JEM Vol. 43, 2021

Beginning with the issue of 43, 2021, JEM is published with Sciendo, a part of De Gruyter academic publisher.


All articles of this journal are licensed under a Creative Commons Atribution-NonCommercial International License

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GDPR implementation in public administration in Poland – 1.5 year after: An empirical analysis

  • downloads 315

Dominika Lisiak-Felicka , Maciej Szmit
2021, 43, 1-21.

Aim/purpose – The paper contains descriptive exploratory research on the implementa-tion of General Data Protection Requirements (GDPR) in a group of Polish public administration offices. The purpose of this research is to investigate the current state of personal data protection in the entities surveyed.
Design/methodology/approach – The diagnostic survey method using the Computer Assisted Web Interview was employed. The survey was conducted in local government administration offices a year and a half after the GDPR implementation.
Findings – All marshal offices and the majority of districts (about 80%) confirmed that they comply with all the GDPR requirements. The situation was slightly worse in municipal offices – about 23% of them declared that they do not comply with all the GDPR requirements. In officials’ opinion this situation may be improved by conducting training for employees, employee engagement, and appropriate support of the office management. Another aspect that draws attention is a very small budget dedicated to the GDPR implementation and maintenance in most of the offices surveyed.
Research implications/limitations – The limitation of the findings is the relatively low responsiveness of the questionnaire survey.
Originality/value/contribution – The research concerns a relatively new subject. The state of personal data protection in public administration in Poland after 18 months of the GDPR implementation was analyzed. So far, there is no comprehensive research that has been conducted into this field in local government administration.

Keywords: General Data Protection Regulation (GDPR), public administration, personal data, GDPR implementation, data protection breaches.
JEL Classification: M15, H83, K24.


Contribution of VAT to economic growth: A dynamic CGE analysis

  • downloads 294

Jean Luc Erero
2021, 43, 22-51.

Aim/purpose – This study sought to assess the impact of an increased historical fixed VAT rate of 14% to the current rate of 15% on the South African economy.
Design/methodology/approach – The method applied in this study was based on a Dynamic Computable General Equilibrium (CGE) model to evaluate the impact of both the VAT rate of 14% and a new rate of 15% on the South African economy. The CGE model has been proven over the years to be a suitable model when evaluating the impact assessment of any shock within an economy. Enhancements were made by the researcher to the direct and indirect tax section of the model, i.e., the direct tax section was disaggregated, such that for both firm and household revenues, a dividend income stream is separated from other income streams. The main reason is to facilitate a detailed analysis of Corporate Income Tax (CIT) and Personal Income Tax (PIT), as well as the latest implemented Dividend Tax (DT).
Findings – When VAT was increased from 14% to 15%, the immediate reaction of the shock from the Dynamic CGE model indicates that the Gross Domestic Product (GDP) declined by 0.0002% in 2018, but increased by 0.0028% in the following year (2019). The trend continued until 2021, hence the 1% increase in the VAT tax rate will increase the expected forecast of VAT collection by approximately R3.2 billion on average.
Research implications/limitations – The findings of this study will be implemented by the South African government, which will use a dynamic CGE model to assess South Africa’s VAT contribution to the economy. The database of the CGE model was limited to the Social Accounting Matrix (SAM) for 2015.
Originality/value/contribution – The study recommends the use of this method for assessing the impact of tax policy changes to the South African economy. The CGE model seems to be the best model as far as the impact assessment of a shock in the economy is concerned. This will assist the South African authorities with their decision making regarding future VAT revenue.

Keywords: South African Revenue Service (SARS), Value Added tax (VAT), Dynamic computable general equilibrium (CGE) model.
JEL Classification: H21, C68, E62.


Going green in logistics: The case of small and medium-sized enterprises in Poland

  • downloads 260

Krzysztof Zowada
2021, 43, 52-69.

