How do market imperfections affect working capital management?

This paper examines whether Working Capital Management (WCM) is sensitive to market imperfections such as asymmetric information, agency conflicts or financial distress. We find that firms have a target investment in working capital and that they take decisions in order to achieve this. In addition, the results appear to support the hypothesis that the working capital competes with investment in fixed assets for the funds of the firms when they have financial constraints. Finally, we also find that WCM depends on bargaining power and other financial factors such as the availability of internal finance, cost of financing and access to capital markets. Este artículo analiza si la gestión del capital circulante está afectada por las imperfecciones de mercado tales como la asimetría informativa, los conflictos de agencia o las dificultades financieras. Los resultados muestran que las empresas tienen un nivel de inversión en capital circulante objetivo y toman decisiones con el fin de alcanzarlo. Además, los resultados parecen apoyar la hipótesis de que el capital circulante compite con los activos fijos por los fondos de las empresas cuando éstas tienen restricciones financieras. Finalmente, la gestión del capital circulante depende del poder de negociación y otros factores financieros tales como la disponibilidad de financiación interna, el coste de financiación y el acceso a los mercados de capitales.ciclo de efectivo, gestión del capital circulante, imperfecciones de mercado, datos de panel net trade cycle, working capital management, market imperfections, panel data

LA TESORERIA EN LA EMPRESA Y SUS DETERMINANTES

This paper analyzes the determinants of the corporate cash holding for a sampleof companies listed in the Spanish stock market. The results show that the firms have acorporate cash holding target level, and that this level is greater in companies withgreater cash flows. On the other hand, cash holding is negatively related to size, growthoptions, leverage, bank debt and liquid assets. Finally, the ownership structure alsoseems to affect the cash holdings. Este trabajo analiza los factores explicativos de la tesorería para una muestra de empresas cotizadas en el mercado continuo español. Los resultados obtenidos revelan que las empresas poseen un nivel de tesorería objetivo al que pretenden converger, y que dicho nivel es mayor en las sociedades con mayores flujos de caja. Por el contrario, el nivel de efectivo se ve reducido con el tamaño, con las oportunidades de crecimiento, con el nivel de endeudamiento, con el uso de deuda bancaria y con la liquidez de la empresa. Además, la estructura de propiedad también parece influir sobre los niveles de efectivo.Tesorería, liquidez, datos de panel. cash, liquidity, panel data

ENDEUDAMIENTO A CORTO PLAZO EN LAS PYMES ESPAÑOLAS

This paper analyses the debt maturity structure of the small and middle sizedfirms using the trade-off reward risk associated to the use of short-term loans.Therefore, a sample of 11.533 small and middle Spanish manufacturing firms from year1997 through 2001 was used. The results of our study show that short-term loans aremore frequent in firms with greater financial strength and greater financial flexibility,major growth options and when the interest cost differential between short-long terms ismore pronounced. Also, the firm size seems to have an influence on the level of shorttermloans, it being higher in the smaller firms. Este trabajo analiza la estructura de vencimiento de la deuda en las PYMEs a partir del trade-off rentabilidad riesgo asociado al uso de recursos ajenos a corto plazo. Para ello, se ha utilizado una muestra de 11.533 pequeñas y medianas empresas manufactureras españolas durante el periodo 1997-2001. Los resultados obtenidos muestran que el endeudamiento a corto plazo es mayor en aquellas empresas que presentan una mayor solvencia y flexibilidad financiera, mayores oportunidades de crecimiento y cuando el diferencial de tipos de interés corto-largo es más acentuado. Así mismo, el tamaño de las sociedades también parece influir en los niveles de endeudamiento a corto plazo, siendo mayor en las empresas más pequeñas.Pymes, vencimiento de la deuda, solvencia financiera, flexibilidad financiera. SMEs, debt maturity, financial solvency, financial flexibility.

