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Abstract:
Differences in countries financial structure are prevailing despite the global converegence of the economies. In countries such as Germany or Spain the financial system is dominated by banks, whereares in the U.S. or the U.K. financial system capital markets is predominated. In our paper we investigate the relation between the structure of the real economy and country's financial system. We consider whether the development of the real economic structure determine the evolution of the financial system structure. Using both pooled FGLS regression and panel EC2SLS techniques we find that economies dominated by physical-asset-intensive firms tend to have a bank-based financial system. Conversely, countries with knowledge based industries and intangible-asset-intensive firms tend to have a market-based financial system. Our results suggests that financial structures develop and prevail in response to the financial needs of firms, hence to the characteristics of the real economy.

Financial system, Real economic structures

Abstract:
The goal of this paper is twofold. First, we explore the determinants of the dividend policy in Poland. Second, we test whether corporate governance practices determine the dividend policy in the non-financial companies listed on Warsaw Stock Exchange. We compose, for the first time, quantitative measures on the quality of the corporate governance for 110 non-financial listed companies. Our results suggest that large and more profitable companies have a higher dividend payout ratio. Furthermore, riskier and more indebted firms prefer to pay lower dividends. The findings finally, based on the period 1998-2004, demonstrate that an increase in the TDI or its subindices that represent corporate governance practices brings about a statistically significant increase in the dividend-to-cash-flow ratio. Moreover, the estimates prove to be significant after the inclusion of standard additional controls.

corporate governance, dividend policy, agency theory

Abstract:
We present an overview of the financial structure of the enlarged European Union with 25 countries. We start by describing the financial system development in all member states since 1995, and then compare the structure between the old and new countries. Using financial measures we document the prevailing substantial differences in the financial structure between new and old member states after the enlargement in 2004. Finally, we compare the financial structures of an enlarged EU with those of the United States and Japan.

Abstract:
This paper investigates the link between the founding family ownership and firm performance. We also study the influence of family management on financial performance of the public firms. We test our hypotheses using half-year database of 272 companies from Warsaw Stock Exchange (WSE) covering the period 1996-2004. The results indicate that family firms, CEOs and board chairmen are related insignificantly to the financial performance of the companies.

Additional analysis reveals how independent variables such as size, growth, leverage and liquidity influence the financial measures of the sub-samples of firms.

family firms, corporate finance, corporate governance

Abstract:
The goal of this paper is twofold. First, we explore the determinants of the dividend policy in Poland. Second, we test whether ownership and corporate governance practices determine the dividend policy in the non-financial companies listed on the Warsaw Stock Exchange. In order to test the impact of corporate governance we compose, for the first time, quantitative measures on the quality of the corporate governance standards for 110 non-financial companies listed on the WSE. Our results suggest that ownership as well as the increase in corporate governance standards controlling for other determinants bring about a statistically significant increase in the dividend payout ratio. The findings are based on the period 1998-2004.

corporate governance, dividend policy, agency theory, ownership, transition economy

Abstract:
In the last fifteen years foreign banks have expanded their presence significantly in almost all developing economies. The transition countries are among those economies that have experienced one of the highest levels of banking internationalization in the world. The foreign-controlled banking asset in these countries ranges from 70 per cent in Poland to almost 100 per cent in Slovakia. With our study we examine the economic determinants of entry into four local banking markets in Central Europe during the period 1994-2004. In addition, we study how the economic determinants affect different entry modes of foreign banks into the Central European markets. Our results show that the most important factors determining foreign bank entry were (i) large potential of the Central European banking markets and low degree of their financial sophistication, (ii) the legal origin of the home country, (iii) the size of the economic growth rates differentials between host and home markets, and (iv) finally the distance between the host country and the foreign bank headquarter. We also find that most foreign banks entries occurred in the period of poor creditor rights protection. Moreover, our results present that the economic determinants had an impact on the decision of the organization form of the foreign banks entering the Central European banking markets. Our results are robust to several controls, including the lack of independence of entry decisions.

Abstract:
In recent years the number of going private transactions has sharply increased in emerging markets. The purpose of this study is to establish the financial characteristics of companies that have gone private using a dataset from Poland. We use a probit model to distinguish the difference between firms that went private and companies that did not. We find that the probability of going private grew with a rise in the concentration of foreign ownership, an increase in the relative level of free cash flows, a decrease in the level of long term debt, and a decrease in the liquidity of share trading. The results obtained are important both for investors wishing to identify entities characterized by a high likelihood of going private and for governmental authorities evaluating the methods and rationality of privatization mature state-owned enterprises.

going private, free cash flow, information asymmetry, ownership structure, emerging markets

Abstract:
In our paper we have tried to present the literature describing methods for decomposing measures of concentration and diversification, as well as tried to explain reasons for the changes in the level of concentration and diversification in the sector of Polish commercial banks in 1996-2005. When the scale of banks' activities is measured on the basis of the values of balance sheet assets, it turns out that in most cases the changes in the level of concentration or diversification are driven by the stronger impact of the increased uniformity of share distribution, rather than the impact of the decreasing number of institutions in the sector. After replacing assets with the value of income from main banking activities, the yearly changes are better explained in most cases by the scenario assuming a single directional impact of the decrease in the uniformity of share distribution and the decrease in the number of commercial banks. In general, we conclude that the overall picture of the level of concentration, its yearly and ten-year changes, as well as the reasons for these changes, depends strongly on the decision how to measure the scale of commercial banks' activities.

concentration, decomposition, banking sector

Abstract:
This paper provides a comprehensive overview of all aspects of the Polish financial system development since 1995. The study shows the recent financial system development in Poland and discuss the ongoing changes in the structure of the banking, insurance and pension sector as well in the capital market.

financial system, banking system, capital markets, insurance sector, pension funds

Abstract:
This paper describes the trends in foreign bank ownership across the world and presents, for the first time, empirical evidence on the causes of multinational banks’ withdrawal from other countries. Using maximum likelihood estimation techniques and data on 81 closed foreign bank subsidiaries across 37 countries during 1999-2006, we show that problems encountered by the subsidiaries were not the main cause of divestment by the parent banks. Based on data for the parent banks of the closed subsidiaries, our results show that those banks reported significant financial weakness one year prior to the closing of the international operation. We therefore assume that a multinational bank’s decision to close a subsidiary in another nation is caused by problems in the home country rather than by weak performance of the subsidiary.

foreign banks, subsidiary, ownership, performance

Abstract:
This paper describes the trends in foreign bank ownership across the world and presents, for the first time, empirical evidence on the causes of foreign banks’ withdrawal from other nations. Using maximum likelihood estimation techniques and data on 81 closed foreign bank subsidiaries across 37 countries during 1999-2006, we show that problems encountered by the subsidiaries were not the main cause of divestment by the parent banks. Based on data for the parent banks of the closed subsidiaries, our results show that those banks reported significant financial weakness one year prior to the closing of the international operation. We therefore assume that a multinational bank’s decision to close a subsidiary in another nation is caused by problems in the home country rather than by weak performance of the subsidiary.

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foreign banks, subsidiary, ownership, performance