Aim/purpose – The aim of the paper is to identify the features of ‘green’ small and medium-sized enterprises operating in Poland.
Design/methodology/approach – The paper is based on a quantitative approach and a group of 200 small and medium-sized enterprises operating in Poland were examined. The classification tree method was used to analyze the data gathered.
Findings – The ‘green’ small and medium-sized enterprises operating in Poland were characterized and their important features were identified, e.g., belonging to the TFL (Transport Forwarding Logistics) sector and a direct relationship with the supply chain leader. In the case of enterprises from the TFL sector, their area of activity is a natural environment for the development of ‘green logistics’ practices. In turn, the supply chain leader usually pushes for specific solutions aimed at achieving the assumed goals, in-cluding environmental goals.
Research implications/limitations – The research results enable the identification pro-cess of small and medium-sized enterprises interested in implementing the ‘green logis-tics’ concept and, consequently, their support. Nevertheless, small and medium-sized enterprises operating in Poland were the only examined, thus the research findings can-not be generalized for other countries. However, the paper could be a starting point for comparative analyses on an international scale.
Originality/value/contribution – The development of ‘green logistics’ among small and medium-sized enterprises in Poland is still not recognized by researchers. The paper is a valuable addition to this research gap.

Keywords: green logistics, SME, classification tree.
JEL Classification: L21, M20, Q50.


Sampling methods for investment portfolio formulation procedure at increased market volatility

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Mateusz Dzicher
2021, 43, 70-89.

Aim/purpose – In this paper, a market volatility-robust portfolio composition framework under the modified Markowitz’s approach with the use of sampling methods is developed in order to improve the allocation efficiency for a portfolio of financial instruments formulation procedure at an increased market volatility.
Design/methodology/approach – In order to overcome the risk of not receiving an optimal solution to the portfolio optimization (suboptimal outcomes of attribution of weights in allocation procedures) the developed model, first, implements the rationale that financial markets largely feature two states, i.e., quiescent (non-crisis; low market volatility) periods that are occasionally interspersed with stress (crisis; high market volatility) periods and, second, relies on many input samples of rates of return, either from an empirical distribution or a theoretical distribution (mitigating estimation risk). All computational results are reported for publicly available historical daily data sets on selected Polish blue-chip securities. onducted in local government administration offices a year and a half after the GDPR implementation.
Findings – Not only did the presented method produce more diversified allocation, but also successfully minimized the unfavorable effects of increased market volatility by providing less risky portfolios in comparison to Newton’s method, typically used for optimization under portfolio theory.
Research implications/limitations – The research emphasized that in order to get a more diversified investment portfolio it is crucial to outdo the limitations of a single sample approach (utilized in Markowitz’s model) which may on some occasions be statistically biased. Thus it was proved that sampling methods allow to obtain a less concentrated and volatile allocation which contributes the investment decision-making. However, the current research focused solely on publicly available input data of particular securities. In this manner, an additional analysis can be prepared for other jurisdictions and asset classes. There can also be considered a use of other than variance risk measures.
Originality/value/contribution – The suggested framework contributes to existing methods a wide array of quantitative data analysis and simulation tools for composing an unique approach that directly addresses the task of minimizing the adverse implications of increased market volatility that, in consequence, pertains to knowledgeable attributing of investment portfolio proportions of either individual or institutional investors. The prepared method is also proved to hold demanded computational quality and, importantly, the capacity for further development.

Keywords: investment decisions, optimization techniques, portfolio selection, statistical simulation methods.
JEL Classification: C150, C610, G110.


Strategic analysis for Poland as a European hub for Belt and Road Initiative

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Andrzej Hanusik , Anna Woźnica
2021, 43, 90-109.

