File Name: the relationship between firm investment and financial status .zip
- Firm Growth and Liquidity Constraints: A Dynamic Analysis
- Sensitivity of firm size measures to practices of corporate finance: evidence from BRICS
- Petroleum Business Review
- Capital structure, profitability and firm value: panel evidence of listed firms in Kenya
Firm Growth and Liquidity Constraints: A Dynamic Analysis
Intellectual capital IC shows a significant growing acceptance as a worthy topic of academic investigation and practical implication. The purpose of this study is to examine the impact of IC on firms' market value and financial performance. Various regression models were examined in order to test the hypotheses included in the proposed conceptual framework. Results failed to support most of the hypotheses; only concluding that there is a statistically significant relationship between human capital efficiency and financial performance. Despite the fact that IC is increasingly recognised as an important strategic asset for sustainable corporate competitive advantage, the results of the present study give rise to various arguments, criticism and further research on the subject. Results proved that, in the Greek business context, the development of human resources seems to be one of the most significant factors of economic success.
Sensitivity of firm size measures to practices of corporate finance: evidence from BRICS
Using a large unbalanced panel data set of Portuguese manufacturing firms surviving over the period from to , the purpose of this paper is to examine whether liquidity constraints faced by business firms affect firm growth. We use a GMM-system to estimate a dynamic panel data model of firm growth that incorporates cash flow as a measure of liquidity constraints and persistence of growth. The model is estimated for all size classes, including micro firms. Our findings reveal that smaller and younger firms have higher growth-cash flow sensitivities than larger and more mature firms. This is consistent with the suggestion that financial constraints on firm growth may be relatively more severe for small and young firms. Besides, firms that were small and young at the beginning of the sample period exhibited more persistent growth than those that were large and old. Finally, these results have significant policy implications.
Petroleum Business Review
Large amounts of resources have been and continue to be invested in information technology IT. Much of this investment is made on the basis of faith that returns will occur. This study presents the results of an empirical test of the performance effects of IT investment in the manufacturing sector.
Capital structure, profitability and firm value: panel evidence of listed firms in Kenya
Recent theories of firm dynamics emphasize on the role of financial variables as determinants of firm growth. Most of the technical literature shows that there is a positive relationship between financial leverage and firm growth. The purpose of this paper is to examine whether such relationship exists among oil and gas companies within the Organization of the Petroleum Exporting Countries OPEC. Data were collected from the selected members of the OPEC.
Firm investment decisions are shown to be directly related to financial factors. The investment decisions of firms operating in such environments are sensitive to the availability of internal funds because they possess a cost advantage over external funds.
Metrics details. Firm size has remained a major area of investigation for researchers from a long time. This study aims at examining impact of different measures of firm size total assets, total sales, market capitalization and number of employees on seven important practices of corporate finance which are financial policy, dividend policy, investment policy, diversification, firm performance, compensation and incentives and board structure corporate governance. Moreover, this study also examines the sensitivity of different proxies of firm size on these practices of corporate finance. Overall results supported the hypotheses. Study concludes that different proxies of firm size are differently related to practices of corporate finance based on sign, significance and R 2. All proxies capture different aspects of firm size and have different implications for corporate finance.
The contribution of the study to the existing literature rests on using financial crisis as basis for classifying firms as either financially constrained or unconstrained. In other words, Nigerian firms were highly financially constrained during the last financial crisis. Adelegan, O. Capital market imperfections and corporate investment behaviour: a switching regression approach using panel data for Nigerian manufacturing firms. Investment, financial factor and cash flow from Nigerian panel data. Journal of African Development , Vol. Aftalion, A.
Kodongo, Odongo and Mokoaleli-Mokoteli, Thabang and Maina, Leonard : Capital structure, profitability and firm value: panel evidence of listed firms in Kenya. This paper investigates the relationship between leverage and the financial performance of listed firm in Kenya. We use annual data for the period — Using various panel procedures, our study finds reasonably strong evidence that leverage significantly, and negatively, affects the profitability of listed firms in Kenya. Our results are robust to alternative panel specifications and hold for both small-size and large-size firms. Second, because the performance of firms depends on other things than just their capital structure, we control for the effects of those other variables by including them in our models. In this respect, our findings suggest that asset tangibility, sales growth and firm size are important determinants of profitability.