Corporate investment and growth opportunities: The role of R&D capital complementarity

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Moncef Guizani ◽

Ahdi Noomen Ajmi

Keyword(s):

Empirical Model ◽

Generalized Method Of Moments ◽

Corporate Investment ◽

Investment Efficiency ◽

Islamic Banks ◽

Agency Conflicts ◽

Content Type ◽

Listed Firms ◽

Lower Effect

PurposeThe purpose of this paper is to examine whether and how Islamic banks' financing affects corporate investment efficiency.Design/methodology/approachTo achieve the research purpose, an empirical model was constructed to describe the relationship between Islamic banks' financing and corporate investment efficiency. The empirical model was tested through generalized method of moments (GMM) estimation technique using a panel data of 163 Malaysian listed firms for the period 2007–2017.FindingsThis study provides evidence that Islamic banks' financing plays an important role in enhancing investment efficiency and that this positive effect comes mainly from non-PLS contracts. Moreover, the results show that the effect of Islamic banks' financing in preventing suboptimal investments is stronger in the financial crisis period. The results also reveal that the contribution of Islamic banks' financing in reducing suboptimal investments is more prominent when firms face over-investment problems.Research limitations/implicationsThis research contributes to the debate on the financial implications of Islamic banks' financing modes by exploring their effect on corporate investment efficiency.Practical implicationsFrom a managerial perspective, the research findings are beneficial to Islamic bank managers to the extent that they highlight the role of Islamic financial contracts in improving corporate investment efficiency. In addition, the lower effect of PLS contracts on investment efficiency implies that policymakers in Malaysia should multiply their efforts to further expand the PLS financing.Originality/valueThis paper offers some insights on the role of Islamic banks' financing in mitigating agency conflicts and reducing asymmetric information problems. It is the first attempt focusing on the role of Islamic financing in fostering corporate investment decisions.

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Linking local business with global growth opportunities: the role of infrastructure

Oxford Review of Economic Policy ◽

10.1093/oxrep/grw019 ◽

2016 ◽

Vol 32 (3) ◽

pp. 410-430 ◽

Cited By ~ 7

Author(s):

Debora Revoltella ◽

Philipp-Bastian Brutscher ◽

Alexandra Tsiotras ◽

Christoph T. Weiss

Keyword(s):

Growth Opportunities ◽

Local Business ◽

Global Growth

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IMPACT OF DIVIDEND PAYOUT ON FIRM’S PERFORMANCE UNDER LOW GROWTH OPPORTUNITIES

Humanities & Social Sciences Reviews ◽

10.18510/hssr.2021.93114 ◽

2021 ◽

Vol 9 (3) ◽

pp. 1156-1165

Author(s):

Taymoor Ali ◽

Muhammad Kashif Khurshid ◽

Adnan Ali Chaudhary

Keyword(s):

Stock Exchange ◽

Manufacturing Sector ◽

Secondary Data ◽

Financial Statements ◽

Manufacturing Firms ◽

Growth Opportunities ◽

Dividend Payout ◽

Relationship Of ◽

The Relationship

Purpose of the study: The objective of the study was to investigate the relationship of the dividend payout on a firm's performance under low growth opportunities from the manufacturing sector of Pakistan. Methodology: A sample of 251 firms out of 378 manufacturing firms listed at the Pakistan Stock Exchange (PSX), have been carefully chosen for the era of ten years from 2006 to 2015. The secondary data was obtained from the firm’s web financials and analysis of financial statements, published by the statistics department of the State Bank of Pakistan. For the persistence of investigation panel data (fixed effect) analyses were employed in this study. Main Findings: The fallouts of the analysis revealed that the dividend payout ratio has an insignificant relationship with the firm's performance in the low growth perspectives of the study. Applications of this study: The findings of the study are helpful for the financial managers of the firms facing low growth opportunities. Furthermore, the investors in capital markets can use the findings of this while investing. The originality of this study: The study focussed on the role of low growth opportunities while studying the nexus of dividend pay-out and the firm’s financial performance which inherits the novelty and originality of the study.

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Behavioral CEOs: The Role of Managerial Overconfidence

The Journal of Economic Perspectives ◽

10.1257/jep.29.4.37 ◽

2015 ◽

Vol 29 (4) ◽

pp. 37-60 ◽

Cited By ~ 77

Author(s):

Ulrike Malmendier ◽

Geoffrey Tate

Keyword(s):

Empirical Evidence ◽

Investment Decisions ◽

Corporate Investment ◽

Financing Constraints ◽

Managerial Overconfidence ◽

Empirical Framework

In this paper, we provide a theoretical and empirical framework that allows us to synthesize and assess the burgeoning literature on CEO overconfidence. We also provide novel empirical evidence that overconfidence matters for corporate investment decisions in a framework that explicitly addresses the endogeneity of firms' financing constraints.

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Hierarchical financing and reality of the financial structure of Moroccan listed companies

Journal of Modelling in Management ◽

10.1108/jm2-12-2019-0287 ◽

2020 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Firano Zakaria ◽

Doughmi Salawa

Keyword(s):

Stock Exchange ◽

Financial Structure ◽

Order Theory ◽

Debt Ratio ◽

Growth Opportunities ◽

Pecking Order ◽

Positive Role ◽

Pecking Order Theory ◽

Content Type

Purpose There is a wealth of literature on the financing structure of a company. For this reason, the authors considered it useful to present a theoretical and empirical literature review of classical and new theories of the financial structure. The purpose of this study is to realize on a panel of 15 nonfinancial Moroccan companies listed on the Casablanca Stock Exchange, over a period of 11 years. Design/methodology/approach The results obtained indicate that only a few variables from financial theory have an important role in the financing policy of Moroccan companies. The authors have presented the positive role of size and self-financing on the debt ratio. The analysis of the effects of profitability shows in this study that it is negative related on the debt ratio which asserts the predictions of the pecking order theory. Also, the age of the company and the growth opportunities explain the level of indebtedness. Findings Econometric analysis is used to ascertain the nature of the financial structure of listed companies. For this purpose, a large number of companies listed on the Casablanca stock exchange were used. Originality/value The authors have presented the positive role of size and self-financing on the debt ratio. Regarding the influence of profitability, this analysis shows that it is negative related on the debt ratio which asserts the predictions of the pecking order theory. Also, the age of the company and the growth opportunities explain the level of indebtedness.

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