Autor(es): Baptista, Celísia ; Matias, Fernanda ; Pinto, Patrícia
Data: 2013
Identificador Persistente: http://hdl.handle.net/10400.1/4511
Origem: Sapientia - Universidade do Algarve
Assunto(s): Liquidity; Investment; Leverage; Industry environment; Corporate strategy
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.
