The potential conflicts of interest between managers, stockholders and debtholders influence capital structure, corporate governance activities and investment policies, which, in turn, could give rise to inefficient managerial decisions and suboptimal investments that generally fall under the...

This paper is a tentative to integrate, using a heterodox approach, the capabilities perspective, that raises the role of the manager's competences, and the incomplete contract perspective, that raises the role of agency problems, to describe how the corporate governance relationships work in...

Credit from suppliers is an important source of finance for firms. It can sustain firms' financial flexibility even in periods of downturn. In this study, using a large database of 90,763 Italian firms in the 2015-2021 period, we investigated how local financial development affects the trade...

This paper evaluates the effect of diversification strategy on corporate value for a sample of Italian companies. It accounts for both the level of diversification and relatedness components. Empirical analyses show a U-shaped curvilinear relationship between diversification and value. In...

Previously, empirical financial studies paid little attention to the role of diversification strategy on financial choices. The aim of the present study is to analyze the financing strategies of multibusiness firms, suggesting the relevance of sorting the diversification phenomena into its...

The present study investigates the role of institutional differences at the local level as determinants of firms' capital structure. Specifically, the aim is to empirically assess whether and to what extent SMEs' financial decisions are affected by local financial development - evaluating this...

This paper investigates the bank financing policy of new small and medium-sized enterprises (SMEs), its evolution and its relevance during early growth stages over their first 10 years. We use a large European panel dataset on early-stage SMEs founded in 2007–2015. The study provides useful...

The present study adds to the growing literature on the relationships between institutions and capital structure decisions. Specifically, it investigates capital structure determinants for small and medium sized firms in terms of institutional differences at the local level, taking into...