Books and journals Case studies Expert Briefings Open Access
Advanced search

Search results

1 – 4 of 4
To view the access options for this content please click here
Article
Publication date: 21 August 2017

Does dynamic trade-off theory explain Portuguese SME capital structure decisions?

Filipe Sardo and Zelia Serrasqueiro

The purpose of this paper is to analyse if capital structure decisions of small- and medium-sized Portuguese firms are in accordance with the predictions of dynamic…

HTML
PDF (193 KB)

Abstract

Purpose

The purpose of this paper is to analyse if capital structure decisions of small- and medium-sized Portuguese firms are in accordance with the predictions of dynamic trade-off theory, more precisely, the speed of adjustment of short-term debt (STD) and long-term debt (LTD) towards the respective target debt ratios.

Design/methodology/approach

Based on two samples of Portuguese firms, 1,377 small-sized firms and 811 medium-sized firms, dynamic estimators were used for the treatment of data obtained from the Amadeus database for the period 2007-2011.

Findings

The results indicate that small- and medium-sized firms adjust their STD and LTD ratios towards the respective target ratios. Small- and medium-sized firms present a high-speed adjustment towards the target STD ratio, suggesting that both types of firm face costs of deviating from the target capital structure, which are, probably, greater than the costs of adjustment associated with STD. However, considering the distance from the target ratio as a determinant of the adjustment speed, the results show the predominance of the negative effect of the costs of adjustment on capital structure adjustment speeds.

Originality/value

The results obtained for the speed of adjustment of STD and LTD, in a recession context, show that for small firms and medium-sized firms, mainly for the former, the costs of external market transactions are prohibitively high, slowing the speed of adjustment towards the target capital structure.

Details

Journal of Small Business and Enterprise Development, vol. 24 no. 3
Type: Research Article
DOI: https://doi.org/10.1108/JSBED-12-2016-0193
ISSN: 1462-6004

Keywords

  • Dynamic panel data models
  • Dynamic trade-off theory
  • Medium-sized firms
  • Small-sized firms

To view the access options for this content please click here
Article
Publication date: 9 July 2018

Intellectual capital, growth opportunities, and financial performance in European firms: Dynamic panel data analysis

Filipe Sardo and Zélia Serrasqueiro

The purpose of this paper is twofold: first, to analyse the impact of intellectual capital (IC) and growth opportunities on firms’ financial performance as well as the…

HTML
PDF (209 KB)

Abstract

Purpose

The purpose of this paper is twofold: first, to analyse the impact of intellectual capital (IC) and growth opportunities on firms’ financial performance as well as the moderating effect of IC on the relationship between growth opportunities and financial performance; and second, to analyse the impact of IC on growth opportunities.

Design/methodology/approach

The current study uses a sample of non-financial listed firms consisting of 14 Western European countries for the period between 2004 and 2015. The estimation method used is specifically the Generalised Method of Moments system (1998) estimator, a dynamic panel estimator.

Findings

The results reveal that the IC efficiency of the current period has a positive impact on the financial performance of high-, medium- and low-tech European firms. A non-linear relationship was found between growth opportunities and financial performance. Also, findings suggest that the positive relationship between growth opportunities and financial performance is enhanced with the efficient use of firms’ IC. Results indicate that the efficient use of IC in the current period has a greater impact on growth opportunities in high firms. Additionally, results reveal the presence of a non-linear relationship between ownership concentration and growth opportunities.

Originality/value

The current study contributes to the current literature by exploring a sample of firms across Western European countries, which is divided among high-, medium- and low-tech firms. The econometric modelling enables the author to conduct a longitudinal study.

Details

Journal of Intellectual Capital, vol. 19 no. 4
Type: Research Article
DOI: https://doi.org/10.1108/JIC-07-2017-0099
ISSN: 1469-1930

Keywords

  • Financial performance
  • Intellectual capital
  • Ownership concentration
  • Growth opportunities

To view the access options for this content please click here
Article
Publication date: 9 October 2017

A European empirical study of the relationship between firms’ intellectual capital, financial performance and market value

Filipe Sardo and Zélia Serrasqueiro

The purpose of this paper is to analyze the relationship between firms’ intellectual capital (IC), financial performance (FP) and market value (MV) as well as the…

HTML
PDF (192 KB)

Abstract

Purpose

The purpose of this paper is to analyze the relationship between firms’ intellectual capital (IC), financial performance (FP) and market value (MV) as well as the relationship between ownership concentrations on IC performance.

