Karol Marek Klimczak

• PhD. Hab.
• Professor (Associate) at Lodz University of Technology

Companies around the world have faced repeated shocks in recent years that challenged their business strategies. What was the nature of these shocks? How did they affect business? How do companies adapt their strategic management in times of great volatility? This introductory chapter presents the core concepts and established theory of strategic m...

Who needs a new washing machine? Globally, the majority of households do not have one. Although the largest markets are in the North, demand there is stagnant. Incumbents eye new markets in the Global South, but low margins and a series of unfavorable surprises dissuade them from a market development strategy. From the pandemic, through to supply c...

This paper presents a technique for sentiment measurement in many languages. The method allows researchers to efficiently analyze corporate documents, management reports, and financial statements using python. When the texts are written in many languages, the method extracts equivalent cross-linguistic sentiment features that can be used for statis...

Purpose This study aims to explore the intelligibility of communication with stakeholders as a result of accrual accounting adoption. It focuses on changes in the use of visual forms and the readability of text that occurred immediately after the adoption of accrual accounting in performance reports of Italian public universities. Design/methodolo...

We study risk perceived by small and medium technological enterprises (SMTEs) in their collaborative activities. We aim to explain prior findings regarding the situational factors that shape collaborative activities by focusing on assessments of risk made by managers. This study confirms that trust, business performance, and environmental turbulenc...

Sustainability reporting is rapidly developing in the European Union – from voluntary Corporate Social Responsibility (CSR) disclosure over to mandatory non-financial reporting (NFR), then over to Economic, Social and Governance (ESG) – with the ambition of becoming as important as financial reporting. This paper investigates whether executives act...

Celem tej książki jest przedstawienie problematyki „Przemysłu 4.0” z perspektywy dzia-łalności gospodarczej przedsiębiorstw. W tym celu powołaliśmy zróżnicowany zespół autorów będących przedstawicielami trzech dyscyplin: ekonomii, zarządzania i inżynierii produkcji. Postanowiliśmy odejść od technologicznego spojrzenia na „Przemysł 4.0” i zwrócić uw...

Financial misconduct has come into the spotlight in recent years, causing market regulators to increase the reach and severity of interventions. We show that at times the economic benefits of illicit financial activity outweigh the costs of litigation. We illustrate our argument with data from the US Securities and Exchanges Commission and a case o...

The chapter describes datafication and its impact on financial corporations. Datafication is an exponentially growing process of creating data streams and big data sets representing various elements of the real world. Unprecedented access to information combined with automated data analysis methods opens new areas of the financial market, leads to...

Competition requires that companies implement information technology in many areas of their activity. The deep changes required are referred to as digital transformation. However, the broad range of digitization initiatives and varied technologies that companies use, are a challenge for the systematic study of digitization as a management phenomeno...

Transitioning organizations to the new normal following environmental shocks, economic upheavals, and technological innovations is a challenge to classic organizational management. The main reason: because no single organization knows precisely what the target of change is. Resources created and operated in relationships can support the organizatio...

This chapter looks at organizational change from the perspective of external financial stakeholders: shareholders and debtholders. When companies initiate strategic change in response to environmental pressure, the management needs to gain the support of investors. Implementing effective change may require their endorsement or active engagement. Ho...

This paper aims to identify the drivers of management reporting choices in a setting characterized by ownership concentration and weak enforcement. Previous research indicates, that tone of the letter to shareholders is correlated with performance. However, tone can be biased towards the positive when a company is highly responsive to stock market...

This chapter aims to present the current state of the art in text analysis and its potential applications in finance. Recent advances in computational linguistics and natural language processing are welcome by the financial profession as the volume of text recorded, published or posted outgrows the capacity of humans to analyze it. Texts available...

Rozwój rynków finansowych stanowi wyzwanie dla instytucji nadzoru dążących do zapewniania uczciwości obrotu. Wobec niemożliwości prowadzenia ścisłej kontroli, wprowadzane są coraz wyższe kary finansowe dla sprawców nadużyć. W artykule wykazano, że kary te są nieskuteczne, jeśli analizować je z perspektywy utylitarystycznej, czyli teorii racjonalnoś...

