본문 바로가기
KERD
논문KCI 등재

How Financial Slack Affects Firm Performance: Evidence from US Industrial Firms

0

조회

0

다운로드

6

인용

0

참고문헌

주제분류경제학

초록

This study examines two competing views on how financial slack affects firm performance: resource-based behavioral theory and agency theory. By investigating a large panel data set consisting of 1852 U.S. firms over the 1990–2008 period, the empirical analysis of the fixed-effects FGLS regression and Granger causality test shows a positive relationship between financial slack and firm performance. The empirical findings lend support to the resourcebased behavioral theory of the firm.

Abstract

This study examines two competing views on how financial slack affects firm performance: resource-based behavioral theory and agency theory. By investigating a large panel data set consisting of 1852 U.S. firms over the 1990–2008 period, the empirical analysis of the fixed-effects FGLS regression and Granger causality test shows a positive relationship between financial slack and firm performance. The empirical findings lend support to the resourcebased behavioral theory of the firm.

참고문헌 (56)

  1. Aghion, P., "Competition, Financial Discipline and Growth", Review of Economic Studies, 66, pp.825~852 (1999)
  2. Aghion, P, "Formal and Real Authority in Organizations", Journal of Political Economy, 105, pp.1~29 (1997)
  3. Ang, S, "Production and Transaction Economies and IS Outsourcing: A Study of the U.S. Banking Industry", MIS Quarterly, 22, pp.535~552 (1998)
  4. Baltagi, B. H, "Testing AR(1) against MA(1) Disturbances in an Error Component Model", Journal of Econometrics, 68, pp.133~151 (1995)
  5. Bera, A. K., "Tests for the Error Compo- nent Model in the Presence of Local Misspecification", Journal of Econometrics, 101, pp.1~23 (2001)
  6. Bergh, D. D, "Portfolio Restructuring and Limits to Hierarchical Governance: The Effects of Environmental Uncertainty and Diversification Strategy", Organization Science, 9, pp.87~102 (1998)
  7. Berle, A, "The Modern Corporation and Private Property" (1932), Macmillan
  8. Black, B. S., "Agents Watching Agents: The Promise of Institutional Investor Voice", UCLA Law Review, 39, pp.811~893 (1992)
  9. Black, B. S., "The Value of Institutional Investor Monitoring: The Empirical Evidence", UCLA Law Review, 39, pp.895~939 (1992)
  10. Bourgeois, L. J., "On the Measurement of Organizational Slack", Academy of Management Review, 6, pp.29~39 (1981)
  11. Bourgeois, L. J, "Organizational Slack and Political Behavior Among Top Management Teams", Academy of Manage- ment Proceedings, pp.43~47 (1983)
  12. Bowen, F. E., "Organizational Slack and Corporate Greening: Broadening the Debate", British Journal of Management, 13, pp.305~316 (2002)
  13. Bromiley, P., "Testing a Causal Model of Corporate Risk Taking and Performance", Academy of Management Journal, 34, pp.37~59 (1991)
  14. Burkart, M., "Large Shareholders, Monitoring, and the Value of the Firm", Quarterly Journal of Economics, 112, pp.693~728 (1997)
  15. Chakravarthy, B. S., "Adaptation: A Promising Metaphor for Strategic Management", Academy of Management Review, 7, pp.35~44 (1982)
  16. Cheng, J. L, "Organizational Slack and Response to Envi- ronmental Shifts: The Impact of Resource Allocation Patterns", Journal of Management, 23, pp.1~18 (1997)
  17. Cyert, R. M, "A Behavioral Theory of the Firm" (1963), Prentice-Hall
  18. Daniel, F., "Slack Resources and Firm Performance: A Meta-Analysis", Journal of Business Research, 57, pp.565~574 (2004)
  19. Demsetz, H., "The Structure of Ownership and the Theory of the Firm", Journal of Law and Economics, 26, pp.375~390 (1983)
  20. Demsetz, H, "The Structure of Corporate Ownership: Causes and Consequences", ournal of Political Economy, 93, pp.1155~1177 (1985)
  21. Dimick, D. E, "Correlates of Substantive Policy Decisions in Organizations: The Case of Human Resource Management", Academy of Management Journal, 21, pp.611~623 (1978)
  22. Geiger, S. W, "Exploration and Exploitation Innovation Pro- cesses: The Role of Organizational Slack in R&D Intensive Firms", Journal of High Technology Management Research, 17, pp.97~108 (2006)
  23. Granger, C. W. J., "Investigating Causal Relations by Econometric Models and Cross-spectral Methods", Econometrica, 37, pp.424~438 (1969)
  24. Greenley, G. E, "A Comparison of Slack Resources in High and Low Performing British Companies", Journal of Man- agement Studies, 35, pp.377~398 (1998)
