The Section places a high priority in performing scientific research related to financial management policies and practices of firms, in particular, entrepreneurial, innovative and technology centered companies. Emphasis is also placed on applying academic insights into real-life financial management issues and fostering critical thinking. In trying to understand, educate and support value creation by integrating high-tech environment with human talent, our research corresponds to the broad mission of the University of Twente. In doing so, we contribute towards making organizations more innovative and entrepreneurial so that their productivity, efficiency and performance can increase significantly.
We are active in a variety of research projects in areas like corporate finance, entrepreneurial finance, risk management, management accounting & control, corporate governance, and corporate sustainability. We focus on established firms as well as technology-based businesses including start-ups, small and medium-sized enterprises that are operating in manufacturing, energy, health and financial sectors. New research projects are constantly undertaken related to entrepreneurial and innovative practices of firms and UT focused areas. Collaboration with researchers from other universities and countries has regularly been taking place. We are also aiming to establish joint research collaboration with European partners and the industry.
Research is undertaken to study the impact of recent financial crisis on the investment and financing decisions of small and medium-sized enterprises. In one project, we investigate the impact of financing on the growth of small firms and how firms are financed during different phases of their life cycle. On corporate governance issues, we conduct research related to ownership and top executives of firms, and also examine how performance of Dutch firms is affected by corporate governance mechanisms prevailing during the 20th century. Attention is paid on analyzing the impact of financial management decisions on firm value/corporate performance and the implications for corporate governance. One project looks at how risk-taking decisions are affected by the career horizon of top executives. Research is conducted to examine factors that lead firms to engage in socially responsible activities, and to estimate their effect on profitability and cost of capital. We also study risk management practices of firms and the effects of supply chain breakdowns. One research project examines the interaction between corporate financial decisions and their pension plan policies. Further information on our research activities is available on the web page of each staff.
In future, the Section expects to widen its research activities by working on new research projects. A few examples of issues to be addressed are:
- How firms cope with financial challenges and risks posed by technology-driven business transformations and practices? How to protect firms and financial institutions from cyber-attacks?
- How financial innovation and information technology affect financial disclosures, corporate decisions and organizational performance?
- Are corporate decisions influenced by firm’s political connections? Does the capital market value political connections?
- Do microfinance banks influence business formation, economic growth, income inequality and poverty level? What role innovations play in the financial inclusion process?
- How do online lending platforms influence small firms’ financial policy?
- What are the main drivers of financial performance and quality of Dutch hospitals?