Dynamic Analysis of Capital Structure in Technological Firms Based on Their Life Cycle Stages PDF Download
Are you looking for read ebook online? Search for your book and save it on your Kindle device, PC, phones or tablets. Download Dynamic Analysis of Capital Structure in Technological Firms Based on Their Life Cycle Stages PDF full book. Access full book title Dynamic Analysis of Capital Structure in Technological Firms Based on Their Life Cycle Stages by Paula Castro. Download full books in PDF and EPUB format.
Author: Paula Castro
Publisher:
ISBN:
Category :
Languages : en
Pages : 30
Get Book Here
Book Description
This paper analyzes the effect of a firm's life cycle stages on capital structure in tech versus non-tech firms using a wide sample of public companies from Europe. An innovative approach based on operating, investing, and financing cash flows allows us to analyze differences in leverage and specify the differential role of significant drivers of capital structure across stages in both sectors. Our results point to the information asymmetry factor posed by the pecking order as the predominant driver behind the differences in the effect of intangible assets and growth opportunities for tech firms in some stages, mainly maturity. Frank and Goyal's (2003) test of the pecking order theory confirms the lower use of debt by tech firms during all life cycle stages. In addition, we find that the results obtained for tech firms are largely attributable to the behavior of high-tech firms with the highest growth opportunities.
Author: Paula Castro
Publisher:
ISBN:
Category :
Languages : en
Pages : 30
Get Book Here
Book Description
This paper analyzes the effect of a firm's life cycle stages on capital structure in tech versus non-tech firms using a wide sample of public companies from Europe. An innovative approach based on operating, investing, and financing cash flows allows us to analyze differences in leverage and specify the differential role of significant drivers of capital structure across stages in both sectors. Our results point to the information asymmetry factor posed by the pecking order as the predominant driver behind the differences in the effect of intangible assets and growth opportunities for tech firms in some stages, mainly maturity. Frank and Goyal's (2003) test of the pecking order theory confirms the lower use of debt by tech firms during all life cycle stages. In addition, we find that the results obtained for tech firms are largely attributable to the behavior of high-tech firms with the highest growth opportunities.
Author: Stefan Cristian Gherghina
Publisher: MDPI
ISBN: 3036505709
Category : Business & Economics
Languages : en
Pages : 408
Get Book Here
Book Description
This book comprises 19 papers published in the Special Issue entitled “Corporate Finance”, focused on capital structure (Kedzior et al., 2020; Ntoung et al., 2020; Vintilă et al., 2019), dividend policy (Dragotă and Delcea, 2019; Pinto and Rastogi, 2019) and open-market share repurchase announcements (Ding et al., 2020), risk management (Chen et al., 2020; Nguyen Thanh, 2019; Štefko et al., 2020), financial reporting (Fossung et al., 2020), corporate brand and innovation (Barros et al., 2020; Błach et al., 2020), and corporate governance (Aluchna and Kuszewski, 2020; Dragotă et al.,2020; Gruszczyński, 2020; Kjærland et al., 2020; Koji et al., 2020; Lukason and Camacho-Miñano, 2020; Rashid Khan et al., 2020). It covers a broad range of companies worldwide (Cameroon, China, Estonia, India, Japan, Norway, Poland, Romania, Slovakia, Spain, United States, Vietnam), as well as various industries (heat supply, high-tech, manufacturing).
Author: David Procházka
Publisher: Springer Nature
ISBN: 3030552772
Category : Business & Economics
Languages : en
Pages : 368
Get Book Here
Book Description
This book explores current digitalization issues in finance and accounting with particular focus on emerging and transitioning markets. It features models, empirical studies and cases studies on topics such as Fintech, blockchain technology, financing renewable energy, and XBRL usage from sectors such health care, pharmacology, transportation, and education. Such a complex view of current economic phenomena makes the volume attractive not only for academia, but also for regulators and policy-makers, when deliberating the potential outcome of competing regulatory mechanisms.
Author: Ratih Hurriyati
Publisher: CRC Press
ISBN: 1000651215
Category : Business & Economics
Languages : en
Pages : 1022
Get Book Here
Book Description
The GCBME Book Series aims to promote the quality and methodical reach of the Global Conference on Business Management & Entrepreneurship, which is intended as a high-quality scientific contribution to the science of business management and entrepreneurship. The Contributions are the main reference articles on the topic of each book and have been subject to a strict peer review process conducted by experts in the fields. The conference provided opportunities for the delegates to exchange new ideas and implementation of experiences, to establish business or research connections and to find Global Partners for future collaboration. The conference and resulting volume in the book series is expected to be held and appear annually. The year 2019 theme of book and conference is "Creating Innovative and Sustainable Value-added Businesses in the Disruption Era". The ultimate goal of GCBME is to provide a medium forum for educators, researchers, scholars, managers, graduate students and professional business persons from the diverse cultural backgrounds, to present and discuss their researches, knowledge and innovation within the fields of business, management and entrepreneurship. The GCBME conferences cover major thematic groups, yet opens to other relevant topics: Organizational Behavior, Innovation, Marketing Management, Financial Management and Accounting, Strategic Management, Entrepreneurship and Green Business.
