Purpose – The article aims to determine the implementation extent of the regulations around appointment and characteristics of audit committees and regulations concerning disclosure of information about the audit committee in Polish practice.
Design/methodology/approach – The author analyzed the informative content of management reports and corporate governance statements. The survey covered all domestic companies listed on the Warsaw Stock Exchange in the years from 2017 to 2021.
Findings – The new guidelines resulting from hard law had a significant impact on the corporate governance on the Polish capital market. According to the research results, over the analyzed years, the share of companies listed on the Warsaw Stock Exchange, which appointed an audit committee within the supervisory board, clearly increased. Moreover, the research found that in the period under study, not all companies fulfilled the obligation to disclose information about the audit committee resulting from hard law. In particular, this applies to disclosures on how the members of the audit committee acquired competencies in the area of accounting.
Practical implications – The article concerns the operation of the audit committee in public companies listed on the Polish capital market.The study can serve as a reference point for further research on corporate governance. The results of the research may be an indication for those who create legal solutions in the area of corporate governance.
Originality/value – This is the first such comprehensive study on the characteristics of the audit committee and disclosures about the audit committee resulting from the introduction of hard law in this area.

Purpose: One of the regulatory responses to the 2008 financial crisis was to internalize the costs related to banks’ distress by introducing bank levies. More than 23 European banking sectors have been confronted with the new levy regime imposing the additional tax on banks’ balance sheet.

Methodology: This study analyzes the effect of the levy introduction on banks’ profitability, credit activity, and on their business models. More importantly, we confront two different levy regimes – one imposed on banks’ assets and the other on liabilities – to assess their differential impact. A generalized least squares regression with a random effect is performed on a data sample of Hungarian and German credit institutions from 2005 to 2015.

Results: The results show that levy introduction weakened banking sectors in terms of their profitability as well as their lending activity. Even though banks try to compensate for the cost of the levies by passing some of the costs on to the customers and restructuring their operations to limit the tax burden, we find that these activities are not sufficient to offset the whole tax burden. We also note that while the asset levy has a more severe effect on banks’ profits, the liability levy severely affects banks’ lending due to lower interest margin resulting from higher cost of funding.

Findings: Our research results provide important conclusions for regulators, especially during turbulent periods such as the COVID-19 pandemic to strengthen the banking sectors by considering the levy suspension.

Purpose: Capital flows, tax competition, multinational companies and tax havens weakens governments’ ability to lead independent tax policy. This race to the bottom, especially in the case of CIT rate, seems to work. Aim of the text is to show that the governments are not as powerless as it is often claimed. Despite common opinion, nation-states retain a relatively significant autonomy in creating their own fiscal policies, including tax instruments. Size of funds kept in tax havens have not been growing for few years and international cooperation of tax authorities is more and more efficient in dealing with the tax fraud.

Methodology: The study uses desk research method for theoretical reasoning to verify the research
hypothesis. Moreover, the study seeks answering if the application of EU tax policies determines national tax policy. To that end, the authors utilize time series and cause-effect analysis, as well as quantitative research for the systematization of statistical information and regression analysis for the examination of statistical dependencies. Tax competition or the functioning of tax havens naturally limits the realization of the fundamental functions of fiscal policies, although the taxation remains one
of the most crucial instruments of macroeconomic and income policy of national authorities.

Findings: The most important data on public revenues structure in different OECD countries indicate
that taxation remains one of the most crucial instruments of macroeconomic and income policy of
national authorities. We also show that impact of FDI on hosting economy is not as positive as it is
said to be. There is no relation between FDI and R&D spending and level of wages in hosting country
is even affected in the negative way by the FDI inflow. Irrespective of the regulatory details introduced at the EU level – the basic factor affecting jets coordination in the field of cooperation between tax services brings effects both in terms of the current collection of tax liabilities
and the creation of regulations that hinder tax avoidance and under statement assessment.

Originality/value: The study focuses on an analysis of tax policy. The view that taxation of international corporations is fraught with difficulties finds support in the undeniable reality of tax competition.Moreover, a large and growing share of profits is transferred to low-tax places. The prospects for taxing international companies with positive rates seem unoptimistic. Therefore, it is essential to check how the national economy is affected by the FDI inflow in OECD countries.

