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Journal articles on the topic 'Long-term debts'
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1
Abuamsha, Mohamed, and Suhair Shumali. "Debt structure and its impact on financial performance: An empirical study on the Palestinian stock exchange." JOURNAL OF INTERNATIONAL STUDIES 15, no. 1 (March 30, 2022): 211–29. http://dx.doi.org/10.14254/2071-8330.2022/15-1/14.
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The study aims to identify the impact that debt structure has on the financial performance of the organizations listed on the Palestinian Exchange (PEX). The sample of the study consists of 41 companies listed in the PEX, excluding the banking sector. The descriptive method is used, in addition to model measurement, to analyze the panel data using the multiple-regression method. The study concludes that the ROA increases when long-term debts are used for financing the assets in the insurance, investment, and industrial sectors. On the other hand, in the service sector, the ROA is negatively affected by the use of long-term debt, and only the industrial companies’ ROA is significantly affected by the total debt. Furthermore, the study finds that the ROA of companies in the insurance and investment sectors is positively impacted by short-term debts. The main recommendation is that companies in the insurance, industrial, and investment sectors should depend on properly balanced long-term debts to increase their revenue.
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Tanko, Udisifan Michael, Akeem Adetunji SIYANBOLA, Paul Matudi Bako, and Olalere Victor DOTUN. "Capital Structure and Firm Financial Performance: Moderating Effect of Board Financial Literacy in Nigerian Listed Non-Financial Companies." Journal of Accounting Research, Organization and Economics 4, no. 1 (April 17, 2021): 48–66. http://dx.doi.org/10.24815/jaroe.v4i1.18322.
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Objective – The study examined the moderating effect of board financial literacy on the relationship between capital structure and firm financial performance of listed non-financial companies in Nigeria. Design/methodology – Capital structure was measured by long term debts to total assets, short term debts to total assets equity to total debt ratio and board financial literacy was measured by ratio of board members that have professional and academic qualification in accounting, finance and economics. Meanwhile financial performance was measured by return on assets. Secondary data was extracted from the sampled firms annual report and accounts and analyzed using Panel Least Square. Results – The study revealed a positive and significant relationship between long term debt and ROA. It also shows that board financial literacy moderate capital structure significantly and increase firm performance. The study recommended that the management of Nigerian listed non-financial firms should optimize the capital structure in order to increase the financial performance. They can do that through ensuring that their capital structure is optimal by using more of current debts and non-current debt than equity. The Board of Directors of Nigerian listed company should be concerned about the level of long term debt, short term debt and include members that are financially literate who will contribute in financing decision of firm in order make optimal capital structure for better financial performance. This is because the findings of this study revealed a positive significant moderating relationship between long term debt, short term debt and financial performance.
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Abdlazez, Fahed Abdullah, Alhashmi Aboubaker Lasyoud, and Abdlmutaleb Boshanna. "The relationship between Malaysian public-listed firms’ corporate governance and their capital structure." Corporate Ownership and Control 16, no. 3 (2019): 98–112. http://dx.doi.org/10.22495/cocv16i3art9.
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The purpose of this paper is to investigate the relationship between corporate governance practices and capital structure of public-listed companies in Malaysia. Using the annual reports of 273 Malaysian public-listed firms on the Bursa Malaysia between 2008 and 2012, hierarchical multiple regression analysis was conducted. Corporate governance was measured by variables including board size, CEO duality, ownership structure, and board meeting. Capital structure was measured through four variables: debt-to-equity ratio, long-term debts, short-term debts, and debt ratio. The findings indicated that corporate governance practices have a positive influence on the debt-equity ratio, long-term debt, short-term debt and a debt ratio of capital structure. However, corporate governance practices’ influence on the debt ratio is found statistically insignificant. The findings also indicate that firm size moderates the relationship between corporate governance variables and capital structure. Empirically, these findings are useful for measuring and understanding financing decisions taken by the Malaysian public listed firms. It also offers insights to policymakers interested in enhancing the role of corporate governance in formulating management strategies.
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Chaleeda, Md Aminul Islam, Tunku Salha Tunku Ahmad, and Anas Najeeb Mosa Ghazalat. "The Effects of Corporate Financing Decisions on Firm Value in Bursa Malaysia." International Journal of Economics and Finance 11, no. 3 (February 28, 2019): 127. http://dx.doi.org/10.5539/ijef.v11n3p127.
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The primary objective of shareholders and financial managers is generally stated to be the maximization of shareholders’ wealth by increasing the firm value. This research was undertaken to investigate the effect of corporate financing decisions on firm value . The research has been carried out using the panel data procedure for a sample of 256 firms from 9 sectors listed on Bursa Malaysia during the period 2000-2015. The study uses Tobin’s Q representing firm value for the dependent variable. The corporate financing was measured by leverage (short-term debt to total assets, long-term debt to total assets, total debt to total assets and total debt to total equity) and debt maturity (long-term debt to total debt). Short-term debt to total assets and long-term debt to total assets has a positive significant relationship to firm value. This finding is consistent with the view that leverage and dividends mitigate agency costs of free cash flow problems, therefore, increasing firm value. Total debt to total assets affects firm value negatively. This proves that although there are benefits of debts, there is also the cost of debts. The cost of debt financing arises from the increase in the probability of bankruptcy. Firm value does not depend on the length of debt maturity.
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Serwadda, Isah. "The Effects of Capital Structure on Banks’ Performance, the Ugandan Perspective." Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis 67, no. 3 (2019): 853–68. http://dx.doi.org/10.11118/actaun201967030853.
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The paper aims to investigate the effects of capital structure on banks’ performance on Ugandan banks for a ten years period, 2006–2015 with a sample of 20 commercial banks. The study employs four performance indicators of return on equity, return on assets, net interest margin and cost to income ratio to determine bank performance. Panel regression models are used to determine the effects of capital structure on bank performance. Independent variables are sub‑divided into capital structure variables namely; long‑term debt to total assets, short‑term debt to total assets and total debt ratio and then control variables are bank size and tangibility of assets. Results portray that there is a positive relationship between capital structure variables and bank performance. It’s between long‑term debts, total debt with net interest margin. There is also a positive relationship between total debt and return on assets. It is still the same between total debt and returns on equity. However, there is a negative relationship between short‑term debt and return on assets. The results also signify a positive relationship between bank size and net interest margin. It is still the same between bank size and returns on equity plus return on assets. There is a negative relationship between the tangibility of assets and net interest margin. It is also the same with return on equity. The findings propose that profitable banks rely more on debt financing as their financing option. This is advanced by the fact that approximately 68 % of total assets are represented by short‑term debts for Uganda’s commercial banks. This further implies that Ugandan banks largely depend on short‑term debt financing for their business operations compared to long‑term debt. Hence the study recommends that executive banking management teams plus policymakers should design prudent financing decisions aimed at reducing overreliance on debts to yield optimal capital structure levels. This will enable banks to remain at the top of the profitability game competitively in the banking industry.
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Shiyalini, Sathanantham, and Kanesh Suresh. "The impact of public debt on domestic and foreign direct investments in developing market: An ARDL bounds testing approach." Corporate Law and Governance Review 4, no. 1 (2022): 8–18. http://dx.doi.org/10.22495/clgrv4i1p1.
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This research investigates the effect of the components of state government debts (domestic and external debts) on the various forms of investment (domestic investment and foreign direct investment — FDI) in Sri Lanka both in the short and long terms applying the ARDL bounds testing approach over the period, 1980–2020. The previous research has revealed that higher internal and external government borrowing lowers domestic investments in both the short and long terms, confirming the crowding-out effect of public debt on the volume of domestic investment of our country. The research discovered that internal debt accumulates FDI inflows in the short term, but it crowds out FDI when considering the long term. In contrast, foreign debt has a substantial inverse connection with FDI inflows in the short term, as expected, but it does not influence FDI in the long run. The findings also showed that higher lending rates of interest share a considerably inverted connection with domestic investments, but it does not have any impact on the long-term FDIs. However, in the short term, an increase in the rate of lending interest rate decreases the prospect of external financiers and crowds out the course of FDI in Sri Lanka. Further, the depreciation of the exchange rate decreases both domestic investment and the flow of FDI in the short-run, but it encourages both types of investments in the long run
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Shon, Jongmin, and Junghack Kim. "The impact of revenue diversification on municipal debts: comparing short-term and long-term debt levels." Local Government Studies 45, no. 2 (December 7, 2018): 241–61. http://dx.doi.org/10.1080/03003930.2018.1552144.
