Search results for "STRATEGY"
showing 10 items of 2256 documents
On the Relevance of Agency Conflicts in SME Debt Maturity Structure
2015
Previous theoretical research asserts that an optimal policy of debt maturity structure mitigates the various agency conflicts that arise through debt contracts. We test this hypothesis on Small and Medium-Sized Enterprises (SMEs), which are very sensitive to agency problems. Such problems mainly arise between owners and debt providers, due to SMEs recording high growth and having few fixed assets and informational asymmetry. We provide evidence on the relevant effect of underinvestment, asset substitution, and overinvestment problems on SME debt structure. Results appear to be robust to both the endogeneity problem of explanatory variables and the censored dependent variable.
Putable common stock
2004
Abstract The underpricing of initial public offerings is a well-documented phenomenon in the financial literature. The purpose of this paper is to show how this empirical regularity could be solved by an appropriate choice of financing instruments, namely, by an intelligent mix of common stocks and put options. The latter additional instrument, modeled in this paper as a lump sum paid by insiders of the firm to outsiders, helps alleviate the asymmetry of information existing between insiders and outsiders of the corporation, allowing good firms to sell the package they offer at the full information value.
Assessing price clustering in European Carbon Markets
2012
Abstract The presence of price clustering in markets is taken as a sign of market inefficiency that can influence trading strategies. In this paper, we study the presence of a concentration in prices in carbon futures markets. Specifically, we analyze the European Carbon Futures Markets and test for evidence of preference for certain prices above others. Our results reveal the strong presence of price clustering in the carbon market at prices ending in digits 0 and 5. These findings support the attraction hypothesis, which endorses a significant clustering on gravitational prices, but also backs the negotiation hypothesis, which advocates greater clustering when trading costs are higher.
A Comprehensive Look at the Real-Life Performance of Moving Average Trading Strategies
2015
Despite the enormous current interest in market timing and a series of publications in academic journals, there is still lack of comprehensive research on the evaluation of the profitability of trading rules using methods that are free from the data-snooping bias. In this paper we utilize the longest historical dataset that spans 155 years and extend previous studies on the performance of moving average trading rules in a number of important ways. Among other things, we investigate whether overweighting the recent prices improves the performance of timing rules; whether there is a single optimal lookback period in each trading rule; and how accurately the trading rules identify the bullish …
INNOVATION STRATEGY, WORKING CLIMATE, AND FINANCIAL PERFORMANCE IN TRADITIONAL MANUFACTURING FIRMS: AN EMPIRICAL ANALYSIS
2012
In this study, we address the effect of innovation strategy and an innovative working climate on financial performance in the Norwegian wood industry. Innovation strategy embodies four dimensions: the degrees to which innovation in the form of products, processes, and business systems are embedded in the management values and priorities as well as the degree of expenditure in R&D. An innovative working climate is exemplified by team cohesion, supervisory encouragement, resources, autonomy, challenge, and openness to innovation. Previous studies have indicated a lack of research in traditional manufacturing firms on both innovation strategy and a supportive working climate. Our survey w…
The impact of service innovation on firm-level financial performance
2011
This article empirically investigates if firms focusing on service innovation perform better financially than firms not focusing on service innovation. Analysis of the financial performance of 3575 Norwegian firms in the manufacturing industries supports the proposition that firms focusing on service innovation have significantly higher growth of operating results than firms not focusing on service innovation. However, this proposition is not supported in a corresponding analysis of 1132 Norwegian firms in the service industries. We elaborate on these results by investigating a variety of performance measures and by comparing the effects of service innovation between manufacturing and servi…
Network Positions and the Probability of Being Acquired: An Empirical Analysis in the Biopharmaceutical Industry
2016
This paper examines the relationship between the firm's direct ties, its inter-firm network prominence and its likelihood of being acquired. The authors argue that firm's direct ties and prominence enhance the firm's visibility and signal its quality – and thus foster the firm's likelihood of being acquired. However, higher levels of direct ties and prominence, by providing access to resources and the firm's status, respectively, increase the firm's ability to remain independent and thus reduce its likelihood of being acquired. Thus, the authors posit the overall relation as an inverted U-shaped. Furthermore, they show that, for firms that undergo an initial public offering, the aforementio…
Strategies for Heading Off is Project Failure
2000
Although investment in information technology and information systems continues to increase, projects continue to fail. As a result, IS projects, particularly software projects, are perceived as high risk. By categorizing types of risk, this article helps IS professionals and all project sponsors to identify classes of risk and choose the appropriate managerial behavior to mitigate each of them.
A managerial approach to firms’ networking strategy
2009
As recently pointed out by many authors and companies‟ manager, the company competitiveness is more and more based on the ability of a firm to build strategic and competitive networks with partners and competitors. Nowadays, in a competitive environment, firms are facing challenges such as the growing demand of innovation, the increasing competitiveness and the need to penetrate new markets, by using network strategies. Consequently, such motivations are putting an increasing interest on networking strategy issue, which are becoming an essential strength of company competitive strategy. In this work the most significant theories on firm networking are reviewed and an innovative strategic pe…
Open Innovation or Innovation in the Open? An Exploration of the Strategy–Innovation Link in Five Scale-Intensive Services
2016
This chapter explores the strategy–innovation link in open service innovations. The increased attention to the role of the firm's external environment on innovation has important implications for strategy. However, our literature review reveals that the strategy–innovation link is ambiguously treated in extant theory, especially with respect to open- and service-innovations. Therefore, we inductively explore innovation practices in five large scale-intensive service firms to establish the link between their strategy and open innovation practices. To our surprise, we find that explicit innovation strategies lack in all five firms. The findings also suggest that the logic of innovation and st…