Author: Carmen Cotei
Publisher:
ISBN:
Category :
Languages : en
Pages : 46
Get Book Here
Book Description
In this article, we examine how startup firms finance their operations over time. We empirically test the financial growth cycle theory developed by Berger and Udell (1998) using the Kauffman Firm Survey data, the largest longitudinal data set comprised of all U.S. startups launched in 2004. Simultaneously, we examine whether the pecking-order and trade-off theories explain the changes in capital structure of startups from inception to the later stages of development. Consistent with the predictions of financial growth cycle theory, at the startup stage, entrepreneurs rely on initial insider capital sources, such as personal savings, financing offered by friends and family, quasi-equity, and personal debt. Over time, as firms become less opaque, the proportion of business debt and trade credit financing in the total capital injection volume increases significantly. Although the proportion of owner's equity in total capital injections decreases over time, the annual balance of owner's equity increases, suggesting that owners use retained earnings to increase their ownership stake in the firm.
Author: Arvin Ghosh
Publisher: Routledge
ISBN: 1351530178
Category : Business & Economics
Languages : en
Pages : 140
Get Book Here
Book Description
Capital structure theory is one of the most dynamic areas of finance and forms the basis for modern thinking on the capital structure of firms. Much controversy has resulted from comparisons of the theory of capital structure originally developed by Franco Modigliani and Merton Miller to real-world situations. Two competing theories have emerged over the years, the optimal capital structure theory and the pecking order theory.Arvin Ghosh begins with an overview of the controversies regarding capital structure theories, and then statistically tests both the optimal capital structure and pecking order theories. Using the binomial approach he analyzes the determinants of capital structure while discussing the role of market power in determining capital structure decisions. Ghosh probes the questions of new stock offerings and stockholders' returns, and analyzes capital structure and executive compensation. He then looks into debt financing ownership structure, and the controversal relationship between capital structure and firm profitability. Finally, he discusses the latest developments in the field of capital structure.A concise overview of a major issue in business economics and finance, this volume provides a fuller understanding of capital structure influence on the financial performance of firms, and will certainly stimulate further debate. While hundreds of scholarly articles have been written on the subject this is the first book to test competing theories against measurements of firms' performance and their underlying capital structure.
Author: Imen Bouallegui
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
Get Book Here
Book Description
In this research, we investigate the dynamic of the capital structure, using panel data techniques. A sample of new high-tech German firms over the period 1998-2002 is used to specifically establish the determinants of a time-varying optimal capital structure. We consider the dynamic models, introducing the Anderson and Hsiao (1981) estimators and the critical distinction between fixed and random effects. This is the first time the scope of studying the dynamic of the capital structure has been extended to new high-tech firms with the use of many techniques of panel data. Confirming the pecking order model but contradicting the trade off model, we find that more profitable firms use less leverage. We also find that large companies tend to use more debt than smaller companies, and that firms which have high operating risk can lower the volatility of the net profit by reducing the level of debt. Leverage is also closely related to tangibility of assets and to the ratio of non-debt tax shield. Finally, estimating a dynamic panel data model, we find that new high-tech German firms adjust their target ratio very quickly.
Author: Hans Lööf
Publisher:
ISBN:
Category :
Languages : en
Pages : 31
Get Book Here
Book Description
This paper incorporates the cost of adjustment between observed and optimal leverage in explaining the variation in firm's equity or bank-debt financing investments. Using a dynamic adjustment approach identifies the determinants to capital structure between different financial systems. In relation to firm sales U.K and U.S firms have 50-100 percent more equity financing than Swedish firms depending on which measure used, while the ratio of debt to sales is highest in Sweden. The major findings are that observed leverage often deviates from the target leverage in both equity and debt dominated systems. There are large and also unexpected crosscountry differences in determinants to optimal capital structure. Swedish and U.K. firms deviate more from the optimal level than U.S firms. A faster speed towards the target is observed in the equity based systems.
Author: Maximilian Hutter
Publisher:
ISBN:
Category :
Languages : en
Pages :
Get Book Here
Book Description
Since the early years of the dot.com bubble there has been a continuous hype around high-technology companies, which got even more support recently with the emergence of companies like Google, Amazon, or Uber. Even though these firms are key contributors to innovation and future economic growth, surprisingly little research exists on the capital structure of these companies and how they finance their research or product developments. This study aims to close this gap in the corporate finance literature by examining the development over time and the determinants of leverage of publicly traded high-technology companies with IPOs over the period of 1997-2017 in Germany and the UK. It is shown that high-technology companies use significantly less leverage than the average firm in each country and their leverage ratios increase gradually post-IPO. Furthermore, significant determining factors of capital structure choices are: asset tangibility (+ effect on leverage), inflation (+), the economic environment (-), and the firm size measured by revenues (-). The results of this study considerably improve the understanding of financing decisions of high-technology companies by demonstrating the importance of equity financing for these firms.
Author: Philipp Hoff
Publisher: Springer Science & Business Media
ISBN: 3834936014
Category : Business & Economics
Languages : en
Pages : 277
Get Book Here
Book Description
The world is going green. Sustainable technologies, such as renewable energy and electric vehicles, are increasingly becoming part of our daily life. This dissertation fills the ensuing gap by providing an insight into the emerging German greentech industry, one of the largest in the world. It develops an integrated and interdisciplinary theoretical framework in which to assess the relationships between innovation, growth and financing from a firm-level perspective; it then tests this framework empirically. In essence, the study finds that: (1) Innovative activity and corporate growth depend heavily on the availability of capital. At the same time, it appears that particularly innovative firms are more likely to face financial constraints. (2) A lack of funds is very apparent for around a quarter of the firms investigated and seems most severe in the early part of the growth state, where firms focus on commercializing existing products. (3) Government support programs only partially offset these effects