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Gill, Suveera. "An Analysis of Defaults of Long-term Rated Debts." Vikalpa: The Journal for Decision Makers 30, no. 1 (January 2005): 35–50. http://dx.doi.org/10.1177/0256090920050104.
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Lately, the credit rating agencies have been the subject of significant criticism for failing to warn the investors of the defaults well in advance. Investors in long-term debt instruments are usually risk averse, buy-and-hold types; and hence, for them, the variability of investment-grade default rates is particularly important since they employ simple investment-grade rating cut-offs in the design of their investment eligibility plan. According to ICRA (Investment Information and Credit Rating Agency of India) and the other credit rating agencies, default means that the company has either already failed in the payment of interest and/or principal as per terms or is expected to fail. The debt rating at no time informs as to how much bond face value holders would recover in the event of a default. The present regulations pertaining to the credit rating agencies preclude the investors and issuers from suing agencies for awarding a particular rating. Hence, credit ratings are of value only as long as they are credible. This paper tests the reliability of ratings assigned by ICRA on the basis of the actual default rate experience on long-term debt across five sectors over a period of seven years, i.e., 1995–2002. The reason for including only long-term debt instruments for the purpose of analysis is that the assigned rating and its movement can be observed only over a long period. Since the credit rating agencies do not publish ratings that are not accepted by the issuers, this study is limited to only those issues that have been accepted and used by the issuers. The default statistics were examined sector-wise, period-wise, and company/institution-wise. Analyses of the background and business, operating performance, management and systems, financial performance, prospects, key issues, and the reasons cited for defaults were undertaken with respect to all the companies. Simple metrics like default rates by rating grades and rating prior to default were used to analyse whether low ratings (i.e., speculative-grade ratings) were assigned by ICRA to defaulting credits well in advance of default rate. Further, an attempt was made to identify whether companies in default had issued other debt instruments that were rated by other credit rating agencies. The findings highlight the following: The performance of the manufacturing sector vis-a-vis other sectors has been dismal. The period of high defaults (1997-1999) coincides with a high interest regime and poor economic conditions in India. ICRA's performance in terms of proper surveillance and provision of timely and complete information about the companies rated by them has not been up to the mark. The findings certainly draw attention towards the fact that excessive reliance on credit rating needs to be reduced. Since the governance of the credit rating agencies is questionable, adequate steps have to be taken to make them more accountable.
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Ihsane Bouberima and Hamza Chaker. "The Buildup of Global Debt and the Emergence of a New Global Financial Crisis." مجلة إسرا الدولية للمالية الإسلامية 12, no. 2 (December 15, 2021): 137–60. http://dx.doi.org/10.55188/ijifarabic.v12i2.74.
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Many economic researchers and economic policy-makers are discussing an upcoming global financial crisis that will result in a long-term economic recession due to the accumulation of global debt that has reached record levels. However, the truth is that the crisis is still far from our economic reality because the debt crisis has been addressed in a number of countries since the crisis of the 1980s by the rescheduling and write-offs of debts, international cooperation, and other measures. Also, the United States is still able to manage its debts as long as the dollar is the global reserve currency, and it cannot easily be abandoned as such. In addition, the International Monetary Fund is prepared to manage debts and financial crises while at the same time monitoring economic indicators. It provides the necessary international liquidity to achieve global monetary and economic stability.
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Widiaty, Eny, and Anton Priyo Nugroho. "Pertumbuhan Ekonomi Indonesia Perspektif Ekonomi Islam: Peran Inflasi, Pengeluaran Pemerintah, Hutang Luar Negeri dan Pembiayaan Syariah." Jurnal Ilmiah Ekonomi Islam 6, no. 2 (June 29, 2020): 223. http://dx.doi.org/10.29040/jiei.v6i2.1043.
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Economic growth is a fundamental indicator in assessing economic performance. In assessing the economic growth, it can use several important variables such as Inflation, Government Consumption Expenditure, Foreign Debts, and Sharia Finance. In turn, this research aims to analyze the impacts of these variables on the economic growth in Indonesia (Quarter I – Quarter IV) in the period of 2011-2018. The Error Correction Model used in the analysis method. The results of the analysis showed that the variable inflation in the long-term harmed economic growth; while, in the short-term, the level of inflation had a positive impact on economic growth.
Meanwhile, the variable of Government Consumption Expenditure had a negative contribution to economic growth. Furthermore, foreign debt in the long term hurt economic growth, but for the short term, it could bring the positive one. Variable of Sharia finance showed a good result both in the short term and in the long term with a negative correlation with economic growth in Indonesia. However, all variables of inflation, Government Consumption Expenditure, foreign debts, and sharia finance simultaneously had an impact on National Economic Growth.
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W Samuel, Kimani, Fredrick W. S Ndede, and Gerald K. Atheru. "Financial Structure and Financial Growth of Financial Firms Listed at Nairobi Securities Exchange, Kenya." Journal of Finance and Accounting 6, no. 1 (February 8, 2022): 28–45. http://dx.doi.org/10.53819/81018102t2042.
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Decline in performance deter investor from investing in firms. As such, the firms struggle to raise funds for their operations. The purpose of this study was to establish the effect of financial structure on financial growth of financial firms listed at Nairobi Securities Exchange. The study aimed to evaluate the effect of short term debt, long term debt retained earnings and share capital on financial growth as well as how they are moderated by firm size on financial firms. The theories informing the study included Modigliani-Miller theory, Trade-off Theory, Pecking Order Theory and Agency cost theory. This study was guided by the positivism philosophy and a descriptive research design. The target population of the study comprised of 21 financial firms listed at the NSE for a period of 8 years from 2010 to 2017. The findings indicated that a positive and significant relationship between short-term debt and financial growth of the financial firms. Long-term debt had a negative and insignificant relationship with financial growth of the financial firms. Retained earnings had a positive and significant relationship with financial growth of the financial firms. Share capital indicated a positive and significant relationship with financial growth of the financial firms. Firm size was found to be a significantly moderator of the relationship between the financial structure and financial growth of financial firms. The study recommends that policy makers in the financial sector to embrace indicators on short term debts, long term debts, retained earnings, the share capital and firm size on their strategic decision-making. These indicators will further guide in expanding the interpretation of the financial structures in the listed firms at the Nairobi securities exchange and other related firms. Firm size is thus crucial in a finance company due to their market power larger firms are able to charge higher prices and hence earn higher profits. Keywords: Short Term Debt, Long Term Debt, Retained Earnings, Share Capital & Financial Growth
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Bintoro, Nugroho Suryo. "The Resilience of Indonesia’s State Budget against Central Government Debt." Jurnal Ilmiah Administrasi Publik 006, no. 02 (August 1, 2020): 325–30. http://dx.doi.org/10.21776/ub.jiap.2020.006.02.20.
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The growth of central government debt in Indonesia is the subject of endless discussion for both economists and experts in other fields. Although the government uses this debt in order to increase Indonesia's competence through infrastructure development, there are problems in the form of previous accumulated debts. This accumulative debt is known as the concept of “debt stock” which is assessed through Indonesia's fiscal resilience (APBN) to measure the repayment capacity of new debts that will be made in the future. This ability will be seen using long-term data from 1990 to 2016 which is reflected in the variables of central government debt, government spending and revenue so that it is known that Indonesia's central government debt can still be said to be sustainable and the Indonesian government should prioritize productive expenditures in order to increase government revenues.
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Khan, Kanwal Iqbal, Faisal Qadeer, Mário Nuno Mata, José Chavaglia Neto, Qurat ul An Sabir, Jéssica Nunes Martins, and José António Filipe. "Core Predictors of Debt Specialization: A New Insight to Optimal Capital Structure." Mathematics 9, no. 9 (April 27, 2021): 975. http://dx.doi.org/10.3390/math9090975.
