BAR - Brazilian Administration Review

16

Authors: Darlin Aulia, Sylvia Veronica Siregar

The purpose of this research is to investigate the effect of financial reporting quality, debt maturity, and CEO career concerns on investment efficiency in Indonesia. This study used a sample of 680 observations from non-financial companies in Indonesia during the period from 2012 to 2015 using panel regression. The results show that financial reporting quality does not affect investment efficiency. This might be because the quality of financial reporting has no effect in the overinvestment scenario. Under this condition, financial reporting quality cannot mitigate the occurrence of overinvestment due to the high level of agency problems. However, financial reporting quality has a significantly positive effect under condition of underinvestment, which means that financial reporting quality can reduce the occurrence of underinvestment because it can be used to attract external funds so that companies can avoid underinvestment conditions. The debt maturity has a negative effect on investment efficiency. In particular, debt maturity has no effect on underinvestment, but it does have an effect on overinvestment, because by using short-term debt, the company has funds that can be used to make investments to enable overinvestment. CEO career concerns have no effect in underinvestment conditions because companies do not experience funding constraints, so the CEO career concerns do not mitigate underinvestment. Whereas in conditions of overinvestment, career concerns have a positive effect. Thus, CEO career concerns can reduce the occurrence of overinvestment.

18

Authors: Camila Cristina Rodrigues Salgado, Renan Felinto de Farias Aires

By means of a distinguished approach of credit granting, microcredit programs stand out as a socioeconomic alternative for social insertion and fighting against poverty. In this context, a factor that has gained prominence in literature is the female participation in these programs. Therefore, knowing that the literature indicates that there is a lower level of default among women, and considering that gender influence over the financing value has been disproportionate, the aim of this research was to evaluate the relationship between gender and the amounts which were granted in microcredit operations. In order to achieve this, a multiple linear regression technique was used on a sample of 4,454 microcredit clients of a bank with branches located in Paraíba, Brazil. Primary data collection was carried out together with the branch managers by consulting their system. Data were randomly chosen, and refer to the period from January to December 2016. Results show that women obtain a higher credit value than men, which is the opposite of what was found in literature.

26

Authors: Fábio de Oliveira Paula, Jorge Ferreira da Silva

This research investigated the complementarity of internal and external R&D for innovation development and the effect of innovation on the financial performance of European manufacturing firms. Using multigroup structural equation modeling, this study partially supported that internal and external R&D are complementary in firms from high-technology industries, whereas they are not in firms from low-technology industries. For the two groups of firms, both internal and external R&D separately had a positive effect on innovation performance. These results suggested that if low-tech firms, which had lower absorptive capacity than high-tech firms, want to improve their innovation performance in the long term, they should start prioritizing internal R&D to improve their absorptive capacity while achieving a short-term satisfactory innovation outcome. As absorptive capacity rises, more complex strategies balancing internal and external R&D should be adopted. Contrary to expectations, the empirical analysis indicated that innovation performance did not influence short-term financial performance for the whole sample. However, in countries more affected by the 2008 crisis (for instance, Baltic countries, Portugal and Spain), this effect was detected, indicating that innovation helped firms to recover faster.