Selim Gungor1 and Muge Saglam Bezgin2
This study aims to analyze the effect energy-related uncertainty has on the volatility of the stock markets of 18 developed and developing countries ranking among the wealthiest according to their GDP. The study focuses on understanding how EUI influences market dynamics and volatility patterns across different economies. Using the GARCH-MIDAS approach, this research examines stock market indices from January 2003 to October 2022. The analysis reveals that all stock market indices are influenced by EUI. Notably, the S&P-TSX index exhibits the lowest MIDAS weight, indicating that Canada’s market volatility is the least affected by EUI. Conversely, the highest MIDAS component weights are observed in the markets of China and the United Kingdom. The EUI shows the greatest influence on the volatility of the Indian and Chinese markets, whereas its influence is minimal on the Brazilian and Canadian markets.
Milan Čupić
The paper presents a theoretical framework for assessing the impact of risk management on corporate value. As the relevant factors that determine this impact, the paper analyzes market imperfections and investors’ risk aversion. The results of the present research indicate that risk management contributes to an increase in corporate value if, under the influence of market imperfections, corporate risk exposure is concave. As an expression of market imperfections, the paper analyzes the costs of financial distress, agency costs, and taxation. The results of the research also indicate that the risk management policy should not aim to minimize, but rather optimize risk exposure, by taking into account the costs of risk management, investors’ risk aversion and the competitive advantage a corporation has on the relevant market.
Jarosław Kaczmarek
The paper focuses on the phenomenon of a business failure and the assessment of the degree of the financial security of Polish companies, mainly industrial entities, during the period of the economic transformation (1990-2013), with special attention paid to the last economic crisis (2007-2013). With regard to the theoretical and cognitive aspects of the presented issues, attention is paid to corporate crises, the types of crises and their causes as well as the identification and quantification of the symptoms of deteriorating financial conditions. In its empirical dimension, the paper aims to measure the degree of the financial security of Polish industrial companies as well as the trends and dynamics of changes and the corresponding interdependencies. Additionally, the author presents the characteristics of industrial mezzo-structures from the perspective of their stability and the frequency of the movement of objects (changes to ranging positions). Finally, the paper confirms that the degree of financial security can be seen as a symptom of changes to macroeconomic business cycles.