Search results

1

THE INFLUENCE OF LIQUIDITY ON PROFITABILITY OF POLISH CONSTRUCTION SECTOR COMPANIES

100%

Bolek M., Wiliński W.

Finansowy Kwartalnik Internetowy e-Finanse

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2012

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vol. 8

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issue 1

38-52

EN

The concept of financial liquidity is not very straight, as it has various aspects, although generally it refers to the current assets and liabilities management. Financial liquidity together with profitability are the core categories of enterprise activities which, in order to function efficiently, the company should treat as equally important. The growth of financial liquidity may negatively influence the company profitability. If the company is to liquid in the static sense than it will affect negatively the profitability since some capital will be frozen in current assets. In this article, the authors analyze theoretical aspects of the relation between liquidity and profitability, whereas the empirical part they examine this interdependence on a group of construction sector companies listed on Warsaw Stock Exchange.

2

Managers’ Consideration about Behavioural Factors that Influence their Decision Making in Liquidity Management

80%

Korzeniowska D.

Przedsiębiorczość i Zarządzanie

|

2015

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vol. 16

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issue 1

83-95

EN

The paper presents selected fragment of the outcomes of qualitative research led by the author. It concerned factors influencing decision-making in liquidity management, associated with human traits (human as an acting person of such choices) both in terms of mental processes’ characteristics peculiar to the entire human species (features of human mind) as well as the specific attributes of individual decisionmakers. The aim of the study was to discover how managers perceive determinants of liquidity decision-making process, basing on their professional experience, and whether in their consideration on the subject had ever appeared the determinants related to the person of the decision-maker.

3

Dependencies between financial ratios among companies listed on the Warsaw Stock Exchange

80%

Pilch B.

Zeszyty Naukowe Małopolskiej Wyższej Szkoły Ekonomicznej w Tarnowie

|

2021

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vol. 50

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issue 2

37-51

PL

Zależności między wskaźnikami płynności, rentowności i zadłużenia są zwykle dość niejasne. Wiele analiz empirycznych dostarcza wglądu w tę kwestię. Jednak wyniki takich badań są zróżnicowane i często niespójne. Wobec tego zdecydowano się zweryfikować relacje pomiędzy tytułowymi grupami wskaźników, biorąc pod uwagę polski rynek kapitałowy. Metodologia badania obejmowała przede wszystkim przegląd literatury i analizę danych (z użyciem statystyk opisowych i korelacji). W próbie badawczej uwzględniono większość spółek notowanych na Giełdzie Papierów Wartościowych w Warszawie, obejmowała ona lata 2015–2019. Na podstawie tej analizy wysnuto poniższe wnioski. W odniesieniu do wskaźników płynności warto zwrócić uwagę, że ich wartości są silnie zróżnicowane. Przeciętnie wydaje się, że analizowane podmioty charakteryzowały się dość bezpiecznym poziomem płynności. Większość jednostek generowała też dochód (ponad 60% przypadków). Poziom ich zadłużenia był przeciętny, ale wskaźniki pokrycia kształtowały się zazwyczaj na w pełni zadowalającym poziomie. Relacje pomiędzy wskaźnikami płynności i rentowności były zróżnicowane, nie było między nimi istotnej korelacji. Średni wzrost rentowności / płynności prowadził zaś do nieznacznie ujemnych lub żadnych istotnych zmian w płynności / rentowności. Zależność między rentownością a zadłużeniem była natomiast raczej ujemna. Podobnie ujemną korelację zaobserwowano w przypadku płynności i poziomu zadłużenia.

EN

The dependencies between liquidity, profitability and indebtedness ratios are usually quite unclear. Many empirical studies provide insight into this issue. However, research results are varied and often inconsistent. Hence, it was decided to verify the relationships between the title groups of indicators, taking into account the Polish capital market. The research methodology included mainly the literature review and data analysis (using descriptive statistics and correlation). The research sample consisted of the majority of companies listed on the Warsaw Stock Exchange and covered the period 2015–2019. Based on this analysis, the following conclusions were drawn. Regarding liquidity ratios, it is worth pointing out that their values are strongly differentiated. On average, it seems that analyzed entities were characterized by quite a safe level of liquidity. Most of the companies were also generating income (in more than 60% of cases). The level of their indebtedness was medium, but coverage ratios were at a fully satisfactory level on average. The relationships between liquidity and profitability indicators were varied, there was no significant correlation between them. An increase in profitability/ liquidity on average led to slightly negative or no relevant changes in liquidity/ profitability. For the dependence between profitability and indebtedness, it was rather a negative one. Similarly, a negative correlation was observed in the case of the liquidity and the level of indebtedness.

