EconPapers    
Economics at your fingertips  
 

Blame No One ?Investment Decisions of the Polish Stock-Listed Companies

Joanna Tyrowicz ()

Brussels Economic Review, 2007, vol. 50, issue 4, 391-410

Abstract: It is often raised that enterprises in transition countries are cursed with credit constraints and insufficient capital. Regardless of whether this belief holds for the whole of the economy, the Agency Theory provides a useful both theoretical and empirical framework helping to verify the efficiency of investment decisions in case of companies for which ’objective’ future cash-flow valuation is available. The assertion of managerial discretion has been verified empirically for many different countries with the analytical background provided by user cost of capital and Tobin’s Q theories. This paper’s contribution is the analysis of the Polish stock-listed companies behavior with the particular attention devoted to the corporate governance issues. We find that on average these companies overinvest relative to their opportunities, while this phenomenon is more severe in the case of even partial state ownership.

Keywords: Financial constraints; Investments decisions; System GMM; Poland; Stock-exchange; Managerial discretion (search for similar items in EconPapers)
JEL-codes: C23 E22 O31 (search for similar items in EconPapers)
Date: 2007
References: Add references at CitEc
Citations Track citations by RSS feed

Downloads: (external link)
https://dipot.ulb.ac.be/dspace/bitstream/2013/80564/1/ARTICLETYROWICZpdf2.pdf ARTICLE TYROWICZ pdf2 (application/pdf)

Related works:
Working Paper: Blame No One? Investment Decisions Of The Polish Stock-listed Companies (2009) Downloads
Working Paper: Blame No One? Investment Decisions of the Polish Stock-listed Companies (2007) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bxr:bxrceb:2013/80564

Ordering information: This journal article can be ordered from
http://hdl.handle.ne ... ulb.ac.be:2013/80564

Access Statistics for this article

More articles in Brussels Economic Review from ULB -- Universite Libre de Bruxelles Contact information at EDIRC.
Bibliographic data for series maintained by Benoit Pauwels ().

 
Page updated 2018-12-15
Handle: RePEc:bxr:bxrceb:2013/80564