What Drives Shareholder Reaction and Wealth Effect in Block Trades? Evidence from the Warsaw Stock Exchange

The main objective of this article is to present the determinants of shareholder reaction to block trades and their wealth effect on the Warsaw Stock Exchange. The positive abnormal returns obtained for the entire sample indicate that block trades create shareholder value. Shareholders reacted positively to block trades without a control transfer in the Polish market, and their reaction was stronger than in the US market. Abnormal returns of block trades concluded at a discount were twice as high as those for the entire sample. Moreover, cross-border block trades had a negative impact on shareholder value creation, as did financial investors as an acquirer. However, cumulative average abnormal returns (CAARs) were driven up by the relative power of minority shareholders (ocean) prior to the transaction. The absolute size of the block acquired by an investor was also observed to have a positive impact on price rises and abnormal returns.     

Transmission of monetary policy and exchange rate shocks under foreign currency lending

This paper analyses the differences in reaction of domestic and foreign currency lending to monetary and exchange rate shocks, using a panel VAR model estimated for the three biggest Central and Eastern European countries (Poland, the Czech Republic and Hungary). Our results point toward a drop in domestic currency loans and an increase of foreign currency credit in reaction to monetary policy tightening in Poland and Hungary, suggesting that the presence of foreign currency debt weakens the transmission of monetary policy. A currency depreciation shock leads to an initial decline in foreign currency lending, but also in loans denominated in domestic currency as central banks react to a weaker exchange rate by increasing the interest rates. However, after several quarters, credit in foreign currency accelerates, indicating that borrowers start using it to substitute for depressed domestic currency lending.     

Fiscal tensions and risk premium

Empirica - The main goal of the paper is to analyse one-dimensional, isolated impact of particular variables which are used in the literature as explanatory variables for risk premium following...     

The great margin call: The role of leverage in the 1929 Wall Street crash

The reasons for the 1929 Wall Street crash and why it occurred at the particular time that it did are still debated among economic historians. We contribute to this debate by building on a new model, which provides a measure of the financial system's potential for financial crises. The evidence suggests that a tightening of margin requirements in the first nine months of 1929 combined with price declines in September and early October caused enough investors to become constrained that the market was tipped into instability, triggering the sudden crash of October and November.     

Human–machine trans roles conflict in the organization: How sensitive are customers to intelligent robots replacing the human workforce?

In organizations facing digital transformation, intelligent technologies are starting to replace the human workforce. At present, managers delegate tasks to an artificial agent and rarely consider the customer reception of such decisions. This arouses tensions between the main stakeholders of the organization. This paper shows that the rash adaptation of the digital workforce may be perceived as an irresponsible innovation that brings negative consequences for companies. If a task is regarded by customers as dedicated to humans, and managers delegate it to machines, a new type of conflict – human-machine trans roles conflict (HMTRC), appears. This paper intends to show that customers are sensitive to HMTRC. This research uses quantitative methods and consists of three stages. First, people were asked to indicate which tasks in an organization should be performed by (a) humans and (b) machines. According to these results, two leaflets for customers were designed (low vs. high HMTRC). In the second stage, standard procedures were used to construct a scale measuring customer reactions to HMTRC on three dimensions: cognitive, emotional and behavioural. Ultimately, the scale and two leaflets were used to check how customers react to different intensities of HMTRC. The research results show that customers are aware when HMTRC occurs and perceive it negatively (cognitive response). Moreover, it evokes negative emotions (emotional response) and prompts customers to take action against the company in which this conflict takes place (behavioural response). The practical contribution of this research is the three-dimensional scale. It may predict customers' reactions to task delegation with different intensities of HMTRC and help build a technologically sustainable organization.