Aim/purpose – This paper aims at determining the role of Poland in the Belt and Road Initiative (BRI) and identifying an alternative course of the trail. However, there are still many variables that can significantly affect the extent of Poland’s participation in BRI.
Design/methodology/approach – The paper was based on a literature query and interviews with six experts of the Polish logistics environment closely connected to the concept of the New Silk Road. The interviews and the literature analysis allowed of the authors to define potential scenarios for the course of the New Silk Road. In addition, the SWOT analysis was used to identify the Poland’s role in BRI.
Findings – The most important factors that can significantly contribute to Poland’s participation in BRI are a very convenient geographical location and a strong logistics sector, whereas the main negative factors are the ambivalent attitude of the Polish authorities towards the Chinese party and the underdeveloped modern railway infrastructure. The study identified some potential scenarios for the route of the New Silk Road, i.e., Poland as a European hub, transit only, southern road and northern road (ro-ro neighbors). The first scenario is the most favorable for Poland – Poland as a European hub. This is due to the current course of the New Silk Road and the location of Poland on the most economically effective transport corridor.
Research implications/limitations – The research findings allow for a relatively precise definition of possible scenarios of the BRI Northern Corridor through areas directly related to Poland. The results may contribute to raising knowledge and awareness about BRI, which may provide insights into an academic and social debate on this topic. The upshot is that the results may entail actual activities contributing to increasing the chances of Poland for being a European hub gate for BRI.
Originality/value/contribution – Previous publications explored various route alternatives of the entire New Silk Road, whereas there was no analysis of the last stage of the transport corridor on which Poland lies. The paper is a response to this research gap.

Keywords: Belt and Road Initiative, New Silk Road, Northern Corridor, logistics, international trade.
JEL Classification: E27, E61, F15.


Competence measurement of production enterprises in product innovations for technological and marketing strategies

  • downloads 236

Ireneusz P. Rutkowski
2021, 43, 110-130.

Aim/purpose – This paper attempts to arrange and present the methods of measuring the competences of production enterprises in the field of product innovations.
Design/methodology/approach – The method used in this paper is a literature review, in the area of new product development management. The author assumes that the review and conceptual nature of this research is dominant.
Findings – The obtained results indicate the importance of measurement in product innovation competencies and provide various metrics in this field. The author proposes new indicators to measure competencies in this area, i.e., the intensity of competition on new products market.
Research implications/limitations – The results provide a basis for improving efforts of production enterprises in the field of product innovations. The limitations of the study include a complex character of considered theoretical constructs. Sets of measures must be adapted to the information needs of a specific enterprise.
Originality/value/contribution – The values of these indicators reflect the directions of industrial enterprises’ conduct in the process of developing new products and technologies. Moreover, these indicators show the strength of linking technology with the effectiveness of new product development, and consequently with the enterprise marketing, economic and financial efficiency. The contribution of research to the development of management sciences primarily includes the formulation of a set of indicators whose level determines product innovation competencies in industrial companies.

Keywords: competence measurement, product innovation, production enterprise, new product, technical and marketing strategy.
JEL Classification: O31, O32, M21.


Testing for causality-in-mean and in-variance among the U.S., China, and some Africa capital markets: A CCF approach

  • downloads 316

Osarumwense Osabuohien-Irabor
2021, 43, 131-153.

Aim/purpose – Owing to the huge risk occasioned by negative contagion effects associ-ated with financial market linkages, markets participants and academia have continued to examine the capital market cross country interdependence at different levels. In this paper, we examined the causal relationships among the U.S., China and some top African capital market indexes.
Design/methodology/approach – To examine the mean and variance causal effects, we estimated a univariate AR-EGARCH model for all capital market indexes. Then employed the residual-based two-step bivariate cross-correlation function (CCF) test developed by Cheung & Ng (1996). The test statistics had a well-defined asymptotic standard distribution that was robust to distributional assumptions.
Findings – The obtained results indicate the importance of measurement in product innovation competencies and provide various metrics in this field. The author proposes new indicators to measure competencies in this area, i.e., the intensity of competition on new products market.
Research implications/limitations –  Owing to the fact that knowledge of other financial markets provides adequate information about a market situation, the results from this research paper will be helpful for the policymakers of African countries in shaping their economic policies, help investors diversify investments with less risk, and international portfolio managers make portfolio allocation decision
Originality/value/contribution – This paper examined the mean and risk dynamics of three top African, the U.S., and Chinese capital markets with their inter-dependence using the CCF approach. Furthermore, to the best of our knowledge, no previous re-search paper on this issue exists.

