• The Journal of Asian Finance, Economics and Business
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• v.8 no.5
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• pp.287-292
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• 2021

The article analyzes the impact of capital structure on the firm value of chemical companies listed on the stock market of Vietnam. Data was collected from the financial statements of 23 chemical firms listed on the Vietnam stock market from 2012 to 2019. Quantitative research method with regression model according to OLS, FEM, REM method is used; FGLS method is used to overcome the model's defects. In this research, firm value (Tobin's Q) is a dependent variable. Capital structure (DA), Return on assets (ROA), Asset turnover (AT), fixed assets (TANG), Solvency (CR), Firm size (SZ), Firm Age (AGE), and revenue growth rate (GR) are independent variables in the study. The analysis results show that the capital structure of firms in the chemical industry listed on the Vietnam stock market has an inverse correlation with firm value. Besides, firms with greater asset turnover, business size, and number of years of operation have lower firm value. This article helps corporate executives improve corporate value by adjusting their capital structure properly. Chemical firms adjusted their capital structure in the direction of gradually decreasing the debt ratio and gradually increasing equity. Firms use high debt, which has the effect of reducing the firm value of firms in the chemical industry.

• The Journal of Asian Finance, Economics and Business
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• v.10 no.2
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• pp.163-174
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• 2023

This study aims to investigate the effect of the composition of the board and ownership structure on a firm's value in Jordanian firms. Specifically, it aims to determine the effect of board size, (CEO) duality, and family, foreign, institutional, and government ownership on a firm's value. An ordinary least square regression (OLS) was employed to examine the study hypotheses in a sample of 35 Jordanian industrial firms (175 firm-year observation) for a period of five years from 2016-2020. As measured by Tobin's Q (Q ratio) and market-to-book (MB ratio) for Jordanian industrial firms listed on Amman Stock Exchange (ASE). The result found that foreign ownership, institutional ownership, and family ownership have a significant and positive effect on firm value. By contrast, government ownership does not have a significant effect on firm value. With respect to board composition (CEO duality and board size), the study results found no evidence to support the effect of board composition on firm value. The study recommended the concerned authorities with several recommendations, most notably: taking the necessary measures to ensure the continuity and growth of family businesses because of their positive impact on the value of the company and economic growth, spreading awareness about how governance protects the interests of investors.

• Journal of Technology Innovation
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• v.10 no.2
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• pp.69-90
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• 2002

This paper investigates the determinants of the firm's decision to carry out innovative activities in terms of the resource-based view(RBV) in strategic management. Two types of resources are distinguished: tangible(financial autonomy, firm size, capital intensity) and intangible(human resource, entrepreneurship, and commercial resource). R&D intensity and patent statistics are used as proxies for innovative activity. Specific hypotheses about their effect on the probability of a firm carrying out innovative activities are derived and tested on a sample of 337 listed firms in Korean manufacturing industry for the year 1999, using the logistic regression model. Empirical findings suggest that firm size and human resource are the main determinants of firm's internal innovative activities. The results show that the hypotheses concerning financial autonomy, debt ratio, capital intensity, entrepreneurship, and commercial resource are rejected.

• Asian Journal of Innovation and Policy
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• v.11 no.3
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• pp.277-292
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• 2022

This study examines the implications on the valuations of privately held firms when stakes are acquired by venture capitalists in India. In addition, the effect of fund size and revenue multiple is considered as a determinant of firm value. The study is based on a sample of 1229 rounds of funding during the period 2007-2015. The data was obtained from Venture Intelligence. Three major observations emerged based on an OLS regression. Firstly, it is observed that the stake acquired by venture capitalists has a negative effect on firm value. It supports the belief that when a firm reaches its maximum valuation from the promoter's perspective, there is a tendency to liquidate additional stakes. Secondly, a positive association between the revenue multiple and valuation is recognized. Thirdly, the convex relationship (U-shaped) between the fund size and firm valuations as seen in the case of developed economies, appears to be non-existent in India.

• Korean Journal of Social Welfare
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• v.66 no.1
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• pp.251-276
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• 2014

This study scrutinizes the common sense in the field of disability employment that the bigger the size of a firm, the lower the employment rate of people with disabilities. This common sense has been established by conventional cross-tabulation and multiple regression analyses without taking into account possible interactions between the sizes of firms and the industries in which they operate. This study shows that the distribution of the disability employment rate violates the linearity and homoscedasticity assumptions of the OLS. In an effort to find models that explain the data better, this study fits the OLS model, the weighted linear regression model, and the multinomial logit model as well as the path analysis which is meant to examine the relationships between firm size and other variables relevant to disability employment. The result shows that, when an interaction term between firm size and industry is added to the model, firm size does not have any significant effect on disability employment rate for those firms with 100 or more regular employees, to the contrary of the findings of prior studies. It also demonstrates that other factors such as job setting, the extent of helpfulness of disability employment employers perceive, employers' care for disability, and employers' awareness of disability policies may matter more than does firm size. This study proposes that future research and policy implementation for disability employment should pay no less attention to industry and other factors mentioned above than to firm size.