4

Costs and Taxes in the Light of Financial Management in Companies Listed on WSE

80%

Lyroudi K., Bolek M.

Finanse i Prawo Finansowe

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2022

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vol. 3

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issue 35

65-81

EN

The purpose of the article/hypothesis: The goal of this paper is to present costs and taxes as a part of financial management process in companies listed on the WSE. In the hypothesis it is expected that costs influence taxes paid by companies in a negative way due to the tax avoidance purpose attitude presented by managers, and as a result, both liquidity and debt levels are influenced. Methodology: Correlation coefficients and regression models are evaluated to find the answers for the research questions related to the relationships between tested variables. Results of the research: The correlation between costs and taxes is negative as expected, as well as their relationship with the liquidity. Contrary to the expectations, the correlation between taxes and costs is mostly positive, alike the relationship between liquidity and debt. Findings are characteristic for the Polish market that is rather conservative in the approach to taxes, liquidity and leverage strategies compared to other developed markets. These findings prove that liquidity and debt management issues are subjective and related to the market behavior such as tax evasion attitudes.

5

Measurement of stock market liquidity supported by an algorithm inferring the initiator of a trade

80%

OLBRYŚ J., MURSZTYN M.

Operations Research and Decisions

|

2017

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vol. 27

|

issue 4

111-127

EN

The aim of this study is to assess and analyse selected liquidity/illiquidity measures derived from high-frequency intraday data from the Warsaw Stock Exchange (WSE). As the side initiating a trade cannot be directly identified from a raw data set, firstly the Lee–Ready algorithm for inferring the initiator of a trade is employed to distinguish between so-called buyer- and seller-initiated trades. Intraday data for fifty-three WSE-listed companies divided into three size groups cover the period from January 3, 2005 to June 30, 2015. The paper provides an analysis of the robustness of the obtained results with respect to the whole sample and three consecutive subsamples, each of equal size: covering the precrisis, crisis, and post-crisis periods. The empirical results turn out to be robust to the choice of the period. Furthermore, hypotheses concerning the statistical significance of coefficients of correlation between the daily values of three liquidity proxies used in the study are tested.

6

The impact of liquidity on the capital structure: a case study of Croatian firms

80%

Šarlija N., Harc M.

Business Systems Research Journal

|

2012

|

vol. 3

|

issue 1

30-36

EN

Background: Previous studies have shown that in some countries, liquid assets increased leverage while in other countries liquid firms were more frequently financed by their own capital and therefore were less leveraged. Objectives: The aim of this paper is to investigate the impact of liquidity on the capital structure of Croatian firms. Methods/Approach: Pearson correlation coefficient is applied to the test on the relationship between liquidity ratios and debt ratios, the share of retained earnings to capital and liquidity ratios and the relationship between the structure of current assets and leverage. Results: A survey has been conducted on a sample of 1058 Croatian firms. There are statistically significant correlations between liquidity ratios and leverage ratios. Also, there are statistically significant correlations between leverage ratios and the structure of current assets. The relationship between liquidity ratios and the short-term leverage is stronger than between liquidity ratios and the long-term leverage. Conclusions: The more liquid assets firms have, the less they are leveraged. Long-term leveraged firms are more liquid. Increasing inventory levels leads to an increase in leverage. Furthermore, increasing the cash in current assets leads to a reduction in the short-term and the long-term leverage.

7

Prawne regulacje w kształtowaniu płynności sektora bankowego w Polsce

80%

Rzeczycka A., Golawska-Witkowska G.

