scholarly journals Financial Leverage and Debt Maturity Targeting: International Evidence

2021 ◽  
Vol 14 (9) ◽  
pp. 437
Author(s):  
Ali Gungoraydinoglu ◽  
Özde Öztekin
Keyword(s):  
Financial Crisis ◽  
Institutional Environment ◽  
Debt Maturity ◽  
Institutional Factors ◽  
Relative Importance ◽  
Financial Systems ◽  
International Evidence ◽  
International Setting ◽  
Target Leverage

We provide evidence on leverage and debt maturity targeting in a large international setting. There are key differences in the relative importance of institutional factors in explaining actual as opposed to target capital structures. Targets and target deviations are plausibly influenced by the institutional environment. Firms from countries with strong legal institutions target lower leverage and higher long-term debt, whereas better-functioning financial systems result in lower target leverage and long-term debt. Financial crisis has shifted the desired structure of the securities toward shorter maturities and has led to more prevalent target deviations. Better institutions significantly decrease the likelihood of target deviations.

scholarly journals ADJUSTMENT SPEED OF DEBT MATURITY: EVIDENCE FROM FINANCIAL CRISES IN EAST ASIA

2021 ◽  
Vol 24 (1) ◽  
pp. 71-92
Author(s):  
Hasan Tekin ◽  
Ali Yavuz Polat
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
East Asian ◽  
Debt Maturity ◽  
Least Square ◽  
Exogenous Shocks ◽  
Adjustment Speed ◽  
The Global Financial Crisis ◽  
Debt Holders

We investigate the change in adjustment speed of debt maturity for East Asian firms between 1990 and 2017 by including two exogenous shocks: the Asian Financial Crisis 1997-1998 (AFC) and the Global Financial Crisis 2007-2009 (GFC). We employ the least square dummy variable correction and find that East Asian firms have a slower adjustment of long-term debt over time. Besides, the decrease in adjustment speed of long-term debt after the GFC is more compared to the decrease after the AFC. Further analysis shows the optimal debt maturity differs across countries and industries. Another important implication of our results is that firms in high governance countries are more likely to close the gap between the actual and target debt maturity in time. Overall, debt holders and investors should consider financial uncertainties.

scholarly journals Influence of institutional factors on the performance of the agricultural sector in Mozambique

2020 ◽  
Author(s):  
João Z. Carrilho ◽  
Rui N. Ribeiro
Keyword(s):  
Agricultural Sector ◽  
Institutional Environment ◽  
Institutional Factors ◽  
The Third ◽  
Agricultural Performance ◽  
Institutional Instability ◽  
Institutional Issues ◽  
The Future ◽  
Per Capita

This paper is a review of the institutions and the performance of the agricultural sector in Mozambique, using an analysis table adapted to the assessment of the connections between the institutions and economic development. In the first part, information is presented on the performance of the sector between 2008 and 2017, showing a per capita reduction in productivity and the production of foodstuffs. The second part offers an analysis on the extent to which, and the way that, the development of the sector institutions influenced agricultural performance during that period. There was found to have been institutional instability that affected performance in the sector, which was unable to slow the reduction in production and productivity, which could reflect a wider socioeconomic and institutional environment, i.e. beyond the agricultural sector. The third part looks at some elements for reflection on institutional issues that could contribute to the debate on the future development of the agricultural sector. We refer to the need to think about the future of agriculture in Mozambique from a long-term perspective, focusing on the adoption and stabilization of an institutional framework aimed at increasing agricultural productivity and preserving the environment.

scholarly journals An International Comparison of Capital Structure and Debt Maturity Choices

2011 ◽  
Vol 47 (1) ◽  
pp. 23-56 ◽  
Author(s):  
Joseph P. H. Fan ◽  
Sheridan Titman ◽  
Garry Twite
Keyword(s):  
Developing Countries ◽  
Capital Structure ◽  
International Comparison ◽  
Deposit Insurance ◽  
Institutional Environment ◽  
Debt Maturity ◽  
Short Term ◽  
Tax System

AbstractThis study examines how the institutional environment influences capital structure and debt maturity choices of firms in 39 developed and developing countries. We find that a country’s legal and tax system, corruption, and the preferences of capital suppliers explain a significant portion of the variation in leverage and debt maturity ratios. Specifically, firms in more corrupt countries and those with weaker laws tend to use more debt, especially short-term debt; explicit bankruptcy codes and deposit insurance are associated with higher leverage and more long-term debt. More debt is used in countries where there is a greater tax gain from leverage.

scholarly journals From War to Financial Crisis – Analyzed with Critical Systems Theory

2014 ◽  
Vol 9 (3) ◽  
Author(s):  
Gorm Harste
Keyword(s):  
Financial Crisis ◽  
Economic System ◽  
Vietnam War ◽  
Systems Theory ◽  
Present Article ◽  
Iraq War ◽  
Critical Systems ◽  
Afghanistan War ◽  
Financial Systems

