Geographical proximity, nonlinearities and financial behaviour of firms. Does firm size matter?

• Autores: Mari Luz Maté Sánchez de Val, Fernando Antonio López Hernández, Jesús Mur Lacambra , Majed Atwi Saab
• Localización: Aestimatio: The IEB International Journal of Finance, ISSN 2173-0164, Nº. 17, 2018, págs. 26-53
• Idioma: inglés
• Títulos paralelos:
  • Proximidad geográfica, no linealidad y comportamiento financiero de las empresas. ¿Importa el tamaño de la empresa?
• Enlaces
  • Texto completo (pdf)
• Resumen
  • español

    El artículo pone de manifiesto la importancia de la proximidad geográfica y de las no linealidades para comprender correctamente el comportamiento financiero de las empresas.

    Nuestro trabajo se centra en tres dimensiones financieras principales, como son la rentabilidad, el endeudamiento y la liquidez especificando un modelo de ajuste parcial con el objetivo de capturar los movimientos producidos en cada dimensión.

    Usamos una gran muestra de compañías industriales españolas, localizadas a lo largo del litoral mediterráneo y evaluamos el impacto de las no linealidades, el comportamiento heterogéneo de las empresas así como la importancia de las redes locales. El impacto de la proximidad geográfica es mayor para las empresas de pequeño tamaño, que son más dependientes de lo que ocurre en sus inmediaciones. Además, estos impactosno son iguales para los tres ratios financieros; en concreto, obtenemos que el efecto de la proximidad es más relevante para la rentabilidad que para los casos del endeudamiento y la liquidez

  • español

    The paper highlights the role played by nonlinearities and geographical proximity in an attempt to better understand the financial behaviour of firms. Our study focuses on three main financial dimensions: profitability, indebtedness and liquidity. A classical partial adjustment model is specified in order to capture the movements produced in each dimension. Using a large sample of Spanish industrial companies, located along the Mediterranean Basin, we evaluate the impact of nonlinearities, the heterogeneous behaviour of companies, and the importance of local networks. The impact of physical proximity is greater for small firms, which are more dependent on what happens in their neighbourhood. Moreover, the impacts are not homogeneous for the three financial ratios: we find that the effect of proximity is stronger for the profitability ratio than for indebtedness and liquidity.

