THE MODERATOR EFFECT OF HIGH AND LOW MARKET CONCENTRATION
IN THE FINANCIAL SLACK AND PERFORMANCE RELATIONSHIP
Name: NAYNA NALI TEIXEIRA
Publication date: 22/12/2020
Advisor:
Name |
Role |
|---|---|
| MARCELO ALVARO DA SILVA MACEDO | Advisor * |
Examining board:
| Name |
Role |
|---|---|
| ALVIM BORGES DA SILVA FILHO | External Examiner * |
| LUIZ CLAUDIO LOUZADA | Co advisor * |
| MARCELO ALVARO DA SILVA MACEDO | Advisor * |
| VAGNER ANTONIO MARQUES | Internal Examiner * |
Summary: This research aims to investigate the moderation of the market concentration of the six specific sectors, analyzing the result of the moderating effect of the market concentration and verifying how the level of high and low concentration of the sector moderates in relation between slack and performance, attributing it This joint analysis provides additional information on how to assess performance. The data were extracted from Brazilian companies listed on the B3. The cancellations are annual, covering an interval of 10 years (2010 - 2019) with 740 employees and 74 companies, forming a balanced panel. Six linear regressions were performed with panel data for fixed effects - as well as Árgiles-Bosch et al. (2016) - applying individual controls with temporal concentration dummies and without temporal concentration dummies. The results obtained that due to the response power of the regressions in the models obtained and the significance of the slack variables and the interactions of the slacks with the dummies referring to companies of higher order and companies of lower order, the different types of slack may exhibit different associations with performance: positive and / or negative. From the stipulated
assumptions, it can be concluded that in more concentrated sectors, the greater the relationship between the potentials for clearance and recoverable and with performance, and in less concentrated sectors the lower the ratio between the potentials for clearance and recoverable with the performance and the greater the relationship between available slack and performance.
For further studies, it would be interesting to test the moderating effect of concentration on the relationship between financial slack and performance using a model of existing equations, simultaneously examining multiple variables. This study contributes to the literature enriching the existing theory; discovering that the moderating effect of the concentration plays an
important role in the operating results; bringing managers greater knowledge for the application of concepts in business practices.
