Corporate Social Responsibility and Environmental Management
Cash management is important for energy SMEs, which, differently from large firms, face severe fi... more Cash management is important for energy SMEs, which, differently from large firms, face severe financial constraints and need to seize growth opportunities to ensure their survival. This paper, analyzing a large sample of European energy SMEs, finds a positive effect of holding a buffer of cash on firm performance. It shows that a stock of cash allows energy firms to prevent negative contingencies and/or achieve valuable growth patterns and investments. Moreover, considering that the energy industry is involved in environmental sustainability policies promoted by national governments, we find that complying with environmental regulations reduces the value of cash. Countries that pay more attention to environmental issues provide energy SMEs with growth opportunities and financial support, reducing the need to hold a stock of cash. A key implication is that, in a context with high environmental concern, energy SMEs have more financial flexibility to guarantee their growth with positi...
The present study investigates the role of institutional differences at the local level as determ... more The present study investigates the role of institutional differences at the local level as determinants of firms ’ capital structure. Specifically, the aim is to empirically assess whether and to what extent SMEs ’ financial decisions are af-fected by local financial development – evaluating this influence both ceteris paribus, and by allowing it to be condi-tional on different levels of legal enforcement inefficiency. After controlling for debt inertia, firms ’ heterogeneity and endogeneity problems, the main finding of the analysis suggests that local financial development may be an important determinant of SMEs ’ capital structure. In fact, firms appear to have better access to financial debt in areas characterised by a higher quality of the legal system – possibly as intermediaries may be more inclined to provide funds where the enforcement systems allow a more effective credit protection. Despite the international process of integration in capital markets, local financial insti...
Italian Abstract: Il presente lavoro ha lo scopo di fornire un contributo a studenti dei primi an... more Italian Abstract: Il presente lavoro ha lo scopo di fornire un contributo a studenti dei primi anni di laurea in percorsi economico-aziendalistici che per la prima volta affrontano temi di management. La premessa a tale lavoro e l'articolo di La Rocca (2016) sul concetto di valore economico, in quanto tale concetto rappresenta la chiave di lettura e interpretazione di tutti i modelli e strumenti manageriali. In particolare, viene approfondito il tema della funzione Finanza nell’impresa, indicando gli obiettivi del financial manager, i principali processi decisionali che deve presiedere e illustrando, seppur in modo sintetico e non esaustivo, alcuni strumenti finanziari a suo supporto. English Abstract: This work intends to provide an overview of the concept of Corporate Finance, that is a division inside the firm that deals with how corporations deal with funding sources, capital structuring, and investment decisions as a set of fundamental decisions to support. Specifically, it...
This paper investigates gender dimensions in the relationship between CEO duality and firm perfor... more This paper investigates gender dimensions in the relationship between CEO duality and firm performance, combining feminist theories and stewardship arguments. Using a large sample of listed firms from 23 European countries in the 2014–2020 period, we have found that CEO duality has a positive effect on corporate performance when a woman holds both the roles of CEO and board chair. These findings highlight the ‘bright side’ of women in governance, suggesting the presence of women in double leadership positions can amplify benefits and/or limits costs related to CEO duality. Having a woman in CEO-chair leadership could optimize a firm’s use of its resources and more effectively contribute to improving performance. Directions for future research could include a better understanding of women in leadership in the organizational domain. Our results have a number of managerial and political implications.
This article investigates the role of local banking development, per se, in European SME debt pol... more This article investigates the role of local banking development, per se, in European SME debt policies, using a cross-country dataset. Moreover, it assesses whether the debt policies of SMEs are mainly driven by local or national banking development. We find that higher levels of local banking development increase the amount of debt used by SMEs. Results suggest that national banking institutions reduce the influence of local banking sectors on SME financial behavior. Several robustness and further tests validate our results, suggesting that whilst the process of international integration and digitalization of financial markets, local banking development is still relevant despite the moderating role of national banking policies. Consequently, policy makers should first and foremost allow headquarters and central banks to better support local banks in integrating national banking policies in order to reduce the financial constraints on SMEs and spur their economic growth.
PurposeThe purpose of this paper is to examine the financial factors across multiple levels of an... more PurposeThe purpose of this paper is to examine the financial factors across multiple levels of analysis that influence the performance effects of the unrelated diversification strategy, including institutional-, industry- and firm-levels.Design/methodology/approachUsing a unique panel dataset of Italian firms from 1980 to 2010, the paper tests hypotheses on how industry external financial dependence and the firm's financial constraints both separately and jointly alter the performance benefits of unrelated diversification in contexts with financial market inefficiencies.FindingsUnrelated diversification increases performance in weak financial contexts and such positive effect is enhanced by greater industry external financial dependence and greater firm financial constraints. However, as financial markets develop, the moderating effects of firm financial constraints shrink.Practical implicationsThe study highlights the importance of recognizing the multiple financial contingenci...
This paper concerns the effect of ownership concent ration and analyst following on market liquid... more This paper concerns the effect of ownership concent ration and analyst following on market liquidity. U sing a unique panel of hand-collected data for Italian fir ms for the period 2002-2008, the results suggest th at: (i) ownership concentration is negatively related to ma rket liquidity; (ii) the number of studies carried out by financial analysts are positively related to market liquidity; (iii) ownership concentration have a st rong decreasing effect on liquidity when analyst followi ng increase . Thus, when high level of public infor mation is available, liquidity decreases due to the high r sk of expropriation.