Celem rozdziału jest wykazanie luki w projektowaniu instytucji nadzoru wynikającej z utylitarystycznego rozumienia przyczyn nadużyć finansowych. W rozdziale przedstawiono nadużycia finansowe jako projekt inwestycyjny oceniany pod względem jego zyskowności. Posłużono się udokumentowanymi przykładami nadużyć z USA. Amerykańska Komisja Papierów Wartoś...

W artykule przedstawiono definicje i cechy charakterystyczne dla przedsiębiorczości technologicznej. Wskazano, że przedsiębiorczość technologiczna jest badana pod kątem nurtów występujących w naukach o zarządzaniu, m.in. kształtujących – teorii przedsiębiorczości i teorii innowacji oraz warunkujących jej rozwój – dynamicznych umiejętności organizac...

Professionals and individuals who invest in equity markets rely on financial analysts’ recommendations and reports to decide on what to invest in and when to trade. This study examines the role of two groups of communication strategies, evaluation markers and mitigators, in establishing analysts’ credibility. The sample consists of 80 reports writt...

We study impression management in an emerging market setting with high ownership concentration. Using content analysis, we identify impression management techniques in a sample of letters to shareholders written in the Polish language by the 60 largest companies listed at the Warsaw Stock Exchange in 2008 and 2013. We find patterns in the occurrenc...

This special issue of the journal of Accounting and Management Information Systems groups recent research into reporting by Small and Medium-sized Entities (SMEs) in four countries of Central and Eastern Europe (CEE):, namely Poland, Romania, Slovenia and Turkey. SMEs represent the vast majority of entities in many jurisdictions around the world, c...

We outline the process of implementation of the accounting Directive 2013/34/EU by the Republic of Poland in the context of references to IFRS. The purpose of the article is to determine to what extent IFRS are used by actors taking part in the legislative and enforcement processes. The accounting regulation in Poland comprises an act of Parliament...

Companies listed in stock exchanges need to actively engage with investors but little research has been done into corporate communication practices in emerging markets. The goal of this book is to describe the textual communication between companies listed at the Warsaw Stock Exchange, equity analysts and investors. We present the results of three...

Studies of analyst reports and corporate disclosures written in the English language show that tone and other linguistic characteristics used in narratives convey information beyond that contained in hard, quantitative financial information. This paper extends the literature by focusing on analyst reports prepared in a non-English language and in a...

The goal of this paper is to examine how disclosures of goodwill impairment tests under IAS 36 are prepared in conditions of high uncertainty. The data come from Polish companies listed at the Warsaw Stock Exchange, where economic and legal developments have been dynamic as compared to the main global equity markets, thus increasing uncertainty. We...

The goal of this paper is to explore how the preparers of financial statements deal with uncertainty in communicating the future prospects of their companies. We study narratives in goodwill disclosures as a special case, with the aim of broadening our understanding of how narratives are constructed. We focus on goodwill impairment tests, because t...

The goal of this paper is to determine how uncertainty can be communicated in the notes to financial statements. We focus on narrative disclosures in a setting of high uncertainty: disclosures concerning the results of goodwill impairment tests. The data come from Polish companies characterised by high uncertainty relative to the main markets of th...

Motivated by continued interest in the fairness and reliability of financial disclosures, we study the use of impression management in the letters to shareholders of stock-exchange listed companies written in the Polish language. The letters are a succinct form of narrative communication, easily accessible to professionals and individual investors...

The goal of this paper is to determine how disclosures of goodwill impairment tests under IAS 36 are prepared in conditions of high uncertainty. The data come from Polish companies listed at the Warsaw Stock Exchange, where economic and legal developments have been dynamic as compared to the main global equity markets. We use qualitative methods, i...

The goal of this paper is to explore the use of narratives in financial statements prepared in the Polish language. We use genre analysis and compare financial statements with management reports to contrast the two genres and describe the interconnections between them. The paper contributes to a growing body of research concerning the communication...

