Environmental responsibility and financial policy of the company: methodological aspects of the analysis

The actualization of environmental problems makes it necessary to study them in connection with the financial and economic aspects of the modern company. The main content of the monograph is formed by the conceptual, theoretical and methodological aspects of the analysis of corporate financial policy, studied in conjunction with the study of the factors of environmental responsibility of the company. The necessity of revision is analyzed and the directions of improvement of the methodological apparatus for the formation and implementation of financial policy in new conditions are determined. Particular attention is paid to the empirical analysis of indicators of environmental responsibility and environmental efficiency at different organizational levels. The results obtained are valuable in order to improve corporate practices for managing environmental responsibility factors and improving the financial efficiency of companies. For a wide range of readers, including researchers, practitioners, postgraduates, applicants and students studying in the areas of "Economics", "Finance and Credit", "Management".

Net Operating Loss Carryforwards and Corporate Savings Policies

We examine the relation between corporate cash holdings and tax net operating loss carryforwards (NOLs). The literature demonstrates that firms should distribute cash to shareholders rather than retain it and generate passive investment income taxed at both corporate and investor levels. However, if the firm's tax rate on passive income is lower than shareholders'-as when the firm has NOLs-theory also shows that the firm should retain cash and invest on the shareholders' behalf. Consistent with this, we find that NOLs are associated with higher levels of savings; firms save an additional $0.12 to $0.17 per dollar of tax-effected NOL benefit. Furthermore, investors place a higher value on corporate cash in tax loss firms, consistent with NOLs increasing the after-tax returns on passive investments. The paper adds to the literature studying corporate financial policy responses to taxation and quantifies the role of NOLs in corporate savings decisions.

The Influence of Interlocking Directorates on the Propensity of Dividend Payout to the Parent Company

An examination was performed on whether director interlocks enabled the adoption of a dividend policy for the benefit of the parent company in the ownership structure. Specifically, the study investigated the dependence of the impact of the central position in the board network on the probability of dividend payment. Based on sample of firms listed on Polish capital market, it was observed that the more central the company’s position in the interlocking directorate network, the more likely it is to pay dividends to a subsidiary. This effect is related to the eigenvector centrality. The results obtained suggest that corporate financial policy can be spread across firms through the board network.