Purpose: The article analyzes the possible methods of public debt management, which not only aim to meet regulatory requirements but also obtain a market premium in the form of an optimal level of the yield on government bond yields that will be profitable for the issuer. The study analyzes the situation in the public finance sector in the countries that form the Visegrád Group (V4). The authors evaluate the main regulatory requirements of EU law in the area of numerical fiscal rules and their impact on the yield on basic securities such as ten-year government bonds, which directly influences the cost of servicing long-term public debt.

Methodology: The study uses desk research method for theoretical reasoning to verify the research hypothesis. The study seeks to answer the question of whether the application of national and EU fiscal rules in V4 budgetary frameworks contributes to lower yields on ten-year bonds and thereby reduces the cost of public debt. The authors utilize time series and cause-effect analysis as well as quantitative research for the systematization of statistical information and regression analysis for the examination of statistical dependencies.

Findings: The basic parameters subject to financial assessment within the fiscal rules index are (1) the deficit of public finance sector and (2) public debt with its servicing costs. In 2005–2016, the ratio of the public finance sector deficit to GDP was shaped in such a way that most V4 countries required the institution of excessive deficit procedures and further disciplinary regulations. The assessment of the situation in the public finance sector in the area of budget deficit and public debt does not translate into the yield on government bonds of non-Eurozone countries. Model-based testing indicates that the financial markets – when deciding to evaluate or purchase government bonds of non-Eurozone countries – failed to acknowledge the implementation of fiscal rules in these countries and its possible effects.

Originality: The study focuses on a unique comprehensive analysis of national fiscal rules employed in individual V4 countries and their impact on the yield on government bonds throughout the entire EU membership of the V4. What holds the greatest cognitive value in this article is the answer to the question of whether Eurozone membership impacts the valuation of a country’s public debt.

Purpose: Respective European Union member states’ interest in using spending reviews varies as there are no international mandatory regulations. The EU legislation contains general indications as to maintaining a rational fscal policy, from the provisions of the TFUE, expanded in the Pact for Stability and Growth, and elaborated in 2011.

Methodology: Adopting an interpretative research approach, this article elaborates a multiple explanatory case study design to discover how existing theories about public spending reviews are conceptualized by practitioners in their natural contexts.

Findings: The deteriorated state of many countries’ public fnances, as a result of the global fnancial crisis, has increased the interest in advanced innovative consolidation and fscal stabilization methods. Spending reviews are among the most developed and advanced methods. Such reviews were conducted both by countries that had applied this instrument before (Netherlands, Denmark, Finland, United Kingdom, Australia), and by those that introduced them for the frst time (Ireland, Canada, France). However, reviews are applied in countries characterized by signifcant economic advancement and mature public management systems.

Originality: This article analyses and draws conclusions from several selected countries’ experience to date in using spending reviews. The budget functions are compared using information from the implementation of the spending reviews. This article contributes to flling two main gaps identifed in the literature review.

Purpose: The purpose of this paper is to summarize studies aiming to defne matters related to the quality of explanations found in corporate governance statements published by listed companies. Another important aspect of the conducted analysis is the identifcation of various dimensions of explanation quality.

Methodology: The character of the conducted research is that of an overview of literature devoted to the subject. Apart from scientifc articles, it covers European Union regulations, regulations characteristic of countries selected for the analysis (member states of the European Union), and applied solutions aimed at guaranteeing the desired quality of explanations for deviation included in corporate governance statements that are in the centre of attention.

Findings: The conducted analysis organizes the current knowledge concerning actions aimed at improving the quality of explanations for deviation from principles of corporate governance. Without a doubt, the primary pillar consists of the level of information and its quality, as found in explanations for shareholders. It is this quality that determines if the shareholder understands the processes occurring in the realm of corporate governance in the company.

Research limitations: The conducted analysis should be treated as an introduction to related research issues. It should be stressed that research into explanations provided by companies is still in the process of development, and the number of publications devoted to this topic is still modest.

