend changes on investors' behavior

The PE Ratio and the Predicted Earnings Growth – the Case of Poland

We examine the components of equity returns on the Polish capital market. To analyse the underlying complexity of returns we took into consideration the model designed by Leibowitz (1999). This model captures three factors: dividend yield, expected growth in earnings and expected change in price-to-earnings (PE) ratio. We applied this model to analyse the average discount/premium not only to particular shares but to market averages as well. Firstly, we examined the variation of PE across the companies (as adapted from Penman (1996)) to analyse the average rate of return and their striking distance of individual stocks from a ‘normal’ level. Then we checked the transitory earnings in the portfolios of high PE, whereby a fall in current earnings relative to sustainable level of earnings leads to a transitory high PE ratio. We expect that the effect of transience in current year earnings can be significant. Lastly, we analysed the individual companies in order to check what percentage of companies give a “correct” signal about future prospects

Risk analysis of agricultural biogas plant – case study

W artykule przedstawiono studium przypadku analizy ryzyka biogazowni rolniczej o mocy 88 kWe. Badanie jakościowe czynników ryzyka przeprowadzono na podstawie przeglądu literatury przedmiotu oraz eksperckiego badania ankietowego. Respondenci za najistotniejsze uznali czynniki ryzyka z grup: regulacyjnych oraz prawnych wynikających z lokalizacji biogazowni, a także ryzyka techniczne (procesu). W analizie wrażliwości i wartości wyłączających za zmienne krytyczne uznano: cenę aukcyjną energii, nakłady inwestycyjne i koszty operacyjne. W szczególności wydaje się wysoce prawdopodobne uzyskanie ceny aukcyjnej energii zbliżonej do wartości wyłączającej. Analiza Monte Carlo również obnażyła słabości wariantu bazowego. Realizacja wariantu bazowego lub uzyskanie wyniku lepszego są mało prawdopodobne. Powoduje to, że projekt należy uznać za ryzykowny.The article presents a case study of the 88 kWe biogas plant risk analysis. A qualitative study of risk factors was carried out based on a literature review and an expert survey. Respondents considered the most important risk factors from the regulatory group, legal ones resulting from the location of biogas plant, and technical risks (process). The sensitivity analysis allowed to recognize as critical variables: the auction price of energy, capital expenditures, operating costs. In particular, it seems highly likely to obtain an auction price of energy close to the cut-off value. The Monte Carlo analysis also exposed the weaknesses of the base variant. The implementation of the base variant or obtaining a better result is unlikely. The project should be considered risky

The Impact of a Surprise Dividend Increase on a Stocks Performance : the Analysis of Companies Listed on the Warsaw Stock Exchange

The reaction of marginal investors to the announcement of a surprise dividend increase has been measured. Although field research is performed on companies listed on the Warsaw Stock Exchange, the paper has important theoretical implications. Valuation theory gives many clues for the interpretation of changes in dividends. At the start of the literature review, the assumption of the irrelevance of dividends (to investment decisions) is described. This assumption is the basis for up-to-date valuation procedures leading to fundamental and fair market valuation of equity (shares). The paper is designed to verify whether the market value of stock is immune to the surprise announcement of a dividend increase. This study of the effect of a surprise dividend increase gives the chance to partially isolate such an event from dividend changes based on long-term expectations. The result of the research explicitly shows that a surprise dividend increase is on average welcomed by investors (an average abnormal return of 2.24% with an associated p-value of 0.001). Abnormal returns are realized by investors when there is a surprise increase in a dividend payout. The subsample of relatively high increases in a dividend payout enables investors to gain a 3.2% return on average. The results show that valuation models should be revised to take into account a possible impact of dividend changes on investors behavior. (original abstract

Database - Research grant NN113181739

<p>Computation databases for the reserach on dividend policy and share buybacks outcomes on WSE. </p

Corporate social performance and financial performance relationship in banks: sub-industry and cross-cultural perspective

The aim of the paper is to reveal how corporate social performance (CSP) affects market value and earnings capabilities of companies from banking industry: Banking Services and Investment Banking & Investment Services sub-industries in particular. For Banking Services, the research was extended to a link between corporate social performance and corporate financial performance (CSP-CFP) by classifying institutions into clusters based on a type of culture which dominates in a bank’s country of origin. Regression analysis was run on a unique dataset, which comprehensively captures the contextuality of CSP, measured with corporate governance, environmental and social characteristics. This research uses Refinitiv database of ESG Scores as CSP proxy for banks from all over the world in the period of 2009–2016. The results confirm that environmental performance and social performance have negative impact on CFP in banks and partly confirmed that governance performance has a positive impact on their CFP.  This research proves that banks’ CSP performance and the CSP-CFP relationship differs with regard to the type of bank operations as well as the associated culture. This is an important conclusion for investors seeking to increase value of their holdings and bank management who wants to foster bank’s profitability through CSP-related decisions. First published online 28 December 202

INVESTORSʼ REACTIONS FOR SUSTAINABILITY INDEX INCLUSION – IS CSR A GOOD NEWS?

This article presents the problem of measuring the impact of information disclosure aboutCSR activities on stock performance. The research was performed on two indexes which representPan-European capital market and local Central and Eastern European capital market. Differentmarket characteristics could limit the application of results presented in numerous studiesperformed on well-established markets. The information with relatively strong signal for investoris the inclusion to CSR index. In order to measure the investors’ reaction the event study analysiswas performed. It was proved that the short–term reaction was very similar on each market. Thereaction to announcement of CSR index inclusion was slightly negative, but this effect was offsetby the opposite reaction in the day of inclusion. The total reaction in the seven days event windowwas close to zero. However, the long-term reaction measured in 30 trading days window wasnegative for two markets, but the local market investors show more discontent

Experimental investigations of the PMMA bone cement distribution inside a model of lumbar vertebrae

The use of bone cement in procedures such as vertebroplasty and kyphoplasty can reduce pain and mechanically support the spine. This study aimed to evaluate whether air entrapped within bone cement affected its distribution in a vertebral body model. The study included 3D printed anatomical models of vertebrae together with their internal trabecular structure. Aeration was achieved by mixing the bone cement using three different altered procedures, whilst the control sample was prepared according to the manufacturer’s instructions. The further two samples were prepared by reducing or increasing the number of cycles required to mix the bone cement. A test rig was used to administer the prepared bone cement and introduce it into the vertebral model. Each time the injection was stopped when either the cement started to flow out of the vertebral model or when the entire cement volume was administered. The computer tomography (CT) scanning was performed to evaluate aerification and its influence on the bone cement distribution in each of the patient-specific models. The large number of small pores visible within the cement, especially in the cannula vicinity, indicated that the cement should not be treated as a homogenous liquid. These results suggest that a high level of aerification can influence the further cement distribution