The Impact of Financial Structure on the Performance of European Listed Firms

El-Chaarani, Hani

doi:10.35808/ersj/428

Cited by 17 publications

(26 citation statements)

References 27 publications

(40 reference statements)

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“…Agency theory also has a different perspective supporting positive effects of debt on firm performance coming from the conflicts between shareholders and managers (Weill, 2008). This type of conflicts is due to the "moral hazard" problem from managers who have their own objectives that may not be the best for the value of the firm (Weill, 2008;El-Chaarani, 2015). In this conflict debt financing is a solution by putting a burden on managers' actions through interest payment obligations and consequent free cash flow reduction, which limits the freedom to use company's cash-flow.…”

Section: Negativementioning

confidence: 99%

“…Other commonly used control variables are Growth and firm's age. Growth is usually measured as Growth of Sales, appearing in five reviewed studies (Abor, 2005;Abor, 2007;Salim and Yadav, 2012;Zeitun andSaleh, 2015 andEl-Chaarani, 2015 Ohmar, 2015). On the other hand we can expect negative effects, since with aging it is normal to occur an increase of organizational rigidities, the rise of costs, margins thin, growth slows, obsolescence of assets, and reduction of investment and R&D activities (Loderer and Waelchli, 2009).…”

Section: Model Specificationmentioning

confidence: 99%

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The relationship between debt and a firm’s performance: the impact of institutional factors

Forte

Tavares

2019

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Purpose The purpose of this paper is to contribute to the existing literature on the relationship between debt and firms’ performance, by focusing on the influence of the institutional framework on this relationship and on the role of macroeconomic variables in explaining performance. Design/methodology/approach The present work is based on a large sample of 48,840 manufacturing firms from nine European countries covering the 2008–2013 period and uses a fixed effects model. Findings Results show that the impact of debt on a firm’s performance depends on the measure of debt (short-term debt positively affects a firm’s performance, whereas long-term debt presents a negative relationship) and that the institutional framework is indeed affecting the relationship between debt and a firm’s performance: the positive effect of debt on a firm’s performance tends to be higher the greater the “efficiency of the legal system” and the greater the “credit market regulation.” Macroeconomic variables also play a key role in explaining performance. Originality/value Unlike most of the existing studies, which focus only on the relationship between debt and firms’ performance in a single country, the present work uses a sample of firms from nine countries with the purpose of filling a research gap and bringing new empirical evidence to this research area.

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Section: Negativementioning

confidence: 99%

Section: Model Specificationmentioning

confidence: 99%

The relationship between debt and a firm’s performance: the impact of institutional factors

Forte

Tavares

2019

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“…Behavioral finance appeared to the surface along with the business and academic development, which started to reveal the aspect or element of behavior in finance and/or investment decision making. This phenomenon was much inspired by the increasing role of behavior as one of the determinants in buying and selling securities (Vovchenko et al, 2015(Vovchenko et al, : 2017El-Chaarani, 2014;Suryanto and Ridwansyah, 2016;Anureev, 2017;Fetai, 2015). Pompian (2006) explained that behavioral finance is divided into macro and micro behavioral finance.…”

mentioning

confidence: 99%

The Influence of Financial Knowledge, Control and Income on Individual Financial Behavior

Agus¹

2017

ERSJ

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“…Budrienė, Kvekšienė and Meškelienė (2014) did not distinguished some special competences, skills or attributes for accountant's profession, but found out from the studies of theoretical sources that knowledge comprises the basis of competence and skills, as the most important criteria of the employee's professionalism, come with experience. Competence as a tested skill is a necessary condition of competency and personal skills are being developed and perfected following competences defined in profession standards according to labour market needs although changes lead to urge of accounting professionals to acquire new competences and formalize them (Budrienė et al, 2014;El-Chaarani, 2014). Brink, Emerson and Yang (2016) analysed the influence of the environment of accountant and stated, that their research results highlight the importance of maintaining a workplace that fosters a collegial work environment.…”

Section: Literature Review Of Theoretical Aspects Of Accountant's Rolmentioning

confidence: 99%

Evaluation of Perception of Accountant`s Role at the Enterprise in Latvia and Lithuania

Bruna¹,

Senkus²,

Subačienė³

et al. 2017

ERSJ

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The development of an accountant`s profession is quite a widespread subject in scientists` researches in different countries. It topicality has especially been underlined recently in connection with international conditions affecting the above profession, for example, Framework for International Education Standards for Professional Accountants and Aspiring Accountants (2015). This refers to the need of the investigation of accountant's role at the enterprise. Following the research methodology carried out at Tallinn University of Technology (Estonia) in 2016 to find out the students' point of view as regards the accountants` role in Estonian enterprises has been aggregated in Latvia and Lithuania. The purpose of the article is to evaluate the perception of accountant's role at the enterprise and the skills required for the profession in Latvia and in Lithuania. A questionnaire-based study among practicing accountants working in Latvian and Lithuanian enterprises and students of the accounting study program at both the University of Latvia and University of Vilnius was used. The study is based on the hypothesis that on these issues the views of accountantspractitioners as to the role of accountants in an enterprise, the scope and character of their daily work functions as well as the necessary knowledge and skills are different from those of students. The conclusions made at the end of this research regarding the connection of the survey data with the knowledge and skills accounting students will gain at completing the university study program allowed us to identify the directions for improvement in accounting study programs.

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The Impact of Financial Structure on the Performance of European Listed Firms

Cited by 17 publications

References 27 publications

The relationship between debt and a firm’s performance: the impact of institutional factors

The relationship between debt and a firm’s performance: the impact of institutional factors

The Influence of Financial Knowledge, Control and Income on Individual Financial Behavior

Evaluation of Perception of Accountant`s Role at the Enterprise in Latvia and Lithuania

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