On the relationship between managers’ preferences and debt financing: evidence from Vietnamese firms

Kim, Huong Trang

doi:10.1080/14631377.2021.1918958

Cited by 3 publications

(5 citation statements)

References 60 publications

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“…Most of prior entrepreneurship or small-business management studies often use terms 'managers', 'owners' and 'owner-managers' interchangeably. This is because, unlike in large firms where managers are often hired by shareholders to run the business, in SMEs, their owners often take the dual role as the managers (Kim, 2021;Nguyen et al, 2020). Jennings and Beaver (1995) also posit that owners play key roles in the management process of small enterprises by directly influencing the firms' operations and activities.…”

Section: Discussionmentioning

confidence: 99%

Local business environment, managerial expertise and tax corruption of small- and medium-sized enterprises

Bui

Nguyen

et al. 2021

Baltic Journal of Economics

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While tax corruption is widespread in many countries with inferior business environments, it is unclear how the characteristics of taxpayers influence their tax behaviour. This study investigates the impact of manager expertise on firms' tax corruption in a transition economy. Using a longitudinal dataset consisting of small-and medium-sized enterprises in Vietnam over the period from 2005 to 2015, we find that firms which are managed by more able managers are more likely to engage in tax corruption and are willing to offer higher amounts of bribe payments. We also find that improving the quality of the local business environment is associated with lower tax corruption. When the quality of the local business environment is improved, managers with greater knowledge of existing laws and regulations, and more working experience, engage less in tax corruption. Our findings imply that improving the quality of the local business environment is important for reducing tax corruption in transition economies.

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Section: Discussionmentioning

confidence: 99%

Local business environment, managerial expertise and tax corruption of small- and medium-sized enterprises

Bui

Nguyen

et al. 2021

Baltic Journal of Economics

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“…El sesgo hacia el presente es la preferencia de los beneficios en el corto plazo a pesar de que los de largo plazo sean mejores (Thaler, 1981;Kumar et al, 2020;Kim, 2022), es decir, cuando la utilidad es mayor en el presente. La teoría de la utilidad se refiere a la representación numérica del nivel de satisfacción que un individuo tiene de, por ejemplo, el dinero (Fishburn, 1968;Kahneman y Tversky, 1979).…”

Section: Las Preferencias Temporales La Utilidad Del Dinero Y Las Tas...unclassified

“…Las preferencias temporales y el sesgo hacia el presente, se midieron con la información recolectada en la tercera parte de la encuesta, que tiene preguntas reportadas y validadas en trabajos como los de Meier y Sprenger (2007); Kim (2022); y Kim y Nguyen (2022), dividida en dos marcos. En el marco de largo plazo, se presentó a los empresarios indicar su preferencia de una serie de elecciones binarias entre recibir una recompensa económica de $100.000 en una semana versus otra recompensa mayor en dos semanas; y en el marco de corto plazo, se presentó otra serie de elecciones binarias entre una recompensa de $100.000 a recibir hoy versus otra recompensa mayor en una semana.…”

Section: Cont Cuadro 1 22 Medición De Las Preferencias Temporalesunclassified

“…Las inconsistencias de racionalidad se conocen como sesgos, y en este trabajo es de interés el sesgo hacia el presente. Este último se define como la preferencia de los beneficios en el corto plazo a pesar de que los de largo plazo sean mejores (Thaler, 1981;Kumar et al, 2020;Kim, 2022). A pesar de que el estudio sobre esa impaciencia a nivel gerencial no ha recibido la suficiente atención (Graham, Harvey y Puri, 2013), se ha evidenciado que, por ejemplo, administradores con sesgo hacia el presente prefieren invertir en activos con mayor riesgo (Chunxiang, Li y Wang, 2016), pagan dividendos más rápido (Chen, Li y Zeng, 2014), y prefieren mayores niveles de endeudamiento con vencimientos más cortos (Hastings y Mitchell, 2020).…”

Section: Introductionunclassified

“…La mayoría de los estudios sobre los influenciadores de las decisiones de estructura de capital se han enfocado en variables de mercado, en contextos de países desarrollados y para empresas grandes (Lussuamo y Serrasqueiro, 2021) entonces, resulta relevante entender el papel que juega el sesgo hacia el presente en las decisiones de estructura de capital en las MiPYMES, donde parece haber más efecto (Kim, 2022), y en economías emergentes. Por lo anterior, en este estudio se responden las preguntas: ¿Los empresarios de MiPYMES en una economía emergente presentan sesgo hacia el presente?…”

Section: Introductionunclassified

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Sesgo hacia el presente y estructura de capital en Micro, Pequeñas y Medianas Empresas de economías emergentes

2024

RCS

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Given that there is a lack of understanding of the effect of behavioral elements on capital structure decisions and in the context of micro, small and medium-sized enterprises in developing countries, this study seeks to understand if it exists, and what role does the bias towards the present in capital structure decisions in that context. With a self-administered survey, information was collected to estimate the relationship of the capital structure with the bias towards the present through discount rates at different terms, and subsequently estimate the effect with a multiple linear regression model. The existence of a bias towards the present was found and, the higher its level, the greater the proportion of debt the company has to finance its assets. Additionally, the preference for long-term debt is also positively related to total debt. The evidence invites decision makers to question whether these choices are motivated by the needs of the company or by impatience; and governments to provide access to the financial system for these companies that are usually informal. In conclusion, it is suggested to evaluate the bias in large companies and in developed countries for their respective comparison.

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Linking top managers’ behavioural traits with business practices and firm performance

Kim,

Nguyen

2023

Rev Manag Sci

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We embed an experiment in an ongoing firm-level panel survey with a sample of 623 firms managed by their owners to explore the role of top managers’ behavioral traits as drivers of corporate strategies and performance. We find that present biased managers are less likely to invest in business practices, leading to lower sales revenue. Younger managers are more patient and less risk-averse than older ones, and they play a more significant role in improving firm performance than their counterparts. Interestingly, we find compelling evidence that business practices play a crucial role as a mediating mechanism through which managers’ present bias and loss aversion affect firm performance.

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On the relationship between managers’ preferences and debt financing: evidence from Vietnamese firms

Cited by 3 publications

References 60 publications

Local business environment, managerial expertise and tax corruption of small- and medium-sized enterprises

Local business environment, managerial expertise and tax corruption of small- and medium-sized enterprises

Sesgo hacia el presente y estructura de capital en Micro, Pequeñas y Medianas Empresas de economías emergentes

Linking top managers’ behavioural traits with business practices and firm performance

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