The moderating role of strategy and environment on the relationship between corporate liquidity and investment: evidence from panel data
In order to test the moderating role of corporate strategy and industry environment in the effect of liquidity on investment for Portuguese manufacturing firms, we developed a multiple linear regression model for panel data. It is a static model with three types of variables: financial; strategi...
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| Format: | Article |
| Language: | English |
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University of Algarve, ESGHT/CINTURS
2013-01-01
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| Series: | Tourism & Management Studies |
| Subjects: | |
| Online Access: | https://tmstudies.net/index.php/ectms/article/view/551/953 |
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| author | Celísia Baptista Fernanda Matias Patrícia Oom do Valle |
| author_facet | Celísia Baptista Fernanda Matias Patrícia Oom do Valle |
| author_sort | Celísia Baptista |
| collection | DOAJ |
| description | In order to test the moderating role of corporate strategy and
industry environment in the effect of liquidity on investment
for Portuguese manufacturing firms, we developed a multiple
linear regression model for panel data. It is a static model with
three types of variables: financial; strategic/environmental;
and interactive. The estimated model was validated through
the Breusch-Pagan/Cook-Weisberg and Wald Modified tests
(heteroscedasticity tests), Lagrange Multiplier (industry
random effects test, using the two-digit National Classification
of Economic Activities), Hausman robust test (fixed effects
model vs. random effects model test) and likelihood-ratio test
(joint effect of industry and time test). The statistical
processing of the data revealed that a company’s strategy
(diversification and innovation) and the industry environment
(growth) moderate the effect of liquidity on investment, which
can be explained by the effect of these factors on the cost of
asymmetric information. |
| format | Article |
| id | doaj-art-5a745e5c11f744558725330a3e5d649c |
| institution | Kabale University |
| issn | 2182-8466 |
| language | English |
| publishDate | 2013-01-01 |
| publisher | University of Algarve, ESGHT/CINTURS |
| record_format | Article |
| series | Tourism & Management Studies |
| spelling | doaj-art-5a745e5c11f744558725330a3e5d649c2025-02-02T16:19:51ZengUniversity of Algarve, ESGHT/CINTURSTourism & Management Studies2182-84662013-01-01918591The moderating role of strategy and environment on the relationship between corporate liquidity and investment: evidence from panel dataCelísia Baptista0Fernanda Matias1Patrícia Oom do Valle2School of Management, Hospitality and Tourism - University of the Algarve, CEFAGE Research Center, PortugalSchool of Management, Hospitality and Tourism - University of the Algarve, CEFAGE Research Center, PortugalFaculty of Economics - University of the Algarve, Research Centre for Spatial and Organizational Dynamics (CIEO), PortugalIn order to test the moderating role of corporate strategy and industry environment in the effect of liquidity on investment for Portuguese manufacturing firms, we developed a multiple linear regression model for panel data. It is a static model with three types of variables: financial; strategic/environmental; and interactive. The estimated model was validated through the Breusch-Pagan/Cook-Weisberg and Wald Modified tests (heteroscedasticity tests), Lagrange Multiplier (industry random effects test, using the two-digit National Classification of Economic Activities), Hausman robust test (fixed effects model vs. random effects model test) and likelihood-ratio test (joint effect of industry and time test). The statistical processing of the data revealed that a company’s strategy (diversification and innovation) and the industry environment (growth) moderate the effect of liquidity on investment, which can be explained by the effect of these factors on the cost of asymmetric information.https://tmstudies.net/index.php/ectms/article/view/551/953liquidityinvestmentleverageindustry environmentcorporate strategy |
| spellingShingle | Celísia Baptista Fernanda Matias Patrícia Oom do Valle The moderating role of strategy and environment on the relationship between corporate liquidity and investment: evidence from panel data Tourism & Management Studies liquidity investment leverage industry environment corporate strategy |
| title | The moderating role of strategy and environment on the relationship between corporate liquidity and investment: evidence from panel data |
| title_full | The moderating role of strategy and environment on the relationship between corporate liquidity and investment: evidence from panel data |
| title_fullStr | The moderating role of strategy and environment on the relationship between corporate liquidity and investment: evidence from panel data |
| title_full_unstemmed | The moderating role of strategy and environment on the relationship between corporate liquidity and investment: evidence from panel data |
| title_short | The moderating role of strategy and environment on the relationship between corporate liquidity and investment: evidence from panel data |
| title_sort | moderating role of strategy and environment on the relationship between corporate liquidity and investment evidence from panel data |
| topic | liquidity investment leverage industry environment corporate strategy |
| url | https://tmstudies.net/index.php/ectms/article/view/551/953 |
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