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Debt structure composition is an essential topic of discussion for the management of capital structure decisions. Researchers made extensive efforts to understand the criteria for selecting debts, specifically, to know about the reasons for debt specialization, concealed in identifying its predictors. This question is essential not only for establishing the field of debt structure but also for the financial managers to design corporate financial strategy in a way that leads to attaining an optimal debt structure. Sophisticated financial modeling is applied to identify the core predictors of debt specialization, influencing the strategic choices of optimal debt structure to address this issue. Data were collected from 419 non-financial companies listed at the Karachi Stock Exchange from 2009 to 2015. This study has validated debt specialization by showing that short-term debts maintain their position over the years and remain the most popular type of loan among Pakistani firms. Further, it provides a comprehensive view of the cross-sectional differences among the firms involved in debt specialization by applying a holistic approach. Results show that small, growing, dividend-paying companies, having high expense and risk ratios, followed the debt specialization strategy. This strategy enables firms to reduce their agency conflicts, transaction costs, information asymmetry, risk management and building up their good market reputation. Conclusively, we have identified the gross profit margin, long-term debt to asset ratio, firm size, age, asset tangibility, and long-term industry debt to asset ratio as reliable and core predictors of debt specialization for sustainable business growth.
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Atiq, Faaeza, Mudassir Uddin, and Irfan Hussain Khan. "The Impact of Key Macroeconomic Determinants on Pakistan’s Economy." Global Social Sciences Review V, no. II (June 30, 2020): 260–72. http://dx.doi.org/10.31703/gssr.2020(v-ii).25.
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This paper intended to analyze key Macroeconomic factor’s effect on Pakistan’s economic development. The annual time-series data has been taken from 1980 to 2018 on External Debts, Foreign Direct investment. Consumer Price Index and Term of Trade. Variables stationarity is analyzed by ADF and Ng-Perron tests; afterwards, JJ test and Granger Causality test are used for Long-run (LR) & Short-run(SR) associations between variables, respectively. Also, Residuals Diagnostic Test used for checking residuals assumptions and CUSUM and CUSUMSQ are used for checking parameter constancy. The result shows significantly negative and positive long-run effects of External Debts and Foreign Direct Investment (FDI) respectively on the economic growth of Pakistan. Albeit, Consumer Price Index (CPI), Term of Trade (TOT) and, FDI significantly Granger cause economic growth in the short-run. Research suggests that economic policies devised in such a way that deteriorates External Debts and attract foreign investments and strengthen the economic growth of Pakistan in the long-term.
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Park, Kwangmin, and SooCheong (Shawn) Jang. "Is franchising an additional financing source for franchisors? A Blinder–Oaxaca decomposition analysis." Tourism Economics 24, no. 5 (February 13, 2018): 541–59. http://dx.doi.org/10.1177/1354816618757561.
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Numerous studies have used agency theory (Jensen and Meckling, 1976) and capital scarcity theory (Oxenfeldt and Kelly, 1969) to explain franchising motivations. Although both theories may in part account for why firms choose to franchise, past studies have not seriously considered the potential relationship between franchising and capital structures. Using Blinder–Oaxaca decomposition analysis, this study examined the impact of franchising on short- and long-term debt leverage. The final sample included 191 restaurant firms from 1980 to 2015. Sixty-five firms were non-franchise firms, while 126 firms engaged in the franchising business. The results of the Blinder–Oaxaca decomposition analysis showed that franchising has a significant effect on decreasing long-term debts and confirmed that franchising plays an important role as an additional source of long-term capital. Consequently, the capital scarcity theory is supported as one aspect of long-term debt leverage. However, franchise restaurant firms have larger short-term debt than non-franchise firms, although it is merely marginally significant. This contradicts capital scarcity theory but is in accordance with some past studies (e.g. Norton, 1988; 1995). This implies that franchisors constantly need short-term capital to support franchisees.
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Harper, Annie, Tommaso Bardelli, and Stacey Barrenger. "“Let Me Be Bill-free”: Consumer Debt in the Shadow of Incarceration." Sociological Perspectives 63, no. 6 (December 2020): 978–1001. http://dx.doi.org/10.1177/0731121420968124.
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Low-income U.S. households are increasingly burdened by unaffordable debt, with profound long-term economic and health consequences. Households of color are disproportionately negatively affected. This article examines the nexus of this rising indebtedness and mass incarceration through the experiences of a particularly marginalized group, people with mental illness. Drawing on qualitative research with 31 individuals with mental illness and recent incarceration in the city of New Haven, Connecticut, we show how carceral institutions and predatory financial practices intersect to create complex entanglements for poor and vulnerable people. While a growing body of scholarship focuses on criminal justice fines and fees, we highlight other types of debt that add to the overall burden, describing how incarceration deepens people’s existing debts of poverty and adds new debts from in-prison costs and identity theft. After release, those debts complicate the search for housing, employment, and financial stability, leading to further debt, stressing social relationships and reproducing social and economic inequality. The experiences of people with mental illness illuminates structures of marginalization and disadvantage that affect many others involved with the criminal justice system.
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du Toit, Marié J., D. Johan Kotze, and Sarel S. Cilliers. "Quantifying Long-Term Urban Grassland Dynamics: Biotic Homogenization and Extinction Debts." Sustainability 12, no. 5 (March 5, 2020): 1989. http://dx.doi.org/10.3390/su12051989.
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Sustainable urban nature conservation calls for a rethinking of conventional approaches. Traditionally, conservationists have not incorporated the history of the landscape in management strategies. This study shows that extant vegetation patterns are correlated to past landscapes indicating potential extinction debts. We calculated urban landscape measures for seven time periods (1938–2019) and correlated it to three vegetation sampling events (1995, 2012, 2019) using GLM models. We also tested whether urban vegetation was homogenizing. Our results indicated that urban vegetation in our study area is not currently homogenizing but that indigenous forb species richness is declining significantly. Furthermore, long-term studies are essential as the time lags identified for different vegetation sampling periods changed as well as the drivers best predicting these changes. Understanding these dynamics are critical to ensuring sustainable conservation of urban vegetation for future citizens.
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Brad, Laura, Gabriel Popescu, Alina Zaharia, Maria Claudia Diaconeasa, and Daniela Mihai. "Exploring the Road to Agricultural Sustainability by Assessing the EU Debt Influencing Factors." Sustainability 10, no. 7 (July 13, 2018): 2465. http://dx.doi.org/10.3390/su10072465.
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The importance of agricultural financing in ensuring food security and safety, jobs, poverty reduction, economic growth and more recently, climate change mitigation, natural resource conservation and sustainable development imposes periodic analysis of the factors which might influence the farmers’ financial situation, in order to improve it. One way of assessing this is to analyze the agricultural debt. In this context, based on previous models, the paper aims to assess the impact of specific factors on the agricultural debt level in the European Union during 2008–2015, as these should be considered in future common agriculture policies as well as in achieving sustainable agriculture. The research was conducted based on econometric techniques, by applying panel models in the Eviews 7.0 software-64 bit version. More than 20 variables were considered in the analysis. Some of the findings suggest that an increase in subsidies as well as the share of cash flow in the total existing capital would determine considerable reductions of the total debt. Decoupled subsidies seem to have a higher impact than coupled subsidies on short term debt, while its value is between the one found for coupled subsidies in the case of long term debt. Large farms/companies, to which decoupled payments are granted, have higher debts on long run and on total debt. The same units, to which coupled subsidies were granted, have smaller short-term debt. In contrast, the increases of labor costs, fixed costs, and crop/livestock costs lead to an increase in the total debt, since the farms require additional financial resources to cover the expanded costs. Also, the results suggest that short-term debts are mainly formed of long-term loans that reached maturity. In this case, the authors support the idea of differentiated financing programs for the agricultural activities because of their peculiarities and reinforced by the need to turn the intensive agriculture into a sustainable and plentiful one.
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Todri, Ardita, and Francesco Scalera. "“Getting Big by Thinking Small”: An Empirical Analysis from Trading SME’s." International Journal of Business and Management 11, no. 8 (July 20, 2016): 1. http://dx.doi.org/10.5539/ijbm.v11n8p1.
