Facing a more and more insecure environment, with a rising competition and with major technological changes, enterprises realize that adjusting to the environment and taking advantages of the opportunities it offers means a strategic approach of the actions that are to be taken in order to gain...

R&D-intensive firms such as biotechnology and pharmaceutical companies follow very different corporate financial policies from firms in less R&D-intensive industries. To account for these differences, we propose an equilibrium model for such firms in which their capital structure, amount of R&D...

We develop a dynamic model of investment, cash holdings, financing, and risk management policies in which firms face financing frictions and are subject to permanent and temporary cash ow shocks. In this model, target cash holdings depend on the long-term prospects of the firm, implying that the...

The systemic approach on companies is a well established economic science practice. In systems research, some terms were created in order to give an overall perspective on systems in their relationship with their environment. So those systems were defined as autopoetic, heteropoetic and...

We study the efficiency of internal capital markets at state-controlled and privately owned business groups in China. Using highly granular data on within-group capital flows, we document stark differences: while private groups allocate more capital to units with better investment opportunities,...

This paper makes use of Magni’s (2013. Insurance Mathematics and Economics, 53, 747-756) Average Interest Rate (AIR) in order to find a performance index which does not depend on the valuation rate (i.e., benchmark return). To this end, we distort the AIR by dropping the discount factors in...

This paper contributes to research on organizational slack. The slacks integrated into capital expenditure have been little studied. The economic crisis in 2008-2009 represents a good opportunity to analyze these slacks. A longitudinal case study has been carried out in an industrial company...

We analyze whether financial constraints of Brazilian firms are alleviated by ownership structure. More specifically, we study whether the presence of nonfinancial firms as shareholders of Brazilian firm mitigates financial constraints. We find that the presence of nonfinancial firms as...

Evidence from a wide sample of Italian private firms shows that cash holdings are significantly related with smaller size, higher risk and lower effective tax rates, therefore supporting predictions from the trade-off model. More cash is also held by firms with longer cash conversion cycles and...

This work analyses the effect of accruals quality in the access of firms to bank debt in a panel data of SME Spanish firms. The results show a positive association between accruals quality and bank debt, even when controlling for other determinants of bank debt and for possible endogeneity...