Keywords: causality-in-mean, causality-in-variance, capital market, cross-correlation function.
JEL Classification: G10, F31, C20.


Ranking of optimal stock portfolios determined on the basis of expected utility maximization criterion

  • downloads 203

Dawid Giemza
2021, 43, 154-178.

Aim/purpose – The aim of the paper is to rank the optimal portfolios of shares of com-panies listed on the Warsaw Stock Exchange, taking into account the investor’s propen-sity to risk.
Design/methodology/approach – Investment portfolios consisting of varied number of companies selected from WIG 20 index were built. Next, the weights of equity holdings of these companies in the entire portfolio were determined, maximizing portfolio’s expected (square) utility function, and then the obtained structures were compared between investors with various levels of risk propensity. Using Hellwig’s taxonomic development measure, a ranking of optimum stock portfolios depending on the investor’s risk propensity was prepared. The research analyzed quotations from 248 trading sessions.
Findings – The findings indicated that whilst there are differences in the weight struc-tures of equity holdings in the entire portfolio between the investor characterized by aversion to risk at the level of γ = 10 and the investor characterized by aversion to risk at the level of γ = 100, the rankings of the constructed optimum portfolios demonstrate strong similarity. The study validated, in conformity with the literature, that with the increase in the number of equity holdings in the portfolio, the portfolio risk initially decreases and then becomes stable at a certain level.
Research implications/limitations – The study used data from the past as for which there is no guarantee that they will be adequate for the future. There is sensitivity to the selection of the period from which the historic data come. When changing the period of the analyzed historic data by a small time unit it may prove that the portfolio composi-tion will become totally different.
Originality/value/contribution – The paper compares the composition of optimum stock portfolios depending on the investor’s propensity to risk. Their ranking was created using the taxonomic method for this purpose. Taking advantage of this method also additional variables can be taken into account, which describe and differentiate the portfolio and they can be assigned relevant significance depending on the investor’s preferences.

Keywords: optimal portfolio, expected rate of return on the portfolio, portfolio standard deviation, expected utility theory, multidimensional comparative analysis.
JEL Classification: G10, G11.


An analysis of certification processes for Good Clinical Practice and project management competencies

  • downloads 218

Marek Zawada , Dorota Gągała
2021, 43, 179-205.

Aim/purpose – The purpose of this paper is to clarify the certification process of the Good Clinical Practice (GCP) competencies based on a comparison with the project management (PM) certification process. This aim was accomplished by model development.
Design/methodology/approach – The study was divided into three main phases: 1st phase – the identification of key characteristics of PM and GCP certification processes, 2nd phase – the development of certification models for PM and GCP, 3rd phase – the conclusions from in-depth interviews.
Findings – As a result of the research, key characteristics of PM and GCP certification processes were identified, certification models for PM and GCP were developed. In addition, based on conclusions from in-depth interviews, solutions for organizing the way of confirming knowledge of GCP guidelines were proposed.
Research implications/limitations – The proposed rules may be too complex and may exceed the needs and expectations of the clinical trial environment. The models focus on stakeholder relations, without the rules of certification granting procedures, to enable broader contextualization of the issues discussed in the paper. The analysis might be fragmented as it regards the sole certification process. The research refers to Poland only, hence it will be valuable to identify whether foreign authorities have the same attitude to the GCP competency certification model. It is recommended to increase the number of respondents’ interviews to obtain results of higher validity and reliability.
Originality/value/contribution – The paper raises research topics at the crossroads of project management, clinical trials, and GCP, topics that have been underdeveloped so far. The results might be significant for all organizations involved in conducting clinical research projects. The findings contribute to the quality of clinical trials and provide public assurance that the rights, safety, and well-being of trial subjects are protected and the clinical trial data are credible.