Pieniądze i Więź

|

2012

|

vol. 15

|

issue 4(57)

128-136

EN

Requirements for banking supervision in shaping the liquidity underwent changes along with the events in the turbulent environment. Initially, they were optional. Banks were only obliged by the bank law to maintain market liquidity. Existing indicators were generally treated as those which size should be retained by the bank, however they were not obligatory. However, with the changes in the financial markets, as a form of protection from the financial crisis, they took the obligatory character, as prudential norms. The study carried out an analysis of the liquidity situation in the banking sector with total assets that at the end of each month in the last 12 months exceeded 200 million zloty, and not exceeding this amount. It was found that it is shaped on the correct level, and the number of banks which do not respect the Resolution 386/2008 is continuously decreasing.

8

The use of accounting tools in the assessment of enterprise financing policy – debt and liquidity

80%

Prysiński Ł., Kołysko W.

Przedsiębiorczość i Zarządzanie

|

2014

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vol. 15

|

issue 1

83-92

EN

The article is devoted to the use of accounting tools in the assessment of financial policy of enterprises in the financial crisis. The purpose of the article was to show the impact of financial structure on the financial liquidity of chosen similar firms. The study hypothesized that during financial crisis, a better financial position in terms of liquidity have firms, which limit the level of short - term liabilities in financing short - term assets. To verify the hypotheses, the analysis of documents (financial statements) and debt and liquidity ratios were used.

9

Liquidity – Profitability Trade-Off on the Example of Companies Listed on Main and Alternative New Connect Markets on Warsaw Stock Exchange

80%

Bolek M., Pluskota A., Wolski R.

Finanse i Prawo Finansowe

|

2020

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vol. 4

|

issue 28

27-44

EN

The goal of this paper is related to the liquidity and profitability relationship analysis and their maxima assessment in the companies listed in the main and alternative markets of Warsaw Stock Exchange. The trade-off between maximum profitability and liquidity is the result of value maximization and bankruptcy prevention strategies and this approach is expected to be similar in all listed companies due to investors’ expectation. It has been found that there is no difference in management goals in the markets taken into consideration and companies in both research samples maximize profitability within a conservative approach to the liquidity. The maximum liquidity, on the other hand, is determined with a similar level of profitability as measured by ROE on the main market of WSE and NewConnect.

10

Modelling bid-ask spread conditional distributions using hierarchical correlation reconstruction

80%

Duda J., Gurgul H., Syrek R.

Statistics in Transition new series

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2020

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vol. 21

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issue 5

99-118

EN

While we would like to predict exact values, the information available, being incomplete, is rarely sufficient - usually allowing only conditional probability distributions to be predicted. This article discusses hierarchical correlation reconstruction (HCR) methodology for such a prediction using the example of bid-ask spreads (usually unavailable), but here predicted from more accessible data like closing price, volume, high/low price and returns. Using HCR methodology, as in copula theory, we first normalized marginal distributions so that they were nearly uniform. Then we modelled joint densities as linear combinations of orthonormal polynomials, obtaining their decomposition into mixed moments. Then we modelled each moment of the predicted variable separately as a linear combination of mixed moments of known variables using least squares linear regression. By combining these predicted moments, we obtained the predicted density as a polynomial, for which we can e.g. calculate the expected value, but also the variance to determine the uncertainty of the prediction, or we can use the entire distribution for, e.g. more accurate further calculations or generating random values. 10-fold cross-validation log-likelihood tests were conducted for 22 DAX companies, leading to very accurate predictions, especially when individual models were used for each company, as significant differences were found between their behaviours. An additional advantage of using this methodology is that it is computationally inexpensive; estimating and evaluating a model with hundreds of parameters and thousands of data points by means of this methodology takes only a second on a computer.

11

Do mixed-data sampling models help forecast liquidity and volatility?

80%

Będowska-Sójka B., Kliber A.

Przegląd Statystyczny

|

2022

|

vol. 69

|

issue 2

1-19

EN

This paper aims to contribute to the existing studies on the Granger-causal relationship between volatility and liquidity in the stock market. We examine whether liquidity improves volatility forecasts and whether volatility allows the improvement of liquidity forecasts. The forecasts based on the mixed-data sampling models, MIDAS, are compared to those obtained from models based on daily data. Our results show that volatility and liquidity forecasts from MIDAS models outperform naive forecasts. On the other hand, the application of mixed-data sampling models does not significantly improve the performance of the forecasts of either liquidity or volatility based on a univariate autoregressive model or a vectorautoregressive one. We found that in terms of the forecasting ability, the VAR models and the AR models seem to perform equally well, as the differences in forecasting errors generated by these two types of models are not statistically significant.

