In this project we investigate the Portugal 2020 contribution for Portuguese companies, specifically for Small and Medium Enterprises (SME). To address the research question ‐ What is the contribution of the Portugal 2020 Programme in the financing of Portuguese companies? ‐ we examined the Portugal 2020 impact on the selected corporates capital structure, and, consequently, on its market value. We concluded that the Portugal 2020 financing instruments allow, not only to mitigate underinvestment problems, but also to increase the company market value by reducing its weighted average cost of capital (WACC). In fact, without this support, the selected companies would have to make this investment project more phased and for a longer period of time in order to moderate the financial liability of the investment project. In the case of application approval, i.e., assignment of co‐financing the project, the required financial effort will be significantly lower, which reduces its execution time. Therefore, obtaining the incentive permits the investments’ completion in an appropriated time and thus to achieve the proposed objectives. Finally, we concluded that when the company is financed through Portugal 2020, its market value increases substantially as a result of the WACC decrease, confirming the positive impact of Portugal 2020 in the Portuguese SME market value.
Date of Award | 4 Jul 2016 |
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Original language | Portuguese |
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Awarding Institution | - Universidade Católica Portuguesa
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Supervisor | João Pinto (Supervisor) |
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- Capital structure
- Financing instruments
- Value creation
- Mestrado em Auditoria e Fiscalidade
O papel do Portugal 2020 no financiamento das empresas portuguesas
Duarte, A. C. M. (Student). 4 Jul 2016
Student thesis: Master's Thesis