Literature Review: Corporate Finance, Innovation, and Market Analysis

This literature review examines the role of innovation in corporate finance, particularly within the mid-market sector. It explores how companies, as highlighted by authors like K. Wendt, utilize strategies and innovation to drive growth and profitability, referencing the importance of mid-market companies in fostering economic growth and identifying market opportunities. The review analyzes how countries like China and Japan have leveraged mid-market innovation to achieve high growth rates. It emphasizes the positive impact of these innovations on the overall market and other companies, even those operating in higher-tier markets. The review also references the work of Cayon, Thorp & Wu, (2017) on emerging markets.

Accounting
Assignment

Corporate Finance
Prepared By
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Date: 17th January 2019
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Literature Review
It is often said that innovation often thrives in the middle of the market when it
comes to dealing in stocks. These people don’t support the customer transactions
as in that case the overall profit margin is very low and there is huge competition,
so they often opt for doing business with companies that trades in large amount so
that their overall profit level is also maintained. These mid-market companies are
said to be the frontier in innovation and supports all kinds of growth elements that
are associated when it comes to larger perspective. These innovation in the market
are also responsible for creating large scale economic growth and hence the
government also promotes the same. They look for the loopholes in the market and
try to make changes in the same so that in the end they can make profit. K Wendt
has mentioned in his book “Positive Impact Investing: A Sustainable Bridge between
Strategy, Innovation, Change and Learning” stating how companies are working
accordingly to bring in the overall growth using strategy, innovation, change and
this in the end will lead to make the overall markets more profitable (Wendt, 2018).
In countries like China and Japan, the mid innovators have trapped the market and
have made changes and that has led to development of new business ventures
which has made these countries high on the growth development rate. These
companies often take the ownership in such areas where many companies will not
focus as they feel that the overall growth is not found in such mid areas, but we see
that these mid companies traps where the big companies don’t. So, we see that mid
markets have helped in bringing in change and innovation and that change will be
reflected in long term growth of the country. It also leads to a positive impact for
the organization that are not dwelling in the mid markets but functioning in other
markets that includes the higher range markets that falls in the top tiers of the
country. So overall these innovators are successful as they initiate change to a large
extent (Cayon, et al., 2017).
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References
Cayon, E., Thorp, S. & Wu, E., 2017. Immunity and infection: Emerging and
developed market sovereign spreads over the Global Financial Crisis. Emerging
Markets Review.
Wendt, K., 2018. Positive Impact Investing: A Sustainable Bridge between Strategy,
Innovation, Change and Learning. first ed. Switzerland: Springer.
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