Aline Mariane De Faria
Doctorate – The effect of innovation and strategic resources on the capital structure
Advisor: Prof. Dr. Moacir de Miranda Oliveira Júnior
Comission: Profs. Drs. Liliam Sanches Carrete, Roberto Carlos Bernardes and Bruno Giovanni Mazzola
Link YouTube: https://youtu.be/SHo-f73K-6Y
This research aimed to identify the effect of the interaction of an innovation strategy with strategic resources on the capital structure of companies. In this sense, three essential resources were observed: organizational capital, knowledge capital and intangible capital. In these terms, the study assumed that companies with an innovation strategy and resources of organizational capital, knowledge capital or intangible capital have less financial restrictions. In addition, it was specified that the key talents of the companies can dispute the residual cash flow with the shareholders and, in this sense, the shareholders may prefer that the projects be financed by debt that has more stringent governance mechanisms. Additionally, there are agency problems between the company's key talents and shareholders, making the latter more likely to prefer the company to use more debt to finance its projects. The sample covered American companies listed on the three main stock exchanges in that country (NYSE, NASDAQ and AMEXX), covering 3,628 firms, during the period from 2008 to 2018. The results of this study showed, with statistical significance, that one cannot reject the three hypotheses proposed in this work. That is, the traditionally negative relationship between financial leverage and innovation strategy is reversed in the presence of organizational capital, knowledge capital or intangible capital. Thus, it is concluded that an innovation strategy with any of these types of resources indicates an increase in the firm's financial leverage.
*Abstract provided by the author