Purpose – Value relevance studies, in particular international comparative studies, use market values sampled at different dates relative to the fiscal year-end. This paper aims to contribute a theoretical and empirical analysis of the relationship between value relevance and the month of market value sampling. Design/methodology/approach – The pa...

The goal of this paper is to identify firm-level factors that affect the valuation of companies in a transitional economy of Poland in comparison to companies from developed continental markets of Germany and France. The novelty of our approach rests in a careful construction of the comparable sample, which is a challenge given that Polish companie...

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 de...

Oversight of risk has become a significant issue in the corporate governance debate following the failure of traditional institutions. In the aftermath of the crisis, the International Corporate Governance Network developed the ICGN Corporate Risk Oversight Guidelines to help institutional investors assess how effectively the boards of their portfo...

Management control systems play a significant role in New Public Management reforms. This paper presents the case of Poland, where a small group of enthusiasts at the Ministry of Finance is attempting to enforce dramatic changes in control systems across the public sector. The changes are both technical and cultural. The new system is called 'manag...

This article analyses the effects of mandatory International Financial Reporting Standards adoption in Poland. Our aim is to determine how market participants reacted to the new accounting standards on the year of the adoption and whether their behavior changed afterwards. We examine abnormal returns around annual consolidated report publication, a...

This paper outlines the evolution of the information environment surrounding the Warsaw Stock Exchange in Poland. Like other transition economies, Poland needed to develop accounting regulations to support privatization. We trace changes in financial reporting regulation from 1994, through the adoption of IFRS and corporate governance codes, to the...

In this paper, we extend comparative value relevance research by examining patterns in the value relevance of accounting numbers as a function of the month in which market values are observed. We stimate the residual income model on a sample of stock-exchange listed companies from Germany and France and find dramatically divergent patterns of fit....

Relevance of accounting earnings for market value of companies has been subject to numerous empirical studies, which generally support the hypothesis of value relevance in developed countries. Recently a growing number of papers focus on the usefulness of accounting information in emerging countries. These studies adopt value relevance methodology...

Purpose This paper aims to provide a comprehensive empirical assessment of major contemporary corporate hedging theories, i.e. financial theory, agency theory, stakeholder theory and new institutional economics. Design/methodology/approach Hypotheses regarding the determinants of hedging are tested on a sample of 150 companies listed on the Warsaw...

1. Wprowadzenie Badania nad znaczeniem zysków księgowych dla wyceny akcji mają długą historię. Już w 1968 roku Ball i Brown (1968) przeprowadzili pierwsze badanie, w którym poddali testowi empirycznemu powszechne wówczas przekonanie, że rachunkowość jest tylko pustym rytuałem, a wielkości księgowe są pozbawione znaczenia. Ich badanie pokazało, że i...

The aim of this paper is to develop a methodology for thorough empirical testing of major contemporary corporate risk management theories: financial theory, agency theory, stakeholder theory and new institutional economics. Unlike in previous research, the tests are organised around theories, rather than individual hypotheses. I used a number of te...

The rationales for corporate risk management are examined from the point of view of the theory of finance and of key stakeholder groups’ interests. A study of the use of hedging instruments in 161 Polish non-financial listed companies is then presented. The study is based on keyword analysis of financial statements; parametric tests and logit regre...

Relevance of accounting earnings for market value of companies has been subject to numerous empirical studies. Findings of these studies generally support the hypothesis of value relevance in developed countries. Recently a growing number of papers focus on the usefulness of accounting information in transition and emerging countries. These studies...

Streszczenie Enterprise Risk Management (ERM) staje się światowym standardem zarządzania ryzykiem w przedsiębiorstwach. Podobnie jak przedsiębiorstwa, jednostki sektora finansów publicznych (administracja państwowa oraz inne jednostki wykorzystujące środki publiczne) realizują cele określone przez ich interesariuszy. Interesariusze mogą więc być za...