Keywords: project management, clinical trials, certification, Good Clinical Practice, GCP.
JEL Classification: M10, O32, I11.


Do extreme market value ratios mean that the market is informationally inefficient? A study of the Warsaw Stock Exchange

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Jacek Karasiński , Patryk Zduńczak
2021, 43, 206-224.

Aim/purpose – The aim of this paper is to verify whether extremely high values of mar-ket value ratios are the symptoms of informational inefficiency of the market in a weak form. The authors intend to examine whether these phenomena co-occur with each other.
Design/methodology/approach – Following Bachelier’s strict random walk model, we quantified a weak-form informational market efficiency with the use of the percentage of normality tests in stock returns run (Expanded Shapiro–Wilk, D’Agostino-Pearson and Jarque–Bera), which indicate that the analyzed distribution is normal (a null hypothesis cannot be rejected). The empirical study was based on the comparison of the market value ratios (P/E and P/BV) and the informational efficiency measure at the level of particular companies, listed on the Main Market and NewConnect of the Warsaw Stock Exchange, and grouped into eight sectors. In order to do this, we analyzed scatterplots, descriptive statistics, Pearson’s and Spearman’s rank correlation coefficients. The dataset covered 214 companies (based on the assumptions made) in the period from 2016, December 31 to 2020, March 23.
Findings – Results obtained indicated that, in most cases, the extremely high values of market value ratios did not co-occur with market inefficiency. Hence, the outstandingly high market value ratios do not have to be the symptoms of market inefficiency.
Research implications/limitations – Following a common belief shared in the industry, but still not examined yet, this study examines the possible co-occurrence of extremely high market valuation and market inefficiency, but does not exploit it fully. The authors encourage other researchers, especially, to apply other market value ratios and to come up with their own ideas for market efficiency proxies. What is more, this study has been conducted on a relatively small market, thus the conclusions drawn from the study on the WSE should be tested on other, more developed markets.
Originality/value/contribution – According to the authors’ knowledge, this study is one of the first trying to examine if the extremely high market value ratios are the symptoms of the informational inefficiency of the market.

Keywords: efficient market hypothesis, weak-form efficiency, market value ratios, stock markets, random walk.
JEL Classification: G10, G12, G14.


Regional trade integration in Central and Eastern Europe: State of play after 15 years of EU membership

  • downloads 189

Michał Kulbacki , Adrian Michalczuk
2021, 43, 225-250.

Aim/purpose – The purpose of this paper is to analyze regional trade integration of 10 Central and Eastern Europe countries (CEE-10) during the 2004-2018 period, identify regional- and country-level integration patterns and attribute them to potential causes indicated by the literature.
Design/methodology/approach – The paper employed literature-based trade integration indicators to data on CEE-10 trade in goods and conducted a review of empirical studies investigating trade integration determinants in CEE.
Findings – The results evidence an advancing regional trade integration with decreasing pace in recent years. The study has found all CEE countries to be more integrated with the region. Moreover, several integration patterns have been distinguished.
Research implications/limitations – The study found a significant literature gap con-cerning CEE regional trade integration and its determinants. Its limitations refer to: lack of product-groups-level trade data and narrow scope of trade flows (in goods only).
Originality/value/contribution – The paper's value-added stems from a multi-perspective analysis of the CEE regional trade integration and a discussion of region- and country- -level integration patterns.

Keywords: Central and Eastern Europe, regional trade integration, trade integration, global value chains, economic integration.
JEL Classification: F14, F15, F60.


The use of web scraped data to analyze the dynamics of footwear prices

  • downloads 197

Adam Juszczak
2021, 43, 251-269.