12

Liquidity – Profitability Trade-Off on the Example of Companies Listed on Main and Alternative New Connect Markets on Warsaw Stock Exchange

80%

Bolek M., Pluskota A., Wolski R.

Finanse i Prawo Finansowe

|

2021

|

issue Numer Specjalny

7-24

EN

The goal of this paper is related to the liquidity and profitability relationship analysis and their maxima assessment in the companies listed in the main and alternative markets of Warsaw Stock Exchange. The trade-off between maximum profitability and liquidity is the result of value maximization and bankruptcy prevention strategies and this approach is expected to be similar in all listed companies due to investors’ expectation. It has been found that there is no difference in management goals in the markets taken into consideration and companies in both research samples maximize profitability within a conservative approach to the liquidity. The maximum liquidity, on the other hand, is determined with a similar level of profitability as measured by ROE on the main market of WSE and NewConnect.

13

THE MULTIFACTORIAL PASTOR-STAMBAUGH MODEL: EXPLAINING THE IMPACT OF LIQUIDITY ON THE RATE OF RETURN BASED ON THE EXAMPLE OF THE WARSAW STOCK EXCHANGE

80%

Gniadkowska-Szymanska A.

Equilibrium. Quarterly Journal of Economics and Economic Policy

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2017

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vol. 12

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issue 2

211-228

EN

Research background: The liquidity of assets in the financial market is under-stood gener-ally as costs, and the easiest way in which different types of assets can be converted into cash, or to put it simply, sold at the currently available price on the market. For a considerable period of time this category had not been duly considered in the framework of modern finance theory. As a result, a number of basic models constructed within the framework of this theory in its classical form did not include problems with liquidity. This applies to a number of aspects related to liquidity, with one of the most important being the relationship between the liquidity of trading in shares and the results obtained from these rates of return. Purpose of the article: The aim of the article is to determine whether the rate of return on shares increases with the increase in share liquidity and the incremental rate of return on this account decreases with increasing liquidity. The applied re-search methodology is similar to that described by Pastor and Stambaugh (2003). The model used in the empirical study is the expanded model of Fama and Francha (1993) for the liquidity factor. Methods: In this paper I present various factors which will affect the liquidity. The paper will also provide the results of research concerning the relations between spread and stock return on the Warsaw Stock Exchange (WSE). The evidence drawn from WSE stock returns over the period 2004–2012 indicates that Amihuda measure and other variables have a significant effect on stock return using the multifactorial Pastor-Stambaugh. Findings & Value added: In the case of the Polish market, it can be stated that in the analysis based on the Pastor-Stambaugh model not all the variables included in this model are statistically significant. However, directional parameters associated with liquidity risk were statistically significant in all analyzed periods, which allows us to confirm the hypothesis that liquidity has a significant influence on the rate of return on shares listed on the Stock Exchange in Warsaw.

14

Position of the warsaw stock exchange compared to the lse group and ceeseg (the first decade of the 21st century – selected parameters)

80%

Banaszczak-Soroka U.

Nauki o Finansach

|

2013

|

issue 3 (16)

51-63

EN

The beginning of the 21st century was a time of significant changes, which had an effect on stock exchanges in all regions of the world. Investors were under the influence of two slumps (2001 and 2007) on the one hand, and on the other they were optimistic because of the 2003-2007 bull market. Another characteristic trend were the numerous alliances and acquisitions of stock exchanges, including the creation of the CEESEG – a strong group of exchanges gathered around the Vienna Stock Exchange, which was the direct competitor of the WSE. The fusion of the stock exchanges in Vienna, Ljubljana, Prague and Budapest made the WSE’s struggle for supremacy in the region even harder. The analysis of parameters such as capitalization, value of turnover, liquidity ratio and concentration shows that the WSE is still behind the CEESEG.

15

Information asymmetry, liquidity and the dynamic volume-return relation in panel data analysis

80%

Kliber P., Garsztka P.

