Determinants of SMEs’ performance: evidence from European countries

Cicea, Claudiu; Popa, Ion; Marinescu, Corina; Ștefan, Simona Cătălina

doi:10.1080/1331677x.2019.1636699

Cited by 86 publications

(89 citation statements)

References 43 publications

(45 reference statements)

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“…In terms of the financial condition of family firms, their performance in times of uncertainty, economic downturn, crisis, or recession seems essential. The focal questions in this study are whether family businesses fare better under challenging times than non-family businesses and whether they retain stability and recover more quickly (Cicea et al 2019 ).…”

Section: Literature Reviewmentioning

confidence: 99%

Measuring the impact of financial cycles on family firms: how to prepare for crisis?

Škare

Porada-Rochoń

2021

Int Entrep Manag J

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Financial cycles have sizeable economic effects, as witnessed during the 2008 financial crisis. However, despite the topic’s research importance, there is limited literature on how financial cycles and financial crises affect individual family firms. To the best of our knowledge, our study is among the first to measure the impact of financial cycles and crises on family firms. To study the impact of financial cycles on family firms, we use the Amadeus database on European companies. We identify family firms following the Global Family Business Index methodology 2019 (EY and the Center for Family Business of the University of St. Gallen). To measure the impact of financial cycles, we use the credit-to-GDP gap indicator from the Bank for International Settlements. Using the credit-to-GDP gap as a proxy for financial cycles, we use panel structural vector autoregression (Abrigo and Love 2016 ), Wald tests of Granger causality (Granger 1969 ), and impulse response functions (Lütkepohl 2010 ; Lütkepohl et al. 2015 ). We prove that family firms are less vulnerable than non-family firms to financial cycles during both financial booms and busts. Family firms perform better when financial cycle shocks have a less pronounced impact on firms’ performance. Non-family firms are highly vulnerable to financial cycles, performing worse during both booms and busts. The adoption of family firm management and governance policies should improve non-family firms’ performance and help the economy recover rapidly in times of crisis (exogenous shocks). Our study is the first to explore the impact of financial cycles on the micro level with a focus on family firms. The results could help managers and practitioners better form their business policy by looking at family firms’ experiences. Targeting economic policy more towards family firms in good and bad times will allow policymakers to prepare for future economic crises.

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Section: Literature Reviewmentioning

confidence: 99%

Measuring the impact of financial cycles on family firms: how to prepare for crisis?

Škare

Porada-Rochoń

2021

Int Entrep Manag J

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“…Görg et al (2000) presented empirical evidence into the determinants of start-up size, using data for manufacturing firms in Ireland and found that the determinants of start-up size for the Irish manufacturing firms differ in their importance for small and large-scale entrants. Cicea et al (2019) examined how certain economic and social factors influence short-and long-term performance of small and medium enterprises. The result suggested that in developed economies, in the short-run, factors such as the perceived level of corruption or the level of GDP influence on SMEs performance, indirect way, while in developing economies, SMEs' performance establishes a relationship in the short-run with factors having a more direct influence, factors such as the funds absorption rate or the unemployment.…”

Section: Finance Of Start-up Companiesmentioning

confidence: 99%

Factors Inﬂuencing the continuation of start-up companies

Konno

2021

Cogent Economics & Finance

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This study investigates the factors that influence the discontinuation of Japanese business start-ups using the resource-based view (RBV) framework. By conducting an empirical study using the binary logit model, this study reveals the factors that caused start-ups that began in 2006 to suspend operations by 2010. According to the results of the analysis, the better the company was prepared for potential threats before it opened, the higher the probability that the business would remain in operation. Moreover, it was found that business continuity is higher when the manager has business experience related to the current business. In terms of model fit, it was found that start-up preparation is more important to continuity than manager attributes.

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“…So there is a group of authors who strongly criticize the high level of net working capital [18,19]. It is worth trying to create optimal working capital management strategies for the company [20,21,22,24] In addition, a growing group of authors claims that a high level of net working capital not only reduces potential profits, but also raises the risk of companies functioning [25,26,27,28,29,30,31]. Therefore, in face of difficulty managers need to choose such a strategy of working capital management in order to obtain high profits, and at the same time not expose the company to loss of financial liquidity.…”

Section: Working Capital -Literature Reviewmentioning

confidence: 99%

Management Strategies of Working Capital in Polish Services Providing Companies

Zimon

2020

Wseas Transactions on Business and Economics

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Net working capital aims at keeping companies in good financial condition and, above all, ensuring their financial security. It appears in micro, small, medium and large companies operating in every sector. In the case of services providing companies working capital management is very limited as in such businesses there is no inventory, which is the least liquid element of current assets. Therefore, in such companies working capital management strategies are based on the management of short-term receivables, short-term investments and short-term liabilities. In the paper services providing companies operating in the transport and tourism sectors have been presented. The research period covers the years 2016-2018. By means of selected statistical methods and appropriate financial indicators it was found that transport companies used different working capital management strategies compared to companies operating in the tourism sector.

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Determinants of SMEs’ performance: evidence from European countries

Cited by 86 publications

References 43 publications

Measuring the impact of financial cycles on family firms: how to prepare for crisis?

Measuring the impact of financial cycles on family firms: how to prepare for crisis?

Factors Inﬂuencing the continuation of start-up companies

Management Strategies of Working Capital in Polish Services Providing Companies

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