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<p>The necessity to manage the debts capacity within Small and Medium Size Enterprises (SMEs) remains pivotal to their solvency and growth potentiality, especially in trading sector. Therefore through a ROC Curve analysis there were identified the discriminative variables (organized in four indicators groups such as: liquidity, turnover, structure and return) pertaining to a panel of 62 SME’s with performing and not status (default ratio of 50%) by referring to the 2013-2014 period.</p><p>The latest, excluding the others indicators confirms that total debt to equity, total assets to shareholder’s equity and long term assets to shareholder’s equity can better do it. In addition, a regression analysis is used to estimate the impact of the above mentioned discriminative variables on SME’s debts management capacity in the quality of a performance measure (pertaining to liquidity indicators group). Under these circumstances it was evidenced that the variables that positively impact SME’s performance are: equity to total debts, long term assets to shareholder’s equity as well as return on equity.</p>Referring to the Albanian economical structure, undoubtedly these results give some hope signals regarding SME’s development strategy being that they can contemporary contribute in the country’s GDP growth by good performing in micro level.
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Nagano, Mamoru. "International Real Estate Review." International Real Estate Review 16, no. 3 (December 31, 2013): 252–73. http://dx.doi.org/10.53383/100173.
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This paper investigates the relationship between real estate asset liquidity and the liability structure of Japanese real estate investment trusts (J-REITs). It employs data on the regionality and usage of real estate assets as new proxies for the liquidation value of these assets, and arrives at the following conclusions. First, J-REITs with high ratios of real estate investment assets in highly liquid regions, that is, regions where the trade frequency per unit area is high, have high debt-to- equity ratios and debts of long-term maturity. Second, J-REITs with high concentration ratios of small real estate assets that are traded as residential properties also have high debt-to-equity ratios and debts of long-term maturity. In addition, the above relationships are enhanced when these REIT shave a concentrated ownership structure. In summary, this paper empirically validates the employment of regional characteristics and usage type of real estate assets as proxies for asset liquidation value, and confirms that these proxies are related to the capital and liability structures of J-REITs. This connection is possibly intensified by the perception of block shareholders as sponsor firms by market participants.
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Alechenu, Benedict Ebenezer. "An In-depth analysis of government debt to GDP of the three selected African countries and its effects on their Economy." Eurasian Journal of Higher Education 3, no. 6 (March 23, 2022): 26–37. http://dx.doi.org/10.31039/ejohe.2022.6.69.
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This study investigated the effects of Government debt to the GDP of the 3 selected African Countries and the negativity on their economy using data from 2012-2020. The provable/empirical results showed that debt effects enhanced growth only on a short term and hindered growth in the long term. Debt servicing has negative impacts on the borrower country’s economy because It takes a large benefit from the domestic economy to transfer to the foreign economy. Therefore, the country foregoes some spectacular multiplier accelerator effects. Debt servicing, including interest payments and repayments, may also be a real leakage from an indebted country. The study suggested that government should channel the borrowed funds on both infrastructural development and the productive base of the economy, that will improve long-term economic growth, expand the revenue base, and strengthen the capacity to repay outstanding debts when due. Government should put in place a debt management mechanism that will prevent the government from default.
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Kemarska, Liliia. "THE FEATURES OF ACCOUNT RECEIVABLES ACCOUNTING AT COKE ENTERPRISES." ECONOMIC BULLETIN OF THE DNIPROVSK STATE TECHNICAL UNIVERSITY, no. 1(2) (June 2, 2021): 100–110. http://dx.doi.org/10.31319/2709-2879.2021iss1(2).232598pp100-110.
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The article examines the features of account receivables accounting at coke enterprises in Ukraine. Different approaches for defining the «account receivable» term by domestic and foreign researchers were examined, the difference between interpretations was determined. Various approaches to the account receivable classification were explored, the classification attributes were generalized on the basis of the conducted research. It was proposed to extend the existing classification with the following attributes: by agreement with counterparties, by currency of debt, by legitimacy of occurrence. According to the added classification attributes, the types of account receivables were distinguished (сoncerted and the unconcerted account receivable on a sum and terms, for example, not confirmed claims fines; real and fictitious account receivable, that is represented in an account without actual realization of economic operation or as a result of economic operations that is confessed by a court as incompetent). The features of account receivables accounting at the PJSC “DNIPROVSKY CCP” were examined. In accordance with the chosen accounting policy, the classification of account receivables at the enterprise was highlighted. The features of registration of primary documents of origin and repayment of account receivable for various business transactions were analyzed. The features of recognition and assessment of account receivable, the procedure for forming the provision for doubtful debts were revealed, the procedure and grounds for writing off debts, the features of its reflection in the financial statements were determined. For more detailed accounting of account receivables in the enterprise, measures to improve accounting were proposed. For account receivables accounts in the enterprise, it is proposed to introduce sub-accounts for accounting of debts for which the payment deadline has not come, and debts that have not been repaid on time. For accounting the doubtful debt reserve for long-term and short-term account receivables it’s proposed to introduce separate sub-accounts to the account of the accounting of the doubtful debts reserve. Based on the proposals made the changes to the working card of accounts of the PJSC “DNIPROVSKY CCP” were developed.
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Oware, Kofi Mintah, and T. Mallikarjunappa. "Corporate social responsibility and debt financing of listed firms: a quantile regression approach." Journal of Financial Reporting and Accounting 19, no. 4 (February 9, 2021): 615–39. http://dx.doi.org/10.1108/jfra-07-2020-0202.
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Purpose The purpose of the study is to examine the effect of corporate social responsibility (CSR) on debt financing (natural logarithm of debt and leverage ratios) of listed firms. Design/methodology/approach Using content analysis for data extraction, the study examines listed firms on the Bombay Stock Exchange (BSE) from 2010 to 2019 financial year. It uses a quantile regression and panel fixed effect regression as the model's application. Findings The study shows that CSR expenditure has a positive and strong correlation with debt financing (i.e. natural logarithm of long-term and short-term debts). The first findings show that CSR expenditure has a negative and statistically significant association with total leverage ratio, using conditional mean and median percentile. However, there is a positive and statistically significant association between CSR expenditure and long-term leverage ratio at the 25th and 50th percentile. The second findings show that CSR expenditure has a positive and statistically significant association with long-term debt but an insignificant association with short-term debt and total debt under a conditional mean average. The application of quantile regression addresses the values that fall outside the confidence interval and therefore document a positive and statistically significant association between CSR expenditure and debt financing (short-term debt, long-term debt and total debt) at the 25th, 50th and 75th percentile. Originality/value The introduction of quantile regression gives a novelty in CSR and debt financing study, which to the best of the authors’ knowledge, has not received any attention. Similarly, firms have better information on how to position their CSR expenditure to attract providers of debt financing.
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Manawaduge, Athula, Anura De Zoysa, Khorshed Chowdhury, and Anil Chandarakumara. "Capital structure and firm performance in emerging economies: An empirical analysis of Sri Lankan firms." Corporate Ownership and Control 8, no. 4 (2011): 253–63. http://dx.doi.org/10.22495/cocv8i4c2art2.
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This paper offers an empirical analysis of the impact of capital structure on firm performance in the context of an emerging market—Sri Lanka. The study applies both pooled and panel data regression models for a sample of 155 Sri Lankan-listed firms. The results demonstrate that most of the Sri Lankan firms finance their operations with short-term debt capital as against the long-term debt capital and provide strong evidence that the firm performance is negatively affected by the use of debt capital. The study also finds a significant negative relationship between tangibility and performance indicating inefficient utilization of non-current assets. The negative performance implications associated with over-utilization of short-term debts and the under-utilization non-current assets provide corporate managers with useful policy directions.
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Kwon, Ilan, Sojung Park, BoRin Kim, and ByeongJu Ryu. "The Impacts Of Socio-Economic Challenge On Long-Term Physical and Mental Health In Retirement Age." Innovation in Aging 5, Supplement_1 (December 1, 2021): 1048–49. http://dx.doi.org/10.1093/geroni/igab046.3744.
