The Moderating Effect of the Sector's Level of Concentration on the Relationship Between Balance Sheet Composition and the Firm's Competitive Advantage
This paper investigates the relationship between the competitive advantage and balance sheet composition of the firm, based on metrics contained in the structure of financial statements, from endogenous origin (firm’s balance sheet composition) or exogenous (level of sector concentration). In additi...
Saved in:
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
FUCAPE Business School
2018-01-01
|
| Series: | BBR: Brazilian Business Review |
| Subjects: | |
| Online Access: | http://www.redalyc.org/articulo.oa?id=123057497001 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1825207265118912512 |
|---|---|
| author | Luiz Claudio Louzada Márcio Augusto Gonçalves |
| author_facet | Luiz Claudio Louzada Márcio Augusto Gonçalves |
| author_sort | Luiz Claudio Louzada |
| collection | DOAJ |
| description | This paper investigates the relationship between the competitive advantage and balance sheet composition of the firm, based on metrics contained in the structure of financial statements, from endogenous origin (firm’s balance sheet composition) or exogenous (level of sector concentration). In addition, we perform tests in order to verify whether the exogenous characteristics moderate the relation between endogenous characteristics and the firm’s operational performance. We selected data from the Economatica® database, a Brazilian company specialized in information for the capital market. We based the tests on the hierarchical model approach with repeated measures involving serial and nested regressions, estimated by maximum likelihood. The test results suggest that (i) the firm’s idiosyncratic features have greater explanatory capability for the firm’s performance than the industry features; (ii) the relation between firm idiosyncratic resources and firm performance are sensitive to industry characteristics. |
| format | Article |
| id | doaj-art-631e62388ffd4c7c893088b9046c161f |
| institution | Kabale University |
| issn | 1807-734X |
| language | English |
| publishDate | 2018-01-01 |
| publisher | FUCAPE Business School |
| record_format | Article |
| series | BBR: Brazilian Business Review |
| spelling | doaj-art-631e62388ffd4c7c893088b9046c161f2025-02-06T23:39:32ZengFUCAPE Business SchoolBBR: Brazilian Business Review1807-734X2018-01-0115651253210.15728/bbr.2018.15.6.1The Moderating Effect of the Sector's Level of Concentration on the Relationship Between Balance Sheet Composition and the Firm's Competitive AdvantageLuiz Claudio LouzadaMárcio Augusto GonçalvesThis paper investigates the relationship between the competitive advantage and balance sheet composition of the firm, based on metrics contained in the structure of financial statements, from endogenous origin (firm’s balance sheet composition) or exogenous (level of sector concentration). In addition, we perform tests in order to verify whether the exogenous characteristics moderate the relation between endogenous characteristics and the firm’s operational performance. We selected data from the Economatica® database, a Brazilian company specialized in information for the capital market. We based the tests on the hierarchical model approach with repeated measures involving serial and nested regressions, estimated by maximum likelihood. The test results suggest that (i) the firm’s idiosyncratic features have greater explanatory capability for the firm’s performance than the industry features; (ii) the relation between firm idiosyncratic resources and firm performance are sensitive to industry characteristics.http://www.redalyc.org/articulo.oa?id=123057497001competitive advantagedecomposition of operational performancelevel of concentrationstructureconductperformanceresource theory |
| spellingShingle | Luiz Claudio Louzada Márcio Augusto Gonçalves The Moderating Effect of the Sector's Level of Concentration on the Relationship Between Balance Sheet Composition and the Firm's Competitive Advantage BBR: Brazilian Business Review competitive advantage decomposition of operational performance level of concentration structure conduct performance resource theory |
| title | The Moderating Effect of the Sector's Level of Concentration on the Relationship Between Balance Sheet Composition and the Firm's Competitive Advantage |
| title_full | The Moderating Effect of the Sector's Level of Concentration on the Relationship Between Balance Sheet Composition and the Firm's Competitive Advantage |
| title_fullStr | The Moderating Effect of the Sector's Level of Concentration on the Relationship Between Balance Sheet Composition and the Firm's Competitive Advantage |
| title_full_unstemmed | The Moderating Effect of the Sector's Level of Concentration on the Relationship Between Balance Sheet Composition and the Firm's Competitive Advantage |
| title_short | The Moderating Effect of the Sector's Level of Concentration on the Relationship Between Balance Sheet Composition and the Firm's Competitive Advantage |
| title_sort | moderating effect of the sector s level of concentration on the relationship between balance sheet composition and the firm s competitive advantage |
| topic | competitive advantage decomposition of operational performance level of concentration structure conduct performance resource theory |
| url | http://www.redalyc.org/articulo.oa?id=123057497001 |
| work_keys_str_mv | AT luizclaudiolouzada themoderatingeffectofthesectorslevelofconcentrationontherelationshipbetweenbalancesheetcompositionandthefirmscompetitiveadvantage AT marcioaugustogoncalves themoderatingeffectofthesectorslevelofconcentrationontherelationshipbetweenbalancesheetcompositionandthefirmscompetitiveadvantage AT luizclaudiolouzada moderatingeffectofthesectorslevelofconcentrationontherelationshipbetweenbalancesheetcompositionandthefirmscompetitiveadvantage AT marcioaugustogoncalves moderatingeffectofthesectorslevelofconcentrationontherelationshipbetweenbalancesheetcompositionandthefirmscompetitiveadvantage |