Corporate Social Responsibility and Environmental Management
Cash management is important for energy SMEs, which, differently from large firms, face severe fi... more Cash management is important for energy SMEs, which, differently from large firms, face severe financial constraints and need to seize growth opportunities to ensure their survival. This paper, analyzing a large sample of European energy SMEs, finds a positive effect of holding a buffer of cash on firm performance. It shows that a stock of cash allows energy firms to prevent negative contingencies and/or achieve valuable growth patterns and investments. Moreover, considering that the energy industry is involved in environmental sustainability policies promoted by national governments, we find that complying with environmental regulations reduces the value of cash. Countries that pay more attention to environmental issues provide energy SMEs with growth opportunities and financial support, reducing the need to hold a stock of cash. A key implication is that, in a context with high environmental concern, energy SMEs have more financial flexibility to guarantee their growth with positi...
The present study investigates the role of institutional differences at the local level as determ... more The present study investigates the role of institutional differences at the local level as determinants of firms ’ capital structure. Specifically, the aim is to empirically assess whether and to what extent SMEs ’ financial decisions are af-fected by local financial development – evaluating this influence both ceteris paribus, and by allowing it to be condi-tional on different levels of legal enforcement inefficiency. After controlling for debt inertia, firms ’ heterogeneity and endogeneity problems, the main finding of the analysis suggests that local financial development may be an important determinant of SMEs ’ capital structure. In fact, firms appear to have better access to financial debt in areas characterised by a higher quality of the legal system – possibly as intermediaries may be more inclined to provide funds where the enforcement systems allow a more effective credit protection. Despite the international process of integration in capital markets, local financial insti...
Italian Abstract: Il presente lavoro ha lo scopo di fornire un contributo a studenti dei primi an... more Italian Abstract: Il presente lavoro ha lo scopo di fornire un contributo a studenti dei primi anni di laurea in percorsi economico-aziendalistici che per la prima volta affrontano temi di management. La premessa a tale lavoro e l'articolo di La Rocca (2016) sul concetto di valore economico, in quanto tale concetto rappresenta la chiave di lettura e interpretazione di tutti i modelli e strumenti manageriali. In particolare, viene approfondito il tema della funzione Finanza nell’impresa, indicando gli obiettivi del financial manager, i principali processi decisionali che deve presiedere e illustrando, seppur in modo sintetico e non esaustivo, alcuni strumenti finanziari a suo supporto. English Abstract: This work intends to provide an overview of the concept of Corporate Finance, that is a division inside the firm that deals with how corporations deal with funding sources, capital structuring, and investment decisions as a set of fundamental decisions to support. Specifically, it...
This paper investigates gender dimensions in the relationship between CEO duality and firm perfor... more This paper investigates gender dimensions in the relationship between CEO duality and firm performance, combining feminist theories and stewardship arguments. Using a large sample of listed firms from 23 European countries in the 2014–2020 period, we have found that CEO duality has a positive effect on corporate performance when a woman holds both the roles of CEO and board chair. These findings highlight the ‘bright side’ of women in governance, suggesting the presence of women in double leadership positions can amplify benefits and/or limits costs related to CEO duality. Having a woman in CEO-chair leadership could optimize a firm’s use of its resources and more effectively contribute to improving performance. Directions for future research could include a better understanding of women in leadership in the organizational domain. Our results have a number of managerial and political implications.
This article investigates the role of local banking development, per se, in European SME debt pol... more This article investigates the role of local banking development, per se, in European SME debt policies, using a cross-country dataset. Moreover, it assesses whether the debt policies of SMEs are mainly driven by local or national banking development. We find that higher levels of local banking development increase the amount of debt used by SMEs. Results suggest that national banking institutions reduce the influence of local banking sectors on SME financial behavior. Several robustness and further tests validate our results, suggesting that whilst the process of international integration and digitalization of financial markets, local banking development is still relevant despite the moderating role of national banking policies. Consequently, policy makers should first and foremost allow headquarters and central banks to better support local banks in integrating national banking policies in order to reduce the financial constraints on SMEs and spur their economic growth.
PurposeThe purpose of this paper is to examine the financial factors across multiple levels of an... more PurposeThe purpose of this paper is to examine the financial factors across multiple levels of analysis that influence the performance effects of the unrelated diversification strategy, including institutional-, industry- and firm-levels.Design/methodology/approachUsing a unique panel dataset of Italian firms from 1980 to 2010, the paper tests hypotheses on how industry external financial dependence and the firm's financial constraints both separately and jointly alter the performance benefits of unrelated diversification in contexts with financial market inefficiencies.FindingsUnrelated diversification increases performance in weak financial contexts and such positive effect is enhanced by greater industry external financial dependence and greater firm financial constraints. However, as financial markets develop, the moderating effects of firm financial constraints shrink.Practical implicationsThe study highlights the importance of recognizing the multiple financial contingenci...
This paper concerns the effect of ownership concent ration and analyst following on market liquid... more This paper concerns the effect of ownership concent ration and analyst following on market liquidity. U sing a unique panel of hand-collected data for Italian fir ms for the period 2002-2008, the results suggest th at: (i) ownership concentration is negatively related to ma rket liquidity; (ii) the number of studies carried out by financial analysts are positively related to market liquidity; (iii) ownership concentration have a st rong decreasing effect on liquidity when analyst followi ng increase . Thus, when high level of public infor mation is available, liquidity decreases due to the high r sk of expropriation.
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Papers by maurizio la rocca