Determinants of working capital management

This paper analyzes the determinants of working capital management (WCM) for a sample of Spanish firms during the period 1997-2004. We find that firms have a target investment in working capital and that they take decisions in order to achieve this. The results appear to support the hypothesis that the working capital competes with investment in fixed assets for the funds of the firms when they have financial constraints. Finally, we also find that WCM depends on bargaining power and other financial factors such as the availability of internal finance, cost of financing and financial constraints.Research Agency of the Spanish Government ECO2008-06179/ECO

Acquisition of financial management skills in the new framework for adaptation to the EHEA. Póster

One of the main consequences of adapting to the European Higher Education Area (EHEA) is the replacement of traditional teaching methods, based almost entirely on the lecture, with new methodologies where active participation on the part of the students is a key part of the teaching-learning process. It is, therefore, of interest to offer empirical evidence showing that the new teaching methods employed really do serve to improve the results of the students in the acquisition of skills. The aim of this paper is, therefore, to assess the results obtained from bringing in the new EHEA, compared to those obtained under the traditional teaching system. With the above aim in mind, we analysed the results from the two existing groups of students studying Financial Management I of the Degree in Business Administration and Management (academic year 2009-10) at the Faculty of Economics and Business of the University of Murcia. The first group comprised students who had followed the course under the traditional lecture-based teaching system. The second group was made up of students taking part in the innovation project being run by the Faculty of Economics and Business. EHEA teaching methodologies and materials have been employed in the second group. Besides the lecture and the practical class, the following teaching methodologies have been employed: problem-based learning, workshops on problems, group tutorials, group work and participative models. The first group was assessed purely on the basis of an end of semester examination, while in the case of the second group, the final examination counted for 60% of the mark, 30% corresponded to individual work and group practical work and 10% to participation in class and responses to questions posed by the teacher. It should be highlighted that the final examination was the same for both groups, so the comparison o results is free of bias in that aspect. The results show that higher percentage of passes in the group with innovative teaching – 93.75% versus 48.19% in the lecture-based class group. The average grade was also higher – 7.08 over 10 versus 4.52 over 10. These differences are significant (t statistic 6.382 for the means difference test). In order to rule out the possibility of these better results being due to the assessment awarded for the non similar parts of the examination, a comparison was also made of the marks obtained exclusively in the examination common to both groups. While the number of passes (75%) and the average mark of the group in the innovative method (6 over 10) fall, the results remain significantly better than those of the lecture-based classes group (t statistic for the difference in mean marks was 2.485).Campus Mare Nostrum, Universidad Politécnica de Cartagena, Universidad de Murcia, Región de Murci

Financing of working capital requirement, financial flexibility and SME performance

This paper investigates the relation between the financing strategies of working capital requirement and firm performance for the period 1997 to 2012. Using the two-step generalized method of moments estimator, we find that a suitable financing strategy can help firms improve their performance. Moreover, the results indicate that the working capital requirement financing-performance relation changes during a financial crisis. Finally, we also find that this relation depends on a firm’s financial flexibility. The findings are of interest for managers and researchers and show that managers should not only be concerned about investing in working capital requirement but also consider how this investment is to be financed. To the best of our knowledge, this is the first paper to analyse how the financing strategy selected by firms to finance their working capital requirement affects their performance

Erratum

"Erratum." Journal of Business Economics and Management, 18(1), p. 181

Integrative Analysis Reveals a Molecular Stratification of Systemic Autoimmune Diseases

Objective Clinical heterogeneity, a hallmark of systemic autoimmune diseases, impedes early diagnosis and effective treatment, issues that may be addressed if patients could be classified into groups defined by molecular pattern. This study was undertaken to identify molecular clusters for reclassifying systemic autoimmune diseases independently of clinical diagnosis. Methods Unsupervised clustering of integrated whole blood transcriptome and methylome cross-sectional data on 955 patients with 7 systemic autoimmune diseases and 267 healthy controls was undertaken. In addition, an inception cohort was prospectively followed up for 6 or 14 months to validate the results and analyze whether or not cluster assignment changed over time. Results Four clusters were identified and validated. Three were pathologic, representing “inflammatory,” “lymphoid,” and “interferon” patterns. Each included all diagnoses and was defined by genetic, clinical, serologic, and cellular features. A fourth cluster with no specific molecular pattern was associated with low disease activity and included healthy controls. A longitudinal and independent inception cohort showed a relapse–remission pattern, where patients remained in their pathologic cluster, moving only to the healthy one, thus showing that the molecular clusters remained stable over time and that single pathogenic molecular signatures characterized each individual patient. Conclusion Patients with systemic autoimmune diseases can be jointly stratified into 3 stable disease clusters with specific molecular patterns differentiating different molecular disease mechanisms. These results have important implications for future clinical trials and the study of nonresponse to therapy, marking a paradigm shift in our view of systemic autoimmune diseases

