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Impact of board’s capital on value of firms – the investment portfolios analysis (Wplyw kapitalu rad nadzorczych na wartosc spolek – analiza portfeli inwestycyjnych)

Author

Listed:
  • Piotr Jaworski

    (Wydzial Zarzadzania Uniwersytetu Warszawskiego)

  • Michal Zdziarski

    (Wydzial Zarzadzania Uniwersytetu Warszawskiego)

Abstract

The article presents the relationship between supervisory boards’ capital and the value of firms. Such capital is an indicator of efficient supervision and advice offered by supervisory boards to management boards. The link between supervisory boards’ capital and performance is examined by means of an analysis of investment in investment portfolios. Five alternative portfolios have been designed based on the value of 14 companies that had the highest supervisory capital in the population of all listed companies. Cumulative returns on portfolios are analysed, their position relative to the efficient frontier according to Markowitz’s theory is illustrated, and their behaviour towards the market is examined using regression models. The analysis results show a positive correlation for investments in portfolios consisting of stocks of companies with the highest supervisory capital.

Suggested Citation

  • Piotr Jaworski & Michal Zdziarski, 2017. "Impact of board’s capital on value of firms – the investment portfolios analysis (Wplyw kapitalu rad nadzorczych na wartosc spolek – analiza portfeli inwestycyjnych)," Research Reports, University of Warsaw, Faculty of Management, vol. 1(23), pages 126-134.
    • Handle: RePEc:sgm:resrep:v:1:i:23:y:2017:p:126-134
    as

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    File URL: http://www.sim.wz.uw.edu.pl/sites/default/files/artykuly/jaworski_zdziarski.pdf
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    References listed on IDEAS

    as
    1. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
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    More about this item

    Keywords

    supervisory boards; board’s capital; value of firms; investment portfolio analysis; social network analysis;
    All these keywords.

    JEL classification:

    • M1 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • N2 - Economic History - - Financial Markets and Institutions
    • N24 - Economic History - - Financial Markets and Institutions - - - Europe: 1913-
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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