Serving SMEs Via the Stock Exchange: Historical Lessons from the Lisbon Stock Exchange

Costa, José Rodrigues da; Mata, Eugénia

doi:10.1080/00213624.2016.1213593

Cited by 3 publications

(1 citation statement)

References 9 publications

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“…On the one hand, the information asymmetry between the management and the shareholders causes the managers to pay attention to the short-term benefits of the business performance of the enterprise, which makes them sacrifice the long-term innovation activities in exchange for the current profits, so as to avoid the stock undervaluation. On the other hand, high liquidity reduces the cost of capital in and out of the enterprise, which increases the possibility that the enterprise is faced with hostile merger and acquisition, and the management will face the risk of unemployment and reputation loss for failing to run the enterprise well ( da Costa and Mata, 2016 ). Therefore, the management will pay more attention to short-term performance and the level of stock price.…”

Section: Discussionmentioning

confidence: 99%

Research on the Psychological Expectation Impact on Enterprise Innovation Under Mergers and Acquisitions Pressure: From the Evidence of Large Stock Dividends

Kuang

Lin

2021

Front. Psychol.

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From the perspective of social psychology, takes the large stock dividends policy of Chinese listed companies as an example, based on the sample of Chinese listed companies from 2009 to 2018, this article examines the impact of psychological expectation under the mergers and acquisitions (M&A) pressure on enterprise innovation. The empirical study finds that the high dividend payout mainly increases the liquidity of the stock, which makes the company face a greater risk of hostile merger and acquisition, and thus causes the management to pay attention to the psychological preference of short-term effect, and reduces the level of enterprise R&D and innovation. Moreover, the above conclusion is still true after controlling the endogenetic problem. Further research shows that in private enterprises, enterprises with low ownership concentration and non-high-tech enterprises, large stock dividends has a more obvious inhibiting effect on the level of enterprises’ R&D and innovation. After excluding the possible of agency problem, the conclusion is still robust. This article expands the research on the influencing factors of enterprise innovation from the perspective of psychological expectation. The findings of this study provide references and inspirations for facilitating enterprise innovations by reducing short-sighted behaviors of management under increased stock liquidity.

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Section: Discussionmentioning

confidence: 99%

Research on the Psychological Expectation Impact on Enterprise Innovation Under Mergers and Acquisitions Pressure: From the Evidence of Large Stock Dividends

Kuang

Lin

2021

Front. Psychol.

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On the MENA Private Equity Puzzle: Insights and Recommendations

Al-Abduljader

2018

JPE

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Systematic Review of Small and Medium Enterprises (SMEs) in Nigeria

Onuwa

Mailumo

Okeke-Agulu

2022

Advances in Human Resources Management and Organizational Development

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Small and medium enterprises (SMEs) are critical for the development of any economy since they contribute to the business growth and economic development of countries. Financing for SMEs is crucial for economic growth. Although, inadequate SME financing persists. This chapter is a literature review that aims to present different financing sources of SME, and its main constraints, presenting the specific case of Nigeria. Main financing sources to SMEs include angel investors, private funds, retained earnings, individual savings, family and associates, debt capital, bootstrapping, trade credits, banks, commercial institutions, initial public offering, securities markets, and venture capital (VC). Crowdfunding also provided an alternative source of financing SMEs. Regarding constraints, SMEs have limited access to credit due to the absence of collateral security, poor record keeping, poor creditworthiness, inadequate project proposals, etc. The solutions proffered are not exhaustive to mitigate barriers to SME financing.

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Serving SMEs Via the Stock Exchange: Historical Lessons from the Lisbon Stock Exchange

Cited by 3 publications

References 9 publications

Research on the Psychological Expectation Impact on Enterprise Innovation Under Mergers and Acquisitions Pressure: From the Evidence of Large Stock Dividends

Research on the Psychological Expectation Impact on Enterprise Innovation Under Mergers and Acquisitions Pressure: From the Evidence of Large Stock Dividends

On the MENA Private Equity Puzzle: Insights and Recommendations

Systematic Review of Small and Medium Enterprises (SMEs) in Nigeria

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