Gabriela Brendea and Fanuta Pop
The purpose of this paper is to investigate the financing behavior of Romanian listed firms with regard to their tendency to exhibit herding behavior, more specifically to follow…
Abstract
Purpose
The purpose of this paper is to investigate the financing behavior of Romanian listed firms with regard to their tendency to exhibit herding behavior, more specifically to follow the mean capital structure of the sector they belong to.
Design/methodology/approach
A panel data model was employed to examine the herding financing behavior of Romanian listed firms over the period 2007–2014. The dependent variable of the model is firms’ debt ratio (DR) and the independent variables are: the first lag of the mean DR in each sector of the analysis, firm-specific characteristics and the average characteristics of the firms from the sector they belong to.
Findings
The results of the study indicate that Romanian listed firms have a herding behavior and try to reach the mean DR of the sector they belong to, moving away from the optimal capital structure that maximizes firms’ value. In addition, the results of the model estimation suggest that Romanian firms’ capital structure depends on both firms’ characteristics (i.e. profitability, firm size and asset tangibility) and the average characteristics of the firms from the same sector they belong to (i.e. average profitability and average size).
Practical implications
Acting with the herd determines firms to move away from the optimal capital structure and to miss in this way the maximization of the firm value. Consequently, it is in managers’ best interest to avoid herding behavior and try to act rationally when they decide firms’ financing sources.
Originality/value
To the best of the knowledge, this is the first study in the literature that finds support for the herding financing behavior in an Eastern European country.
Details
Keywords
Loredana Mihalca, Lucia Ratiu, Christoph Helm, Gabriela Brendea and Daniel Metz
Drawing upon the job demands-resources model, the purpose of this study is to investigate the differential relevance of contextual antecedents for job crafting dimensions (i.e…
Abstract
Purpose
Drawing upon the job demands-resources model, the purpose of this study is to investigate the differential relevance of contextual antecedents for job crafting dimensions (i.e. increasing structural and social job resources) and consequently for various aspects of work performance (in-role and extra-role performance). Despite considerable research on the role of job autonomy and social support in predicting job crafting, little attention has been paid to how problem-solving, a knowledge job characteristic, relates to job crafting dimensions.
Design/methodology/approach
Survey data were collected from 282 employees belonging to different information technology companies in Romania. Structural equation modeling was used to examine the hypothesized relations.
Findings
Problem-solving was positively related to both job crafting dimensions, whereas social support was positively related only to increasing social job resources. Unexpectedly, job autonomy predicted increasing structural resources only when social support was high, as the post-hoc analysis indicated. Furthermore, increasing structural job resources fully mediated the relationship of problem-solving with in-role performance and different types of extra-role behaviors, whereas increasing social resources did not act as a mediator.
Originality/value
The current study is the first to show that problem-solving is an important predictor for job crafting. Furthermore, this study contributes to the literature by revealing that crafting structural resources represents an important mechanism that explains the positive relationship between work design (i.e. problem-solving) and different performance facets.