Debt, Innovation, and Growth

Geelen, Thomas; Hajda, Jakub; Morellec, Erwan

doi:10.2139/ssrn.3416576

Cited by 7 publications

(3 citation statements)

References 66 publications

(14 reference statements)

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“…Access to financing and its terms are of vital importance given that most companies do not have sufficient resources to carry out innovative activities on their own (Geelen et al, 2019; Pellegrino & Savona, 2017). Therefore, as access to financial markets and the terms offered improve, companies will have greater capacity to innovate (Sánchez et al, 2017).…”

Section: Literature Review and Hypotheses Proposedmentioning

confidence: 99%

The impact of corporate social responsibility on innovation in small and medium‐sized enterprises: The mediating role of debt terms and human capital

Jaén

Guijarro

García‐Pérez‐de‐Lema

2021

Corp Soc Responsibility Env

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The aim of this paper is to study the influence of corporate social responsibility (CSR) over small and medium-sized enterprise (SME) innovation and the effect of two mediating variables, debt terms and human capital. Based on a sample of 2825 Spanish SMEs and applying a structural equations modeling, the results demonstrate that the effect of CSR on innovation is mediated by debt terms and by good human resource practices. Part of the positive effect of CSR on innovation occurs through these two variables, which, alone, positively and significantly affect innovation in SMEs. Consequently, the positive effect of CSR practices on debt terms through a decrease in asymmetric information goes further, also having repercussions on innovation. Additionally, the suitable development of human resource practices based on strategies oriented toward CSR allow companies to carry out greater and more efficient innovative activities. This paper contributes to the CSR literature considering the human resource management and the debt access in the relationship between CSR and innovation. The findings reveal important implications for policy makers and managers. For the former, the results show that it would be interesting to carry out actions aimed at assisting SMEs, especially those with fewer resources available, to implement a suitable CSR strategy, supporting sustainable development in SMEs.And, for the latter, CSR-oriented innovation has proven to be a valuable strategy for more efficient SMEs management because of the multiple competitive advantages it generates.

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Section: Literature Review and Hypotheses Proposedmentioning

confidence: 99%

The impact of corporate social responsibility on innovation in small and medium‐sized enterprises: The mediating role of debt terms and human capital

Jaén

Guijarro

García‐Pérez‐de‐Lema

2021

Corp Soc Responsibility Env

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“…On the other hand, individuals may be trapped in debt and their financial stability may suffer. (Thomas Geelen, et al 2020) Uncontrolled consumerism encourages people to buy goods and services that are not necessarily needed just to follow trends or gain social recognition. This often happens through credit cards, online loans, or installment models without careful calculation of financial possibilities.…”

Section: Impact On Societymentioning

confidence: 99%

Consumerism and Materialism Culture: Its Impact on Society and the Environment

Amrilah

2024

Preprint

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The phenomenon of consumerism and materialism culture has become a global trend that has a significant impact on society and the environment. This study aims to identify and analyze the impact of consumerism and materialism culture on society and the environment by using quantitative methods and library research. The research findings show that consumerism and materialism culture have significant negative impacts on society and the environment. In the social aspect, consumerism and materialism culture encourage hedonistic behavior, individualism, and unhealthy social competition. On the economic aspect, consumerism and a culture of materialism lead to personal and family debt, inflation, and economic crises. On the environmental aspect, consumerism and a culture of materialism lead to the depletion of natural resources, environmental pollution, and climate change. Consumerism and a culture of materialism have serious consequences for society and the environment. Efforts to promote responsible and sustainable consumption are needed to minimize their negative impacts.

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“…capital. The traditional view has held that young innovative firms (which commonly face additional capital needs) must either use their own internal cash reserves or issue additional equity to gain extra financing (Brown, Fazzari, and Petersen (2009); Brown and Petersen (2011); Geelen, Hajda, and Morellec (2019)). Debt financing has traditionally been considered a less viable option for innovative firms due to 1) their uncertain and volatile cash flows creating the potential for further financial distress affecting the debt payments,…”

Section: Dual Class Structure and Innovation In Financially Constrainmentioning

confidence: 99%

Dual Class Share Structure and Innovation

2018

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We find a positive association between disproportionate insider control and patent output, quality, creativity, and the efficient use of R&D in innovation. Managers of firms characterized by disproportionate control also take more personal innovative risk by filing their own patents. By controlling for standard entrenchment measures, we also find that insider entrenchment due to superior voting rights is distinct from entrenchment derived from standard antitakeover measures. Disproportionate insider control fosters innovation more than other forms of entrenchment. Positive effects are confined, however, to financially constrained firms and dissipate within ten years following the IPO. Dual class firms with financial constraints prefer to issue debt and are more likely to issue debt after collateralizing their patent portfolio. Our results, which control for self-selection bias by using a sample of dual and single class firms matched on their innovativeness pre-IPO, therefore support the recent call for sunset provisions on dual class shares.

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Debt, Innovation, and Growth

Cited by 7 publications

References 66 publications

The impact of corporate social responsibility on innovation in small and medium‐sized enterprises: The mediating role of debt terms and human capital

The impact of corporate social responsibility on innovation in small and medium‐sized enterprises: The mediating role of debt terms and human capital

Consumerism and Materialism Culture: Its Impact on Society and the Environment

Dual Class Share Structure and Innovation

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