THE MODERATING ROLE OF MARKET STRUCTURE ON THE RELATIONSHIP BETWEEN FIRM OPERATIONAL PERFORMANCE AND DEGREE OF OPERATING LEVERAGE
Autor(a) principal: | |
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Data de Publicação: | 2019 |
Outros Autores: | , |
Tipo de documento: | Artigo |
Idioma: | eng |
Título da fonte: | Revista Universo Contábil |
Texto Completo: | https://ojsrevista.furb.br/ojs/index.php/universocontabil/article/view/7002 |
Resumo: | This article investigates the moderation role of market structure on the relationship between operational performance and firms’ costs composition. The Herfindahl-Hirschman Index (HHI) were adopted as proxy for market structure; for operational performance, Return on Invested Capital (ROIC); and for firms’ cost choices, the Degree of Operating Leverage (DOL). The database covers non-financial firms at Brazilian market from 1996 to 2016, third quarter. The output points toward to market structure moderation of the relationship between ROIC and DOL with an increase of the effect when markets move to a monopolistic structure. Overall results suggest the existence of a relation between firms’ operational performance and cost behavior, indicated by a negative relationship between ROIC and DOL. Furthermore, we notice a moderating role of Size on market structure (HHI) moderation role on the relationship between ROIC and DOL, in the extent that market structure moves towards a higher concentration level configuration, the moderating effect of HHI becomes more latent. |
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THE MODERATING ROLE OF MARKET STRUCTURE ON THE RELATIONSHIP BETWEEN FIRM OPERATIONAL PERFORMANCE AND DEGREE OF OPERATING LEVERAGEDegree of operating leverageReturn on invested capitalMarket structureSize Moderation.This article investigates the moderation role of market structure on the relationship between operational performance and firms’ costs composition. The Herfindahl-Hirschman Index (HHI) were adopted as proxy for market structure; for operational performance, Return on Invested Capital (ROIC); and for firms’ cost choices, the Degree of Operating Leverage (DOL). The database covers non-financial firms at Brazilian market from 1996 to 2016, third quarter. The output points toward to market structure moderation of the relationship between ROIC and DOL with an increase of the effect when markets move to a monopolistic structure. Overall results suggest the existence of a relation between firms’ operational performance and cost behavior, indicated by a negative relationship between ROIC and DOL. Furthermore, we notice a moderating role of Size on market structure (HHI) moderation role on the relationship between ROIC and DOL, in the extent that market structure moves towards a higher concentration level configuration, the moderating effect of HHI becomes more latent.Universidade Regional de Blumenau2019-05-13info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionapplication/pdfhttps://ojsrevista.furb.br/ojs/index.php/universocontabil/article/view/700210.4270/ruc.2018432Revista Universo Contábil; v. 14 n. 4 (2018); 160-1811809-33371809-3337reponame:Revista Universo Contábilinstname:Universidade Regional de Blumenau (FURB)instacron:FURBenghttps://ojsrevista.furb.br/ojs/index.php/universocontabil/article/view/7002/4266Copyright (c) 2019 Revista Universo Contábilinfo:eu-repo/semantics/openAccessLourenço, Wesley Da SilvaLouzada, Luiz CláudioNovaes, Paulo Victor Gomes2022-07-21T03:14:44Zoai:ojs.bu.furb.br:article/7002Revistahttps://proxy.furb.br/ojs/index.php/universocontabil/PUBhttps://proxy.furb.br/ojs/index.php/universocontabil/oai||universocontabil@furb.br1809-33371809-3337opendoar:2022-07-21T03:14:44Revista Universo Contábil - Universidade Regional de Blumenau (FURB)false |
dc.title.none.fl_str_mv |
THE MODERATING ROLE OF MARKET STRUCTURE ON THE RELATIONSHIP BETWEEN FIRM OPERATIONAL PERFORMANCE AND DEGREE OF OPERATING LEVERAGE |
title |
THE MODERATING ROLE OF MARKET STRUCTURE ON THE RELATIONSHIP BETWEEN FIRM OPERATIONAL PERFORMANCE AND DEGREE OF OPERATING LEVERAGE |
spellingShingle |
