On the Relevance of Agency Conflicts in SME Debt Maturity Structure

López-Gracia, José; Mestre-Barberá, Reyes

doi:10.1111/jsbm.12083

Cited by 12 publications

(4 citation statements)

References 58 publications

(86 reference statements)

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“…Larger companies are likely to be more diversified, and thus might be subjected to higher agency and bureaucratic costs (Choi et al, 2007). Small firms may also have trouble in minimising agency problems (Lopez-Gracia & Mestre-Barberá, 2015). However, some studies state that small companies are frequently managed and owned by only one person and thus do not face this issue (Lopez-Gracia & Mestre-Barberá, 2015).…”

Section: Variablesmentioning

confidence: 99%

“…Small firms may also have trouble in minimising agency problems (Lopez-Gracia & Mestre-Barberá, 2015). However, some studies state that small companies are frequently managed and owned by only one person and thus do not face this issue (Lopez-Gracia & Mestre-Barberá, 2015). For this study, firm size is measured by the natural logarithm of total assets.…”

Section: Variablesmentioning

confidence: 99%

“…For this study, firm size is measured by the natural logarithm of total assets. In terms of LEV, agency conflicts become more serious when a company is in financial difficulty (Lopez-Gracia & Mestre-Barberá, 2015). A firm with a high LEV ratio is more vulnerable to business shocks, since it has less ability to repay debt (Kao et al, 2019).…”

Section: Variablesmentioning

confidence: 99%

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The Mediating Effect of Innovation on the Relationship Between Corporate Governance and Firm Performance: Evidence from Developed and Developing Countries

Ploypailin Kijkasiwat,

Anwar Hussain,

Uzma Nisar

et al. 2024

AAMJ

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Prior studies have shown that innovation has a mediating effect on the relationship between corporate governance and firm performance. This study compares this mediating effect in developed and developing countries using agency theory and signaling theory. A panel sample of 2,688 firms in developing and developed countries is analysed for the period of 2002–2017. The empirical findings demonstrate that corporate innovation fully mediates the relationship between corporate governance and firm performance in developed countries. However, innovation partially mediates the relationship between corporate governance and firm performance in developing countries. This could be because of different socioeconomic factors and capabilities of innovators involved in corporate governance structure. The study has both theoretical and policy implications and provides insights for policy makers for identifying the influence of innovation on firm value and evaluating the importance of corporate governance.

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Section: Variablesmentioning

confidence: 99%

Section: Variablesmentioning

confidence: 99%

See 1 more Smart Citation

The Mediating Effect of Innovation on the Relationship Between Corporate Governance and Firm Performance: Evidence from Developed and Developing Countries

Ploypailin Kijkasiwat,

Anwar Hussain,

Uzma Nisar

et al. 2024

AAMJ

View full text Add to dashboard Cite

show abstract

“…Another way to hinder selfish managerial behaviours is to reduce free cash flow, which can be inefficiently employed by managers to the detriment of shareholders (managerial overinvestment or free cash flow problem) (Lopez-Gracia & Mestre-Barberá, 2015). This reduction can be obtained through increasing leverage (Jensen, 1986).…”

Section: The Relationships Between Owners and Managers In Family Firmmentioning

confidence: 99%

Agency Conflicts, Socioemotional Wealth, and the Debt Maturity Structure of Family Firms: A Critical Analysis

Domenichelli¹

2017

IJEF

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This paper aims to study the impact of the distinctive agency and socioemotional features of family firms on their debt maturity choices using a literature analysis of this topic, still substantially unexplored. Therefore, the paper examines the relationships between owners and managers; majority and minority shareholders, and family shareholders and family outsiders; and owners and creditors. The analysis suggests that the propensity of family businesses to use long-term debt depends on the generation leading the family firm, family blockholders, motivation for expropriating minority shareholders, family outsiders and their socioemotional orientation. Much still remains to be empirically studied. One interesting issue to explore further would be the influence of country-specific factors worldwide, in combination with firm-specific characteristics relating to agency conflicts and socioemotional wealth, on the debt maturity decisions of family firms, compared to non-family ones. Given the international importance of family firms, and their widespread presence and activity worldwide, additional empirical results on this topic may help governments adopt specific policies, that will better support family businesses, in light of their peculiar and unique economic and non-economic aspects.

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Firm Size and Financial Performance: Intermediate Effects of Indebtedness

2016

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This paper offers a new perspective for the agricultural economics literature on the relationship between firm size and financial performance. We contribute to the literature by exploring the role of indebtedness in this relationship. Using archival data collected from 83 companies belonging to livestock industries, the empirical findings confirm the hypothesis that indebtedness leverages the effect of size on financial performance. That is to say, indebtedness can enhance the realization of the potential benefits of a larger organizational size. Contrary to expectations, these results reveal that the relationship between size and financial performance is negatively mediated by indebtedness. [EconLit citations: D23; M00; Q13]. C 2016 Wiley Periodicals, Inc.

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On the Relevance of Agency Conflicts in SME Debt Maturity Structure

Cited by 12 publications

References 58 publications

The Mediating Effect of Innovation on the Relationship Between Corporate Governance and Firm Performance: Evidence from Developed and Developing Countries

The Mediating Effect of Innovation on the Relationship Between Corporate Governance and Firm Performance: Evidence from Developed and Developing Countries

Agency Conflicts, Socioemotional Wealth, and the Debt Maturity Structure of Family Firms: A Critical Analysis

Firm Size and Financial Performance: Intermediate Effects of Indebtedness

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