Chapter 8: efficiency and capital structure in Portuguese SMEs. Book Chapter Conference Paper uri icon


  • This paper aims to analyse the bi-directional relationship between technical efficiency, as a measure of companies’ performance, and capital structure, under the agency cost theory as well as the pecking order and trade-off theory, to explain the capital structure decisions. The technical efficiency was estimated by the DEA method and corrected by using a suitable bootstrap to obtain statistical inferences. To test the agency cost hypothesis, asymmetric information hypothesis, risk-efficiency hypothesis and franchise value hypothesis (under pecking order and trade off theories framework), two models were applied using some determinants of capital structure such as size, profitability, tangibility, liquidity as control and explanatory variables through a truncated regression with bootstrapping. From an initial sample of 1024 small and medium sized companies from the interior of Portugal, for the period 2006–2009, a subsample of 210 SMEs from secondary and tertiary sectors was selected. The results suggest that medium sized companies have higher average bias-corrected efficiency than small companies; that short-term leverage is positively related to efficiency and that the companies in the sample follow pecking order theory.
  • This proceedings book presents selected contributions from the XVIII Congress of APDIO (the Portuguese Association of Operational Research) held in Valença on June 28–30, 2017. Prepared by leading Portuguese and international researchers in the field of operations research, it covers a wide range of complex real-world applications of operations research methods using recent theoretical techniques, in order to narrow the gap between academic research and practical applications. Of particular interest are the applications of, nonlinear and mixed-integer programming, data envelopment analysis, clustering techniques, hybrid heuristics, supply chain management, and lot sizing and job scheduling problems. In most chapters, the problems, methods and methodologies described are complemented by supporting figures, tables and algorithms. The XVIII Congress of APDIO marked the 18th installment of the regular biannual meetings of APDIO – the Portuguese Association of Operational Research. The meetings bring together researchers, scholars and practitioners, as well as MSc and PhD students, working in the field of operations research to present and discuss their latest works. The main theme of the latest meeting was Operational Research Pro Bono. Given the breadth of topics covered, the book offers a valuable resource for all researchers, students and practitioners interested in the latest trends in this field.

publication date

  • 2017
  • 2018