Dorota Dobija

Information technology investment announcements and market value in transition economies: Evidence from Warsaw Stock Exchange

This study examines stock market reactions to announcements of information technology investments in Poland, an emerging market and transition economy. Based on 66 announcements by companies traded at the Warsaw Stock Exchange in the period 2002-2009, our study confirms some previously published results from studies conducted primarily in highly developed markets, but also shows that specific characteristics of announcements play a more important role than has been commonly assumed. Our results indicate that investors in Poland react more positively if systems are acquired from global rather than local vendors. Announcements about completed projects are more positively received than announcements about planned or in-progress projects. Furthermore, announcements in Polish, targeted at existing shareholders, are more likely to be received positively than similar announcements released in English, targeting global investors.

Higher Education in Management: The Case of Poland

Higher education in Poland is one of the most dynamically developing areas of society in the country. Within 20 years it has undergone dramatic quantitative and institutional changes. Among major developments was the introduction of private academic institutions and continuing demand for management training. However, a grasp of contemporary management education would not be complete without understanding its roots reaching back to 1918, when Poland regained its independence. At that time, the development and reconstruction of Polish industry became a priority.

Management and Leadership Development Needs: The Case of Poland

In this study, we have interviewed 18 CEOs and human resource managers from 10 companies listed on the Warsaw Stock Exchange as well as conducted a survey with 82 companies. We found that the major challenges said actors face are connected to the changing politics, economy, technology and demography. On the other hand, companies also struggle with the lack of certain employee competences, in particular soft skills. Company solutions include development and educational programs, but they also expect increased cooperation with educational providers, especially business schools. The companies’ development needs are sophisticated and subtle, meaning that the ‘one-size-fits-all’ development model is no longer suitable. Companies are looking for specific, tailor-made content to suit their and their employees’ needs. The flexibility of educational programs also determines whether employers will consider them for their companies.

The Use of Information in Performance Management: Experiences from Polish Universities

This paper seeks to extend the understating of how performance information (PI) is used in the university context and is intended to contribute to the current debate on the use of PI in the context of faculty performance management (PM). Empirical data was gathered through two in-depth case studies. This approach allows a multi-level analysis based on neo-institutional theory and legitimacy theories. The results of this study are also compared with the literature on PI use. PM practices at universities have become increasingly popular on an institutional, group, and individual basis. The results indicate that PI is used in universities; however, the extent and the scope of PI use by various actors can differ at various levels. How PI is used seems to be motivated by the influences coming to the national and international accrediting and rating agencies. In general, universities use PI to legitimize themselves externally as research-oriented institutions, and their practices are gradually becoming isomorphic. However, analysis at the internal level reveals different attitudes and approaches related to the use of PI. We found evidence of decoupling from the existing performance regulation in the case of more traditional university. In the case of more entrepreneurial universities, mimetic isomorphic practices are more evident. This paper focuses on two case studies, which are still undergoing change. Analysis could be reinforced by studying more cases, the use of different data collection methods, and cross-country and between-country comparative analysis. The use of PI is discussed in the specific context of the higher education system in Poland. Also, the cases of two business schools facilitate the analysis of the differences in how PI is used in the context of traditional and entrepreneurial universities.

Supervisory Board Composition and Firm Financial Performance: A Case of Companies Listed on the Warsaw Stock Exchange

Purpose: This paper investigates the relationship between the internal governance structure and financial performance of Polish companies. Ensuring diversity of corporate boards has been on the agenda of various regulators on a national and international level as it is generally expected corporate boards that are more diverse will be more competent and more effective monitoring managerial actions, and therefore positively impact company performance. Methodology: This paper uses a sample of companies listed on the Warsaw Stock Exchange and examines the two main compositional features of company supervisory boards (independence and experience) and their practices by companies. We also investigate the effect of diversity on company performance. As our empirical methodology, we use linear regression analysis. Findings: Our findings support the proposal that diversity matters, especially in terms of the presence of experienced members on supervisory boards, and that such diversity positively affects financial results. In addition to the main finding, the results of the study indicate also the importance of the ownership structure. Family firms and companies with a higher level of gearing are more likely to perform less effectively. Originality: To date, research on the association between supervisory board diversity and financial performance in either the Polish or Central and Eastern European capital markets has been limited. The paper also points to the importance of having experienced members on a company’s supervisory board. Independent members on supervisory boards do not seem to have a similar association.

The early evolution of corporate control and auditing: the English East India Company (1600-1640)

Purpose - The purpose of this paper is to explain the origins and evolution of auditing and control by linking the changes in the manner in which the audits were conducted with the changes in the institutional function and development of the English East India Company (EIC). Design/methodology/approach - Using Sunder’s contract theory of a firm as an interpretive framework, this paper introduces to the debate material documenting the evolution of the auditing practice during a period of 40 years using the single case of the EIC. Findings - Auditing in the EIC evolved from a simple adjudication on allowable expenditures to Originality/value - This paper contributes to the research on the early modern period at a time of the formation and rapid development of the first joint-stock organization. It offers a dynamic picture of the evolution of control and auditing as a response to the growth of business, organizations, and the attendant challenges of governance.

Intellectual Entrepreneurship and Credit Risk Assessment: The Polish Experience

This paper analyses and ascertains the use of intellectual capital (IC) concepts in the process of credit risk assessment. Traditionally, only financial measures were incorporated in the credit risk assessment. In the knowledge-based economy, financial statements no longer provide sufficient information about a companys value. Intellectual entrepreneurs, by engaging human capital, embedded in them in an intellectual venture develop an intellectual product. Because of this non-material nature of the main resources in many small and medium enterprises (SMEs), the industrial, physical collateral model is difficult to apply. Therefore, the question this paper tries to address is: Are credit analysts dealing with SMEs aware of the immaterial part of economy, and if so, do they use such information in their credit decisions? The analysis shows that the use of non-financial information is limited. However, the analysts perceive information about intellectual resources relevant for their job, and point out that the current credit risk assessment procedures do not allow for the use of such information. The research results reveal that there is a space to consider intellectual capital measures when assessing credit risk. Therefore, it might be useful to develop a framework of reporting immaterial resources to assure more accurate credit decisions, and this paper delivers some empirical evidence in that yet unexplored field.

Contracting for Finances by Entrepreneurial Firms: The Use of IC Information by Bankers and Venture Capitalists

The purpose of this paper is first to examine if financial intermediaries such as banks and venture capitalists use information on intellectual capital (IC) in their financing decisions related to small, knowledge-intensive, entrepreneurial firms, and second how this information is used in their financing decisions. We use survey data in case of banks, and interviews in case of venture capital to document differences in the utilization of information of intellectual capital by the two types of financial intermediaries. We found out, that transaction-based lending, such as in a case of banks is characterized by the use of traditional, financial indicators with a limited use of IC information. The relationship-based lending, such as in a case of Business angels relies mainly on IC information, especially related to human capital of the managers with some, supplementary use of financial indicators. Examining the scope of the use of information on immaterial assets by banks and venture capitalists, as well as documenting the differences, and providing recommendation for improvements of the assessment of the creditworthiness of the SMEs, can be listed as the contribution of this paper to the literature in area of IC.