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Abstract Despite consistent evidence on the negative effect of social and economic challenges on health, little is known about the pattern of economic difficulties people experience and the impact of those challenging patterns on long-term health in later life. This study used the national data, Mid Life in the United States (MIDUS 3 in 2013-2014), to identify the different patterns of socio-economic challenges that older Americans (50-64 ages old) experienced during the Recession in 2008 and to examine the impact of past challenging experiences on physical and mental health in their later life. Socio-economic challenges included twenty-six items such as losing or moving a job, missing rent, selling or losing a home, bankruptcy, having debts, and cutting spending. We conducted the latent class analysis and regression while controlling other social determinant factors (e.g., education, employment status, poverty, etc.). The latent class analysis result found five patterns during the Recession: people who experienced various difficulties during the Recession, who moved their jobs, who experienced financial difficulties, who bought a home with decreased debts, and who experienced no difficulty. Compared to people with no challenging experience, those who needed to move their jobs but could make debt off during the Recession reported physically healthier, but not mentally healthier in later life. Interestingly, among this group, women reported more long-term physical health problems than men. The findings suggest the close connection between physical and mental health and the importance of long-term care for mental health among older adults in recovering from socio-economic challenges.
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Ouyang, Tianhao, and Xiaoyong Lu. "Clustering Analysis of Risk Divergence of China Government’s Debts." Scientific Programming 2021 (August 30, 2021): 1–9. http://dx.doi.org/10.1155/2021/7033597.
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It is a difficult time for the world’s economics while the impact of COVID-19 is undergoing. A possible worldwide sovereign debt crisis could emerge, in short term, for supply chains blockage due to its slowing-down in many countries. China, having the second largest economy in the world, is crucial for the stability and sustainability of the economic recovery. China endures a long-term growth since 2000; nevertheless, a large amount of that growth is contributed by the government debt, which was spent on infrastructures. The accumulation of debts is a potential risk to the future growth of China. This research evaluates the central government and local government debts with a series of indicators. The weights of indicators are determined by objective methods of the CRITIC approach. Results confirm that the central government debt of China is on the edge of risk, while the risk of local governments debt is already in a concerning danger. The local government risk is 50% higher than the central government’s risk. Moreover, the K-means clustering algorithm performed on data, collected from various provinces, suggests that the local government debts of China follow a pattern of geographical distribution; that is, the closer to the coast, the lesser the risk, which is in accordance with the pattern of labor flowing. Labors are attracted by job opportunities which lie in the well-developed regions of China. This is confirmed by the crosscheck with the wage growth data. This indicates that the less developed areas of China rely more heavily on debt-investment stimulation that could be of a potential stagnation because the yield of investment follows diminishing marginal returns and the relative lacking labor weakens the potential economic growth.
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Alsharari, Nizar Mohammad, and Rasha Abousamra. "Financial Crisis, Bad Debt and Uncollectible Receivables: Evidence from UAE." Indonesian Management and Accounting Research 17, no. 2 (August 26, 2019): 119. http://dx.doi.org/10.25105/imar.v17i2.5135.
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This study aims to study the methods used in accounting for calculating bad debts in a financial setting and comparing it with the debt collection methods in an academic environment in UAE especially in Abu Dhabi University. It also focuses on exploring the reasons behind defaulting payments in an academic setting and finally recommending a sample policy for debt collection an academic environment has been demonstrated. It is clearly that the non-performing loans prevailing in the UAE could be twofold in the coming years due to a constant surge in the credit demand, and the banks as well as financial institutions cannot agree on debt collection policies. The position of UAE in context is still better than many other countries. However, this will negatively affect the financial positions of the organizations if proper policies are not in place for the debt collection procedures. The credit demand is going to increase as more and more people are keen on investing in the real estate sector of the country and prefer taking long term mortgages to finance their dream houses. It must be noted that UAE’s overall receivables was stated as AED 28.2 billion in 2012, which then increased to AED 35.3 billion in 2013, again indicating the surge in demand for credit and the corresponding impact on increase in bad debts. This study concludes that a number of resources were available when it comes to collecting bad debts in banking or financial environment, but collecting bad debts in higher educational institutions was very limited, in the context of UAE
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Salehi, Mandi, Hashem Valipour, and Sharham Shanei. "EMPIRICAL STUDY OF THE EFFECT OF INVESTMENT STRUCTURE ON THE PROFITABILITY OF LISTED COMPANIES IN TEHRAN STOCK EXCHANGE." Indonesian Management and Accounting Research 8, no. 2 (November 10, 2016): 66–77. http://dx.doi.org/10.25105/imar.v8i2.1288.
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The purpose of this research is the survey of effect of investment structure on the profitability of listed companies in Tehran Stock Exchange (TSE). To do it, selected 100 companies of 13 different industries as the statistical sample and by fitting multivariable regression models with table data, have been surveyed for the relationship between investment structure scales and company's profitability during 6-years period (2002-2007) for sample companies.The results of the research show that there is a positive relationship between short-term debt to assets and company's profitability and also between total debts to total assets and profitability. But there is a negative relationship between long-term debt to assets and profitability.Keywords: Investment structure, Profitability, Tableau data
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Chatterjee, Satyajit, and Burcu Eyigungor. "A Seniority Arrangement for Sovereign Debt." American Economic Review 105, no. 12 (December 1, 2015): 3740–65. http://dx.doi.org/10.1257/aer.20130932.
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A sovereign’s inability to commit to a course of action regarding future borrowing and default behavior makes long-term debt costly (the problem of debt dilution). One mechanism to mitigate this problem is the inclusion of a seniority clause in debt contracts. In the event of default, creditors are to be paid off in the order in which they lent (the “absolute priority” or “first-in-time” rule). In this paper, we propose a modification of the absolute priority rule suited to sovereign debts contracts and analyze its positive and normative implications within a quantitatively realistic model of sovereign debt and default. (JEL E32, E44, F34, G15, H63, O16, O19)
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Molla, Md Ibrahim. "Capital Structure and Bank Performance: Empirical Evidence from Bangladesh." Asian Journal of Finance & Accounting 12, no. 1 (June 11, 2020): 161. http://dx.doi.org/10.5296/ajfa.v12i1.17014.
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The paper empirically investigates the relationship between capital structure and the performance of listed banks in Bangladesh using panel data over the period of five years from 2014-2018. To estimate the association between leverage level and bank performance the Panel Corrected Standard Error (PCSE) model is used in this study and the findings indicate that long term debt has a positive influence on the performance of banks which is measured in terms of ROA and ROE. This implies that long term debts are associated with the higher performance of banks listed in Bangladesh. The regression results also reveal that the capital structure component of total debt has no statistically significant impact on ROA, ROE and EPS but it has a significant positive impact on the performance of banks measured by price earning ratio. Furthermore, this analysis finds no relationship of long term debt and total debt with the EPS. These findings lead to conclude that capital structure has a weak to no influence on the performance of listed banks in Bangladesh. This paper is the first research attempt that investigates the impact of capital structure on the performance of all banks listed on the Dhaka Stock Exchange in Bangladesh.
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Ezeaku, Hillary Chijindu, Obiamaka P. Egbo, Ifeoma Nwakoby, and Josaphat U. J. Onwumere. "Effectiveness of bilateral and multilateral concessional debts on economic growth in Africa." International Journal of Emerging Markets 15, no. 2 (July 26, 2019): 344–61. http://dx.doi.org/10.1108/ijoem-09-2018-0493.
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Purpose The purpose of this paper is to assess the relative effectiveness of bilateral and multilateral concessional debts on economic growth in 32 sub-Saharan African (SSA) countries over the period 1985–2016. Design/methodology/approach The recently developed dynamic panel autoregressive distributed lag models which comprise three different estimators, the mean group, pooled mean group (PMG) estimator and dynamic fixed effect, were applied to estimate the model. Following these estimators, the Hausman test was employed to determine the efficient and consistent estimator. Findings The results showed that bilateral concessional debts had a negative impact on growth. From the findings, a 1 percent increase in bilateral concessional debts induced economic growth to decline by 38.1 percent points in the short run, and by 7.1 percent points in the long run; convergence to long-run equilibrium adjusted at the speed of 90 percent on an annual basis. Multilateral concessional debts were found to have a positive impact on growth both in the short and long run. The coefficient of the error term was negatively signed and indicates that deviations from the long-run equilibrium path were being corrected at the speed of 89.4 percent annually. Originality/value To the authors’ best knowledge, empirical studies that specifically seek to examine how bilateral and multilateral concessional debts impacted on growth are yet to attract the attention of researchers. As a result, this study will complement related extant growth studies, especially in the case of SSA.
