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Author: Uroš Herman Publisher: International Monetary Fund ISBN: Category : Business & Economics Languages : en Pages : 40
Book Description
In this paper, we investigate whether a firm’s composition of foreign liabilities matters for their resilience during economic turmoil and examine which characteristics determine a firm’s foreign capital structure. Using firm-level data, we corroborate previous findings from the (international) macroeconomic literature that the composition of foreign liabilities matters for a country’s susceptibility to external shocks. We find that firms with a positive equity share in their foreign liabilities were less affected by the global financial crisis and also less likely to default in the aftermath of the crisis. In addition, we show that larger, more open, and more productive firms tend to have a higher equity share in total foreign liabilities.
Author: Uroš Herman Publisher: International Monetary Fund ISBN: Category : Business & Economics Languages : en Pages : 40
Book Description
In this paper, we investigate whether a firm’s composition of foreign liabilities matters for their resilience during economic turmoil and examine which characteristics determine a firm’s foreign capital structure. Using firm-level data, we corroborate previous findings from the (international) macroeconomic literature that the composition of foreign liabilities matters for a country’s susceptibility to external shocks. We find that firms with a positive equity share in their foreign liabilities were less affected by the global financial crisis and also less likely to default in the aftermath of the crisis. In addition, we show that larger, more open, and more productive firms tend to have a higher equity share in total foreign liabilities.
Author: Julia Koralun-Bereźnicka Publisher: Taylor & Francis ISBN: 1040130909 Category : Business & Economics Languages : en Pages : 218
Book Description
This book offers a comprehensive examination of the factors affecting corporate capital structures across 12 European Union countries, focusing on the influence of country-specific, industry-specific and firm-size-related determinants. It provides a comprehensive review of various interpretations of the capital structure concept and offers a detailed characterisation of commonly employed metrics. Furthermore, it offers an overview of capital structure theories and attempts to classify the factors that shape the financial leverage of enterprises within the framework of these theories. Additionally, it draws readers’ attention to contemporary factors potentially affecting corporate financing decisions, such as Environmental, Social and Governance (ESG) considerations or technological advances and innovations in finance. It combines theoretical insights with empirical research to explore the direct and indirect impacts of these factors on companies’ financing patterns. Targeting a broad readership including students, Ph.D. candidates, researchers, academics and financial practitioners, the book offers a rich understanding of capital structure optimisation and its significance for enhancing company value. Through its coverage of various capital structure theories, determinants and the role of external and internal factors in capital structure decisions, the book is an essential resource for those interested in the complex nature of these influences within the European landscape. With the exception of Chapter 2, no part of this book may be reprinted or reproduced or utilised in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers. Chapter 2 of this book is freely available as a downloadable Open Access PDF at http://www.taylorfrancis.com under a Creative Commons Attribution-Non Commercial-No Derivatives (CC-BY-NC-ND) 4.0 license. Any third party material in this book is not included in the OA Creative Commons license, unless indicated otherwise in a credit line to the material. Please direct any permissions enquiries to the original rightsholder.
Author: Christopher Parsons Publisher: Now Publishers Inc ISBN: 160198202X Category : Business & Economics Languages : en Pages : 107
Book Description
Empirical Capital Structure reviews the empirical capital structure literature from both the cross-sectional determinants of capital structure as well as time-series changes.
Author: Svetlana Igorevna Ashmarina Publisher: Springer Nature ISBN: 3030609294 Category : Technology & Engineering Languages : en Pages : 901
Book Description
This proceedings book presents outcomes of the Innovative Economic Symposium – 2020 organized by the Institute of Technology and Business in České Budějovice (VŠTE) in Russia in collaboration with two universities: Financial University under the Government of the Russian Federation (Moscow) and Samara State University of Economics (Samara). The symposium aims to bring together experts and young scientists in economy, management, international relations, finance, marketing, and professional education from Asian and European countries, to share knowledge and experience and discuss issues related to stable economic development, international business, entrepreneurship, Industry 4.0, cooperation between educational and business structures, strategic decision-making, and processes of economic globalization and fragmentation. The book consists of two parts corresponding to the thematic symposium areas. The book content covers two sections: stable development in unstable world and globalization and fragmentation forces of the current world economy. The main topics included in the book are as follows: - Where is the world moving to and where is the economy in it? - Institutionalization of innovations. - Network architecture of economic relations. - Competences for the future. - Smart change management. - Monetary and fiscal policy development as a factor of economic modernization. - Role of international trade in the economy globalization. - Impact of globalization and economic fragmentation on the enterprise’s internal environment. - Financial conditions for entrepreneurship under the economic modernization. - Impact of scientific and technological progress on globalization and fragmentation of the economy.
Author: Yamini Agarwal Publisher: John Wiley & Sons ISBN: 111820316X Category : Business & Economics Languages : en Pages : 208
Book Description
Inside the risk management and corporate governance issues behind capital structure decisions Practical ways of determining capital structures have always been mysterious and riddled with risks and uncertainties. Dynamic paradigm shifts and the multi-dimensional operations of firms further complicate the situation. Financial leaders are under constant pressure to outdo their competitors, but how to do so is not always clear. Capital Structure Decisions offers an introduction to corporate finance, and provides valuable insights into the decision-making processes that face the CEOs and CFOs of organizations in dynamic multi-objective environments. Exploring the various models and techniques used to understand the capital structure of an organization, as well as the products and means available for financing these structures, the book covers how to develop a goal programming model to enable organization leaders to make better capital structure decisions. Incorporating international case studies to explain various financial models and to illustrate ways that capital structure choices determine their success, Capital Structure Decisions looks at existing models and the development of a new goal-programming model for capital structures that is capable of handling multiple objectives, with an emphasis throughout on mitigating risk. Helps financial leaders understand corporate finance and the decision-making processes involved in understanding and developing capital structure Includes case studies from around the world that explain key financial models Emphasizes ways to minimize risk when it comes to working with capital structures There are a number of criteria that financial leaders need to consider before making any major capital investment decision. Capital Structure Decisions analyzes the various risk management and corporate governance issues to be considered by any diligent CEO/CFO before approving a project.