  25. Hambrick, D. C, "A Contextual Model of Strategic Decision Making in Organizations", Academy of Management Proceedings, pp.109~112 (1977)
  26. Harris, M, "The Theory of Capital Structure", Journal of Finance, 46, pp.297~355 (1991)
  27. Jensen, M. C., "Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers", American Economic Review, 76, pp.323~329 (1986)
  28. Jensen, M. C., "The Modern Industrial Revolution, Exit, and the Failure of Internal Control Systems", Journal of Finance, 48, pp.831~880 (1993)
  29. Jensen, M. C, "Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure", Journal of Financial Economics, 3, pp.305~360 (1976)
  30. Ju, M, "Behind Organizational Slack and Firm Performance in China: The Moderating Roles of Ownership and Competitive Intensity", Asia Paci c Journal of Management, 26, pp.701~717 (2009)
  31. Kornai, J., "Resource-Constrained versus Demand-Constrained Systems", Econometrica, 47, pp.801~819 (1979)
  32. Leibenstein, H., "Organizational or Frictional Equilibria, X-Efficiency, and the Rate of Innovation", Quarterly Journal of Economics, 83, pp.600~623 (1969)
  33. Lin, W.-T., "Organizational Slack and Firms Inter- nationalization: A Longitudinal Study of High-Technology Firms", Journal of World Business, 44, pp.397~406 (2009)
  34. Litschert, R. J, "A Conceptual Model of Strategy Formation", Academy of Management Review, 3, pp.211~. (1978)
  35. Majumdar, S. K., "Slack in the State-Owned Enterprise: An Evaluation of the Impact of Soft-Budget Constraints", International Journal of Industrial Organization, 16, pp.377~394 (1998)
  36. Mansfield, E., "Contribution of R&D to Economic Growth in the United States", Science, 175, pp.477~486 (1972)
  37. March, J. G., "Decisions in Organizations and Theories of Choice, In Perspectives on Organization Design and Behavior" (1981), Wiley Interscience
  38. Mayers, D, "Managerial Discretion, Regulation, and Stock Insurer Ownership Structure", Journal of Risk and Insurance, 61, pp.638~655 (1994)
  39. Moch, M. K, "Review: The Structure of Chaos: Organized Anarchy as a Response to Ambiguity", Administrative Sci- ence Quarterly, 22, pp.351~362 (1977)
  40. Modigliani, F, "The Cost of Capital, Corporation Finance and The Theory of Investment", American Economic Review, 48, pp.261~297 (1958)
  41. Myers, S. C., "The Capital Structure Puzzle", Journal of Finance, 39, pp.575~592 (1984)
  42. Myers, S. C, "Corporate Financing and Investment Decisions When Firms Have Information That Investors Do Not Have", Journal of Financial Economics, 13, pp.187~221 (1984)
  43. Nohria, N, "Is Slack Good or Bad for Innovation", Academy of Management Journal, 39, pp.1245~1264 (1996)
  44. Penrose, E., "The Theory of the Growth of the Firm" (1959), Oxford University Press
  45. Piccolo, S., "Product Market Competition and Organizational Slack under Profit-target Contracts", In- ternational Journal of Industrial Organization, 26, pp.1389~1406 (2008)
  46. S´anchez-Ballesta, J. P, "A Meta-Analytic Vision of the Effect of Ownership Structure on Firm Performance", Cor- porate Governance, 15, pp.879~893 (2007)
  47. Schumpeter, J. A., "Capitalism, Socialism and Democracy" (1942), Harper
  48. Sharfman, M. P., "Antecedents of Organizational Slack", Academy of Management Review, 13, pp.601~614 (1988)
  49. Shleifer, A, "Large Shareholders and Corporate Control", Journal of Political Economy, 94, pp.461~488 (1986)
  50. Shleifer, A, "A Survey of Corporate Governance", Journal of Finance, 52, pp.737~783 (1997)
  51. Singh, J. V., "Performance, Slack, and Risk Taking in Organizational Decision Making", Academy of Management Journal, 29, pp.562~585 (1986)
  52. Su, Z., "Organizational Slack and Firm Performance During Institutional Transitions", Asia Paci c Journal of Management, 26, pp.75~91 (2009)
  53. Tan, J., "Curvilinear Relationship Between Organizational Slack and Firm Per- formance: Evidence from Chinese State Enterprises", European Management Journal, 21, pp.740~749 (2003)
  54. Tan, J, "Organizational Slack and Firm Performance During Economic Transitions: Two Studies From An Emerging Economy", Strategic Management Journal, 24, pp.1249~1263 (2003)
  55. Thompson, J. D., "Organizations in Action" (1967), McGraw-Hill
  56. Wooldridge, J. M., "Econometric Analysis of Cross Section and Panel Data" (2002), MIT Press

관련 논문AI추천

이 간행물의 다른 논문 (4건)