Practical implications: The study fts in the research into the phenomena of the “comply or explain” mechanism as applied in practice, which according of many researchers, continues to be poorly investigated. In terms of the directions for further research, there are promising topics including e.g. identifcation of factors that may translate into the quality of such statements (e.g. ownership structure, identity of shareholders), the role that should be played by institutions involved in developing CG codes (i.e. their successive versions), and the involvement of the board of directors/ supervisory board in the evaluation process.

Originality: The present paper identifes the key factors perceived as determining the quality of corporate governance statements. In addition to that, it outlines new avenues for further investigation.

Purpose: The aim of this paper is to examine shareholders’ reaction to the decision of the supervisory board to appoint a CEO in companies listed on the Warsaw Stock Exchange.

Methodology: An event study and the mean-adjusted model were applied. The abnormal returns were measured as the CAAR in the entire (-60, + 60) window and selected sub-windows.

Findings: The obtained values of abnormal returns indicate the shareholder’s negative reaction. Throughout the observation window, they oscillate slightly below zero, and in the window (0, +20) they are negative at -1.566%. Irrespective of the observation window, negative abnormal returns were obtained for over half of the observation (52–57%). Therefore, preliminary results indicate the predominance of the information effect over the real one. The decrease in market value as a result of the event may result from an increase in investors’ uncertainty as to the effects of changes in strategy and skills of the new CEO.

Originality: The research is a unique one. To date, no one has carried out research into shareholders’ reaction to a CEO appointment in either the Polish or Central and Eastern European capital markets. They primarily bring the value of cognition of shareholders’ behaviour in the analysed event, which is reflected in share prices. They extend the literature on the signalization instruments, i.e. the activities that boards can undertake due to the new information transmitted to the capital market participants and stakeholders. The market reaction to a CEO appointment will without a doubt interest investors; the institutions responsible for supervision (which in the case of Poland is the Financial Oversight Commission) and the legislator in charge of regulations that prevent insider trading while promoting corporate disclosure transparency.

Purpose: The aim of this paper is to determine the factors that influence the process of implementation
of risk management process into municipal offices across Poland.

Methodology: The Polish Public Finance Act requires public sector entities to put in place a risk
management system within the framework of management control. The author conducted in-depth
interviews with key personnel responsible for risk management in public administration units.

Findings: The results of the research show that public sector organizations face certain problems
in the process of implementing a risk management system. Employees seem to resist change. As
a result of the project, four factors that influence the process of introducing risk management have
been identified.

Implication: Public sector organizations are mostly large, bureaucratic organizations, governed by
numerous regulations, which all in all tends to hinder efficient management. The results of the
discussed research are to support public entities in the process of implementing change.

Value: The paper explores the importance of overcoming barriers to the process of implementing
risk management in the public sector.

Purpose: The fundamental aim of this article is to verify an assumption according to which the
proper Regulatory Impact Assessment (RIA) is a key factor in the rationality of law. Rational law
is a law which is effective and able to realize and achieve social, economic and environmental aims
determined and established by the lawmaker.

Methodology: The scope of this paper – which determines its structure – encompasses the definition
of RIA, including its specific (but non-legal) forms such as benchmarking and evaluation. As
far as we are concerned, these methods can provide – as a kind of Regulatory Impact Assessment
– a significant tool for measuring the rationality of regulations. Furthermore, the usefulness of
benchmarking and evaluation has been recognised by representatives of jurisprudence. We will
also explain the concept and the assumptions of the rationality of law on the grounds and in the
light of the case law of the Polish Constitutional Tribunal and the Supreme Administrative Court.
This should allow to countercheck the main thesis of this paper. The methodology encompasses
primary legal methods such as literature, case law and legislation analysis.

Findings: An indispensable condition of the rationality of law is actual elimination of irrational
regulations which were not subjected to the Regulatory Impact Assessment.
Practical implications: Although RIA is a problematic issue (in terms of its practical application),
it is necessary to carry it out in order to assure the rationality of law. A good and desirable complement
to Regulatory Impact Assessment are non-legal methods such as benchmarking and evaluation.

