Measuring firm size in empirical corporate finance

Dang, Chongyu; Li, Zhichuan; Yang, Chen

doi:10.1016/j.jbankfin.2017.09.006

Cited by 489 publications

(404 citation statements)

References 48 publications

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“…We used two different measures of visibility: size [63,73]; and media exposure [63,74]. Size may be proxied by different measures that may lead to different results [75]. CSR disclosure literature has used the number of employees [76], market capitalization [65], and total assets [1,43,63,[77][78][79][80], with consistent results.…”

Section: Methodsmentioning

confidence: 99%

Earnings Management and CSR Disclosure. Family vs. Non-Family Firms

2017

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Building on Institutional theory and Signaling theory, integrated with the socioemotional wealth (SEW) approach, we studied the effect of earnings management (EM) practices on a firm's Corporate Social Responsibility (CSR) disclosure behavior. In so doing, we analyzed a sample of 226 non-financial, family and non-family listed firms for the period, 2006-2015. Our results suggest that family firms, in instances of downward earnings management, are more prone to diverting attention from these practices by means of CSR disclosure, compared to non-family firms, although the level of family ownership exerts a moderating effect. Moreover, we found that a firm's visibility, in terms of size, significantly enhances this behavior and that the effect is higher for family firms.

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Section: Methodsmentioning

confidence: 99%

Earnings Management and CSR Disclosure. Family vs. Non-Family Firms

2017

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“…Also Park et al (2010) confirm that firm size and age have significant negative effects on firm growth and significant positive impacts on firm survival. We use net sales as a proxy for firm size and when compared with other metrics of firm size like assets, nº of employees and market capitalization, according to Dang et al (2018) sales are more related to product market which is relevant to measure market share, endurance of the product and life cycle stage.…”

Section: Resultsmentioning

confidence: 99%

Why do Firms Live Longer than Others? The Elixir of (Eternal) Life of Blue Chip American Companies

Reis¹

2017

IJBA

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Purpose: Why do certain companies live longer than others? The average lifespan of a listed north and South American company is over 33 years and in Europe the average age of a company is 52 (Note 1). In 1288, Stora Enso a big pulp and paper company from Sweden issued its first share. According to credit rating agency Tokyo Shoko Research, in Japan, there are more than 20,000 companies with more than 100 years' old. Through a sample of blue ship American listed oldest companies and quarter panel data from 1988-2013 this article identifies more than 8 significant explanatory variables and ascertains relevant factors related with longevity.Methodology: A new robust standard errors for panel regressions with cross-sectional dependence based on Driscoll-Kraay estimator is applied. This method (stata xtscc) is heteroskedasticity consistent and the standard error estimates are robust to general forms of cross-sectional and temporal dependence surpassing the deficiencies of traditional panel data statistical approaches.Findings: The sample of blue ship companies and panel regressions with Driscoll-Kraay estimator shows that the most relevant factors to induce longevity are related with growth opportunities perspective and horizon, cash liquidity, profitability and shareholders remuneration whether from dividends or repurchases, capital structure, strong claims-compliance-liability structure department, innovation and firm size.Originality: This paper's topic considers for the first-time age as a dependent variable and not a control one. Also, the large time period of study, including quarterly observations is new, as well as the original approach to estimation applied to this theme, considered as an alternative to traditional panel data methods.Practical implications: With these determinants identified, professionals and academics can use them as benchmarking and a recipe to endure and assuring bigger lifespan for other mature and young companies.

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“…Several studies take into account the influence of specific characteristics of companies on their international performance. In the field of corporate finance, the size of a company is considered a fundamental characteristic that affects the results of the research (Dang et al 2018). For example, Gabaix and Landier (2008) and Gabaix et al (2014) observed the effect of the size of a company on the differences in salaries of managers according to their competence, concluding that larger companies tend to have more qualified managers (Himmelberg and Hubbard 2000).…”

Section: Characteristicmentioning

confidence: 99%

“…651/2014 of the European Commission (Table 4). The number of employees and total sales are measures of company size that have been used in various studies, such as those related to corporate finance (Dang et al 2018). Total sales measure competition in the product market, and the number of employees can be used by researchers when the main measures (total assets, total sales, and market value equity) are not available or are irrelevant.…”

Section: Sample Characterizationmentioning

confidence: 99%

Risk Management as a Success Factor in the International Activity of Spanish Engineering

Lozano-Torró

García-Segura

Montalbán-Domingo

et al. 2019

Administrative Sciences

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During the period between 2008-2013, the internal market in Spain was characterized by economic crisis, the contraction of the demand experienced in a turbulent business environment, and strong competition among companies. This situation forced many of these companies to work abroad. One of the success factors for Spanish engineering companies abroad has been effective risk management, which avoids compromising the company's objectives, market share, or survival. This article examines the importance of risk management in the success of Spanish engineering consulting firms in the international construction market. Ten executives of Spanish engineering companies with international experience were interviewed, analyzing the importance of risk management for them in the success of internationalization compared with other success factors. The results show that the size of the companies interviewed has no influence on the importance that they gave to risk management, but international experience does relate to the assessment of risk identification and management as a success factor. In addition, companies considered risk management a key factor for optimizing their performance in foreign markets.

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Measuring firm size in empirical corporate finance

Cited by 489 publications

References 48 publications

Earnings Management and CSR Disclosure. Family vs. Non-Family Firms

Earnings Management and CSR Disclosure. Family vs. Non-Family Firms

Why do Firms Live Longer than Others? The Elixir of (Eternal) Life of Blue Chip American Companies

Risk Management as a Success Factor in the International Activity of Spanish Engineering

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