SME digital practices increasingly differ from those of large firms as they become more sophisticated or comprehensive, EU28, 2019

2021 ◽  
Keyword(s):  
Large Firms

The impact of formality on firm profitability in Bolivia: an heterogeneous assessment

2012 ◽  
pp. 53-74
Author(s):  
Darwin Ugarte Ontiveros
Keyword(s):  
Empirical Literature ◽  
Large Firms ◽  
Marginal Effects ◽  
Heterogeneous Effects ◽  
Firm Profitability ◽  
The Impact ◽  
Formal Status

Recent evidence suggests that formality improves micro-firms profits in Bolivia. This gain is only for firms with 2 to 5 workers, while smaller and larger firms would lose out by formalizing (McKenzie and Sakho, 2010). However, as much of the empirical literature on this topic, the estimations are based on strong assumptions about unobservables. If the returns to formality vary among firms and these variations influence selection into formality, traditional estimators are biased (Heckman and Vytlacil, 2007). In this paper we considerthese elements to estimate the heterogeneous effects of formality on firm profits in Bolivia. We find remarkable heterogeneity in the returns to formality, from -3% to 6%. The group of firms with positive marginal effects from formality corresponds to those which are most likely to register. We also characterize the firms that likely benefit from having a formal status. These would correspond to large firms which work at big scales.

Audit Committee Practices in Malaysian Large Firms

2007 ◽  
Author(s):  
Zulkarnain Muhamad Sori ◽  
Shamsher Mohamad ◽  
Siti Shaharatulfazzah Mohd Saad
Keyword(s):  
Audit Committee ◽  
Large Firms

The Dividend of Diversity for India’s Corporate Sector

2017 ◽  
Author(s):  
Ashwini Deshpande
Keyword(s):  
Social Identity ◽  
Social Inclusion ◽  
Positive Association ◽  
Large Firms ◽  
Corporate Sector ◽  
Specific Context ◽  
Diverse Workforce ◽  
Marginalized Groups ◽  
Private Corporations ◽  
Micro Enterprises

This chapter argues the normative case for greater diversity in the workforce of private corporations in the specific context of caste disparities in India. It offers evidence from the literature which indicates a positive association between profits and more diverse workforce teams as well as management boards for large firms. This suggests that ensuring greater diversity, in addition to enabling social inclusion especially of marginalized groups, would make good business sense. However, the discussion on diversity might be more relevant to large corporations. Small and micro-enterprises that are owned and populated by members of marginalized groups might face discrimination on account of their identity, adversely affecting their performance. This indicates that discrimination based on social identity manifests itself in different ways in different segments of the market depending on the size of the firm.

scholarly journals Risk and the Market’s Reaction to M&A Announcements

2021 ◽  
Vol 14 (7) ◽  
pp. 334
Author(s):  
Ye Cai ◽  
Hersh Shefrin
Keyword(s):  
Standard Deviation ◽  
Large Firms ◽  
Total Risk ◽  
Basis Point ◽  
Acquiring Firms ◽  
Risk Sensitive ◽  
Point Increase

We estimate how an acquiring firm’s risk changes depending on whether the market initially judges the acquisition to be neutral, strongly negative, or strongly positive for the shareholders of the acquiring firm. We found that for an average neutral acquisition, the annualized standard deviation of an acquiring firm’s total return declines by 5%. In contrast, acquisitions judged negatively by the market result in a 5% increase in total risk, while acquisitions judged positively by the market feature a 30-basis-point increase in total risk. We found the median acquisition to be value creating, not value destructive. Value destruction tends to be concentrated among large firms and to be associated with extreme negative outliers. Acquiring firms with longholder CEOs are more prone to undertake acquisitions and more prone to take on risk, but are less prone to engage in value-destructive acquisitions than acquiring firms with non-longholder CEOs. In this respect, acquiring firms with non-longholder CEOs are more apt to undertake risky bad acquisitions, especially when their prior returns lie above the industry average. In addition, acquiring firms with non-longholder CEOs are less prone to take on good acquisitions that are high in risk. As a general matter, firms with longholder CEOs are less risk sensitive to changes in prior returns than firms with non-longholder CEOs.

The Strategic Behavior of Firms with Debt

2016 ◽  
Vol 51 (5) ◽  
pp. 1611-1636 ◽  
Author(s):  
Jérôme Reboul ◽  
Anna Toldrà-Simats
Keyword(s):  
Small Firms ◽  
Strategic Behavior ◽  
Financing Constraints ◽  
Large Firms ◽  
Market Shares ◽  
Probability Of Bankruptcy ◽  
The Difference

We empirically study the strategic behavior of levered firms in competitive and noncompetitive environments. We find that regulation induces firms to increase leverage, and this reduces their ability to compete when deregulation occurs. Large and small levered firms adopt different strategies upon deregulation. Whereas more levered small firms charge higher prices to increase margins at the expense of market shares, highly levered large firms prey on their rivals by increasing output and reducing prices to increase their market shares. The difference in their behavior is due to differences in their probability of bankruptcy and their financing constraints.

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