Originality: Originality and value of this survey lies in taking into account the case law of the
Polish Constitutional Tribunal and the Supreme Administrative Court. Additionally, this paper is
original in that it considers non-legal methods in the examination of the rationality of law.

Purpose: This paper critically evaluates the development of the impact assessment instrument in
Lithuania’s public administration and suggests improvements to its impact assessment system.

Research question: What interesting conceptual imperatives have appeared in Lithuania’s investigation
of the impact of regulatory policy?

Methodology: This research study uses positivist methodology to analyse the problems that researchers
have identified in Lithuania’s impact assessment. This investigation explains why certain
problems have appeared, what has changed and what system changes can be identified traced. The
study proceeds as follows. First, the research on impact assessment carried out in Lithuania is
analysed. Second, regulations on impact assessment in Lithuania are investigated. A substitute for
non-existent integrated theory is emphased by the logical structure of the EU administrative system
imperatives, principles, and norms, whose modifications have become the basis of impact assessment
system design in Lithuania. The present research combines, integrates and consolidates the
theoretical and practical information on impact assessment into an explanatory scheme, which
could be developed into a model in the future. Information from two qualitative interviews conducted
in 2009 and 2010 was also used.

Conclusions: The present research reveals that Lithuania’s regulatory impact assessment model is
still being constructed and reconstructed towards evidence-based management. A model which
revises the old impact stereotype has been designed, based on contemporary methodologies (cost-
-benefit and cost-effectiveness analyses), consultations with the interested parties, a small but
exhaustive legal initiatives impact assessment, and a centralised and institutional coordination of
impact assessment.

Practical consequences: The present research presents the issues which could be useful for the
states that are starting to implement a regulatory impact assessment model. This study described
the pitfalls to avoid in order to implement a successful evidence-based management initiative.

Originality: In the present research, regulatory impact assessment is emphased as an assessment
model and normative of the EU administration effectiveness and optimality, which can be used as
a good-practice example for the modernisation of administrative activities in Central and Eastern
Europe to the level their European counterpart

Purpose: The paper discusses the validity of the thesis according to which Polish budgetary framework
in place in 2011 required only minor adjustments in order to be consistent with the principles
set forth in the EU Council Directive on requirements for budgetary frameworks of Member States
adopted in November 2011. Basic elements of the budgetary framework laid down in the Directive
had already been provided for in Polish law.

Methodology: A comparative analysis of the provisions of the Directive with relevant acts of Polish
legislation, including the Public Finance Act, was carried out. The author outlines the Polish
budgetary framework before 2011 and the most important adjustments introduced by the end of
2013 on the basis of the budgetary framework structure set forth in the Directive.

Findings: The assessment of the convergence of provisions encompassed definitions, accounting,
statistics, forecasts, numerical fiscal rules, medium-term budgetary frameworks, transparency and
consistency. Its results demonstrate that Polish regulations complied with the provisions of the
Directive. In order to confirm their correctness, an assessment of the practical application of recent
adjustments, which entered into force in 2014, must be carried out.

Constraints to research: The analysis addresses the main concepts and their most important
characteristics, and therefore a synthetic approach to the subject required omitting a number of
specific issues.

Originality: The paper analyses the convergence of the Polish budgetary framework in 2011 and
its subsequent adjustments to the provisions of the Directive of the EU Council requiring Member
States to amend their legislation by the end of 2013.

Purpose: The aim of the paper is to answer the questions (1) whether the reforms of the regulations in the banking sector were effective and (2) which mechanisms discipline the behavior of banks. Moreover, we also raise a question how the behavior of banks depends on the institutional environment.

Methodology: To achieve the objectives, the article uses probit analysis on panel data covering the years: 1995–2006 for the entire period, and for years: 1999–2004 and 2004–2006 for 350 banks from OECD countries.

Findings: The quantitative results clearly argue for banking regulation, rather than leaving the supervision of the banking sector market discipline. However, the survey results also show that the behavior of banks depends largely on the institutional environment. Therefore, we questioned whether the currently proposed regulatory reforms that are homogeneous in nature will be effective in disciplining banks.

