Current Issue : July - September Volume : 2019 Issue Number : 3 Articles : 5 Articles
The paper analyzes the determinants of new products innovation in the SMEs sector.\nThe study focused on types of innovation funding and sources of innovation funding.\nFive-hundred and fifty (550) SME owners were randomly selected for the study.\nInformation was sourced through the use of questionnaires. Tobit model was\nused for the analysis. Sales value of new products was used a proxy for new\nproducts innovation. The determinants were grouped into two types thus innovation\nexpenditure and sources of innovation expenditure. Sources of innovation\nexpenditure have significant influence on new products innovation. From the\nfinding foreign capital, government tax credit, and subsidies had significantly\ninfluence on new products innovation. SMEs specific attributes such as patent\nand having overseas partners influence new product innovation.\nPolicies and programs geared towards government tax credit, subsidies, patent\nrights and inflow of foreign capital into SME sector should be encouraged\nsince they have the potential of promoting product innovation in the sector....
The purpose of this study is to investigate the effect of firm structure (whether\ndiversified or focused firms) on corporate cash holding. Samples of 80\nnon-financial companies were selected including diversified and focused\nfirms which were listed on Karachi stock exchange for a period 7 years from\n2006 to 2013. These diversified and focused firms were selected on the basis\nof equal proportionate method. Random effect model and descriptive statistics\nwere used for the analysis of these variables. The results of these models\nshowed that there is negative and significant effect of firm structure on corporate\ncash holding. We also find negative and significant relationship of leverage\nand Networking capital with the corporate cash holdings and the\nrelation between growth opportunities and corporate cash holding was examined\nto be positive and significant. We also find a negative and insignificant\nrelationship between firm size and corporate cash holding. The descriptive\nstatistics showed that there was significant difference between the cash\nholding of diversified and focused firms. The diversified firms keep a smaller\namount of cash as compare to the single segment companies (focused firms),\nwhich is in support of the trade-off theory. This paper contributes to current\nliteratures with regard to organization structure (whether diversified or focused\nfirms) on cash holding in a developing economy like Pakistan....
This paper studies the influence of government subsidies and financing\nstructure on corporate R&D investments by using the empirical data of Chinese\nenterprises listed in SME board. The study finds that: 1) Internal financing\nhas the greatest effect on R&D investments, followed by debt financing\nand equity financing. 2) Both government subsidies and corporate financing\ncan significantly influence corporate R&D investments. 3) Government\nsubsidies have a significant moderating effect on the relationship between\ncorporate financing and R&D investments, that is, the more government\nsubsidies the small and medium-sized enterprises receive, the more\nwilling they are to invest funds from other financing channels into R&D activities.\nIn the further sample test, it is also find that government subsidies\nhave a greater effect on the promotion of R&D investments in non-state-owned\nenterprises than in state-owned enterprises....
Undoubtedly, microenterprises play a critical role in the development of the economy.\nComprising a dominant share in the industry, microenterprises help to alleviate poverty\nand unemployment. However, the growth of microenterprises remains a global\nchallenge. A number of scholars have attributed the growth of microenterprises\nto accessibility of finance; however, microfinancing is equally significant in the\ninitiative of owners to expand. This study aims to examine how microfinancing\nmediates the effect of access to finance on the growth of microenterprises. A\nsurvey result from a dataset of 582 microenterprises from the Philippines was\nused for correlation, regression, and mediation analyses. The results suggest that\nthe impact of access to finance on the growth of microenterprises is heightened\nwhen microfinancing is maximized. However, the ownersâ?? preferences toward\ninternal financing limit the ability to expand. Thus, the issue of stagnation is a\nresult of the owners' isolation to external financing. The results highlight the\nneed for a more holistic approach to enterprise growth than merely facilitating\naccess to finance. The study recommends aspects such as literacy and competitiveness\nas factors other than access to capital as enablers of growth. The results may challenge\npolicymakers to enhance the existing policy frameworks further and provide more\nskills-enhanced income opportunities. Further, an experimental research using an\nintervention may help discover how to overcome stagnancy of micro and small firms....
The purpose of the paper are: (1) to examine financial indicators, including: current ratio,\nreturn on assets, debt to assets ratio, and total asset turn over as a predictor of financial distress\nin mining sector companies in Indonesia; (2) to examine the structure of Good Corporate\nGovernance including: independent commissioner, audit committee, board of directors,\nindependent audit committee ratios with non-independent, and institutional ownership ratio\nwith managerial ownership as predictor of financial distress in mining sector company in\nIndonesia. Type of research is quantitative explanatory research. Sampling technique is used\npurposive sampling method, as many as 20 companies in the mining sector in Indonesia.\nAnalytical techniques in this study uses logistic regression. The results of the research show\nthat: current ratio, debt to asset ratio, total asset turnover, and institutional ownership ratio with\nmanagerial ownership are not predictors of financial distress in mining sector in Indonesia.\nHowever, return on Assets, independent commissioners, audit committees, boards of directors\nand independent audit committee ratios with non-independent are predictors of financial\ndistress in mining companies in Indonesia....
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