Early mobilisation in critically ill COVID-19 patients: a subanalysis of the ESICM-initiated UNITE-COVID observational study

Background Early mobilisation (EM) is an intervention that may improve the outcome of critically ill patients. There is limited data on EM in COVID-19 patients and its use during the first pandemic wave. Methods This is a pre-planned subanalysis of the ESICM UNITE-COVID, an international multicenter observational study involving critically ill COVID-19 patients in the ICU between February 15th and May 15th, 2020. We analysed variables associated with the initiation of EM (within 72 h of ICU admission) and explored the impact of EM on mortality, ICU and hospital length of stay, as well as discharge location. Statistical analyses were done using (generalised) linear mixed-effect models and ANOVAs. Results Mobilisation data from 4190 patients from 280 ICUs in 45 countries were analysed. 1114 (26.6%) of these patients received mobilisation within 72 h after ICU admission; 3076 (73.4%) did not. In our analysis of factors associated with EM, mechanical ventilation at admission (OR 0.29; 95% CI 0.25, 0.35; p = 0.001), higher age (OR 0.99; 95% CI 0.98, 1.00; p ≤ 0.001), pre-existing asthma (OR 0.84; 95% CI 0.73, 0.98; p = 0.028), and pre-existing kidney disease (OR 0.84; 95% CI 0.71, 0.99; p = 0.036) were negatively associated with the initiation of EM. EM was associated with a higher chance of being discharged home (OR 1.31; 95% CI 1.08, 1.58; p = 0.007) but was not associated with length of stay in ICU (adj. difference 0.91 days; 95% CI − 0.47, 1.37, p = 0.34) and hospital (adj. difference 1.4 days; 95% CI − 0.62, 2.35, p = 0.24) or mortality (OR 0.88; 95% CI 0.7, 1.09, p = 0.24) when adjusted for covariates. Conclusions Our findings demonstrate that a quarter of COVID-19 patients received EM. There was no association found between EM in COVID-19 patients' ICU and hospital length of stay or mortality. However, EM in COVID-19 patients was associated with increased odds of being discharged home rather than to a care facility. Trial registration ClinicalTrials.gov: NCT04836065 (retrospectively registered April 8th 2021)

Estrategias de financiación de las necesidades operativas de fondos y rentabilidad de la empresa

Este trabajo estudia la relación entre la financiación de las necesidades operativas de fondos (NOF) y la rentabilidad financiera de la empresa. La deuda a corto plazo tiene menores costes que los recursos financieros a largo plazo, sin embargo también supone un mayor riesgo de refinanciación y de tipo de interés. Los resultados obtenidos ponen de manifiesto que una adecuada estrategia de financiación de las NOF puede ayudar a mejorar los resultados de la empresa. En concreto, se observa que durante la etapa de expansión económica 1997- 2007, las empresas que financian un elevado porcentaje de sus NOF con deuda bancaria a corto plazo, así como las que usan este tipo de financiación de forma reducida, presentan una menor rentabilidad financiera, mientras que una política intermedia de financiación ofrece mejores resultados. Sin embargo, durante un periodo de crisis financiera caracterizado por fuertes dificultades para el acceso al crédito (2008-2012) son las empresas que financian un mayor porcentaje de sus NOF con recursos financieros a largo plazo (y que, por tanto, recurren en menor medida al crédito bancario a corto plazo) las que presentan mayor rentabilidad