Investment determinants of young and old Portuguese SMEs: A quantile approach

Mendes, Sílvia; Serrasqueiro, Zélia; Nunes, Paulo Maçãs

doi:10.1016/j.brq.2013.03.001

Cited by 9 publications

(6 citation statements)

References 31 publications

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“…In theory, the number of new tangible investments undertaken is determined by the amount of internal sources of capital (Brealey and Myers 2003). The research results confirm the observations of Myers and Najluf, as well as Mendes et al (2014) who believe that the direction and scale of investment depends on access to capital to finance the investment needs of the company. If the companies did not receive a subsidy, their owners would have to reduce the size of the investment or the investment would have to be postponed and the implementation period could be extended.…”

Section: Discussionsupporting

confidence: 88%

“…Factors determining the direction and scale of investment include having capital to finance the investment needs of the enterprise, and thus the source of investment financing (Mendes et al 2014). For many enterprises, having sufficient capital resources for the implementation of investments is a serious problem that they have to face (Firlej 2018).…”

Section: Literature Reviewmentioning

confidence: 99%

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Results of SME Investment Activities: A Comparative Analysis among Enterprises Using and Not Using EU Subsidies in Poland

Piątkowski

2020

Administrative Sciences

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The need to pay some attention to the issues of investment processes undertaken in enterprises and explore this topic is a direct result of the important role that enterprises play in the economy—with particular emphasis on the SMEs. From the company’s point of view, it is crucial to obtain economic effects as a result of the implemented investment. The aim of the study was to analyze the results of tangible investments in enterprises in Małopolska province in Poland, in two groups of entities—those that implemented investments using EU subsidies and those that financed investments from other sources without using EU aid. This is a unique research in the field of analysis and presentation of investment data in enterprises, especially in relation to companies using EU funds. There is no comparative assessment of investments in enterprises on this topic in the scientific literature (concerning EU subsidies). For this reason, comparing the effects of investment activities between the two groups of enterprises studied—using and not using EU subsidies—fills the research gap in this regard. The study was based on the critical analysis of domestic and foreign literature, and quantitative and qualitative analyses of the results of a survey among 160 enterprises using the CSAQ method, additionally extended by interviews with selected respondents. Data presentation uses a descriptive approach in combination with statistical analysis. A multiple linear regression model (MLR) was also used to verify hypotheses. Research results show that undertaking investment activities contributes to obtaining favorable results in enterprises, regardless of the source of investment financing. The source of financing the investment is not important for the results achieved in the enterprise. However, representatives of companies who received EU subsidies assess their market position higher after investment relative to companies that used other sources of financing for this purpose. Entities that have received EU subsidies have a stronger perception of investment as an important factor determining the company’s development. In addition, variables were identified using the MLR model that affect the assessment of the financial position of enterprises in both groups of entities. This article supplements the knowledge on the economic effects of investments implemented by enterprises in the SME sector in Poland in a situation where these entities used and did not benefit from EU subsidies during 2007–2015.

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Section: Discussionsupporting

confidence: 88%

Section: Literature Reviewmentioning

confidence: 99%

Results of SME Investment Activities: A Comparative Analysis among Enterprises Using and Not Using EU Subsidies in Poland

Piątkowski

2020

Administrative Sciences

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“…A one-unit increase in net investments performed by micro-enterprises (X1B2) will generate an increase in the geometric mean of turnover by 0.06%. Nevertheless, for small firms, the sales revenues are regularly more appropriate in overcoming liquidity problems than for funding the investment [42]. As such, Hypothesis 1d is confirmed, the turnover of micro-enterprises at the national level being determined by the investments performed by companies, by the number of micro active units and by the number of the employees.…”

Section: The Impact Of Investments On Territorial Economic Growthmentioning

confidence: 76%

“…The turnover of all the micro-enterprises at the national level Consistent with prior studies [2,6,20,32,39,42,48,72], turnover was selected in order to catch the territorial economic growth, alongside investments [32], firm size [6,28,48,52,72], expenditures on innovation [47,72] and the number of enterprises.…”

Section: Y1bmentioning

confidence: 99%

Small and Medium-Sized Enterprises (SMEs): The Engine of Economic Growth through Investments and Innovation

et al. 2020

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Small and medium-sized enterprises (SMEs) are crucial for local economic development, playing a noteworthy role in job creation, poverty alleviation and economic growth, but they encounter many funding barriers. The purpose of the current paper is to investigate the impact of investments and innovation on territorial economic growth, as measured by turnover, for Romanian active enterprises, especially SMEs, over the period 2009–2017. By estimating several log–log linear regressions, the quantitative outcomes provide support for a positive influence of investments on turnover. The association was confirmed both for all active enterprises at the national level, as well as for micro, small, middle-sized and big companies. As regards expenditures on innovation, a positive impact on turnover was acknowledged for all enterprises and particularly for big companies, but there was an absence of any statistically significant relation in the case of SMEs. The impact of firm size on turnover was positive for all active enterprises at the national level, along with active micro-units. Also, the estimation results show a positive impact of the number of active micro-units on territorial economic growth. The empirical findings are relevant to managers and policymakers in order to stimulate, encourage and offer support to SMEs’ development through their strategies.

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“…A variety of factors influence private investment decision and shape the decisions of where, when and how much to invest. According to Mendes et al (2014), these factors can be divided into two main groups: internal conditions of the firm and external conditions relating to the macroeconomic environment in which the firm operates.…”

Section: Introductionmentioning

confidence: 99%

Macroeconomic Determinants of Tourism Private Investment in Egypt: An ARDL Model

Ahmed

2020

Journal of Association of Arab Universities for Tourism and Hos

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With the increasing number of tourist arrivals and changing tourism patterns and preferences, the importance of stimulating tourism investment in Egypt has become apparent. This paper aims at examining the macroeconomic determinants of tourism private investment in Egypt from 2002 to 2019. Seven macroeconomic variables are used to model tourism private investment in Egypt using Autoregressive Distributed Lag (ARDL) framework. The main findings of the study show that in the long run pub1ic (government) investment, rea1 exchange rate, tourist arrivals and tourism revenue are positively correlated with private investment in the tourism sector, while real lending rate and political stability are negatively correlated with tourism private investment in Egypt. Short-run results are also consistent with the long-run outcomes. The outputs of this paper provide essential data for formulating and executing policies that aim at enhancing private investment in the tourism sector in Egypt.

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Investment determinants of young and old Portuguese SMEs: A quantile approach

Cited by 9 publications

References 31 publications

Results of SME Investment Activities: A Comparative Analysis among Enterprises Using and Not Using EU Subsidies in Poland

Results of SME Investment Activities: A Comparative Analysis among Enterprises Using and Not Using EU Subsidies in Poland

Small and Medium-Sized Enterprises (SMEs): The Engine of Economic Growth through Investments and Innovation

Macroeconomic Determinants of Tourism Private Investment in Egypt: An ARDL Model

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