Purpose: The article evaluates the associative relationship between international supervisory board experts and foreign ownership, along with the experts’ influence on the financial and operating performance of firms. The study was based on data collected for 257 companies listed on the Warsaw Stock Exchange in 2010–2015.

Methodology: The dataset was built as a panel, and then generalized least squares regression models with a fixed or random effect were employed to test hypotheses.

Findings: The findings of the study clearly show that the presence of investigated firms in foreign markets positively affects company performance. Moreover, models with dependent variables ROA and ROS show that supervisory board members with foreign experience positively affect profitability indicators of firms that do not operate on foreign markets. The data analyses reveal that international experts are more effective advisors for companies that conduct no business activities on foreign markets. Furthermore, the results show a positive moderate association between the share of international experts in supervisory boards and the share of foreign ownership in the company.

Originality: The article contributes to the understanding of determinants and consequences of the presence of international experts in supervisory boards and company internationalization.

Purpose: This study investigates the determinants of audit committee (AC) formation in a semi-mandatory setting of a European economy, in which ownership and control are predominantly in the hands of families and business groups, and the voluntary practice of forming an AC has not been widely accepted.

Methodology: This research uses a sample of Polish nonfinancial firms listed on the Warsaw Stock Exchange (WSE) in 2008–2015. The study implemented logistic regression to test the role of the supervisory board (SB) and companies’ compositional characteristics in AC creation.

Findings: Primary analysis provided evidence of an inverted association between commonly accepted determinants of AC formation – such as the number of independent members on the supervisory board (SB) – and accounting and finance expertise of the SB members. The study also revealed that companies with foreign ownership are more likely to have an AC.

Originality: This study indicates an important relationship between the existence of other SB committees as a meaningful determinant of AC formation. This article is valuable for supervisory bodies and regulators as they provide insights into factors that influence audit committee formation.

Purpose: Knowing the factors that might affect board structure is an important step in understanding
boards and their role in corporate governance. This research aims to examine the effect of firm
characteristics closely related to corporate governance mechanisms, such as the model of corporate
governance, shareholder capital concentration, and stock exchange listing on board structure variables (size, independence, and gender diversity).

Methodology: The sample of this study stems from large Macedonian joint-stock companies. We run
a hierarchical linear regression of board characteristics on common demographic firm characteristics
as control variables and contextual firm characteristics related to corporate governance mechanisms
as independent variables.

Findings: Joint-stock companies in the Republic of North Macedonia have relatively small boards,
which provide no positive effects that would originate from the larger number of board members.
Moreover, the number of outside independent members is small, insufficient to influence the boards
with greater objectivity, independence, and quality. Larger companies with a one-tier model have
statistically significant larger corporate boards and a larger number of independent directors.

Implications: The best corporate governance practices worldwide must be used as a basis for future
improvements of corporate governance in joint-stock companies in developing economies.

Purpose: This study aims to investigate female top managers’ choice of working capital management
policies and its effect on firm profitability. The theoretical arguments about the effects of working
capital management policies on firm profitability and empirical evidence are often inconsistent.
Additionally, it is likely that the policy choice is closely related to the gender of top managers.

Methodology: Our research sample was all 136 manufacturing firms listed in Indonesian Stock
Exchange during the 2013–2017 period. Following the hypothesis formulation, this study employed
four estimation models tested using panel data regression.

Findings: Female CFOs tend to choose more conservative working capital investment policies.
Moreover, conservative investment policies have a positive effect on firm profitability and mediate
the impact of top female managers on firm profitability.

Originality: Previous literature tends to overlook the role of top female managers in affecting
working capital management policies and the effect of these policies on firm profitability. In this
respect, this study provides insights on the role of the gender of top managers as a factor that likely
explains the choice of working capital management policies in manufacturing firms which, in turn,
affect firm profitability.

