High season, low growth: The impact of tourism seasonality and vulnerability to tourism on the emergence of high-growth firms

2022 ◽  
Vol 89 ◽  
pp. 104455
Author(s):  
Nebojša Stojčić ◽  
Josip Mikulić ◽  
Maruška Vizek
Keyword(s):  
High Growth ◽  
Growth Firms ◽  
High Season ◽  
The Impact

scholarly journals Leverage and firm investment: the role of information asymmetry and growth

2019 ◽  
Vol 27 (1) ◽  
pp. 56-73 ◽  
Author(s):  
Albert Danso ◽  
Theophilus Lartey ◽  
Samuel Fosu ◽  
Samuel Owusu-Agyei ◽  
Moshfique Uddin
Keyword(s):  
Information Asymmetry ◽  
High Growth ◽  
Firm Investment ◽  
Financial Leverage ◽  
Content Type ◽  
Growth Firms ◽  
The Impact ◽  
The Relationship ◽  
Role Of Information

PurposeThis paper aims to demonstrate how financial leverage impacts firm investment and the extent to which this relationship is conditional on the level of information asymmetry as well as growth.Design/methodology/approachThe paper relies on data from 2,403 Indian firms during the period 1995-2014, generating a total of 19,544 firm-year observations. Analysis is conducted by using various panel econometric techniques.FindingsDrawing insights from agency theories, the paper uncovers that financial leverage is negatively and significantly related to firm investment. It is also observed that the impact of financial leverage on firm investment is significant for high information asymmetric firms. Finally, the paper shows that the relationship between leverage and firm investment is significant for low-growth firms. However, no significant relationship is found between leverage and investment for high-growth firms.Originality/valueThis paper provides fresh evidence on the leverage–investment nexus and, to the authors’ knowledge, it the first paper to examine the extent to which this leverage–investment relationship is driven by the level of information asymmetry.

scholarly journals Debt Capacity and Tests of Capital Structure Theories

2010 ◽  
Vol 45 (5) ◽  
pp. 1161-1187 ◽  
Author(s):  
Michael L. Lemmon ◽  
Jaime F. Zender
Keyword(s):  
Capital Structure ◽  
Good Description ◽  
High Growth ◽  
Order Theory ◽  
Pecking Order ◽  
Pecking Order Theory ◽  
Growth Firms ◽  
Debt Capacity ◽  
Financing Behavior ◽  
The Impact

AbstractWe examine the impact of explicitly incorporating a measure of debt capacity in recent tests of competing theories of capital structure. Our main results are that if external funds are required, in the absence of debt capacity concerns, debt appears to be preferred to equity. Concerns over debt capacity largely explain the use of new external equity financing by publicly traded firms. Finally, we present evidence that reconciles the frequent equity issues by small, high-growth firms with the pecking order. After accounting for debt capacity, the pecking order theory appears to give a good description of financing behavior for a large sample of firms examined over an extended time period.

Does Growth Affect Firms’ Leverage Adjustment Speed? A Study of Indian Firms

2020 ◽  
Vol 8 (2) ◽  
pp. 139-155 ◽  
Author(s):  
Biswajit Ghose ◽  
Kailash Chandra Kabra
Keyword(s):  
High Growth ◽  
Two Dimensions ◽  
Growth Opportunities ◽  
Partial Adjustment ◽  
Partial Adjustment Model ◽  
Adjustment Speed ◽  
Growth Firms ◽  
The Impact ◽  
The Relationship

The significance of firms’ growth opportunities as one of the determinants of leverage is documented in many prior studies. But, there are not enough studies which examine the impact of growth on leverage adjustment speed. In this backdrop, the present study investigates the relationship between growth and leverage adjustment speed. Second, the study also examines the moderating role of two dimensions of target deviation, that is, nature and level of deviation in the relationship between growth and leverage adjustment speed. Using partial adjustment model on a dataset of 28,532 firm-year observations comprising 2,718 listed Indian firms with 4–12 years data for each firm, the study observes faster leverage adjustment speed for high-growth firms (36%) than low-growth firms (24%). The results also confirm the moderating effect of target deviation in the relationship between growth and adjustment speed. Overall, the study concludes that firms’ growth opportunities cause asymmetries in target adjustment speed by altering the costs and benefits of adjustment, and nature and level of target deviation moderates the relationship between growth and adjustment speed. These findings are expected to have substantial practical implications for financial managers in their capital structure decisions.

Investment opportunity set, board independence, and firm performance

2014 ◽  
Vol 40 (5) ◽  
pp. 454-468 ◽  
Author(s):  
Jerry Sun ◽  
George Lan ◽  
Zhenzhong Ma
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Interactive Effect ◽  
High Growth ◽  
Board Independence ◽  
Investment Opportunity ◽  
Content Type ◽  
Investment Opportunity Set ◽  
Growth Firms ◽  
The Impact

Purpose – The purpose of this paper is to investigate the impact of Sarbanes-Oxley Act (SOX) on high growth firms’ corporate governance. Specially, the study examines whether there is a negative impact of SOX on the interactive effect of board independence and investment opportunity set on firm performance. Design/methodology/approach – Sample firms were selected from the Investor Responsibility Research Center Directors’ database. Both accounting- and market-based firm performance measures are used. Regressions are run to test the hypothesis. Findings – It was found that the impact of SOX on the interaction effect of board independence and investment opportunity set on firm performance is negative. Originality/value – The results suggest that the impact of SOX in corporate governance and regulatory environment mitigates the effect of board independence on the relationship between investment opportunity set and firm performance, consistent with the notion that the enactment of SOX increases monitoring costs of board governance especially for high-growth firms.

