The impact of foreign capital on profitability: the case of Portuguese manufacturing SMEs
Autor(a) principal: | |
---|---|
Data de Publicação: | 2020 |
Tipo de documento: | Artigo |
Idioma: | eng |
Título da fonte: | Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
Texto Completo: | http://hdl.handle.net/11328/3207 |
Resumo: | The objective of this paper is to empirically examine the relationship between the firms’ ownership and control structure, in particular the presence of foreign capital, and its profitability. The literature about performance determinants is abundant, however, the relation between profitability and ownership and control structure is much less studied. The performance of the Portuguese economy is still highly dependent of foreign investment inflows directed to the manufacturing sector, a sector mainly comprised of SMEs that are responsible for the majority of job creation, innovation and exports. This paper uses a balanced panel data of 5.722 firms for the period from 2010 to 2017, researching if the presence of foreign capital influences financial performance, and controlling the effects of other variables such as size, age, exports, indebtedness and sector of activity. Finally, possible non-linear effects or moderating and interaction roles between variables are also tested. Our results evidence that, despite foreign firms higher levels of profitability, the degree of foreign ownership and institutional difference generally showed a non-significant relation with profitability. Nevertheless, there seems to exist a non-linear relation between the development level of the country of origin of the share capital and profitability, with the results indicating that firms with share capital originated from more advanced countries attain a higher financial performance. |
id |
RCAP_b3cae592287903cc30805bd4145b7398 |
---|---|
oai_identifier_str |
oai:repositorio.upt.pt:11328/3207 |
network_acronym_str |
RCAP |
network_name_str |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
repository_id_str |
7160 |
spelling |
The impact of foreign capital on profitability: the case of Portuguese manufacturing SMEsOwnership structureProfitabilityForeign investmentSMEsManufacturing sectorThe objective of this paper is to empirically examine the relationship between the firms’ ownership and control structure, in particular the presence of foreign capital, and its profitability. The literature about performance determinants is abundant, however, the relation between profitability and ownership and control structure is much less studied. The performance of the Portuguese economy is still highly dependent of foreign investment inflows directed to the manufacturing sector, a sector mainly comprised of SMEs that are responsible for the majority of job creation, innovation and exports. This paper uses a balanced panel data of 5.722 firms for the period from 2010 to 2017, researching if the presence of foreign capital influences financial performance, and controlling the effects of other variables such as size, age, exports, indebtedness and sector of activity. Finally, possible non-linear effects or moderating and interaction roles between variables are also tested. Our results evidence that, despite foreign firms higher levels of profitability, the degree of foreign ownership and institutional difference generally showed a non-significant relation with profitability. Nevertheless, there seems to exist a non-linear relation between the development level of the country of origin of the share capital and profitability, with the results indicating that firms with share capital originated from more advanced countries attain a higher financial performance.Inderscience Publishers2020-09-23T11:38:29Z2020-09-232020-09-22T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfPacheco, L. M. (2020). The impact of foreign capital on profitability: the case of Portuguese manufacturing SMEs. International Journal of Globalisation and Small Business, 11(4), pp. 391-412. Disponível no Repositório UPT, http://hdl.handle.net/11328/3207http://hdl.handle.net/11328/3207Pacheco, L. M. (2020). The impact of foreign capital on profitability: the case of Portuguese manufacturing SMEs. International Journal of Globalisation and Small Business, 11(4), pp. 391-412. Disponível no Repositório UPT, http://hdl.handle.net/11328/3207http://hdl.handle.net/11328/3207eng1479-3067http://creativecommons.org/licenses/by/4.0/info:eu-repo/semantics/openAccessPacheco, Luís Miguelreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-11-16T02:11:31Zoai:repositorio.upt.pt:11328/3207Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T22:41:03.766058Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse |
dc.title.none.fl_str_mv |