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Indah Mursalini, Wahyu, Witra Maison, Juita Sukraini, Nidia Anggraini Das, and Afniyeni . "The Effects of Assets and Debts on Profit Among Advertising, Printing and Media Listed Firms in Indonesia." International Journal of Engineering & Technology 7, no. 4.9 (October 2, 2018): 232. http://dx.doi.org/10.14419/ijet.v7i4.9.21086.
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The purpose of this study is to determine the effect of assets and debts to company profit. Assets and Debts are the deciding variables to make a company profit. Debt is inversely proportional to profit. Therefore, any company's management must be able to manage the assets and debt of the company to increase corporate profit. Need to explain why Sub Sector Company Advertising Printing and Media on Indonesia Stock Exchange is studies here. Based on the results of research, asset and debt have a significant effect to the profit of Sub Sector Company Advertising Printing and Media listed on Indonesia Stock Exchange. This is evidenced by statistical analysis. The researcher suggests the inclusion of control variables such as economic growth and capital structure so that the results of research can assist investors in assessing the company. Increase the period of research into 10 years, so that the results of research can describe the condition of the company for the long term and can pay attention to the business cycle. In addition, the study could be replicated on other sectors and comparative analysis could be done accordingly.
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Konieva, Tetiana. "The impact of financing policy on the cost of debt." Investment Management and Financial Innovations 18, no. 4 (November 11, 2021): 177–89. http://dx.doi.org/10.21511/imfi.18(4).2021.16.
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The cost of debt is a key element to define the amount of the regular interest payments of a company and its business value. It is used for indicators that warn of the economic crisis, which is relevant for the countries where most companies are financially dependent on liabilities. The formalized criteria for the types of financing policy, improved procedure for the cost of debt calculation make it possible to reveal policy with the capital structure that minimizes the cost of debt.The study is based on Ukrainian food processing companies for the period 2013–2020. The studied database was distributed by the types of financing policies: 22% of the cases have a conservative policy, 15% – moderate, 26% – aggressive, 37% – super-aggressive. The results show that the highest weighted cost of debt (24.1%) belongs to the conservative policy, which replaces negative equity by the expensive long-term debts, as well as super-aggressive policy (20.8%) with trade payable that is near half of the capital, and long days payable outstanding. A company can reduce the cost of debt relying on non-interest-bearing liabilities and trade payable if its days payable outstanding are kept at the industrial level or below. Moderate and conservative financing policies, which are based on equity and avoid debts, provide the lowest weighted cost of debt: 2.1% and 1.2%.Thus, choosing the desired type of financing policy for the company, it is possible to form a capital structure that will reduce the cost of debt.
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Ezeoha, Abel, and Ferdi Botha. "Firm age, collateral value, and access to debt financing in an emerging economy: evidence from South Africa." South African Journal of Economic and Management Sciences 15, no. 1 (March 16, 2012): 72–93. http://dx.doi.org/10.4102/sajems.v15i1.138.
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This paper applies the Blundell and Bond system generalised method of moments (GMM) two-step estimator to examine the impact of age and collateral value on debt financing, using a panel of 177 non-financial companies listed on the Johannesburg Stock Exchange over the period 1999 to 2009. The results show that South African firms have target leverage ratios and adjust their capital structures from time to time to achieve their respective targets, that the relationship between firm age and debt financing is non-monotonic, and that firms with higher collateral value are likely to face fewer constraints on borrowing and therefore have greater access to medium-term and long-term debts. Robustness tests also reveal that during start-up and maturity stages, a firm’s access to debt markets is significantly influenced by investments in assets that are acceptable to external creditors as collateral. These findings suggest that debt financing policies could be more critical for firms in the start-up and maturity stages.
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Salehi, Mandi, Hashem Valipour, and Sharham Shanei. "EMPIRICAL STUDY OF THE EFFECT OF INVESTMENT STRUCTURE ON THE PROFITABILITY OF LISTED COMPANIES IN TEHRAN STOCK EXCHANGE." Indonesian Management and Accounting Research 9, no. 1 (March 13, 2019): 66. http://dx.doi.org/10.25105/imar.v9i1.1291.
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<p class="Style1">The purpose of this research is the survey of effect of investment structure on the profitability of listed companies in Tehran Stock Exchange (TSE). To do it, selected 100 companies of 13 different industries as the statistical sample and by fitting multivariable regression models with table data, have been surveyed for the relationship between investment structure scales and company's profitability during 6-years period (2002-2007) for sample companies.The results of the research show that there is a positive relationship between short-term debt to assets and company's profitability and also between total debts to total assets and profitability. But there is a negative relationship between long-term debt to assets and profitability.</p><p class="Style9" align="left">Keywords: Investment structure, Profitability, Tableau data</p>
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Maina, Leonard Kiragu, Tobias Olweny, and Kenneth Wanjau. "Observed Leverage and Financial Performance of Listed Firms in Kenya." International Journal of Finance & Banking Studies (2147-4486) 7, no. 2 (January 12, 2018): 19–38. http://dx.doi.org/10.20525/ijfbs.v7i2.872.
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Capital structure management is one of the most crucial corporate financial management functions in a firm since appropriate debt policy is reported to maximize the value of a firm. Kenya is ranked second in Africa after South Africa in regards to financial deepness. This means that the cost of debt should not have adverse effect financial performance. This observation raises fundamental question: does debt financing leads to poor financial performance in Kenya? This research sought to investigate the role of observed leverage on financial performance of listed non- financial firms in Kenya. The study tested capital structure theories and therefore adopted a positivists approach, guided by causal research design. The study population was 35 non-financial sub-sector firms out of the 65 firms listed at the NSE, Kenya. 18 firms were excluded in this study since they belong to banking and insurance sub-sectors, which have a highly regulated capital structure. Secondary data collection sheet was used to collect data for each of the variables from audited financial statements of the listed firms for a 10-year period (2006-2015). Panel regression analysis revealed that observed leverage measured by (LDR) had a significant positive coefficient with performance metrics. However, the leverage measure using TDR showed a negative and significant role on performance metrics. This study recommends that for listed firms to improve their financial performance, they should use more long-term debts than short-term debts.
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Henrique, Marcelo Rabelo, Sandro Braz Silva, and Antonio Saporito. "Capital structure, stock exchanges in Chile: 2007 to 2016." Journal of Economics, Finance and Administrative Science 26, no. 52 (November 30, 2021): 317–32. http://dx.doi.org/10.1108/jefas-10-2020-0328.
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PurposeThe article consists of analyzing the behavior of the determinants of the capital structure of Chilean companies between 2007 and 2016. The objective of this study was achieved through a typology of research based on bibliographic, documentary, exploratory and explanatory, considering annual financial reports from Economática in the chosen period.Design/methodology/approachAs this is a research study with a quantitative approach, the statistical tools used were descriptive analysis, Pearson correlation, variance inflation factor (VIF) and panel regression.FindingsThe results show that Chilean companies (240) have higher and costly long-term debt. These companies have high averages in current liquidity, return to shareholders, growth in sales and assets and market-to-book (MTB). Long-term debt was highlighted with an explanatory power of 85%. Current liquidity was highlighted as being significant in most of the indebtedness proposed in the survey, failing to register brands like this in expensive short-term and long-term indebtedness. It is noticed that flip flops companies are more prone to the pecking order theory (POT). The gap occupied by this study is linked to research involving South American countries, especially the Chilean market, and the determinants of the capital structure.Originality/valueAs future research, it is suggested to include other types of variables related to indebtedness and the same action for its determinants, in addition to the speed technique of adjusting corporate debts.
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Sami, Mina. "French Firms and COVID-19: Do the Debt Status, Crisis Management System, and Monetary Policy Play a Role?" Jahrbücher für Nationalökonomie und Statistik 241, no. 3 (February 9, 2021): 349–72. http://dx.doi.org/10.1515/jbnst-2020-0052.