Aim/purpose – Web-scraping is a technique used to automatically extract data from websites. After the rise-up of online shopping, it allows the acquisition of information about prices of goods sold by retailers such as supermarkets or internet shops. This study examines the possibility of using web-scrapped data from one clothing store. It aims at comparing known price index formulas being implemented to the web-scraping case and verifying their sensitivity on the choice of data filter type.
Design/methodology/approach – The author uses the price data scrapped from one of the biggest online shops in Poland. The data were obtained as part of eCPI (electronic Consumer Price Index) project conducted by the National Bank of Poland. The author decided to select three types of products for this analysis – female ballerinas, male shoes, and male oxfords to compare their prices in over one-year time period. Six price indexes were used for calculation – The Jevons and Dutot indexes with their chain and GEKS (acronym from the names of creators – Gini–Éltető–Köves–Szulc) versions. Apart from the analysis conducted on a full data set, the author introduced filters to remove outliers.
Finidings – Clothing and footwear are considered one of the most difficult groups of goods to measure price change indexes due to high product churn, which undermines the possibility to use the traditional Jevons and Dutot indexes. However, it is possible to use chained indexes and GEKS indexes instead. Still, these indexes are fairly sensitive to large price changes. As observed in case of both product groups, the results provided by the GEKS and chained versions of indexes were different, which could lead to conclu-sion that even though they are lending promising results, they could be better suited for other COICOP (Classification of Individual Consumption by Purpose) groups.
Research implications/limitations – The findings of the paper showed that usage of filters did not significantly reduce the difference between price indexes based on GEKS and chain formulas.
Originality/value/contribution – The usage of web-scrapped data is a fairly new topic in the literature. Research on the possibility of using different price indexes provides useful insights for future usage of these data by statistics offices.

Keywords: inflation, CPI, web-scraping, online shopping, big data.
JEL Classification: C43, C49.


Budget deficit macroeconomic variables nexus in Kenya

  • downloads 191

Doris Syombua Philip
2021, 43, 270-292.

Aim/purpose – The aim of this paper was to establish the nexus between a budget defi-cit and selected macroeconomic variables in Kenya. This adds to the existing literature while the methodology and choice of the econometric tools used improve the predictability of the link between a budget deficit and macroeconomic variables. The results are relevant to policy makers as they may help improve understanding of budget deficit management.
Design/methodology/approach – The study used time series data for the period from 1976 to 2018 and employed the Vector Autoregression model reinforced by the Keynesian Mundell–Fleming framework.
Findings – The impulse response function derived from the vector autoregression model revealed that shocks from both interest rate and exchange rate had a positive impact on budget deficit. External debt servicing and current account deficit shocks had a negative impact on the budget deficit.
Research implications/limitations – Interest rate and exchange rate policies remain key in reducing the growth of the budget deficit. Policies on external debt servicing, such as timely payment of debts and prudent investment of borrowed funds, will also reduce the budget deficit.
Originality/value/contribution – The study employed transmission mechanism which involves multiple equations to establish the nexus between a budget deficit and macroe-conomic variables in Kenya.

Keywords: budget deficit; selected macroeconomic variables, Kenya.
JEL Classification: H60, H62, H68.


Nominal exchange rates EUR/GRD and EUR/ITL in the context of leaving the euro zone by Greece and Italy

  • downloads 210

Katarzyna Dąbrowska-Gruszczyńska , Marcin Gruszczyński
2021, 43, 293-316.

