Wojciech Przychodzen

Corporate sustainability and shareholder wealth

The goal of this study is to provide insights in relation to implementing sustainability into corporate strategy, and provide an answer about whether it can lead to higher than average market valuation. Using extensive data of Standard & Poors (S&P) 500 companies covering the years 2006–10, 85 companies were selected as meeting corporate sustainability criteria. An investment strategy that bought companies with corporate sustainability would have earned abnormal returns of 7.4% per year during the sample period. We find that companies with balanced financial, social and environmental activities had lower revenues growth, lower growth volatility and lower stock price volatility. These results are consistent with the idea that companies benefit from investing in corporate sustainability and that these practices are reflected in their stock prices. The results also indicate that investment in sustainable companies does not show anti-cyclical patterns within the usual stock market cycle, but it is connected with higher stock market crash resistance. The empirical evidence from this paper is particularly pronounced for public companies that consider implementing sustainability into their core business strategy. It also contributes to better understanding of this concept in the contemporary capital markets.

Grey Market and the Income Inequalities in the Post-Socialist Economies

This paper analyzes the relation between the shadow economy and income inequalities. For transition economies, the share of output produced in the informal economy is positively correlated with income inequalities. This hypothesis is strongly supported by empirical data for 17 transition economies in 2005. Unofficially gained incomes contribute significantly to the increasing income inequalities in post-socialist countries. Additional incomes from unregistered activities are the domain of the richest and the progressive tax system is not strong enough to counteract this phenomenon.

Mutual funds’ trading in banks’ equity – Empirical evidence from Spain

ABSTRACT This article studies the trading activity of mutual funds in publicly listed banks’ stocks to determine the main factors influencing it. We show that the changes in the above holdings are significantly influenced by the ownership of the asset management company (bank-affiliated fund vs. non-bank-affiliated fund), the scope of the funds’ investment (domestic vs. international banking industry), the nature of a given period (periods of large price drops in a given bank´s equity vs. normal periods), the phase of the stock market cycle (meltdown vs. recuperation) and the size of the fund. We also find some important changes in the mutual funds’ trading patterns in banking equity since 2012Q3. Finally, we document a significant increase in the magnitude of Spanish, bank-affiliated mutual funds’ allocation to domestic publicly listed banks during the 1995–2014 period. Overall, this study extends the understanding of mutual fund allocation choices.

Supporting the SME commercialization process: the case of 3D printing platforms

ABSTRACT Small and medium-sized enterprises (SMEs) traditionally face many obstacles to innovation commercialization – due to resource limitations, insufficient access to financial capital, etc. This paper explores the way in which 3D printing platforms support SMEs during the innovation development and commercialization process. The online marketplace supports SMEs by providing the resources, knowledge, and structures required to assist in innovation development and expedite the commercialization process. These supports are – (1) Creation, (2) Provision, and (3) Facilitation. In terms of creation, the online marketplace provides access to external skills, stimulating the creativity of innovators and enabling low-cost prototype production. Where provision is concerned, the online marketplace enables users to access designs, technology, and knowledge previously unavailable to them, in addition to disseminating new ideas. Finally, for facilitation, the platforms act as a mediator, facilitating transactions between parties, providing a safe and trusted marketplace with strong institutional supports. This study identifies the role online marketplaces play in SMEs’ innovation commercialization.