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Corporate governance and financial performance of companies in Poland

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Author Info
Marek Gruszczynski () (Department of Applied Econometrics, Warsaw School of Economics)
Abstract

The research presented in the paper is aimed at examining the relationship between the level of corporate governance and the financial performance of listed companies in Poland. The corporate governance degree is expressed by the outcomes of a rating of 2003 performed by Polish Corporate Governance Forum. The attempted models are of ordered multinomial type. Endogenous variable represents the rating outcome (A–, B+, B, B–, and C+), while the exogenous variables include various financial indicators evaluated on the basis of the 2002’ financial statements. The estimated ordered logit models show that the level of corporate governance of companies in Poland is associated by their ability to cope with the financial distress, as expressed by the degree of liquidity, profitability and the financial leverage variables.

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File URL: http://www.sgh.waw.pl/instytuty/zes/wp/aewp02-05.pdf
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Publisher Info
Paper provided by Department of Applied Econometrics, Warsaw School of Economics in its series Working Papers with number 19.

Download reference. The following formats are available: HTML, plain text, BibTeX, RIS (EndNote), ReDIF
Length: 12 pages
Date of creation: 22 May 2005
Date of revision:
Handle: RePEc:wse:wpaper:19

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Postal: 02-554 Warszawa, Al. Niepodległosci 164
Web page: http://www.sgh.waw.pl/instytuty/zes
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Related research
Keywords: corporate governance financial indicators rating ordered logit

Find related papers by JEL classification:
C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - General
O57 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
G30 - Financial Economics - - Corporate Finance and Governance - - - General

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