Measuring Firm Size in Empirical Corporate Finance

Dang, Chongyu; Li, Zhichuan Frank; Yang, Chen

doi:10.2139/ssrn.2345506

Cited by 329 publications

(140 citation statements)

References 29 publications

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“…Our study adds to the existing body of knowledge in several ways: we have examined the effect of different measures of firm size on different corporate finance policies or simply corporate choices comprehensively. Our study is replication and extension of Dang et al [30] who examined the same. However, we used different data sets and different years.…”

Section: Open Accesssupporting

confidence: 81%

“…(e.g. see [30,[45][46][47][48]). Similarly, large firms have more access to financing and have more internal resources thus which makes large firms able to make more capital expenditure as compared to small firms [31].…”

Section: Firm Size and Investment Policymentioning

confidence: 99%

“…Although these empirical studies in corporate finance agree that firm size matters, no study till date has comprehensively examined effect of different measures or proxies of firm size on important practices of corporate finance. Only such study known to the researcher is of Dang et al [30] who investigated the impact of firm size on eight practices of empirical corporate finance which…”

Section: Introductionmentioning

confidence: 99%

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Sensitivity of firm size measures to practices of corporate finance: evidence from BRICS

et al. 2020

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Firm size has remained a major area of investigation for researchers from a long time. This study aims at examining impact of different measures of firm size (total assets, total sales, market capitalization and number of employees) on seven important practices of corporate finance which are financial policy, dividend policy, investment policy, diversification, firm performance, compensation and incentives and board structure (corporate governance). Moreover, this study also examines the sensitivity of different proxies of firm size on these practices of corporate finance. Data from BRICS (Brazil, Russia, India, China and South Africa) have been analysed. Overall results supported the hypotheses. Study concludes that different proxies of firm size are differently related to practices of corporate finance based on sign, significance and R 2 . All proxies capture different aspects of firm size and have different implications for corporate finance. Thus, this study confirms "measurement effect" in "size effect". Unfortunately, this means that many of past studies may not be robust and are biased. Researchers thus need to be careful when selecting any proxy of firm size for their research keeping in mind the scope and context of their work. Choosing a proxy thus is a theoretical and empirical question.

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Section: Open Accesssupporting

confidence: 81%

Section: Firm Size and Investment Policymentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Sensitivity of firm size measures to practices of corporate finance: evidence from BRICS

et al. 2020

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“…The bank size (SIZE) is the logarithm of the number of employees; (see, for example, Sabatier 2015 or Dang et al 2018)…”

Section: Cost-to Incomementioning

confidence: 99%

European Bank’s Performance and Efficiency

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Gouveia

Proença

2020

JRFM

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The research interest in bank profitability and efficiency is linked to the economic situation and an important issue for policymakers is to ensure economic stability. Nevertheless, managerial decisions and the environment could play a critical role in ensuring proper and efficient allocation of the resources. The purpose of this study is to understand which are the main factors that can influence the performance and efficiency of 94 commercial listed banks from Eurozone countries through a dynamic evaluation, in the period between 2011 and 2016. To achieve this aim, the generalized method of moments estimator technique is used to analyze the influence of some bank-specific characteristics, controlled by management, on the profitability as a measure of bank performance. After that, through the value-based data envelopment analysis (DEA) methodology, those factors are considered in determining the efficient banks. The results show that banking efficiency depends on set bank-specific characteristics and that the effect of determinants on efficiency differs, considering the macroeconomic conditions.

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“…Nos últimos três anos, no desenvolvimento de produtos/serviços na empresa onde eu trabalho... 1 nós geralmente encontramos soluções viáveis para novos desafios usando nossos recursos existentes 2 nós costumamos assumir uma gama mais ampla de desafios do que outros fariam com os nossos recursos 3 nós usamos todos os recursos existentes que pareça útil para responder a um novo problema ou oportunidade 4 nós lidamos com novos desafios aplicando uma combinação dos nossos recursos existentes com outros recursos disponíveis economicamente para nós 5 ao lidar com novos problemas ou oportunidades, tomamos imediatamente medidas assumindo que encontraremos uma solução viável 6 ao combinar os nossos recursos existentes, assumimos uma ampla variedade de novos desafios 7 quando enfrentamos novos desafios, reunimos soluções viáveis a partir dos nossos recursos existentes 8 combinamos recursos para realizar novos desafios com os recursos que originalmente não pretendíamos utilizar 9 para lidar com novos desafios, acessamos recursos com baixo ou nenhum custo e os combinamos com o que já temos (Carlson & Wu, 2012). Quando se tratam de empresas, pesquisas apontam o tamanho dessas organizações como uma variável de controle que pode apresentar diferenças nos resultados de modelos que testam a influência de constructos independentes em constructos dependentes (Dang, Li, & Yang, 2017). Logo, optouse por analisar separadamente o modelo utilizando-se duas bases de dados, uma contendo apenas micro, pequenas e médias empresas, e outra contendo apenas grandes empresas.…”

Section: Bricolagemunclassified

Bricolagem e inovatividade organizacional como antecedentes da inovação frugal em mercados emergentes

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Measuring Firm Size in Empirical Corporate Finance

Cited by 329 publications

References 29 publications

Sensitivity of firm size measures to practices of corporate finance: evidence from BRICS

Sensitivity of firm size measures to practices of corporate finance: evidence from BRICS

European Bank’s Performance and Efficiency

Bricolagem e inovatividade organizacional como antecedentes da inovação frugal em mercados emergentes

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