Prace Naukowe Uniwersytetu Ekonomicznego we Wrocławiu

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2018

|

issue 519

122-134

EN

In the paper we investigate the dynamic relation between returns and volume of individual stocks traded on the Warsaw Stock Exchange. Theoretical models suggest that this relation reveals the information asymmetry in the market and the role of private information. Unlike other works, we use dynamic regression to obtain the coefficients for 52 stocks, assuming that coefficients for individual stock can vary from month to month. Then we use panel regression with random effects to test the relationship between coefficient of information asymmetry and liquidity. We find an evidence supporting the compliance of measure of information asymmetry, especially for medium and small capitalization companies.

16

Płynność przy wycenie akcji na Giełdzie Papierów Wartościowych w Warszawie

71%

Włosik K.

Ruch Prawniczy, Ekonomiczny i Socjologiczny

|

2017

|

vol. 79

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issue 2

127-141

EN

The main objective of this article is to verify the assumption that the level of liquidity does matter in stock pricing on the Warsaw Stock Exchange. The ILLIQ introduced by Yakov Amihud in a paper published in 2002 was selected as the measure of liquidity. It is calculated by dividing the absolute return on the stock of a given company on a particular day by the volume expressed in selected currency on the same day. This measure was used as an additional independent variable in the Fama and French three factor model. The analysis was based on the monthly data for 87 stocks from January 2008 to the end of February 2017. The results showed that in the analysed period small-cap stocks outperformed large-cap stocks and value stocks generated higher returns than growth stocks. The additional measure of liquidity turned out to be statistically insignificant.

PL

Celem artykułu jest weryfikacja hipotezy zakładającej, że poziom płynności ma znaczenie przy wycenie akcji na Giełdzie Papierów Wartościowych w Warszawie. Za miarę płynności przyjęto wskaźnik przedstawiony przez Yakova Amihuda w pracy z 2002 r. – ILLIQ, który jest obliczany jako iloraz wartości bezwzględnej stopy zwrotu danej spółki i wyrażonego wartościowo wolumenu obrotu jej akcjami. Miarę tę wprowadzono jako dodatkową zmienną objaśniającą do trójczynnikowego modelu Famy i Frencha. Analizę przeprowadzono dla 87 spółek w okresie od stycznia 2008 do końca lutego 2017 r. Oszacowania wskazały na występowanie efektu wielkości oraz na osiąganie ponadprzeciętnych stóp zwrotu przez spółki dochodowe w tym przedziale czasowym. Dodatkowa zmienna objaśniająca okazała się statystycznie nieistotna.

17

Liquidity and solvency of a company and the rate of return – an analysis of the Warsaw Stock Exchange

70%

Zalewska J., Nehrebecka N.

Central European Economic Journal

|

2019

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vol. 6

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issue 53

EN

The purpose of the article is to analyse the impact of various financial ratios used to evaluate a company’s liquidity and solvency on the rates of return on the shares of companies listed on the Warsaw Stock Exchange. In the context of developing countries, the relationship between liquidity and solvency on the one hand and the return on equity on the other is still not clear. Poland is the most economically developed country in Central and Eastern Europe. A thorough analysis is necessary to take appropriate action and introduce adequate regulations in the country, as well as to create the foundation for researching other economies in this region. In addition, this article includes new estimators that have not yet been taken into account but that may affect the rates of return, which will contribute to the literature on the subject and to the development of knowledge on the volatility of returns on shares. In the study, we have calculated the time-varying beta coefficients of the capital asset pricing model (CAPM) model and analysed portfolios based on three liquidity ratios and four solvency ratios, which were computed using the CAPM, Fama–French and Carhart models. The empirical study described in the article focuses on companies listed on the Warsaw Stock Exchange in the period from 1 January 1999 to 30 June 2013. Regressions were estimated by the least-squares method and by quantile regression. Based on the results, it was found that listed companies at risk of bankruptcy are able to meet their short-term liabilities. Liquidity and solvency measured by financial ratios significantly affect the sensitivity of the rate of return on shares to the risk factors expressed in the CAPM, Fama––French and Carhart models.

