The Influence of Foreign Investors on the Development of Polish Enterprises: A Case Study of Bank Polska Kasa Opieki Spółka Akcyjna

Abstract

Pursuant to the definition proposed by Eurostat, foreign direct investment takes place when a resident entity in one economy seeks to obtain a lasting interest in an enterprise resident in another economy. A lasting interest implies the existence of a long-term relationship between the direct investor and the enterprise, and an investor’s significant influence on the management of the enterprise. Foreign investors do not only exert impact on a given company’s board of directors but, importantly, provide production capital in privatized companies. Additionally, they equip them with both know-how on the performed economic activity and technical know-how. They send their specialists, who introduce international standards in daughter companies smoothly. In this paper, the author deals with the impact of a foreign investor on the development of Bank Pekao. A literature review is applied for this aim. It covers a detailed analysis of transaction documentation and post-audit statements of the Supreme Audit Office and delegations of the Ministry of State Treasury. Thanks to research, it can be assessed how UniCredito Italiano has positively influenced the operation of Polish bank after the acquisition of shares. Thereby, the results of this study contest popular opinion about exploitation of domestic employees by foreign companies.