Company Performance, Investment Decision, and Cyclical Sensitivity: A Dynamic Estimation on Company Microdata

Investments, Credit, and Corporate Financial Distress: Evidence from Central and Eastern Europe

“…A 10% increase in the share of bank loans in the financing of new investments increases the probability of company distress by 8%. Compared with those of previous studies, our results are in-line with the findings of Kane and Richardson (2002), who documented how reducing capital expenditures has a positive effect on a company's ability to recover from financial distress, and those of Männasoo and Maripuu (2015), who showed that expansion of investment in the wake of a downturn is detrimental for a company's financial strength. We explore the related issues in a country comparative context under the adverse economic conditions during the global financial crisis during 2009-2010.…”

“…Gorodnichenko and Schnitzer (2013) tackled the endogeneity problem in their study on determinants of innovation activity using instrumental variable estimators. Schoder (2013) and Männasoo and Maripuu (2015) use the General Method of Moments (GMM) estimator, which allows them to obtain consistent parameter estimates. We apply instrumental variable estimators to identify the effects of investment intensity and external debt upon company distress using two independently conducted surveys where the same companies were questioned both before and after the start of the financial crisis in 2009 /2010.…”

What Type of Research and Development Employees Use Flextime?

“…There are other research approaches investigating this topic that are acknowledged but have not been considered in this study, such as the person-job-fit literature (Caldwell and O'Reilly 1990) and psychological contract theory (Scandura and Lankau 1997). This article is a small component of a larger project investigating the linkages between work arrangements, work outcomes, job satisfaction, sleep, and health (see Hazak et al 2016; and Virkebau 2017 for some of the initial results) as well as companies' sustainability and competitiveness in the European post-transition economic context at large (e.g., Männasoo, Maripuu, and Hazak 2017;Maripuu and Männasoo 2014;Avarmaa, Hazak, andMännasoo 2011, 2013;Hazak and Männasoo 2010;Männasoo 2008;Hazak 2008Hazak , 2009Männasoo and Maripuu 2015;Laidroo and Männasoo 2014). In that broader context, the results of this article help to better understand the existence and role of differences in working-time-related preferences and choices among different types of employees as well as the different effects that regulation can have in the context of different companies.…”

Investment irreversibility and cyclical adversity: Implications for the financial performance of European manufacturing companies

“…The empirical research has found no firm evidence for a positive link between investment and uncertainty but rather lends support to the irreversible investment argument (Bulan, 2005;Caggese, 2007;Guiso & Parigi, 1999;Leahy & Whited, 1996;Männasoo & Maripuu, 2015;Price, 1995), which suggests there is a negative relationship between investment and uncertainty as proposed by McDonald and Siegel (1986) and Dixit and Pindyck (1994). The irreversible investment argument, in line with theoretical outcomes under assumptions of imperfect competition, focuses on a trade-off choice that companies make between reaping extra returns from investing now or postponing investment under uncertainty while they gather more information about the underlying risks.…”