18

Factors Affecting Profitability of Insurance Companies. Evidence from Kosovo

70%

Ahmeti Y., Iseni E.

Academicus. International Scientific Journal

|

2022

|

vol. 13

|

issue 25

122-142

EN

Profitability expresses the ability to make a profit from all the business activities of the company. It shows how efficiently management generates profit by utilizing all available resources. This paper examined the effects of specific company factors, namely independent variables such as: liquidity, company size, company age, tangible asset, leverage, company capital and growth of com-pany, on profitability represented by return on assets (ROA) and net profit margin (NPM) as a dependent variable. The sample in this study includes eleven insurance companies for the period 2015 - 2020. The regression results indicate that size, leverage and age of company, have significant effects on the ROA. Meanwhile in NPM of insurance companies in Kosovo size of company and firm growth have significant effects.

19

Determinants of the capital structure of Polish industrial enterprises

70%

Ociesa K.

Zeszyty Naukowe Małopolskiej Wyższej Szkoły Ekonomicznej w Tarnowie

|

2021

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vol. 50

|

issue 2

25-36

PL

Tematyka artykułu obejmuje determinanty struktury kapitału. Celem niniejszego opracowania jest zbadanie zależności pomiędzy strukturą kapitału a płynnością, rentownością, wiekiem oraz rozmiarem polskich firm przemysłowych. Dokonany przegląd literatury pozwolił na postawienie hipotez wskazujących, że polskie przedsiębiorstwa kształtują strukturę kapitału zgodnie z teorią hierarchii źródeł finansowania. Zgodnie z tą hipotezą wyłoniono pięć hipotez szczegółowych. W celu ich weryfikacji zastosowano metody statystyczne takie jak podstawowe statystyki opisowe oraz współczynnik korelacji r Pearsona. Próbę stanowi 100 spółek notowanych na Giełdzie Papierów Wartościowych w Warszawie. Badania obejmują lata 2010–2019. Wyniki badań potwierdzają ujemny związek płynności z zadłużeniem. Firmy mające trudności z regulowaniem zobowiązań bieżących w większej mierze korzystają z finansowania kapitałem obcym. Zauważa się również ujemną korelację pomiędzy rentownością a zadłużeniem. Oznacza to, że przedsiębiorstwa korzystające w większym stopniu z kapitałów obcych są mniej zyskowne. Potwierdza się także hipoteza, że większe spółki mają większy poziom zadłużenia. Ponadto zauważa się, że starsze firmy chętniej korzystają z zadłużenia długoterminowego. Na podstawie uzyskanych wyników można wnioskować, że struktura kapitału polskich przedsiębiorstw przemysłowych jest zgodna z teorią hierarchii źródeł finansowania. Badanie stanowi uzupełnienie istniejących badań o problematyce kształtowania struktury kapitału. Dostarcza wyników na podstawie bieżących danych, przez co umożliwia ich wykorzystanie w praktyce. Otrzymane wyniki mogą ułatwić przedsiębiorstwom proces podejmowania decyzji w zakresie struktury kapitału.

EN

The subject of the article covers the determinants of the capital structure. The aim of this study is to examine the relationship between the capital structure and the liquidity, profitability, age and size of Polish industrial companies. The literature review allowed for the formulation of hypotheses that Polish enterprises shape the capital structure in accordance with the theory of the hierarchy of financing sources. According to this hypothesis, five detailed hypotheses were selected. In order to verify the hypotheses, statistical methods such as basic descriptive statistics and the Pearson correlation coefficient were used. The sample consists of 100 companies listed on the Warsaw Stock Exchange. The study covers the years 2010–2019. The research results confirm the negative relationship between liquidity and debt. Companies that have difficulties with meeting their current liabilities to a greater extent use borrowed capital financing. There is also a negative correlation between profitability and debt. This means that enterprises that use foreign capital to a greater extent are less profitable. The hypothesis that larger companies have higher levels of debt is also confirmed. In addition, it has been noted that older companies are more likely to use long-term debt. On the basis of the obtained results, it can be concluded that the capital structure of Polish industrial enterprises is consistent with the theory of the hierarchy of financing sources. The research complements the existing research on the issues of shaping the capital structure. It provides results based on current data, which makes it possible to use them in practice. The obtained results may facilitate the decision-making process in the scope of capital structure for enterprises.