• Journal of Korean Society of Transportation
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• v.14 no.2
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• pp.157-172
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• 1996

The long-existed licence system which has acted as one of the strong barriers to entry in the ocean shipping market in Korea is supposed to repeal in the near future. As a result, competition among the different sizes of firms which are operating under regional shield by means of the licence will be intensified. The main objective of this paper is to estimate the degree of economies of scale and economies of density for various firm sizes. For the successful estimation of economies scale and economies of density, translog cost models are developed and estimated through SURE technique which was suggested by Zeller (1963). The major findings are as follows ; All shipping firms in the sample exhibit economies of scale and density. Even small size shipping firms under licence system, they show substantial economies of scale contrary to the wide-known idea that small-size firms are subject to diseconomies of scale. For the ranked firm sizes according to owned deadweight tons, the degree of economies of scale decreases as the firm sizes are larger and larger. The degree of economies of density moderately declines from the smallest to the firm size of 30-60 thousand deadweight tons and sharply rise thereafter. And the large shipping firms with over half-million deadweight tons exhibit high economies density compared to other sizes of firm. If follows that the larger firms have great advantage in competition if the licence system is abolished.

• The Journal of Asian Finance, Economics and Business
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• v.9 no.2
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• pp.81-92
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• 2022

The necessity for a theoretical explanation of the negative association between capital structure and company performance is identified in this study. By focusing on accounting metrics of business performance, this study is the first to investigate the moderating effects of firm size between these variables using logical reasoning. Due to the possibility of endogeneity, this study applies a two-step system GMM approach with data from 285 non-financial enterprises from PSX over a 21-year period. For robustness, we employed pooled OLS, fixed effect, and two-step difference GMM. Our data show that leverage has a detrimental impact on business performance, with size acting as a moderator in the same direction. Our analysis empirically supports some studies while refuting others due to inconsistent results in the literature, but no study has theoretically justified their negative link. We believe that because larger companies have more and easier access to capital markets, they focus primarily on the amount of return, even if the investment is inefficient in terms of the rate of return, but small businesses do not. As a result of this thinking, firm managers' performance suffers as a result of leverage.

• Journal of Korea Technology Innovation Society
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• v.21 no.3
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• pp.1077-1100
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• 2018

The present study analyzed the effect of firms' external research and development (R&D) on corporate productivity, while investigating the moderating effect of firm size on the external R&D-productivity nexus. In the empirical analysis, we estimated South Korean manufacturing firms' total factor productivity (TFP) using the firm level data drawn from the Survey of Business Activities (Korea National Statistical Office) for the years 2006-2015. Thereafter, focusing on the role of external R&D and its interaction with the firm size in determining firms' TFP, the productivity function was estimated as well. To this end, we used ordinary least squares (OLS) and quantile regression to highlight the heterogeneous impacts of external R&D by companies' productivity level. Empirical results confirmed that firms' external R&D significantly enhanced corporate productivity in all manufacturing industries, from high-tech to low-tech. The moderating effect of firm size in determining the productivity effect of external R&D was not as prominent as in the case for internal R&D, which exhibited some degree of the size premium in the productivity-enhancing effect. These results suggest that regardless of the firm size, external R&D can be an important channel for corporate productivity improvement, and can be a particularly effective strategy for SMEs with relatively limited internal R&D capacities.

• East Asian Economic Review
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• v.21 no.4
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• pp.385-432
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• 2017

This paper investigates how firm age, size and ownership are related with job creation and destruction, and how these patterns differ across transition and non-transition economies. The analysis finds that age is inversely related with gross job creation and net job creation in the two samples. This finding is consistent with the theory of the learning effect. The relationship between age and job destruction is indifferent in non-transition economies. On the contrary, old firms in transition economies destroy more jobs than young ones. The paper further establishes an inverse relationship between size and gross job creation in the two groups. However, there is divergence between the two samples; small firms in non-transition economies also exhibit a higher gross job destruction rate. Consequently large firms have a higher net job creation rate. In transition economies, small and large firms exhibit similar rates of job destruction. But small firms retain a higher net job creation rate. A more intriguing finding is that state owned firms do not underperform domestic private ones. This means these countries may be using soft budget constraint which allows state owned firms to overstaff. Finally, crowding out of SMEs by foreign owned firms is not evident in transition economies.

• Journal of the Korean Society of Clothing and Textiles
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• v.38 no.5
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• pp.718-732
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• 2014

This study investigates the effects of two organizational variables (market orientation and organizational innovativeness) and the interaction between these two variables on supply chain agility as well as examines the moderating effect of 1) firm size and 2) the extent of global sourcing. Employing a web-based e-mail survey method, the study issued 1,320 questionnaires to South Korea apparel manufacturing companies; data from 147 completed surveys were analyzed. Market orientation, organizational innovativeness, and the interaction between the two variables positively affect supply chain agility. Firm size and global sourcing do not have any significant moderating effects on the relationship between organizational characteristics and supply chain agility. Companies with high market orientation and high organizational innovativeness have more agile supply chains than companies with only market orientation or organizational innovativeness. Firms need to effectively enhance market orientation and organizational innovativeness simultaneously to enhance supply chain agility. The lack of a moderating effect from firm size suggests that all companies should promote a greater degree of market orientation and organizational innovativeness to enhance supply chain agility regardless of firm size.