Search results for "firm"
showing 10 items of 975 documents
THE ROLE OF FINANCIAL SUPPORT FOR THE PERFORMANCE AND SURVIVAL OF MICRO-ENTERPRISES
2021
The research was supported by the NATIONAL RESEARCH PROGRAMME “LATVIAN HERITAGE AND FUTURE CHALLENGES FOR THE SUSTAINABILITY OF THE STATE” project “CHALLENGES FOR THE LATVIAN STATE AND SOCIETY AND THE SOLUTIONS IN INTERNATIONAL CONTEXT" (INTERFRAME-LV, Project No.VPP-IZM-2018/1-0005).
Do acquirers’ stock prices fully react to the acquisition announcement of listed versus unlisted target firms? Out-of-sample evidence from Spain
2014
Previous results are ambiguous about whether prices fully reflect value creation or destruction at the time of the acquisition announcement when samples are split into listed and unlisted target firms. We find that the Spanish market fully reacts to the acquisition announcement (showing value creation only for unlisted target firm acquisitions), except for the smallest bidders of public targets since we find significant positive abnormal returns for a 24-month post-acquisition window. This evidence is consistent with investors extrapolating the performance of large acquirers of public firm to smaller ones and, therefore, only identifying value creation in the long term.
Institutional Contexts, the Management of Patent Portfolios, and the Role of Public Policies Supporting New EntrepreneurialVentures
2009
This chapter aims to increase our understanding of the relationships between firm strategies, the design of institutional contexts on behalf of public agents, and the stimulation of diffused entrepreneurship within the economic system. In particular, it analyzes the way in which firm patent portfolio management strategies may systematically hinder the emergence of entrepreneurial endeavors within the economic system and, on this basis, critically discusses how the acknowledgement of these interactions should influence the design of public policies at the economic system level. We argue that in economic contexts where intellectual property rights (IPR) are influential, large firms may intent…
Financial constraints and R&D and exporting strategies for Spanish manufacturing firms
2014
We investigate the role of internal and external financial constraints in the firms� joint decision to export and invest in R&D. We use objective measures at the firm level such as cash flow and financial costs. We further analyze both if firms� size and the onset of the current economic crisis have had an impact. We estimate our model with Spanish manufacturing firms for the period 1990�2011, and obtain that both internal and external financial constraints are relevant.
Financial Management as a Tool for Achieving Stable Firm Growth
2016
Abstract The purpose of this study is to show that financial management in the firm is a tool for achieving stable firm growth and long-term firm stability while problems in firm financial management lead to the inability of firms to ensure sustainable growth of their value. This problem is relevant for firms in all countries. The main objectives of this paper are: to analyse dynamics of value of the largest Latvian firms, to determine the drivers of these dynamics and to establish the main problems slowing the growth of firm value, which are related to the drawbacks in financial management, and to provide suggestions for solving these problems. This study analyses financial management proc…
Equity-worthiness and equity-willingness: key factors in private equity deals
2014
While access to private equity funds (PEFs) provides a unique opportunity for firms to set up sturdy growth paths, how PEFs select companies is an unknown process to entrepreneurs and business owners. This study aims to offer insights regarding the private equity market to entrepreneurs searching for external capital. We analyzed a novel dataset of 240 pre-deal negotiations between small- and medium-sized Italian companies and a closed-end fund. Results indicate that the successful closing of a deal depends on more than just the target firm's equity-worthiness (i.e., the company's ability to meet the expectations of a private equity investor). In fact, there is another dimension: the target…
Exports of Spanish manufacturing firms and financial constraints
2020
We investigate the role of financial constraints on firms’ exporting behavior, including firms’ export decision, export intensity, firms starting to export decision, and exports persistence. Our financial constraints variable is a synthetic variable that summarizes information on different dimensions such as total assets, profitability, liquidity, solvency, repaying ability, and (new in this type of analyses) the cost of external financing. Using data on Spanish manufacturing for the period 1992–2014, we find evidence supporting that financial health is relevant to explain small and medium-sized enterprises (SMEs) exporting decisions and starting to export decisions but not those of large …
Venture capitalists' decision-making in small equity markets: a case study using participant observation
2004
Despite significant academic research undertaken in the field of venture capital decision-making process, the dimension and maturity of equity market has not yet been considered as an important contextual factor. Aiming at developing an understanding on how venture capitalists (VCs) select early-stage projects in small equity markets, a pilot study using participant observation technique has been conducted in a Portuguese venture capital firm. The findings indicate that the decision-making process and the criteria used by VCs in this market context differ significantly from those used in the developed equity markets. Regarding the decision-making process as a whole, it appears to be more in…
Supporting value creation in SMEs through capacity building and innovation initiatives: the danger of provoking unsustainable rapid growth
2009
Value creation comes in many guises, and may be achieved through expansion and efficiency, innovation and novel processes, and closer alignment with customer needs. This article examines the real dangers to firms, especially small firms, which pursue very ambitious capacity growth plans in order to chase market opportunities. Case analysis has unearthed a new phenomenon, which might be termed ‘business gigantism’ – a situation of rapid and unsustainable growth that places severe strains on the firm. This article briefly recounts two case studies where small firms secured substantial funding to support rapid expansion – in both cases via public agencies. In each case, funding was justified b…
Intellectual Capital in a Services-Oriented Firm
2013
This chapter discusses the Intellectual Capital (IC) and its management within the services-oriented firms. It argues that IC and its management are as important as in a product-oriented firm. The authors aim to analyze the intellectual capital in the service-oriented firms, focusing on various components, such as human, structural, and relational capital (IC stock), and how to manage it (IC activities). Specifically, the authors examine IC stock and IC activities in a special type of Italian services firms: the Local Public Utility (LPU). These firms are peculiar since were affected by the privatization process and this has made a great need for rethinking the role of intellectual capital …