Purpose: This paper examines the changing behavior of two calendar anomalies in African stock
returns – the month-of-the-year and the intra-month effects – and their implications for the adaptive
market hypothesis (AMH).
Methodology: We applied two-stage Markov switching models (MSMs) instead of the conventional
single state regression model. The sample period includes the daily index return of Nigerian, South
African, Mauritian, Moroccan, and Tunisian stock exchanges from January 1998 to February 2018.
Findings: We found that (i) all the markets except for the Johannesburg Stock Exchange (JSE) have
a higher tendency to be in bearish state than bullish state, (ii) month-of-the-year and intra-month
effects appear in one regime and disappear in another regime, and (iii) the behavior of calendar
anomalies is affected by market conditions and conforms to AMH rather than the efficient market
hypothesis (EMH).
Practical Implications: We present that (i) calendar anomaly is a characteristic that changes under
different regimes or market conditions in African stock markets, (ii) active investment management
may yield profits for market participants, depending on the market conditions and the anomaly in
question, and (iii) the right approach would be for investors to consider each market with its own
peculiarity even when they are in the same continent.
Originality/Value: The sensitivity of the month-of-the-year and the intra-month effects to market
conditions has not been documented in African stock markets, especially with the use of
regime-switching models

Purpose: The purpose of this paper is to examine the relationship between working capital management and firm performance for firms listed on the Indonesian Stock Exchange. Prior works have employed many indicators of the working capital. The results of previous studies, however, have been inconsistent. This study is an attempt to find out the best proxy of working capital in explaining firm’s performance.

Methodology: This study employs regression panels for five measures of working capital to model the data for fifty-four firm-year observations that meet the sampling criteria, covering the time 2010–2014. This study also uses adjusted R-squared as the criteria to select the strongest relationship between measures of working capital and firm performance.

Findings: The findings indicate that all proxies of working capital management met expected signs and statistical significance. Hence, working capital management significantly improves firms’ performance. The proxy of inventory turnovers is the best measure of working capital in explaining firm performance.

Originality: To the author’s knowledge, this is the first study examining the relationship between five measures of working capital management and firm performance in Indonesia or in any emerging markets; hence, this study contributes to the scarce literature on the management of working capital.

Purpose: This study is aimed at analyzing the influence of the size of the board of directors, audit committee, institutional ownership and managerial ownership on the fnancial performance of manufacturing companies listed on the Indonesia Stock Exchange.

Methodology: The study analyses 156 Indonesia frms listed on the Indonesia Stock Exchange using linear regression analysis.

Findings: The results indicated that the size of the board of directors has a positive effect on fnancial performance, while the size of the audit committee, institutional ownership and managerial ownership has no effect on the fnancial performance. While on the simultaneously testing, it showed that the size of the board of directors, audit committee size, institutional ownership and managerial ownership influence the fnancial performance.

Research limitations/implications: The research has been limited to the manufacturing sector of Indonesian companies and the internal mechanism of corporate governance. The study suggests considering an external mechanism of corporate governance as predictor variables.

Originality: The study adds to the literature of corporate government and frm performance in emerging countries. The study implies that corporate governance mechanism for audit committee, managerial ownership and institutional ownership do not enhance company performance. The average size of an audit committee just to fulfll the regulation. Corporate governance mechanism that improve fnancial performance is size board director. Improvement in board performance as board size increase has positive impact that enhance fnancial performance of company.

Purpose: This paper aims to analyse selected aspects of the marketing strategy of the frst and biggest network of self-service shops with organic products in Poland – Organic Farma Zdrowia.

Methodology: The adopted methodology involves a qualitative approach. The case study is based on an analysis of company documents and marketing communication, especially that offered on its website and in its social media channels.

Findings: The company specializes in distribution of organic products in Poland. It has gone through organic growth, acquisitions, attracting a Dutch investment fund, and entering the NewConnect stock exchange. It operates based on the model of multichannel distribution, combining physical and online retailing. The assortment consists of 4,000 products, including organic food, cosmetics, and cleaning aids. The company has managed to create 3 own label product lines. The online retailer belonging to the company (organic24.pl) is organized in a professional way, although some improvements are possible. In 2015, the company engaged in ambitious marketing projects.

Practical implications: The fndings may be useful for the Organic Farma Zdrowia company as certain modifcations in its marketing communication are recommended. Other companies operating in the sector may also beneft from the analysis of the strengths and weaknesses of the business in question. Furthermore, our case study may offer a framework of reference for researchers interested in this area.

Originality: This is the frst study to examine the strategy and marketing activities of Organic Farma Zdrowia, a major player in the sector of organic food distribution in Poland.

Purpose: This paper investigates the relationship between the internal governance structure and fnancial performance of Polish companies. Ensuring diversity of corporate boards has been on the agenda of various regulators on a national and international level as it is generally expected corporate boards that are more diverse will be more competent and more effective monitoring managerial actions, and therefore positively impact company performance.