The impact of foreign capital on profitability: the case of Portuguese manufacturing SMEs |
title |
The impact of foreign capital on profitability: the case of Portuguese manufacturing SMEs |
spellingShingle |
The impact of foreign capital on profitability: the case of Portuguese manufacturing SMEs Pacheco, Luís Miguel Ownership structure Profitability Foreign investment SMEs Manufacturing sector |
title_short |
The impact of foreign capital on profitability: the case of Portuguese manufacturing SMEs |
title_full |
The impact of foreign capital on profitability: the case of Portuguese manufacturing SMEs |
title_fullStr |
The impact of foreign capital on profitability: the case of Portuguese manufacturing SMEs |
title_full_unstemmed |
The impact of foreign capital on profitability: the case of Portuguese manufacturing SMEs |
title_sort |
The impact of foreign capital on profitability: the case of Portuguese manufacturing SMEs |
author |
Pacheco, Luís Miguel |
author_facet |
Pacheco, Luís Miguel |
author_role |
author |
dc.contributor.author.fl_str_mv |
Pacheco, Luís Miguel |
dc.subject.por.fl_str_mv |
Ownership structure Profitability Foreign investment SMEs Manufacturing sector |
topic |
Ownership structure Profitability Foreign investment SMEs Manufacturing sector |
description |
The objective of this paper is to empirically examine the relationship between the firms’ ownership and control structure, in particular the presence of foreign capital, and its profitability. The literature about performance determinants is abundant, however, the relation between profitability and ownership and control structure is much less studied. The performance of the Portuguese economy is still highly dependent of foreign investment inflows directed to the manufacturing sector, a sector mainly comprised of SMEs that are responsible for the majority of job creation, innovation and exports. This paper uses a balanced panel data of 5.722 firms for the period from 2010 to 2017, researching if the presence of foreign capital influences financial performance, and controlling the effects of other variables such as size, age, exports, indebtedness and sector of activity. Finally, possible non-linear effects or moderating and interaction roles between variables are also tested. Our results evidence that, despite foreign firms higher levels of profitability, the degree of foreign ownership and institutional difference generally showed a non-significant relation with profitability. Nevertheless, there seems to exist a non-linear relation between the development level of the country of origin of the share capital and profitability, with the results indicating that firms with share capital originated from more advanced countries attain a higher financial performance. |
publishDate |
2020 |
dc.date.none.fl_str_mv |
2020-09-23T11:38:29Z 2020-09-23 2020-09-22T00:00:00Z |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
Pacheco, L. M. (2020). The impact of foreign capital on profitability: the case of Portuguese manufacturing SMEs. International Journal of Globalisation and Small Business, 11(4), pp. 391-412. Disponível no Repositório UPT, http://hdl.handle.net/11328/3207 http://hdl.handle.net/11328/3207 Pacheco, L. M. (2020). The impact of foreign capital on profitability: the case of Portuguese manufacturing SMEs. International Journal of Globalisation and Small Business, 11(4), pp. 391-412. Disponível no Repositório UPT, http://hdl.handle.net/11328/3207 http://hdl.handle.net/11328/3207 |
identifier_str_mv |
Pacheco, L. M. (2020). The impact of foreign capital on profitability: the case of Portuguese manufacturing SMEs. International Journal of Globalisation and Small Business, 11(4), pp. 391-412. Disponível no Repositório UPT, http://hdl.handle.net/11328/3207 |
url |
http://hdl.handle.net/11328/3207 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.relation.none.fl_str_mv |
1479-3067 |
dc.rights.driver.fl_str_mv |
http://creativecommons.org/licenses/by/4.0/ info:eu-repo/semantics/openAccess |
rights_invalid_str_mv |
http://creativecommons.org/licenses/by/4.0/ |
eu_rights_str_mv |
openAccess |
dc.format.none.fl_str_mv |
application/pdf |
dc.publisher.none.fl_str_mv |
Inderscience Publishers |
publisher.none.fl_str_mv |
Inderscience Publishers |
dc.source.none.fl_str_mv |
reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação instacron:RCAAP |
instname_str |
Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
instacron_str |
RCAAP |
institution |
RCAAP |
reponame_str |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
collection |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
repository.name.fl_str_mv |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
repository.mail.fl_str_mv |
|
_version_ |
1799134973646602240 |