Author: Benjamin M. Friedman Publisher: University of Chicago Press ISBN: 0226264238 Category : Business & Economics Languages : en Pages : 404
Book Description
The research reported in this volume represents the second stage of a wide-ranging National Bureau of Economic Research effort to investigate "The Changing Role of Debt and Equity in Financing U.S. Capital Formation." The first group of studies sponsored under this project, which have been published individually and summarized in a 1982 volume bearing the same title (Friedman 1982), addressed several key issues relevant to corporate sector behavior along with such other aspects of the evolving financial underpinnings of U.S. capital formation as household saving incentives, international capital flows, and government debt management. In the project's second series of studies, presented at the National Bureau of Economic Research conference in January 1983 and published here for the first time along with commentaries from that conference, the central focus is the financial side of capital formation undertaken by the U.S. corporate business sector. At the same time, because corporations' securities must be held, a parallel focus is on the behavior of the markets that price these claims.
Author: Tapiwa Dube Publisher: ISBN: Category : Languages : en Pages :
Book Description
The question of whether ownership matters remains an important one in corporate financial policy. The types of owners of the means of production in an economy and the extent to which ownership is concentrated or diffused are important issues for an economy because they may have important effects on the leadership and control of such firms. Such effects influence the economy at macro level. The work by Berle and Means (1932:47) was based on firms owned by many shareholders with small ownership stakes, which were run by professional managers who had little or no ownership, leading to questions of ownership and corporate performance. Important decisions have to be made in firms regarding capital structure and performance. Although the literature covers the effects of concentration and types of ownerships on capital structure and corporate performance, the results are mixed. Theoretical studies explain factors that affect leverage and corporate performance but empirical studies provide inconclusive results. The questions pertaining to the effects of ownership concentration on leverage and corporate performance persist, with different institutional settings contributing to the lack of generalisable results. Inconclusive results are also attributed to the different statistical methods employed and the time periods of such studies. Few studies combine several ownership types and ownership concentration to analyse their effects on capital structure and corporate performance, especially in developing countries. Therefore, the purpose of this research was to investigate the effects of ownership on capital structure and corporate performance in South Africa. Ownership in this study was subdivided into ownership concentration and ownership type. The Herfindahl index was the measure of ownership concentration at the top one, two, three, five and 10 shareholding levels and the types of ownerships consisted of institutional investors, families, government, management, foreigners, companies, Public Investment Corporation, black people and other shareholders. Dependent variables in the relationship with capital structure were long-term debt, short-term debt and total debt ratios based on market value and book value, and the leverage factor. Corporate performance was measured by return on assets, return on equity, TobiniÌ8℗¿℗ưs Q, economic value-added and market value-added as the dependent variables. Capital structure and other theories were used to examine the relationship between ownership and capital structure and results from previous studies were also used to investigate the relationship between ownership and corporate performance. To achieve these objectives, the research used an unbalanced panel of data from 205 non-financial companies listed for an 11-year period from 2004 to 2014 and the fixed effects and the generalised method of moments models to analyse the data. The study found that ownership concentration, ownership by the Public Investment Corporation and black people had negative effects on capital structure. An implication for ownership concentration is that as it increased, the shareholders preferred to use less debt, perhaps meaning that they did not consider it important to take advantage of the monitoring capability associated to debt. Similar reasoning could be attributed to the Public Investment Corporation although an aversion to risk could also be a possible explanation. Due to the way black shareholdings have traditionally been funded in South Africa, such shareholders could shun debt. Ownership by institutions, families, directors, companies and foreigners had positive effects on capital structure. These results implied that some shareholders, such as institutional investors, companies and foreign investors could prefer to use debt in monitoring management. Findings for managerial ownership and capital structure could imply that these types of shareholders used debt to avoid diluting their shareholdings due to their limited wealth. The effect of government ownership on capital structure was mixed. Foreign ownership and ownership by other shareholders had positive effects on corporate performance. The implications of these findings are that foreign investors monitor and provide skills and technology to their investee firms, thereby increasing the performance of these firms. Ownership by management, institutions, black shareholders and the Public Investment Corporation had negative effects on corporate performance. These findings could imply managerial entrenchment, lack of monitoring by the Public Investment Corporation and institutional investors or low levels of shareholdings to enable them to commit resources to investee firms and inadequate experience on the part of black shareholders.
Author: Uroš Herman
Author: Uroš Herman
Author: Karin Jõeveer
Author: Julia Koralun-Bereźnicka
Author: Christopher Parsons
Author: Svetlana Igorevna Ashmarina
Author: Yamini Agarwal
Author: Benjamin M. Friedman
Author: Marie-Renée Bakker
Author: Stijn Claessens
Author: Tapiwa Dube