Design/methodology/approach

A large sample of non-financial listed firms belonging to 14 countries in Western Europe, for the period between 2004 and 2015, was investigated using the GMM system (1998) dynamic estimator and the effect of lagged explanatory variables on firm’s FP and MV.

Findings

The results reveal that IC is an important resource for firms’ value creation. Human capital is found to be a key factor of firms’ wealth. Results show that capital employed efficiency positively impacts on firms’ FP in the short run. The impact of IC components on firms’ MV may not be immediate. The structural capital positively affects firms’ FP in the long run. Also, the results reveal that ownership concentration and owners’ management involvement constrain firms’ IC performance.

Originality/value

The current study contributes to IC research by exploring a large sample of firms across countries in Western Europe using econometric modeling. Considering that the effect of IC on firms’ FP needs time to be realized, thus to be measured, the effect of lagged explanatory variables on performance was tested, using dynamic panel estimators, specifically the GMM system (1998) dynamic estimator.

Details

Journal of Intellectual Capital, vol. 18 no. 4
Type: Research Article
DOI: https://doi.org/10.1108/JIC-10-2016-0105
ISSN: 1469-1930

Keywords

  • Financial performance
  • Intellectual capital
  • Ownership concentration
  • Market value

To view the access options for this content please click here
Article
Publication date: 2 December 2019

The role of controlling shareholders in determining investments of intellectual capital among Taiwanese semiconductor companies

Chin-Hsien Hsieh, Irene Wei Kiong Ting, Jawad Asif and Hanh Thi My Le

Although intellectual capital (IC) has been proven to be value-added for companies, the drivers of IC performance remain an under-researched area. From the perspective of…

HTML
PDF (239 KB)

Abstract

Purpose

Although intellectual capital (IC) has been proven to be value-added for companies, the drivers of IC performance remain an under-researched area. From the perspective of corporate governance, the purpose of this paper is to examine how controlling the ownership of shareholders would influence IC performance.

Design/methodology/approach

This study utilized value-added intellectual capital (VAICTM) and its subcomponents, namely human capital, structural capital and capital employed efficiencies, to proxy for IC performance and regression analyses to assess the association between controlling the ownership of shareholders and the IC performance of Taiwanese listed semiconductor firms for the years 2009–2017.

Findings

Results show that controlling the ownership of shareholders is nonlinearly related to IC performance. Specifically, controlling their ownership positively affects the level of IC performance up to an optimal point before it turns to be a negative relationship thereafter.

Practical implications

The results of this study can help policy makers and other stakeholders understand the role of controlling shareholders in determining IC performance. The findings of this study suggest a nonlinear relationship between controlling the ownership of shareholders and IC.

Originality/value

This study provides an extended perspective in studies related to the determinants of IC by considering the resources provided by controlling shareholders. The definitions of controlling interests and IC applied in this study are compared and aligned with those found in the International Financial Reporting Standard 10 – Consolidated Financial Statements and the International Integrated Reporting Council, respectively.

Details

Journal of Intellectual Capital, vol. 21 no. 1
Type: Research Article
DOI: https://doi.org/10.1108/JIC-05-2019-0091
ISSN: 1469-1930

Keywords

  • VAICTM
  • Nonlinear
  • Controlling shareholders’ ownership
  • Intellectual capital performance
  • Taiwan semiconductor industry

Access
Only content I have access to
Only Open Access
Year
  • All dates (4)
Content type
  • Article (4)
1 – 4 of 4
Emerald Publishing
  • Opens in new window
  • Opens in new window
  • Opens in new window
  • Opens in new window
© 2021 Emerald Publishing Limited

Services

  • Authors Opens in new window
  • Editors Opens in new window
  • Librarians Opens in new window
  • Researchers Opens in new window
  • Reviewers Opens in new window

About

  • About Emerald Opens in new window
  • Working for Emerald Opens in new window
  • Contact us Opens in new window
  • Publication sitemap

Policies and information

  • Privacy notice
  • Site policies
  • Modern Slavery Act Opens in new window
  • Chair of Trustees governance statement Opens in new window
  • COVID-19 policy Opens in new window
Manage cookies

We’re listening — tell us what you think

  • Something didn’t work…

    Report bugs here

  • All feedback is valuable

    Please share your general feedback

  • Member of Emerald Engage?

    You can join in the discussion by joining the community or logging in here.
    You can also find out more about Emerald Engage.

Join us on our journey

  • Platform update page

    Visit emeraldpublishing.com/platformupdate to discover the latest news and updates

  • Questions & More Information

    Answers to the most commonly asked questions here