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Abstract This study has two main objectives: first, it assesses the effect of outbreak pandemic diseases on the French firms’ stock returns by considering the sector of activity as the main center of analysis. Second, it investigates the role of the crisis management system, firm debt strategy, and monetary policy in dealing with the adverse shocks of the major outbreak of the COVID-19. The study results can be summarized as follows: (1) the daily growth in COVID-19 cases and deaths are associated with lower stock returns of the listed firms, especially for the firms operating in the energy, industrial and health care sectors. In contrast, telecommunication and consumer sectors are not significantly affected. (2) The pandemic’s adverse effect is much more tolerant with the French firms with an efficient crisis management system and low long-term debt commitments than the firms that do not have such a system and engaged with long term debts. (3) Euribor rates and monetary policy are still playing an essential role during the pandemic period.
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Sharma, Rakesh Kumar. "Factors affecting financial leveraging for BSE listed real estate development companies in India." Journal of Financial Management of Property and Construction 23, no. 3 (November 5, 2018): 274–94. http://dx.doi.org/10.1108/jfmpc-01-2017-0002.
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PurposeThe real estate sector in India has assumed growing importance with the liberalisation of the economy. Developments in the real estate sector are being influenced by the developments in the retail, hospitality and entertainment (e.g. hotels, resorts and cinema theatres) segment, economic services (e.g. hospitals, schools) and information technology-enabled services (such as call centres), and vice versa. This paper aims to study the determinants of capital structure by taking into account 125 major Bombay Stock Exchange (BSE) listed real estate companies selected on the basis of their market capitalisation.Design/methodology/approachTo discover what determines capital structure, nine firm level explanatory variables (profitability-EBIT margin, return on assets, earnings volatility, non-debt tax shield, tangibility, size, growth, age debt service ratio and tax shield) were selected and regressed against the appropriate capital structure measures, namely, total debt to total assets, long-term debts to total assets, short-term debts to total assets, total liabilities to total liabilities plus equity, total debt to capital used and total debt to total liabilities plus equity. A sample of 125 real estate companies was taken and secondary data were collected. Consequently, multivariate regression analysis was made based on financial statement data of the selected companies over the study period of 2009-2015.FindingsThe major findings of the study indicated that profitability, size, age, debt service capacity growth and tax shield variables are the significant firm-level determinants.Research limitations/implicationsThe present study is carried out by taking data of only 25 companies listed on the BSE and time period covered from 2009 from 2015. Time period and sample size may be limitations of the current study.Practical implicationsThe present study is an empirical analysis of the determinants of leverage of real estate sector in India with most recent available data. Different regression equations have been formed to develop the models using firm-specific determinants and different measures of leverage or capital structure. Data were regressed using SPSS application software, and the resulting (or obtained) regression outputs are analysed. This study will help the Indian real estate companies to the know the impact of different variables while raising short-term and long-term loans.Social implicationsThe current study will benefit all stakeholders of society who are fascinated to be acquainted with the financing of real estate companies and the factors affecting long-term and short-term financing of this sector. Specifically, public engrossed in different modes of investment and financial institution will be the prime gainers.Originality/valueThe present study has been completed using authentic data from the annual reports and database. This study uses explanatory variables and different measures of leverage which were limited in use in previous studies. Moreover, this research is a comprehensive study that deals with developing different regression models by using diverse measures of leverage.
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Inelia, Ana, and Nurzi Sebrina. "Pengaruh Pembayaran Utang Pasca IPO Terhadap Pertumbuhan Perusahaan." JURNAL EKSPLORASI AKUNTANSI 1, no. 4 (December 5, 2019): 1881–95. http://dx.doi.org/10.24036/jea.v1i4.183.
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This study to examine the effect of post-IPO debt payments on firm growth. Research is a causative research, the population are the companies which listed on the Indonesia Stock Exchange in 2013-2017, there are 64 companies as research samples that obtained from www.idx.co.id, method used is multiple linear regression analysis. The results showed that DER has a significant effect, which means that a high level of leverage can be proven to increase the motivation of companies to use IPO funds to pay debts and interest spread has no significant effect. It means that a high level of interest spread cannot explain firm motivation using IPO funds to pay down debt. high retiring has no significant effect, which means that a high debt payments cannot prove an increase in firm growth and the low retiring has no significant effect, meaning that low debt payments cannot explain the increase in firm growth. POSTIPO which has no significant effect, that means that post-IPO conditions cannot prove a better long-term operating performance and POSTIPO * HR has no significant effect, which means the reaction conditions post-IPO with a high level of debt payments cannot prove that long-term operating performance length is better.
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Li, Jiajing, Chen Jiao, Stephen Nicholas, Jian Wang, Gong Chen, and Jinghua Chang. "Impact of Medical Debt on the Financial Welfare of Middle- and Low-Income Families across China." International Journal of Environmental Research and Public Health 17, no. 12 (June 26, 2020): 4597. http://dx.doi.org/10.3390/ijerph17124597.
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Background: Medical debt is a persistent global issue and a crucial and effective indicator of long-term family medical financial burden. This paper fills a research gap on the incidence and causes of medical debt in Chinese low- and middle-income households. Method: Data were obtained from the 2015 China Household Finance Survey, with medical debt measured as borrowings from families, friends and third parties. Tobit regression models were used to analyze the data. The concentration index was employed to measure the extent of socioeconomic inequality in medical debt incidence. Results: We found that 2.42% of middle-income families had medical debt, averaging US$6278.25, or 0.56 times average household yearly income and 3.92% of low-income families had medical debts averaging US$5419.88, which was equivalent to 2.49 times average household yearly income. The concentration index for low and middle-income families’ medical debt was significantly pro-poor. Medical debt impoverished about 10% of all non-poverty households and pushed poverty households deeper into poverty. While catastrophic health expenditure (CHE) was the single most important factor in medical debt, age, education, and health status of householder, hospitalization and types of medical insurance were also significant factors determining medical debt. Conclusions: Using a narrow definition of medical debt, the incidence of medical debt in Chinese low- and middle-income households was relatively low. But, once medical debt happened, it imposed a long-term financial burden on medical indebted families, tipping many low and middle-income households into poverty and imposing on households several years of debt repayments. Further studies need to use broader definitions of medical debt to better assess the long-term financial impact of medical debt on Chinese families. Policy makers need to modify China’s basic medical insurance schemes to manage out-of-pocket, medical debt and CHE and to take account of pre-existing medical debt.
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Mah, Gisele. "The governance of federal debt in the United States of America." Risk Governance and Control: Financial Markets and Institutions 7, no. 1 (2017): 91–98. http://dx.doi.org/10.22495/rgcv7i1art12.
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The United State of America has been experiencing high debt to GDP ratio of more than 100% and these Public debts are detrimental. The main purpose of this study was to examine the shocks of the variables on others in the USA economy by using quarterly data. The variance decomposition and the Generalised Impulse Response Function techniques were employed to analyse the data. The result revealed that high variation of shocks in real federal debt is explained by their own innovations in the short run, by CPI followed by real federal debt its self. In the long run, this leads to CPI and real government spending. The GIRF reveals that in the short run, real federal debt responds negatively to shocks from CPI, real federal interest payment and real federal government tax receipts and positively to real federal debt and real government spending. In medium term, only real federal government tax receipts are negative while the others are positive. In the long run, the response are all positive to shock from the independent variables. The results lead to the recommendation that the US government should focus on real federal debt in the short run. In the medium term, US government should focus on increasing real government spending and reducing only real federal government tax receipts. In the long run the target should real be federal debt, CPI, real federal interest payment, real government spending and real federal government tax receipts.
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Owusu, Nkwantabisa Agyeiwaa, Falistus Raphael Hadjor, and Nelly Joel Tchuiendem. "The influencing power of apply and explain on capital structure." Technium Social Sciences Journal 24 (October 9, 2021): 348–61. http://dx.doi.org/10.47577/tssj.v24i1.4820.
