Financial Structure and Corporate Growth: Evidence from Italian Panel Data

We study the relationships between firm financial structure and growth for a large sample of Italian firms (1998-2003). We expand upon existing analyses testing whether liquidity constraints affect firm performance by considering among growth determinants also firm debt structure. Panel regression analyses show that more liquid firms tend to grow more. However, firms do not use their capital to expand, but rather to increase debt. We also find that firm growth is highly fragile as it is positively correlated with non-financial liabilities and it is not sustained by a long-term debt maturity. Finally, quantile regressions suggest that fast-growing firms are characterized by higher growth/cash-flow sensitivities and heavily rely on external debt, but seem to be less bank-backed than the rest of the sample. Overall, our findings suggest that the link between firms’ investment and expansion decisions is far more complicated than postulated by standard tests of investment/cash-flow sensitivities.Firm growth; Financial structure; Cash flow; Financial constraints; Gibrat law; Quantile regressions

El fluir de las letras: literatura como modalidad de promoción turística y turismo como recurso para acercarse a la literatura

Through two different approaches, the study aims to analyze the successful binomial between literature and tourism as a key for the development of cultural and sustainable tourism: the first demonstrates howliterary themes and topics contributeto increase the tourist influx; the second shows how a tourist destination known only for its natural beauties can become a resource to get closer tounknown literary expressions. The first lookanalyzeshow literature has revealed to a wider public the beauty of the landscapes, the architectural wealth, thehabits andancestral traditions that permeate the Pyrenees valley,place where the "trilogy of Baztan" by Dolores Redondois set. The analysis, therefore, tryto demonstrate that the literary success of thistrilogy has contributed to increase the cultural, green and sustainable tourism in the region. The second approach moves to the other side of the Atlantic Ocean, in Nicaragua,where another river, the San Juan River, which connects the Great Lake of Nicaragua with the Caribbean Sea and constitutes one of the most traveled tourist routes, can be transformed into a factor of promotion forthe national literature. This fact represents an opportunity for aninternational tourist, who knows very little about Nicaraguan literature, to become acquainted with someliterary names such as: Coronel Urtecho, Pablo Antonio Cuadra, Ernesto Cardenal orFernando Silva, whose work has been inspired by this river. The cultural and literary tourism finds, in this fluvial way, its possibility of expression and expansion.A través de dos enfoques diferentes, el estudio se propone analizar el binomio exitoso entre literatura y turismo como elementos clave para el desarrollo del turismo cultural y sostenible: el primero evidencia cómo la tematización literaria contribuye a aumentar la afluencia turística; el segundo, en cambio, manifiesta cómo un destino turístico conocido solo por sus bellezas naturales puede convertirse en un recurso para acercarse a expresiones literarias desconocidas. La primera mirada examina cómo la literatura ha dado a conocer a un público más extenso la belleza de los parajes naturales, la riqueza arquitectónica, los usos y costumbres ancestrales que impregnan el valle del Pirineo donde está ambientada la “trilogía de Baztan”,de Dolores Redondo. El análisis, por tanto, pretende demostrar que el éxito literario de la trilogía ha contribuido a incrementar el turismo cultural, verde y sostenible en la comarca. El segundo enfoque se traslada al otro lado del Océano Atlántico, en Nicaragua, donde otro río, el Río San Juan, que conecta el Gran Lago de Nicaragua con el Mar Caribe, y que constituye una de las rutas turísticas más concurridas, puede transformarse en un factor de promoción de la literatura nacional. Esto representa una oportunidad para que el turista internacional, que muy poco conoce de ella, entre en contacto con algunos nombres literarios, puesto que este río ha inspirado las obras de Coronel Urtecho, Pablo Antonio Cuadra, Ernesto Cardenal y Fernando Silva. El turismo cultural y literario encuentran así, en esta vía fluvial, su posibilidad de expresión y expansión

Why New Firms Never Get Large? Evidence on Post-Entry Growth of Italian New Firms

In the microeconomic literature substantial attention is cur rently paid to the problem of new firms' post-entry growth. This paper contributes to the literature by examining a large number of factors influencing the probability to grow of a sample of Italian firms born in the period 1999-2000. We confirm some of the ef fects discussed in the literature, particularly on initial size, financial resources and industry effects. Moreover, we show that the need for independence and founders' knowledge of the production process stemming from previous work experience significantly af fect firm growth. Market opportunities and innovative ideas do not significantly influence growth.

Entry Strategies Under Competing Standards: Hybrid Business Models in the Open Source Software Industry

The paper analyzes the strategies of software firms that have entered the open source (OS) field. The notion of the OS business model is discussed in the light of a substantial body of theoretical literature concerning strategic management and the economics of innovation, as well as specialized literature on OS. Empirical evidence based on a survey of 146 Italian software firms shows that firms have adapted to an environment dominated by incumbent standards by combining the offering of proprietary and OS software under different licensing schemes, thus choosing a hybrid business model. The paper examines the determinants of the degree of openness toward OS and discusses the stability of hybrid models in the evolution of the industry.open source, software industry, hybrid business models, switching costs, network externalities

Financial Structure and Corporate Growth: Evidence from Italian Panel Data

We study the relationships between firm financial structure and growth for a large sample of Italian firms (1998â\u80\u932003). We expand upon existing analyses testing whether liquidity constraints affect firm expansion by considering amongst growth determinants also firm debt structure within a unified framework. Panel regression analyses show that more liquid firms tend to grow more. However, firms do not use their capital to expand, but rather to increase debt. We also find that firm growth is highly fragile as it is positively correlated with non-financial liabilities and it is not sustained by a long-term debt maturity. Finally, quantile regressions suggest that fast-growing firms are characterized by higher growth/cash-flow sensitivities and heavily rely on external debt, but seem to be less bank-backed than the rest of the sample. Overall, our findings suggest that the link between firmsâ\u80\u99 financial structure and expansion decisions is far more complicated than postulated by standard tests of investment/cash-flow sensitivities