THE MODERATING ROLE OF MARKET STRUCTURE ON THE RELATIONSHIP BETWEEN FIRM OPERATIONAL PERFORMANCE AND DEGREE OF OPERATING LEVERAGE Lourenço, Wesley Da Silva Degree of operating leverage Return on invested capital Market structure Size Moderation. |
title_short |
THE MODERATING ROLE OF MARKET STRUCTURE ON THE RELATIONSHIP BETWEEN FIRM OPERATIONAL PERFORMANCE AND DEGREE OF OPERATING LEVERAGE |
title_full |
THE MODERATING ROLE OF MARKET STRUCTURE ON THE RELATIONSHIP BETWEEN FIRM OPERATIONAL PERFORMANCE AND DEGREE OF OPERATING LEVERAGE |
title_fullStr |
THE MODERATING ROLE OF MARKET STRUCTURE ON THE RELATIONSHIP BETWEEN FIRM OPERATIONAL PERFORMANCE AND DEGREE OF OPERATING LEVERAGE |
title_full_unstemmed |
THE MODERATING ROLE OF MARKET STRUCTURE ON THE RELATIONSHIP BETWEEN FIRM OPERATIONAL PERFORMANCE AND DEGREE OF OPERATING LEVERAGE |
title_sort |
THE MODERATING ROLE OF MARKET STRUCTURE ON THE RELATIONSHIP BETWEEN FIRM OPERATIONAL PERFORMANCE AND DEGREE OF OPERATING LEVERAGE |
author |
Lourenço, Wesley Da Silva |
author_facet |
Lourenço, Wesley Da Silva Louzada, Luiz Cláudio Novaes, Paulo Victor Gomes |
author_role |
author |
author2 |
Louzada, Luiz Cláudio Novaes, Paulo Victor Gomes |
author2_role |
author author |
dc.contributor.author.fl_str_mv |
Lourenço, Wesley Da Silva Louzada, Luiz Cláudio Novaes, Paulo Victor Gomes |
dc.subject.por.fl_str_mv |
Degree of operating leverage Return on invested capital Market structure Size Moderation. |
topic |
Degree of operating leverage Return on invested capital Market structure Size Moderation. |
description |
This article investigates the moderation role of market structure on the relationship between operational performance and firms’ costs composition. The Herfindahl-Hirschman Index (HHI) were adopted as proxy for market structure; for operational performance, Return on Invested Capital (ROIC); and for firms’ cost choices, the Degree of Operating Leverage (DOL). The database covers non-financial firms at Brazilian market from 1996 to 2016, third quarter. The output points toward to market structure moderation of the relationship between ROIC and DOL with an increase of the effect when markets move to a monopolistic structure. Overall results suggest the existence of a relation between firms’ operational performance and cost behavior, indicated by a negative relationship between ROIC and DOL. Furthermore, we notice a moderating role of Size on market structure (HHI) moderation role on the relationship between ROIC and DOL, in the extent that market structure moves towards a higher concentration level configuration, the moderating effect of HHI becomes more latent. |
publishDate |
2019 |
dc.date.none.fl_str_mv |
2019-05-13 |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
https://ojsrevista.furb.br/ojs/index.php/universocontabil/article/view/7002 10.4270/ruc.2018432 |
url |
https://ojsrevista.furb.br/ojs/index.php/universocontabil/article/view/7002 |
identifier_str_mv |
10.4270/ruc.2018432 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.relation.none.fl_str_mv |
https://ojsrevista.furb.br/ojs/index.php/universocontabil/article/view/7002/4266 |
dc.rights.driver.fl_str_mv |
Copyright (c) 2019 Revista Universo Contábil info:eu-repo/semantics/openAccess |
rights_invalid_str_mv |
Copyright (c) 2019 Revista Universo Contábil |
eu_rights_str_mv |
openAccess |
dc.format.none.fl_str_mv |
application/pdf |
dc.publisher.none.fl_str_mv |
Universidade Regional de Blumenau |
publisher.none.fl_str_mv |
Universidade Regional de Blumenau |
dc.source.none.fl_str_mv |
Revista Universo Contábil; v. 14 n. 4 (2018); 160-181 1809-3337 1809-3337 reponame:Revista Universo Contábil instname:Universidade Regional de Blumenau (FURB) instacron:FURB |
instname_str |
Universidade Regional de Blumenau (FURB) |
instacron_str |
FURB |
institution |
FURB |
reponame_str |
Revista Universo Contábil |
collection |
Revista Universo Contábil |
repository.name.fl_str_mv |
Revista Universo Contábil - Universidade Regional de Blumenau (FURB) |
repository.mail.fl_str_mv |
||universocontabil@furb.br |
_version_ |
1798945117657104384 |