scholarly journals Does Financial Leverage Influence Investment Decisions? The Case Of Mauritian Firms

2011 ◽  
Vol 4 (9) ◽  
pp. 49 ◽  
Author(s):  
Mohun Prasadsing Odit ◽  
Hemant B. Chittoo
Keyword(s):  
Panel Data ◽  
Stock Exchange ◽  
Negative Relationship ◽  
Investment Decisions ◽  
High Growth ◽  
Financial Leverage ◽  
Firm Level ◽  
Data Set ◽  
Growth Firms ◽  
The Impact

This paper primarily focuses on the impact of financial leverage on investment decisions of firms and it is an attempt to explore the impact of financial leverage on investment levels using firm-level panel data in Mauritius. We expect to contribute to the existing literature by bringing evidence from a panel data set, which comprises 27firms, all listed on the Stock Exchange of Mauritius (SEM), sampled over a 15 year-period (i.e. from 1990 to 2004). In addition, we demarcate between two types of firms, namely: (i) high-growth firms; and (ii) low-growth firms. The results reveal a significant negative relationship between leverage and investment. More interestingly, while we found a negative relationship between leverage and investment for low growth firm, our econometric results reveal an insignificant relationship between the two variables for high growth firm.

Thematic maps in the scientific studies of the moon

2019 ◽  
Vol 943 (1) ◽  
pp. 68-75
Author(s):  
S.G. Pugacheva ◽  
E.A. Feoktistova ◽  
V.V. Shevchenko
Keyword(s):  
Natural Resources ◽  
Thermal Inertia ◽  
High Growth ◽  
Lunar Soil ◽  
Nature Management ◽  
The Moon ◽  
Surface Cooling ◽  
Laser Altimeters ◽  
Space Infrastructure ◽  
The Impact

The article presents the results of astrophysical studies of the Moon’s reflected and intrinsic radiation. We studied the intensity of the Moon’s infrared radiation and, thus, carried out a detailed research of the brightness temperature of the Moon’s visible disc, estimated the thermal inertia of the coating substance by the rate of its surface cooling, and the degree of the lunar soil fragmentation. Polarimetric, colorimetric and spectrophotometric measurements of the reflected radiation intensity were carried out at different wavelengths. In the article, we present maps prepared based on our measurement results. We conducted theresearch of the unique South Pole – Aitken basin (SPA). The altitude profiles of the Apollo-11 and Zond-8 spacecrafts and the data of laser altimeters of the Apollo-16 and Apollo-15 spacecrafts were used as the main material. Basing upon this data we prepared a hypsometric map of SPA-basing global relief structure. A surface topography map of the Moon’s Southern Hemisphere is given in the article. The topography model of the SPA topography surface shows displacement centers of the altitude topographic rims from the central rim. Basing upon the detailed study of the basin’s topography as well as its “depth-diameter” ratio we suggest that the basin originated from the impact of a giant cometary body from the Orta Cloud. In our works, we consider the Moon as a part of the Earth’s space infrastructure. High growth rates of the Earth’s population, irrational nature management will cause deterioration of scarce natural resources in the near future. In our article, we present maps of the natural resources on the Moon pointing out the most promising regions of thorium, iron, and titanium. Probably in 20 or 40 years a critical mining level of gold, diamonds, zinc, platinum and other vital rocks and metals will be missing on the Earth.

Earnings Management, Litigation Risk, and Asymmetric Audit Fee Responses

2006 ◽  
Vol 25 (1) ◽  
pp. 85-98 ◽  
Author(s):  
Lawrence J. Abbott ◽  
Susan Parker ◽  
Gary F. Peters
Keyword(s):  
Earnings Management ◽  
High Growth ◽  
Audit Fees ◽  
Discretionary Accruals ◽  
Litigation Risk ◽  
Audit Fee ◽  
Growth Firms ◽  
Price Earnings Ratio ◽  
Year 2000 ◽  
Conservative Bias

This study examines the association between audit fees and earnings management, using publicly available fee data. We hypothesize that, due to asymmetric litigation effects, audit fees decrease (increase) with a client's risk of income-decreasing (increasing) earnings management risk. We also hypothesize that the positive relation between income-increasing earnings management risk and audit fees is heightened for clients that are high-growth firms. We test our hypotheses with a sample of 429 public, non-regulated, Big 5 audited companies, using fee data for the year 2000. We find that downward earnings management risk, as estimated by negative (i.e., income-decreasing) discretionary accruals, is associated with lower audit fees. We also document that upward earnings management risk, as estimated by positive discretionary accruals, is associated with higher audit fees and that the interaction of this risk with an industry-adjusted price-earnings ratio has an incrementally significant, positive effect on fees. We interpret our findings as consistent with a conservative bias on the part of auditors. The conservative bias arises from asymmetric litigation risk in which income-increasing discretionary accruals exhibit greater expected litigation costs than income-decreasing discretionary accruals (Simunic and Stein 1996; Palmrose and Scholz 2004; Palmrose et al. 2004; Richardson et al. 2002; Heninger 2001).

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