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Copernican Journal of Finance & Accounting

An empirical evaluation of selected accounting-based value drivers in the Polish banking sector
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An empirical evaluation of selected accounting-based value drivers in the Polish banking sector

Authors

  • Piotr Bolibok The John Paul II Catholic University of Lublin http://orcid.org/0000-0002-5649-181X

DOI:

https://doi.org/10.12775/CJFA.2016.002

Keywords

banks, financial reporting, market value

Abstract

The paper aims at empirical evaluation of selected accounting-based value drivers in the Polish banking sector. Using the analyses of correlation and regression, the study investigates the associations between banks’ charter values, proxied by Tobin’s Q, and a set of explanatory variables including size, operating efficiency, profitability, net cash flow generation capacity, leverage, asset liquidity, and risk management efficiency, each proxied by a measure based on the data available in the annual financial reports of banks. The examined sample covered all domestically-based banks listed on the Warsaw Stock Exchange over the period 1997–2014. The empirical evidence indicates a statistically significant positive impact of operating efficiency, profitability and risk management efficiency on charter values. In turn, the influence of size and leverage, although also positive, appears to be so weak, that it becomes irrelevant when combined with other explanatory variables. Additionally, no statistically significant impact was found for net cash flow generation capacity nor asset liquidity. The above findings suggest that equity investors in the Polish banking sector perceive performance and risk management efficiency as the key value drivers, practically neglecting the issues related to banks’ financial stability like the liquidity of assets or degree of leverage, thus presumably relying on the too-big-to-fail principle.

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Copernican Journal of Finance & Accounting

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Published

2016-08-02

How to Cite

1.
BOLIBOK, Piotr. An empirical evaluation of selected accounting-based value drivers in the Polish banking sector. Copernican Journal of Finance & Accounting. Online. 2 August 2016. Vol. 5, no. 1, pp. 25-37. [Accessed 2 July 2025]. DOI 10.12775/CJFA.2016.002.
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