Aim/purpose – The aim of this paper is to present two cases of crises in Greece and Italy and to evaluate the shadow exchange rates of hypothetical new currencies (re)introduced after Grexit and Italexit.
Design/methodology/approach – Both shadow exchange rates are estimated using speculative pressure index concept that emphasizes the importance of changes in foreign exchange reserves and interest rate differentials in the absence of an independent nominal exchange rate. The research sample covers Greece in 1989-2020 and Italy in 1989-2020.
Findings – The research presented the estimation of shadow exchange rates EUR/GRD and EUR/ITL during the euro zone membership period. Leaving the euro area one can expect the following market rates: EUR/GRD 600 and EUR/ITL 1850. That would mean 75% depreciation and 5% appreciation to the current euro parities EUR/GRD 340.75, and EUR/ITL 1936.27, respectively.
Research implications/limitations – After potential Grexit Greek authorities could expect significant nominal depreciation of a new currency (or should introduce it with a substantial discount). In the case of Italexit, the new currency would preserve its nominal value. The limitations of the research methodology are: a long period of the analysis covers structural changes of financial markets, crisis events, political factors (e.g., QE programs).
Originality/value/contribution – The originality of this approach lies in the combination of two important economic concepts – the idea of shadow exchange rate and the index of speculative pressure. Combined together they help to prepare the methodology of shadow exchange rates evaluation for currencies that are currently in the common currency system (e.g., currency union). These results can help in economic and political discussions on effects of leaving the currency union.

Keywords: nominal exchange rates, euro area, financial crises.
JEL Classification: F21, F31, F37, F38, G15.


Profitability of investment strategies developed on the basis of buy and sell recommendations

  • downloads 167

Paweł Wnuczak
2021, 43, 317-338.

Aim/purpose – The paper has two objectives. The first is to examine the profitability of applying investment strategies based on "buy" and "sell" recommendations issued by stock market analysts. The second objective is to validate that analysts who issue a recommendation may not be impartial (not supporting any of the sides involved in an argument) because the largest group of recommendations issued is "buy" recommendations.
Design/methodology/approach – This study was conducted based on all the "buy" and "sell" recommendations issued during the period between January 1, 2004 and December 31, 2016 for companies listed on the Warsaw Stock Exchange, using data from The annual forecast rates of return were determined for all the recommendations included in the survey. The expected rates of return were determined for each recommendation based on the information collated from the Bloomberg database. The regression analysis enabled the exploration of the relationship between the actual rates of return and the rates of return predicted in recommendations.
Findings – It was determined that investing on the basis of the information included in "sell" recommendations might make it possible to avoid unprofitable investments. At the same time, the study shows that an investment strategy compliant with "buy" recommendations does not let the investor achieve the expected rates of return on an investment in the capital market in the long term.
Research implications/limitations – The conducted research could be an important source of information for stock market investors' decision-making regarding invest-ments.
Originality/value/contribution – Despite the topic of recommendation effectiveness being very important from the perspective of capital market theory and practice, it is still unclear whether investing based on information provided in stock market recommendations can be a profitable strategy in the long run. The study offers a bridge to fill the existing research gap.

Keywords: recommendations, stock exchange, investment.
JEL Classification: G140.


Simulation experiments of supply chain in a period of small and big disasters

  • downloads 165

Marcin Halicki , Tadeusz Kwater
2021, 43, 339-356.

Aim/purpose – The aim of this paper is to present a strategy that allows companies to recover from disasters, when creating a supply chain. Furthermore, it also shows the impact on the company's resources that are used in the implementation of the strategy in case of small and big disasters. Thanks to the proposed solution, it is possible to analyze each company individually, as well as in groups, at any given time.
Design/methodology/approach – The results were obtained based on a numerical anal-ysis which was performed with the use of MATLAB software. The tests were carried out separately for five companies, as each of them may expect a disaster on any different day. However, the selection of the day when crises occur is carried out in accordance with the probability determined by scientific research.
Findings – The research showed that companies using their resources can continue to fulfill their functions as a link in the Supply Chain despite the fact that they react differ-ently to small disasters compared to big ones. This difference occurs since small disas-ters in contrast to big ones appear in every company much more often. Consequently, it is more difficult for companies to build their wealth in the case of small disasters. The advantage of the proposed approach is that one can freely test which strategy can cause the least losses for the company as well as for the entire supply chain.
Research implications/limitations – The analysis carried out shows that companies wishing to develop in conditions of unexpected disasters, that cannot be predicted, should regularly increase their assets because they are needed to implement a strategy that allows them to maintain an appropriate operational level. This approach provides tools that enable the selection of strategies with variable parameters, freely determined during the scientific research.
Originality/value/contribution – The paper presents a graphical analysis of the change in the value of resources of a supply chain company over one year period. Such an analysis may be useful for any company that creates a supply chain during the COVID-19 crisis period, which is an unpredictable disaster. The adoption of a Gaussian Pseudo Random Number Generator turned out to be useful as it creates crises days while simulation studies allow us to generate experiments for different data configurations. This paper provides an analysis of small and large disasters separately, which is an approach not presented in the literature.

