Financial performance assessment of electricity companies: evidence from Portugal

Neves, Maria Elisabete Duarte; Henriques, Carla; Vilas, João

doi:10.1007/s12351-019-00504-1

Cited by 23 publications

(38 citation statements)

References 57 publications

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“…The current ratio is a very common measure of company's liquidity and a high ratio assures a positive working capital and enough funds to fund company's investments and operations in general, as it generates high cash inflows. Thus, there is no need to resort to external financing (Chen et al, 2010;Kumar et al, 2017;Serrasqueiro et al, 2016;Neves, Henriques and Vilas, 2019). This is observed in the study of Deesomsak et al (2004), who investigated the determinants of the capital structure of companies operating in the Asia-Pacific region, and concluded that there was a negative relationship between liquidity and debt.…”

Section: Capital Structure Decisionsmentioning

confidence: 94%

Capital structure decisions in a period of economic intervention

Neves

Serrasqueiro²,

Dias

et al. 2020

IJAIM

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Purpose This paper aims to analyse the Portuguese companies’ determinants of capital structure. To reach this objective, the authors used data from 37 non-financial Portuguese large enterprises and from 4,233 non-financial small and medium enterprises for the period 2010-2016. Additionally, the authors selected a sub-period from 2010 to 2014 for a deeper understanding of the impact of the sovereign debt crisis and the Economic Adjustment Programme of Troika on the capital structure of those companies. Design/methodology/approach Three dependent variables were tested according to debt maturity, and a dynamic panel data model, namely, the generalised method of moments system estimator, was used to test the formulated research hypotheses following Arellano and Bover (1995) and Blundell and Bond (1998) to capture the dynamic nature of the firm’s capital structure decisions. Findings In general, the results point out that the capital structure decisions depend on a set of firm-specific factors, and that the effects of the determinants of the debt maturity ratios differ according to the type of firm, i.e. large/small firms, and the economic cycle. Originality/value To the best of the authors’ knowledge, this is the first study that has been carried out in Portugal by using two samples of large and small companies for analysing the effects of the Economic Adjustment Programme of Troika on the capital structure of companies. The authors seek to understand which type of companies suffered more because of the effects of the Economic Adjustment Programme of Troika during this period, and which are the capital structure determinants that present greater change. Contrary to what might be expected, large companies are the firms that suffer most from the Economic Adjustment Programme. Probably, because these companies are the most immediate, most scrutinised and those that must show abroad that the bank did not fund them in the long term, because of the imposition and limits to grant credit faced by the banks themselves.

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Section: Capital Structure Decisionsmentioning

confidence: 94%

Capital structure decisions in a period of economic intervention

Neves

Serrasqueiro²,

Dias

et al. 2020

IJAIM

Self Cite

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“…A higher liquidity may be a sign of a well-managed firms; however, free cash flows are related to free rider problems [28]. Therefore, companies must manage and maintain a balanced level of liquidity to deal with uncertainty and create value [29]. We formulate the following hypothesis: Hypothesis 1 (H1).…”

Section: Controlsmentioning

confidence: 99%

The Financial Performance of Family versus Non-Family Firms Operating in Nautical Tourism

2022

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This article analyses the financial performance of family versus non-family firms operating in nautical tourism, in 2015–2019. The sample of 39 Portuguese companies was collected from the SABI database. We use a regression of financial performance, measured by three alternative proxies: return on assets, return on equity and operating profit margin, on liquidity, leverage, turnover of assets, asset structure, company size and age. The regressions are performed across Nuts II regions on mainland and across types of firms (family and non-family). The results uncover several patterns. First, family firms are larger and older, make higher investments and therefore are less liquid. Second, liquidity, leverage and investment in tangible assets impact negatively and significantly the corporate financial performance, while the turnover of assets, size and age impacts positively and significantly. Third, the sign of the impacts depends on the measure of performance. Finally, firms in the Northern region show superior performance, which can be explained by the higher share of family firms. These findings can serve as a roadmap for managers when selecting strategies to improve performance. Additionally, they will contribute to the understanding of tourism destination dynamics and competitiveness.

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“…To estimate these models, the dynamic GMM model was used, initially proposed by Arellano and Bond (1991) and improved by Blundell and Bond (1998). By using the GMM method, we solve two fundamental problems such as endogeneity and unobserved heterogeneity (Djalilov and Piesse 2016;García-Herrero et al 2009;Neves et al 2019or Vieira et al 2019).…”

Section: Profitabilitymentioning

confidence: 99%

Bank Profitability and Efficiency in Portugal and Spain: A Non-Linearity Approach

Neves

Proença

Dias

2020

JRFM

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This paper aims to analyze the determinants of profitability and bank efficiency in the Iberian Peninsula. To achieve the proposed objective, a sample of 66 Portuguese and Spanish banks was analyzed. To test the hypotheses formulated according to the proposed literature review, the panel data methodology was used; specifically, the Generalized Method of Moments (GMM) system model proposed by and the Tobit model. The results point out that the banking performance, measured in terms of profitability and efficiency, in the Iberian Peninsula, is influenced by internal management variables, but also by the macroeconomic environment. More interestingly, and new in the Iberian banking sector literature, the results prove a positive and negative non-linear relationship between bank size and their levels of profitability and efficiency, respectively.

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Financial performance assessment of electricity companies: evidence from Portugal

Cited by 23 publications

References 57 publications

Capital structure decisions in a period of economic intervention

Capital structure decisions in a period of economic intervention

The Financial Performance of Family versus Non-Family Firms Operating in Nautical Tourism

Bank Profitability and Efficiency in Portugal and Spain: A Non-Linearity Approach

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