IDEAS home Printed from https://ideas.repec.org/h/spr/prbchp/978-981-96-4116-1_2.html
   My bibliography  Save this book chapter

Examining the Effects of Innovation, Market Competition, and Financial Choice on Firm Value

Author

Listed:
  • Amanj Mohamed Ahmed

    (Hungarian University of Agriculture and Life Sciences)

  • Zoltán Bujdosó

    (Hungarian University of Agriculture and Life Sciences
    Hungarian University of Agriculture and Life Sciences)

  • István Hágen

    (Hungarian University of Agriculture and Life Sciences
    Hungarian University of Agriculture and Life Sciences)

Abstract

The objective of this research is to enhance understanding of company value through an empirical investigation of the interrelated impacts of financial decisions, market competition, and innovation strategy. The financial data used in this study originates from the 148 non-financial firms’ annual financial statements that were listed on the Tehran Stock Market (TSM). This extensive dataset makes it feasible to investigate how the above factors affect the value of the company. The Generalized Method of Moments (GMM), a panel econometric technique, was applied to assess the given specification. The complex interactions between competitiveness, research and development, financial structure, and business value are clarified by this study. The influence of research and development investment on firm value is still unclear, even though strong market competition measured by (Herfindahl–Hirschman Index) tends to diminish the firm value. It is also interesting to note that financial structure has a distinct effect. High reliance on excessive amounts of debt may hamper firm performance to be improved by raising risk and reducing chances for investments. However, optimum capital structure (mixture of debt and equity) reduces a company’s cost of capital while increasing its value. This balance guarantees that an organization may effectively finance its operations and expansion endeavors while avoiding undue financial risk.

Suggested Citation

  • Amanj Mohamed Ahmed & Zoltán Bujdosó & István Hágen, 2025. "Examining the Effects of Innovation, Market Competition, and Financial Choice on Firm Value," Springer Proceedings in Business and Economics,, Springer.
    • Handle: RePEc:spr:prbchp:978-981-96-4116-1_2
    DOI: 10.1007/978-981-96-4116-1_2
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:prbchp:978-981-96-4116-1_2. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.