Financialisation of the non-financial corporations and enterprise value migration. Evidence from the polish stock market: 2000–2015
Financialisation of the non-financial corporations and enterprise value migration. Evidence from the polish stock market: 2000–2015

Summary/Abstract: One of an approach to financialisation examines the increasing role of the shareholder value orientation as a guiding principle of the non–financial corporations (NFCs) behaviours. Using firm–level data for the period 2000–2015, the article examines the connection between financialisation and enterprise value migration with respect to one of the emerging European capital market which is the Warsaw Stock Exchange. The main purpose of this article is to verify the hypothesis that financialisation affects value migration between two groups of companies – value and growth. The quantitative analysis has used the Generalized Method of Moments (GMM) to measure the relationship between value migration and basic variables for financialisation, which are leverage, financial investment, and financial profits of NFCs. Econometric model revealed a positive relationship between higher financial benefits and value migration. Using a concept of Tobin’s Q and its time–changes, it was founded that the increases of firm value driven by financialisation was born most strikingly by increasing financial investment and financial profits, or decreasing corporate leverage. The findings are important to understand links between shareholders value concept and financialisation and they can support managers to prepare effective corporate business policy, which will be expected by shareholders and investors.

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