Practical implications: Among many reforms that are proposed the most important concerns are ones on banking regulation. Some believe that regulation of the banking sector should not be such useful, others believe that regulations are needed, which showed the fi nancial crisis in 2007–2011.

Purpose: The purpose of this paper is a discussion and in-depth analysis of the legal and organizational circumstances associated with the activities of Supervisory Boards in housing cooperatives.

Methodology: A critical analysis of the existing legislation, own analytical analysis of the source documents, supplemented by conclusions and observations formulated on the basis of a case study, for the preparation of which information has been used obtained from primary sources in the form of documents of the analyzed housing cooperative and information obtained through participant observation.

Findings: What has a decisive impact on the mechanisms of corporate governance in housing cooperatives are the direct behaviors of Supervisory Board members, as well as the lack of awareness and involvement of the residents, who do not want to actively participate in the life of the cooperative. A diagnosis is presented of the most important factors that influence the actual operations of the analyzed Supervisory Board. While the current
legal regulations make it possible to ensure effective and proper control as well as adequate supervision over the activities of cooperatives.

Originality: The paper enriches the theory of management sciences in terms of a wider perception of the term corporate governance in relation to other organizations than companies. The presented methodological approach that is the basis for a comprehensive and thorough inspection of the activities of the Management Board can be used in other cooperatives as well. In the literature on the subject no similar analysis, supported by the results of own analytical research, had been found.

Purpose: The purpose of this paper is to attempt a comprehensive evaluation of the legal regulations within the Polish tax system regarding taxation of clergymen revenues from pastoral services.

Methodology: Undertaking and accomplishing the purpose of this paper has been possible by analyzing the Polish literature on the subject as well as the relevant legal acts. For the purpose of this paper also empirical materials have been used, in the form of a report on the fi nances of the Catholic Church, the contents of which were used to formulate the conclusions de lege ferenda. The main research method used in the present study
was the legal dogmatic method, which involves an analysis of the applicable regulations within the Polish legal system in the fi eld of taxation of clergymen revenues from pastoral services. Additionally, the basic methods of statistical data presentation were used in the form of tables.

Findings: The applicable legal regulations within the Polish tax system regarding taxation of clergymen revenues obtained from performing their pastoral services require an urgent and comprehensive reform. For these are normative solutions that contradict the basic principles of taxation (especially the postulated for more than two centuries principles of equality and justice in taxation), which should form the basis for a properly determined object of taxation, and therefore they do not fulfi ll the by the legislature assigned functions.

Research implications: Presented ideas for changes in the currently in Poland adopted lump-sum taxation system of clergymen revenues could constitute a starting point for the developers of the tax reform for further discussion on the desirable directions of reform in the fi eld of personal income taxation in Poland.

Originality: In the paper the Author points out that in the ongoing public discussion on the optimal method of taxation of personal income relatively little attention is given to issues concerning the taxation of personal income obtained from pastoral services. Thus, the present study, summarizing the existing achievements of the Polish doctrine of fi nancial law in this fi eld, constitutes a voice in the discussion on this subject and at the same time puts forward concrete proposals for changes in the current legal regulation of taxation of the clergy, which could serve as an inspiration for the developers of the tax reform in Poland.

Purpose: Analysis of reasons, correlations and consequences following from the impact that financial investors have on commodity markets – both before and after the crisis.

Methodology: The research on the tremendous impact that the financial sector exerts on price formation in commodity markets, defined as the financialization of commodity markets, was based on a narrative approach. This approach makes use of available historical documents and attempts to reconstruct factors causing structural changes in commodity markets. As a result of these factors, commodity and financial markets (and particularly
capital market) have become similar to a great extent.

Findings: Drawing upon the research, it can be stated that the global financial crisis has contributed not only to a major change in the involvement of investors in commodity markets, but also to a structural change of this involvement, which is accompanied by a number of negative consequences.

Originality: The research enables to draw certain conclusions, e.g. that the financialization of commodity markets is reflected in a radical price fluctuation in these markets due to which the prices are isolated from fair value. Structural changes are also discussed. They entail the attempt to counteract such negative consequences, e.g. regulations imposed to provide a greater transparency of the activity undertaken by investors in commodity markets.