Search results for query: Van Horne

1. Explanatory Theories of Stock Returns in the Long Run After IPO – Literature Review
   

   Author: Martyna Żyła

   See Issue Contents: fins.2022.2

   Abstract:

   Negative returns of shares in the long run after initial public offerings have been confirmed on many markets however, the explanation for the cause of this phenomenon is ambiguous. Investigating underperformance is important because it allows a better understanding of the role of the stock markets in the financial system. Such market anomaly influence the behaviour of investors in the long run. Underperformance is featured in an extensive body of empirical literature and has been confirmed in most cases. However, it is inconclusive what affects such phenomenon on the markets. The purpose of this paper is to present the explanatory theories which are based on the behaviour of market participants and to summarize the explanatory variables of underperformance that stem from the theory.

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2. Liquidity Risk and Hedge Fund Performance Evaluation
   

   Author: Richard Van Horne

   See Issue Contents: fins.2021.2

   Abstract:

   In this article I use two models, a lagged-effects model and a serial correlation model, that identify potential liquidity risk in hedge fund portfolios. From the serial correlation model I develop a liquidity risk factor that I add to a multi-factor equilibrium model in order to re-estimate Alpha across a universe of hedge funds. I find that much of what passes for fund Alpha in a multi-factor risk model lacking a liquidity risk factor is actually a compensation for bearing liquidity risk in the context of a model that includes the innovative liquidity risk factor. This result has implications for both a pre-investment due diligence and a manager selection as well as the post-investment fund performance evaluation and risk management.

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3. Level of financial literacy of academic youth from rural areas in the Visegrad Group countries
   

   Author: Monika Szafrańska

   See Issue Contents: fins.2019.3

   Abstract:

   The aim of the study is to determine the level of financial literacy of academic youth from rural areas in the V4 Group countries, as well as to compare the results obtained with the level of financial literacy of young people from cities. The source of data used for analysis and inference were primary information obtained from own research (PAPI method, 900 people). The research used a set of questions to assess the level of financial literacy of adults proposed by the OECD INFE. In addition to primary sources, secondary sources were also used to achieve the goal. The measures of descriptive statistics and one-way analysis of variance (F) were used. The level of financial literacy was determined at the medium level, which may indicate the low effectiveness of financial education measures implemented at different levels of education. The component of financial literacy where students from rural areas had the lowest scores was basic financial knowledge. Only 43% of people from rural areas achieved the minimum target score

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4. Are religious believers irrational: a direct test from an efficient market hypothesis
   

   Author: Chamil W. Senarathne

   See Issue Contents: fins.2020.1

   Abstract:

   The current literature does not offer a quantitative test of the irrational behaviour of people, especially taking a proxy for irrationality with reference to an economic activity. This paper examines the role of religious believers in carrying out economic activities. The form of stock market efficiency has been taken as a proxy for testing the null hypothesis that religious believers are irrational on average. The findings suggest that equity markets in religious countries are inefficient at ‘weak form’ level. This provides prima facie evidence for the hypothesis that religious believers are irrational on average. As such, the equity price changes of these stock markets can be forecast on the basis of past patterns. Poor income level and education are the main causes for developing irrationality. As these irrationalities cost economies, the policymakers should design and implement more robust policies and guidelines for poverty alleviation and the enrichment of education at country level

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5. Other Comprehensive Income (OCI) Influenced by the Covid-19 Pandemic – Illustrated with the Example of Entities Listed on the Warsaw Stock Exchange (GPW)
   

   Author: Piotr Prewysz-Kwinto

   See Issue Contents: fins.2022.1

   Abstract:

   The Covid-19 pandemic is undoubtedly this event that has had the strongest impact on the economic activity of companies in the last two years and was reflected in their financial statements. The aim of the study is to verify whether the effects of the Covid-19 pandemic are visible in the area of other comprehensive income presented in the statement of comprehensive income. The study fits into a wider trend of researches concerning financial information presented in this element of a financial statement but in connection with the current subject of the Covid-19 pandemic. The study presents the results of the research on OCI value in the statements of comprehensive income of 91 largest entities listed on the Warsaw Stock Exchange. The comparative analysis covered data from the pandemic period (2020-2021) and the year before it (2019).

