The main aim of the article is to determine how the bankruptcy filing announcement of a stock listed company affects the market valuation of its competitors, depending on the sector characteristic. ...An event study was conducted on the example of returns to shares of companies comprised in the WIG index and operating in 9 sectors. It is indicated that the bankruptcy filing announcement is quickly (within one day) incorporated into the share prices of competitors of the announcing firm. It is confirmed that the direction of market reaction toward share prices of competitors is differentiated by the characteristics of the sector. Averaged results show that the competitive effect occurs in the sectors with a high level of concentration, while the contagion effect is noted in sectors with low concentration. Companies from sectors characterized by low leverage experience the competitive effect. No information transfer was found for a group of companies in sectors characterized by high leverage.
Theoretical background: According to many behavioural studies, emotions (e.g. fear, greed, overenthusiasm) strongly influence investment decisions and are one of the main sources of irrational ...behaviour. Purpose of the article: The study aims at investigating the impact of fear related to the COVID-19 crisis on sector indices on the stock market, in the face of anticipatory restrictions imposed by the authorities. The paper illustrates the investors’ decisions affected by fear. Research methods: The empirical study includes statistical analyses, in particular an analysis of the coefficient of variation. Main findings: The highest increase in the implied volatility index, which is used as a proxy of fear, is noted for the period of uncertainty (before the decisive reactions of government), during which, investors’ reactions are the most strongly related to fear and the negative sentiment affects all the sectors.
The purpose of the article/hypothesis: This paper aims to provide a comprehensive review of the theoretical and empirical literature regarding tax-induced earnings management. In particular, the ...association between anticipated tax changes and earnings management is of interest to the authors.Methodology: This paper uses a systematic literature review to achieve its research objectives.Results of the research: The presented research is mostly devoted to tax rate decreases and focuses on accrual-based earnings management methods. In anticipation of a tax rate change, companies shift their income from a high to a low tax rate period. Moreover, the probability of tax-induced earnings management is higher in case of extreme changes in the tax rate, larger prospects for tax savings as well as in case of private firms. This paper identifies several inconsistencies and gaps in the current literature, emphasizing that the connection between firms’ characteristics, the level of book-tax conformity and the practice of earnings management remains unclear.
Colorectal cancer (CRC) is a serious health problem, and various screening programs to reduce CRC have been introduced worldwide. However, the cost‑effectiveness of a program based on ...once‑in‑a‑lifetime colonoscopy in Poland is unknown.
The main aim of this study was to assess the cost‑effectiveness of Polish Colonoscopy Screening Platform (PCSP), the colonoscopy screening program in Poland.
A Markov model was constructed to compare the strategy of colonoscopy screening as compared with no screening in 100 000 subjects. The model was based on data collected from the nationwide Polish CRC screening program whenever possible. The incremental cost‑effectiveness ratio (ICER) was calculated and compared with the willingness‑to‑pay thresholds. A sensitivity analysis was also performed using the Monte Carlo simulation.
Colonoscopy screening within PCSP resulted in a 18.9% reduction in CRC incidence and 19.8% reduction in CRC mortality. The strategy allowed a gain of 2317 life‑years saved (1959 after discount‑ ing). The cost of colonoscopy screening per participant examined was estimated at 267.70 USD (95% CI, 263.08-272.32 USD). The ICER was less than 6500 USD, which was much lower than the accepted willingness‑to‑pay thresholds, indicating that the screening was cost‑effective.
Colonoscopy screening within the PCSP is cost‑effective and may have a substantial impact on the Polish society due to life‑years saved. The results have good informative value not only for health policy makers and medical practitioners, but also for health technology assessment.
The main aim of the article is to determine how the bankruptcy filing announcement of a stock listed company affects the market valuation of its competitors, depending on the sector characteristic. ...An event study was conducted on the example of returns to shares of companies comprised in the WIG index and operating in 9 sectors. It is indicated that the bankruptcy filing announcement is quickly (within one day) incorporated into the share prices of competitors of the announcing firm. It is confirmed that the direction of market reaction toward share prices of competitors is differentiated by the characteristics of the sector. Averaged results show that the competitive effect occurs in the sectors with a high level of concentration, while the contagion effect is noted in sectors with low concentration. Companies from sectors characterized by low leverage experience the competitive effect. No information transfer was found for a group of companies in sectors characterized by high leverage.
The paper is aimed at identifying critical events preceding financial distress of GetBack and presenting the impact of these events on GetBack’s market rivals. According to academic literature, the ...effect of an event announcement is transferred over the competitors of the focal firm and may affect their market value. The research hypothesisis that the critical events on the GetBack’s way to financial distress significantly affectedits market rivals. The method used in the paper is the event study analysis. Three critical events were identified, which affected significantly the returns of Getback. The transfer of a reaction to the events on GetBack’s rivals is not so clear. It turned out that the event,which was the loss of interest of foreign investor in acquisition of GetBack shares, affectedrivals’ returns in a positive way. It indicates that a competitive effect was dominant in this case. The average effect for the rivals in the case of two remaining events seems to be irrelevant. Such results indicate that the research hypothesis can be verified partially in a positive way, however, the topic needs further and in-depth studies.
This article addresses the issue of payment gridlock affecting Polish companies. The aim of this article is to assess the occurrence of payment gridlock in Polish companies, with particular reference ...to companies listed on the Warsaw Stock Exchange. The research hypothesis assumes that delays in receivables are one of the main factors contributing to delays in payments of liabilities. The first part of the article presents Poland’s situation concerning the occurrence of late payments. Basic legal regulations and statistical data on this phenomenon are discussed. The second part of the article presents the results of the author’s own research on the relationship between the turnover of liabilities and turnover of receivables of Polish stock-listed companies in the years 2010–2015. The descriptive analysis and statistical methods were used to verify the hypothesis. The results of the analysis have shown that delayed payments are a common problem for Polish companies. It was estimated that 18% of the studied companies had problems with the timely settlement of liabilities due to failure to receive payment on time.
The main aim of the paper is to explore the intra‐industry effects of a bankruptcy filing on the capital market and to analyse the predomination of either competitive or contagion effect. The article ...is based on the assumption that the bankruptcy filing of the company affects the stock returns of its industry competitors and that the competitive effect dominates. The event study method is employed to assess the effect on the valuation of announcing and non‐announcing firms. The empirical study is conducted on the example of stock‐listed companies in Poland, where bankruptcy proceedings are not aimed at preserving the firm in distress. Averaged results suggest that the bankruptcy filing has a positive short‐term effect on the valuation of industry competitors in the sample, which indicates the competitive effect. However, looking at results broken down by industries there is no robust evidence of the effect. Only one sector experiences short‐lived positive investors' reaction.
The main aim of the article is to analyze the occurrence of agglomeration effect in the hospital sector on the basis of financial performance. The considerations are made on the example of hospitals ...in Poland-the country that survived the latest economic crisis relatively well, usually generating positive values of GDP, but where still there is an ongoing discussion on the final shape of healthcare financing model. The article is based on the assumption that there occur significant differences in financial performance between hospitals according to their location. The research hypothesis is as follows: Hospitals operating in big cities are featured by better financial condition than their counterparts operating in smaller towns. To verify the hypothesis, the methods of financial analysis and statistical hypothesis testing are used. As it is emphasized in the article, the assumption is true and the hypothesis can be verified positively.
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