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The paper investigated the suspension of Independent Non-Executive Directors (INEDs) stock options on corporate capital choices: Equity, retained earnings, long term borrowing and short term borrowing. The paper used a sample of 1250 non-financial Firm years from 2010 to 2019. The Ordinary Least Squares and the difference in difference method discovered that the firms' Leverage increased positively after the reform. In particular, the suspension of stock options impacts the high levels of long term borrowing in the "Apply and Explain" periods. The study submits that the suspension of stock options maximizes the independence of the INED on the executive Board and Subcommittees (Audit and Remuneration) to reduce the use of retained earnings and promotes the use of Long term debts in financing projects.
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Ruan, Wenjuan, Grant Cullen, Shiguang Ma, and Erwei Xiang. "Ownership control and debt maturity structure: evidence from China." International Journal of Managerial Finance 10, no. 3 (May 27, 2014): 385–403. http://dx.doi.org/10.1108/ijmf-06-2013-0064.
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Purpose – The authors examine the debt maturity structure of Chinese listed companies during the period when bond market was under-developed and the majority of commercial banks were owned by the state. The purpose of this paper is to answer why and how the different ownership control types impact the firms’ preference and accessibility to either long- or short-term debts. Design/methodology/approach – The univariate analysis was used to test the differences of debt maturity choices for firms grouped by ownership control types, profitability and institutional development. Then, logit regression and ordinary least squares regression were applied to examine the determinants of ownership control types in debt maturity structures. Findings – Compared to privately controlled firms, state-owned enterprises had greater access to long-term debt and used less short-term debt during the sample period. Evidences also indicate that the on-going financial reform has increased the motivation of banks to consider company profitability in their lending decisions. However, state-owned banks still discriminate private firms in allocation of financial resources, particular in less-developed regions. Research limitations/implications – Due to the research scope and data limitations, the authors cannot take some factors into consideration, such as collateral, guarantee, credit ranking, financing agreement and leasing obligation. Originality/value – This study extends the existing literature in three ways. First, the authors investigate the bank discrimination problem into the loan term structure. Second, the authors recognise the effect of financial reform on alleviation in bank discrimination problem. Finally, the authors take the consideration of institutional development of firms’ location areas in their analyses.
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Khan, Kanwal Iqbal, Faisal Qadeer, Mário Nuno Mata, Rui Miguel Dantas, João Xavier Rita, and Jéssica Nunes Martins. "Debt Market Trends and Predictors of Specialization: An Analysis of Pakistani Corporate Sector." Journal of Risk and Financial Management 14, no. 5 (May 17, 2021): 224. http://dx.doi.org/10.3390/jrfm14050224.
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Recently, debt structure research has started focusing on the strategic perspective of financing choices, particularly to understand the reasons for debt specialization (DS). This paper examines trends of specialization over time and industry by using a comprehensive dataset on types of debt employed by the public limited companies during 2009–2018. The objective of the current study is to analyze the effect of debt market conditions by identifying significant predictors of DS. Time-series and cross-sectional results confirm the existence of DS, which is further validated by the findings of the cluster analysis. The empirical results indicate that overall, 61% of the companies solely rely on a single type of debt, mostly on short-term obligations accompanied by long-term secured and other debts. Moreover, small, mature, rated, group-affiliated, and low-leverage companies incline more towards this strategy. Credit rating, debt maturity, financial and interest coverage ratios serve as the primary determinants of the debt market that are significantly associated with the measures of DS. The results contribute to the capital structure literature by specifying that financing choice has an important implication in deciding the debt structure composition of the organizations.
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Zhang, Kexian, Yan Wang, and Zimei Huang. "Do the Green Credit Guidelines Affect Renewable Energy Investment? Empirical Research from China." Sustainability 13, no. 16 (August 19, 2021): 9331. http://dx.doi.org/10.3390/su13169331.
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How to promote renewable energy investment is central to energy transformation and green development. To take China’s “green credit guidelines” policy as a quasi-natural experiment, we investigate the impacts of green credit policy on renewable energy investment. Using the samples of 1021 Chinese listed enterprises during 2007–2017, we find that: Firstly, the introduction of the green credit guidelines has promoted renewable energy investment. Secondly, short-term debts play a mediating role in the impacts of green credit guidelines on renewable energy investment, while long-term debts play a masking role, and financing constraints do not play a significant role. Thirdly, the heterogeneous impacts on renewable energy investment are reflected in different ownerships and enterprise scales, with significant impacts on the state-owned enterprises and small ones.
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Abata, Matthew Adeolu, and Stephen Oseko Migiro. "Capital Structure and Firm Performance in Nigerian-Listed Companies." Journal of Economics and Behavioral Studies 8, no. 3(J) (July 3, 2016): 54–74. http://dx.doi.org/10.22610/jebs.v8i3(j).1289.
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a number of business failures have not been reported in Nigeria arising from inability to payback nor does service debts .This paper empirically investigate the relationship between capital structure and firm performance in the Nigerian listed firms. A sample of 30listed firms out of a population of 173 were examined from 2005 to 2014 using multiple regression tools. Two hypotheses were formulated and tested using descriptive statistics and an econometric panel data technique to analyze the gathered data. An insignificantly negative correlation was found between financial leverage and ROA on one hand and a significantly negative relationship between debt/equity mix and ROE on the other hand. It is therefore recommended that firms should use long term liabilities to finance firm’s activities and mix debt/equity appropriately by ensuring that debt financing ratio is lower to enhance corporate performance and survival.
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Labandingi Latoki, Akhmad dan. "KAJIAN MENGENAI KEMAMPUAN MODAL SENDIRI DALAM MENJAMIN KESELURUHAN HUTANG PERUSAHAAN (Studi pada Perusahaan Bisi International Tbk Tahun 2017-2019)." Jurnal Ekonomi Trend 9, no. 1 (July 15, 2021): 17–22. http://dx.doi.org/10.31970/trend.v9i1.203.
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This study aims to analyze the ability of its own capital owned by Bisi International Tbk to guarantee all of its debts. So the approach used is a case study. Data collection is done by documentation method and the data taken is secondary data. The data comes from the 2017- 2019 financial statements. The analysis technique in this study uses financial ratios, namely comparing total debt with own capital. The results of research and studies reveal that the company's financial condition, especially the guarantee of capital on debt, tends to be in good condition. This can be seen from the amount of each rupiah of own capital that is able to cover every rupiah of costs. This research needs to be expanded by analyzing the relationship and the influence of other components that affect the improvement of the company's financial performance.
Keywords: Current Debt, Long-Term Debt, Own Capital
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Bukina, I. S. "Debt Burden of the Subjects of the Russian Federation." Federalism 26, no. 3 (October 4, 2021): 121–41. http://dx.doi.org/10.21686/2073-1051-2021-3-121-141.
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The growth of regional debts produces risks both at the regional level and in the sphere of intergovernmental relations. The article shows that with a low debt burden at a long-term level, the subjects of the Russian Federation are highly differentiated by the level of debt, and even with a decrease in overall debt, a variation of debt load is growing. On the basis of cluster analysis, four groups of the subjects of the Russian Federation were allocated, depending on the variation of the debt burden and the share of social spending in total regional expenditures. It is concluded that the level of debt burden and its dynamics are explained both by the socio-economic factors for the regional development and the quality of budget management in any subject of the Russian Federation. Accordingly, the procedure for the distribution of intergovernmental transfers and budgetary rules should be agreed with the accounting of objective relationships and institutional effects.
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Bukina, I. S. "Debt Burden of the Subjects of the Russian Federation." Federalism 26, no. 3 (October 4, 2021): 121–41. http://dx.doi.org/10.21686/2073-1051-2021-3-121-141.
Full textAbstract:
The growth of regional debts produces risks both at the regional level and in the sphere of intergovernmental relations. The article shows that with a low debt burden at a long-term level, the subjects of the Russian Federation are highly differentiated by the level of debt, and even with a decrease in overall debt, a variation of debt load is growing. On the basis of cluster analysis, four groups of the subjects of the Russian Federation were allocated, depending on the variation of the debt burden and the share of social spending in total regional expenditures. It is concluded that the level of debt burden and its dynamics are explained both by the socio-economic factors for the regional development and the quality of budget management in any subject of the Russian Federation. Accordingly, the procedure for the distribution of intergovernmental transfers and budgetary rules should be agreed with the accounting of objective relationships and institutional effects.