Keywords: supply chain, disaster, strategy, threats, simulations.
JEL Classification: M21, D81, D84, C44.


Servitization in the food behaviors of Polish consumers

  • downloads 177

Gabriela Hanus
2021, 43, 357-386.

Aim/purpose – The main purpose of this research is to identify and characterize the phenomenon of servitization in the food behaviors of Polish consumers and the factors shaping it.
Design/methodology/approach – The empirical research was conducted on a sample of 660 respondents in the entire territory of Poland in 2018. The measurement tool in the primary research was a questionnaire. The collected data were analyzed using the multiple regression model, Cronbach's alpha coefficient, descriptive statistics, Student's t-test.
Findings – The results of the research confirm that the phenomenon of servitization is poorly visible in Polish consumers' food behaviors; however, it can be concluded that this trend is becoming increasingly more visible from year to year. It has been shown that servitization of food behaviors is particularly visible among young and well-educated men who assess their income situation as good or very good and live in urban-ized areas.
Research implications/limitations – The research shows that the demand for catering services is growing and reveals who uses restaurants most often, which can be used by companies in this industry. The research is limited by the non-exhaustive character of the study, the questionnaire method, and household budget surveys as research tools, which are not without flaws, as well as time limitations.
Originality/value/contribution – The results suggest a number of points. First, the gradual convergence of Polish people' eating patterns with those of Western Europe in the use of catering services is shown. Second, the findings provide evidence of signifi-cant economic and socio-demographic differences regarding the use of food services among individuals. Third, they show the most important factors that shape the manifestation of servitization in consumers' food behaviors, which are income, gender, education, age, and location.

Keywords: servitization; food behavior; food-away-from home; out-of-home eating; home-delivered meals; catering companies.
JEL Classification: D12, D10, L83, M00.


The impact of the IFRS 15 implementation on the revenue based earnings management in Poland

  • downloads 173

Izabela Morawska
2021, 43, 387-403.

Aim/purpose – This paper aims at investigating whether the International Financial Reporting Standard (IFRS) 15 Revenue from Contracts with Customers implementation in Poland has affected earnings management that uses discretion in revenue recognition to avoid losses and earnings decreases.
Design/methodology/approach – The empirical studies were conducted using a sample of 80 entities from four industries listed on the Warsaw Stock Exchange (WSE) in Poland from 2016 to 2019. Caylor’s (2010) revenue-based model was applied, and an econometric model describing the studied relation was built and verified to this end.
Findings – The analyzed entities managed earnings using discretion in accrued revenue recognition to avoid reporting losses. The research results did not confirm that the IFRS 15 adoption in Poland influenced revenue-based earnings management aimed at avoiding losses and earnings decreases.
Research implications/limitations – This study warns of the role played by discretion in revenue recognition and recommends careful recognition of revenue under IFRS 15. Limitations of this study are generally related to the models’ specification and a relatively small number of the entities studied.
Originality/value/contribution – This study contributes to the literature on revenue-based earnings management and is one of the first studies on the association between IFRS 15 adoption and revenue-based earnings management in Poland. Thus, this study bridges the research gap in Poland.

Keywords: IFRS 15, earnings management, revenue recognition, earnings benchmarks.
JEL Classification: M40, M41, M48.