• Referencias bibliográficas
  • Acharya, V., Almeida, H. and Campello, M. (2007). Is cash negative debt? A hedging perspective on corporate. Financial policies, Journal of...
  • Aybar-Arias, C., Casino-Martínez, A. and López-García, J. (2012). On the adjustment speed of SMEs to their optimal capital structure, Small...
  • Baum, J., Li, S. and Usher, J. (2000). Making the next move: How experiential and vicarious learning shape the locations of chains’ acquisitions,...
  • Beck, T. and Demirgüç-Kunt, A. (2006). Small and medium-size enterprises: Access to finance as a growth constraint, Journal of Banking and...
  • Beck, T., Demirgüç-Kunt, A. and Peria, M. (2011). Bank financing for SMEs: evidence across countries and bank ownership types, Journal of...
  • Berger, A.N. and Udell, K. (1998). The economics of small business finance: the roles of private equity and debt markets in the financial...
  • Brown, G., Lawrence, T.B. and Robinson, S.L. (2005). Territoriality in organizations, Academy of Management Review, 30, pp. 577-594.
  • Brown, L.D., Call, A.C., Clement, M.B. and Sharp, N.Y. (2014). Inside the ‘Black Box’ of Sell-Side Financial Analysts, Journal of Accounting...
  • Carbo, S., Humphrey, D. and Rodríguez-Fernández, F. (2003). Deregulation, bank competition and regional growth, Regional Studies, 37, pp....
  • Carreira, C. and Silva, V. (2010). No deep pockets: some stylised empirical results on firms’ financial constraints, Journal of Economic Surveys,...
  • Chen, C.R. and Ainina, F. (1994). Financial Ratio Adjustment Dynamics and Interest Rate Expectations, Journal of Business Finance & Accounting,...
  • Dass, N. and Massa, M. (2011). The impact of a strong bank-firm relationship on the borrowing firm, Review of Financial Studies, 24, pp. 1204-1260.
  • Davis, G. and Greve, H.R. (1997). Corporate elite structures and governance Changes in the 1980s, American Journal of Sociology, 103, pp....
  • Davis, H. and Peles, Y. (1993). Measuring Equilibrating Forces of Financial Ratios, The Accounting Review, 68, pp. 725-747.
  • Degryse, H. and Ongena, S. (2005). Distance, lending relationships, and competition, The Journal of Finance, 60(1), pp. 231-266.
  • Drobetz, W., Schilling, D. and Schroder, H. (2015). Heterogeneity in the Speed of Capital Structure Adjustment across Countries and over the...
  • Elhorst, P. (2014). Spatial Econometrics. From Cross-Section Data to Spatial Panel, Springer, Berlin.
  • Faulkender, M., Flannery, M., Watsonhankins, K. and Smith, M. (2012). Cash flows and leverage adjustments, Journal of Financial Economics,...
  • Fernández, J. and Maudos, J. (2009). Regional financial development and bank competition: effects on firms’ growth, Regional Studies, 43,...
  • Fieldsend, S.N. Longford, A. and McLeay, S. (1987). Ratio analysis: A variance component analysis, Journal of Business, Finance and Accounting,...
  • Frank, M.Z. and Goyal, V.K. (2009). Capital structure decisions: Which factors are reliably important?, Financial Management, 38, pp. 1-37.
  • Frecka, J. and Lee, F. (1983). Generalized Financial Ratio Adjustment Processes and Their Implications, Journal of Accounting Research, 21,...
  • Gallizo, J.L. and Salvador, M. (2003). What Factors Drive and which Act as a Brake on the Convergence of Financial Statements in EMU Member...
  • Gallizo, J.L., Gargallo, P. and Salvador, M. (2008). Multivariate Partial Adjustment of Financial Ratios: A Bayesian Hierarchical Approach,...
  • Gao, W., Ng, L. and Wang, Q. (2013). Does corporate headquarters location matter for firm capital structure?, Finance Management, 40, pp....
  • Granovetter, M. (1985). Economic action and social structure: The problem of embeddedness, American Journal of Sociology, 91(3), pp. 246-259.
  • Greve, H.R. (2005). Interorganizational learning and heterogeneous social structure, Organization Studies, 26, pp. 1025-1047.
  • Harris, R., Moffat, J. and Kravtsova, V. (2011). In search of ‘W’, Spatial Economic Analysis, 6, pp. 249-270.
  • Knyazeva, A. and Knyazeva, D. (2012): Does being your bank’s neighbour matter?, Journal of Banking and Finance, 36, pp. 1194-1209.
  • Leary, M. and Roberts, R. (2014): Do Peer Firms Affect Corporate Financial Policy?, The Journal of Finance, 69(1), pp. 139-178.
  • Lee, C.F. and Wu, C. (1988). Expectation formation and financial ratio adjustment processes, Accounting Review, 63, pp. 292-306.
  • Lee, C.W. (1985). Stochastic properties of cross sectional financial data, Journal of Accounting Research, Spring, pp. 213-227.
  • LeSage, J. and Pace, K. (2009). Introduction to Spatial Econometrics. CRC Book Press, Boca Raton.
  • Lev, B. (1969). Industry Averages as Targets for Financial Ratios, Journal of Accounting Research, 7, pp. 290-299.
  • Lev, B.B. and Sunder, S. (1979). Methodological issues in the use of financial ratios. Journal of Accounting and Economics, 1, pp. 187-210.
  • Mackay, P. and Phillips, G. (2005). How does industry affect firm financial structure?, Review of Financial Studies, 18, pp. 1433-1466.
  • Massa, M. and Simonov, A. (2006). Hedging, familiarity and portfolio choice, Review of Financial Studies, 19, pp. 633-685.
  • Maté, M.L, López, F.A. and Mur J. (2012). Analysing Long Term Average Adjustment of Financial Ratios with Spatial Interactions, Economic Modelling,...
  • Maté, M.L, López, F.A. and Mur J. (2017). How do neighbouring peer companies influence SME’s financial behaviour?, Economic Modelling, 63,...
  • Mizruchi, M. (1996). What do interlocks do? An analysis, critique, and assessment of research on interlocking directorates, Annual Review...
  • Mur J., López, F.A. and Angulo, A. (2008). Symptoms of instability in models of spatial dependence. An application to the European case, Geographical...
  • Mur J., López, F.A. and Angulo, A. (2010). Instability in Spatial Error Models. An Application to the Hypothesis of Convergence in the European...
  • Naveed, M., Ramakrishnan, S., Anuar, M. and Mirzaei, M. (2015): Factors affecting speed of adjustment under different economic conditions:...
  • O’Brien, P. and Tan, H. (2015). Geographic proximity and analyst coverage decisions: Evidence from IPOs, Journal of Accounting and Economy,...
  • Palacín-Sánchez, M.J. and Di Pietro, F. (2016). The Role of the Regional Financial Sector in the Capital Structure of Small and Medium-Sized...
  • Palacín-Sánchez, M.J., Ramírez-Herrera, L.M. and Di Pietro, F. (2013). Capital structure of SMEs in Spanish regions, Small Business Economics,...
  • Peles, Y. and Schneller, M., (1989). The duration of the adjustment process of financial ratios, The Review of Economics and Statistics, 62,...
  • Pirinsky, C., Wang, Q. (2010). Geographic location and corporate finance: a review. In: Tourani-Rad, A., Ingley, C.C. (Eds.): Handbook of...
  • Rao, P., Yue, J. and Zhu, J. (2015). An investigation of credit borrower concentration, Journal of Banking and Finance, 54, pp. 208-221.
  • Reppenhagen, D. (2010). Contagion of accounting methods: evidence from stock option expensing, Review of Accounting Studies, 15, pp. 629-657.
  • Seay, S.S., Pitts, S.T. and Kamery, R.H. (2004). The Contribution of Firm-specific Factors: Theory Development of the Ratio Adjustment Process....
  • Soboh, R.A., Lansink, A.O., Giesen, G. and Van Dijk, G. (2009). Performance Measurement of the Agricultural Marketing Cooperatives: The Gap...
  • Storper, M. and Venables, A.J. (2004). Buzz: Face-to-face contact and the urban economy, Journal of Economic Geography, 4, pp. 351-370.
  • Ter-Wal, A. and Boschma, R. (2009). Applying Social Network Analysis in Economic Geography: Framing Some Key Analytic Issues, Annals of Regional...
  • Treacy, W. and Carey, M. (2000). Credit risk rating system at large US banks, Journal of Banking and finance, 24, pp. 167-201.
  • Uysal, V.B., Kedia, S. and Pantchapagesan, V. (2008). Geography and acquirer returns. Journal of Financial Intermediation, 17, pp. 256-275.
  • Wu, C., Ho, K. and Lee, C.F. (1997). Inter-Company Dynamics in the Financial Ratio Adjustment, Advances in Quantitative Finance and Accounting,...
  • Wu, C. and Ho, S.K. (1997). Financial Ratio Adjustment: Industry-Wide Effects on Strategic Management, Review of Quantitative Finance and...