20

Wpływ popytu na akcje notowane na Giełdzie Papierów Wartościowych w Warszawie na płynność rynku

70%

Nawrot W.

Gospodarka Narodowa. The Polish Journal of Economics

|

2006

|

vol. 209

|

issue 7-8

59-81

EN

The author analyzes the demand for shares and attempts to determine its influence on the liquidity of the Warsaw Stock Exchange. The analysis was conducted by calculating and bringing together values of key importance to the liquidity of the market and investment activity on the Polish stock market. The analysis showed that the liquidity of the Polish stock market decreased in the analyzed period (1995-2005). First, there was a drop in the value of stock trades in relation to the market’s capitalization. Subsequently, there was a problem involving the substantial concentration of trade on the exchange. On the basis of this situation, attempts were made to check the demand side of the stock market, especially in the institutional investor segment. Analyses conducted by the author indicate that, as a result of a dynamic increase in pension and investment fund assets in 2000-2005, these institutions substantially increased the value of shares in their possession, withdrawing some of the stock from “active” turnover. Over the next few years, more than 40% of the assets invested by these institutions in stock were tied up in the portfolios of open-ended pension funds. However, in the years that followed, assets held by institutional investors were subject to decreased turnover. This seems to indicate that institutional investors could pose a threat to the market’s liquidity by channeling substantial assets to the domestic stock market in a situation in which the supply of shares was insufficient. However, a supplementary examination of the average turnover in WSE-listed shares, particularly those making up the market’s free float, revealed that the activity of institutional investors, though decreasing with each passing year, was several times higher than average investment activity on the stock market. In other words, transactions made by institutional investors were the key driving force behind the market’s liquidity in the analyzed period. Unfortunately, the positive influence of institutional investors decreased in 2003-2005, a period that saw a major increase in pension and investment fund assets. The insufficient-and continually decreasing-liquidity of the stock market, coupled with the dynamic development of the institutional investor segment, particularly pension funds, justifies worries over the liquidity and stable development of the Polish stock market.

Refine search results

THE INFLUENCE OF LIQUIDITY ON PROFITABILITY OF POLISH CONSTRUCTION SECTOR COMPANIES

Managers’ Consideration about Behavioural Factors that Influence their Decision Making in Liquidity Management

Dependencies between financial ratios among companies listed on the Warsaw Stock Exchange

Costs and Taxes in the Light of Financial Management in Companies Listed on WSE

Measurement of stock market liquidity supported by an algorithm inferring the initiator of a trade

The impact of liquidity on the capital structure: a case study of Croatian firms

Prawne regulacje w kształtowaniu płynności sektora bankowego w Polsce

The use of accounting tools in the assessment of enterprise financing policy – debt and liquidity

Liquidity – Profitability Trade-Off on the Example of Companies Listed on Main and Alternative New Connect Markets on Warsaw Stock Exchange

Modelling bid-ask spread conditional distributions using hierarchical correlation reconstruction

Do mixed-data sampling models help forecast liquidity and volatility?

Liquidity – Profitability Trade-Off on the Example of Companies Listed on Main and Alternative New Connect Markets on Warsaw Stock Exchange

THE MULTIFACTORIAL PASTOR-STAMBAUGH MODEL: EXPLAINING THE IMPACT OF LIQUIDITY ON THE RATE OF RETURN BASED ON THE EXAMPLE OF THE WARSAW STOCK EXCHANGE

Position of the warsaw stock exchange compared to the lse group and ceeseg (the first decade of the 21st century – selected parameters)

Information asymmetry, liquidity and the dynamic volume-return relation in panel data analysis

Płynność przy wycenie akcji na Giełdzie Papierów Wartościowych w Warszawie

Liquidity and solvency of a company and the rate of return – an analysis of the Warsaw Stock Exchange

Factors Affecting Profitability of Insurance Companies. Evidence from Kosovo

Determinants of the capital structure of Polish industrial enterprises

Wpływ popytu na akcje notowane na Giełdzie Papierów Wartościowych w Warszawie na płynność rynku