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6. Comparison of investment performance measures using the example of selected stock exchanges
   

   Author: Marcin Potrykus

   See Issue Contents: fins.2018.2

   Abstract:

   In this paper the main objective is to examine whether the selection of the performance measure influences the evaluation of individual investments and the performance rankings generated on that basis. This study presents the values of 16 performance indicators along with their detailed descriptions. All calculations were made using the R program, and the source code can be found at the end of the article. Nine selected stock indices were analysed during the period January 1997– December 2015, and the monthly logarithmic rates of return for these indices were calculated. For 14 out of the 16 measures analysed it was shown that the choice of effectiveness measure had no influence on the evaluation of individual investments; therefore it is not important whether the investor uses the Sharpe ratio or the Calmar ratio as an indicator of efficiency since both measures are almost identical in rank for a particular investment. This has not been confirmed for the Upside Potential ratio, which means that using this indicator may lead to different investment decisions in which the objective is to maximize efficiency. Moreover, based on the analysis it was found that the OMXC 20, DAX 30, and OMXS 30 indexes had the highest efficiency during the period January 1997–December 2015, while the AEX, WIG 20, and PSI 20 indexes were characterized with having the lowest levels of efficiency

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7. The evolution of the importance of the true and fair view (TFV) principle. The case of Poland
   

   Author: Agnieszka Piechocka-Kałużna

   See Issue Contents: fins.2018.4

   Abstract:

   The aim of this paper is to analyse matters of truth, which is inherent issue of accounting (and therefore in reporting, as its part), which is reflected in the true and fair principle (TFV). The paper demonstrates the essence of the TFV principle and the evolution of its role and place among the set of qualitative characteristics of financial statements. After examining the changes in the development of the perception of TFV the paper makes an appraisal, gives the author’s comments and contribution by providing direct implications for regulators and the setters of standards. With respect to typical limitations regarding behavioural studies, the paper provides practical as well as social implications about understanding of the TFV concept and its effect on both the preparers and users of financial statement

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8. Investments and Nimby Syndrome in the Waste Management – Analysis on the Example of the Lesser Poland Voivodship
   

   Author: Aleksandra Kultys

   See Issue Contents: fins.2022.1

   Abstract:

   The aim of the article was to determine to what extent the NIMBY syndrome may hinder the implementation of investments in waste management in the Lesser Poland Voivodeship. The background of the analysis was the premises of the European Green Deal, including the need to implement a circular economy. The article consists of: an analysis of investment outlays in waste management in Lesser Poland, defining the NIMBY syndrome, and analysis of the results of a survey conducted among respondents in Lesser Poland. As a result of the conducted analysis, it was found that potential investments in waste management should not encounter financing problems. In terms of social resistance, social protests can be triggered by investments in the form of landfills and waste incineration plants. Investments related to waste recycling arouse less public objection. Social opposition grew also when the more pejorative name of the facility was used.

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9. European Milestones in Protection of Workers’ Claims in Case of Insolvency
   

   Author: Yury Karaleu

   See Issue Contents: fins.2021.1

   Abstract:

   The employer’s insolvency entails, in addition to potentially devastating economic consequences of output reduction and disruption of economic relations, adverse social costs for employees – the loss of jobs and earnings. It is not only the employee and his or her family who suffered a great loss but the whole society. The society faces a serious question: how to ensure the payment of wages to employees in case of insolvency and provide a solid framework with which the countries can find durable solutions, effectively organise and manage the protection of workers’ claims. This paper analyses achievement in developing the European and national systems of protection of workers’ claims in case of insolvency and shows the progress that has been made by EU countries in having a balance of interests between employers, employees and society in the protection of outstanding claims of employees in the event of their employer’s insolvency.

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10. Risks in the investment activity of Polish regions
    

    Author: Beata Zofia Filipiak, Marek Dylewski

    See Issue Contents: fins.2018.4

    Abstract:

    Investment activities executed by regional authorities are exposed to high risk. The risk results from the very essence of investment projects implemented by regions in Poland and can be associated with the failure to meet the regional budget. The purpose of this study is to assess the size of the existing discrepancies between the planned and actually incurred investment expenditure and to find out if there are systematic changes in the level of these discrepancies i subsequent years. This goal was achieved through the presentation of the specific approach to risk measurement in the investment activities of local government units. The research was undertaken by regional self-government units. Empirical research has allowed us to answer three research questions: how great were the disparities between the planned and the actually incurred investment costs in the Polish regions in 2011-2015? Did systematic changes in the level of inconsistency between the planned and the actually incurred costs take place in the observed period? Was the rate of failure to meet investment plans correlated with the rate of failure to meet operational financial plans?

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