Methodology: This paper uses a sample of companies listed on the Warsaw Stock Exchange and examines the two main compositional features of company supervisory boards (independence and experience) and their practices by companies. We also investigate the effect of diversity on company performance. As our empirical methodology, we use linear regression analysis.

Findings: Our fndings support the proposal that diversity matters, especially in terms of the presence of experienced members on supervisory boards, and that such diversity positively affects fnancial results. In addition to the main fnding, the results of the study indicate also the importance of the ownership structure. Family frms and companies with a higher level of gearing are more likely to perform less effectively.

Originality: To date, research on the association between supervisory board diversity and fnancial performance in either the Polish or Central and Eastern European capital markets has been limited. The paper also points to the importance of having experienced members on a company’s supervisory board. Independent members on supervisory boards do not seem to have a similar association.

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: This study investigates the benefits of being perceived as a socially responsible company. The main purpose of the research was to find out whether company managers consider that certain aspects of company activity may benefit from being perceived as socially responsible. Research limitations: The primary source of data used in this study was a survey of respondents’ views and opinions rather than an analysis of extensive numerical data.

Methodology: The research methods included a literature review and a survey conducted in several Polish companies regarded as socially responsible. The so-called RESPECT Index, including socially responsible companies listed on the Warsaw Stock Exchange Main List, as well as annual rankings of responsible companies were used as a kind of reputation database for choosing survey respondents.

Findings: The most important benefits indicated by the respondents included better frm image/reputation, improved relations with stakeholders, increased employee motivation, better communication inside the company, as well as more effective management and control over new aspects not considered before. Additionally, the identified benefits were analyzed using different criteria, such as the size of the company or its feld of activity.

Originality: The problem analyzed in this study is important, yet it is still not a suffciently examined issue in many emerging markets including Poland. As benefits taken into consideration in the survey are also valid for other financial markets, the results can be used for comparative studies of Poland and other countries.

Purpose: The aim of this study was to identify the content of disclosures presented by public companies listed on the Warsaw Stock Exchange on the internal control and risk management systems in relation to financial reporting.

Methodology: The study contents were formulated with the use of literature studies. Content analysis studies and disclosure index studies were used for the study of narrative disclosures. The research was of a qualitative nature.

Results: The results showed that the companies listed on the Polish capital market are still at the stage of formulating reporting practices in the area of control systems over financial reporting. It should be noted that the diversity in information presented within disclosures about control systems over financial reporting is considerable. For some companies, the disclosures are formulated at such a high level of generality that no firm conclusions can be drawn. Detailed items of disclosures presented by particular companies can be identified in the reporting practices. The findings may provide the basis for constructing an index of disclosures about control systems over financial reporting.
Scope of research: The study examined disclosures about internal control and risk management systems in relation to financial reporting presented by public companies listed on the Warsaw Stock Exchange.

Originality: Disclosures about internal control and risk management systems in relation to financial reporting are a relatively new issue in Polish practice. The literature studies carried out as part of the research indicate that this issue is a research gap.

Purpose: Empirical results about the direct relation of knowledge leading to fi nancial performance at a firm is dispersed. This study aims to examine the impact intellectual capital (IC) has on fi rm performance in Polish and Dutch listed firms.

Methodology: Quantitative data is collected based on audited annual reports from the top 20 companies listed at the Warsaw Stock Exchange and Amsterdam Stock Exchange between 2007 and 2011. IC is measured using the VAIC methodology with its individual elements of HCE, SCE, and CEE. Direct relations between ICE, HCE, and SCE and fi ve measures of fi rm performance are statistically analysed.

Results: The results suggest that there is a direct positive relationship between ICE and fi rm performance of Polish and Dutch listed fi rms, particularly with ROA, ROE, EP, and to a lesser extent with ATO. Firms listed in Poland provide a stronger positive ICE relation to ROA and ROE where fi rms listed in the Netherlands provide a stronger positive ICE relation to EP. Regarding individual elements, HCE relates highly positive to ROA, ROE, and EP where SCE fi nds only partial negative relation with ATO.

Implications: Nurturing IC and in particular HC confirms the importance of fi rm knowledge and employees with right training and other support. Additionally, further clarifi cation regarding SC is required.

Originality: This paper presents the fi rst study of the IC relationship with fi rm performance in Poland as well in the Netherlands. Additionally, the comparison between fi rms of both countries establishes a novelty in IC research.