The present article analyzes the transformation of the long-term risks of protracted wars from the battlefield to the economic system. Major wars, supplied with strong capacities due to extended manpower resources, advanced logistic capabilities and permanency of campaign, expose their states to extremely costly engagements. This includes heavy long-term costs for war veterans. Accordingly, the center of gravity on the battlefield (Clausewitz) is transformed to the financial systems of taxes and credit systems. This is a classical historical lesson; but this story is indeed central to understanding the link between the Vietnam War, the Afghanistan War, the Iraq War, and the background for the financial crisis that began in 2008.

The Long-Term Cost of the Financial Crisis

2009 ◽  
Author(s):  
Murillo Campello ◽  
John R. Graham ◽  
Campbell R. Harvey
Keyword(s):  
Financial Crisis

scholarly journals Anti-meningococcal B vaccination in Italian adolescents: a cost-effective health opportunity

2020 ◽  
Vol 30 (Supplement_5) ◽  
Author(s):  
D Panatto ◽  
P Landa ◽  
D Amicizia ◽  
P L Lai ◽  
E Lecini ◽  
...  
Keyword(s):  
Large Scale ◽  
Public Health Problem ◽  
Vaccination Strategy ◽  
Cost Effective ◽  
Dose Schedule ◽  
Developed Countries ◽  
Invasive Disease ◽  
International Setting ◽  
The Impact

Abstract Background Invasive disease due to Neisseria meningitidis (Nm) is a serious public health problem even in developed countries, owing to its high lethality rate (8-15%) and the invalidating sequelae suffered by many (up to 60%) survivors. As the microorganism is transmitted via the airborne route, the only available weapon in the fight against Nm invasive disease is vaccination. Our aim was to carry out an HTA to evaluate the costs and benefits of anti-meningococcal B (MenB) vaccination with Trumenba® in adolescents in Italy, while also considering the impact of this new vaccination strategy on organizational and ethics aspects. Methods A lifetime Markov model was developed. MenB vaccination with the two-dose schedule of Trumenba® in adolescents was compared with 'non-vaccination'. Two perspectives were considered: the National Health Service (NHS) and society. Three disease phases were defined: acute, post-acute and long-term. Epidemiological, economic and health utilities data were taken from Italian and international literature. The analysis was conducted by means of Microsoft Excel 2010®. Results Our study indicated that vaccinating adolescents (11th year of life) with Trumenba® was cost-effective with an ICER = € 7,912/QALY from the NHS perspective and € 7,758/QALY from the perspective of society. Vaccinating adolescents reduces the number of cases of disease due to meningococcus B in one of the periods of highest incidence of the disease, resulting in significant economic and health savings. Conclusions This is the first study to evaluate the overall impact of free MenB vaccination in adolescents both in Italy and in the international setting. Although cases of invasive disease due to meningococcus B are few, if the overall impact of the disease is adequately considered, it becomes clear that including anti-meningococcal B vaccination into the immunization program for adolescents is strongly recommended from the health and economic standpoints. Key messages Free, large-scale MenB vaccination is key to strengthening the global fight against invasive meningococcal disease. Anti-meningococcal B vaccination in adolescents is a cost-effective health opportunity.

scholarly journals Corporate debt maturity and economic development

2019 ◽  
Vol 15 (5) ◽  
pp. 669-687 ◽  
Author(s):  
Celia Álvarez-Botas ◽  
Víctor M. González-Méndez
Keyword(s):  
Developing Countries ◽  
Economic Development ◽  
Financial Crisis ◽  
Firm Size ◽  
Debt Maturity ◽  
Corporate Debt ◽  
Content Type ◽  
Country Level ◽  
The Relationship ◽  
Bank Concentration

Purpose The purpose of this paper is to analyse the effect of economic development on the influence of country-level determinants on corporate debt maturity, bearing in mind firm size and the period of financial crisis. Design/methodology/approach The authors employ panel data estimation with fixed effects to examine the role of economic development in influencing the relationship between country-level determinants on corporate debt maturity. The paper uses a sample of 30,727 listed firms, belonging to 39 countries, over the period 2005–2012. Findings Corporate debt maturity increases with the efficiency of the legal system and bank concentration and decreases with the weight of banks in the economy. However, the importance of these country determinants is greater in developing than in developed countries. The authors also show that firm size in developed and developing countries influences country determinants of corporate debt maturity. Finally, the results reveal that the financial crisis has affected the debt maturity of firms differently in developed and developing countries, with the effect of bank concentration lengthening debt maturity, this effect being more pronounced in developing countries. Practical implications The findings provide useful insights to guide policy decisions providing access to long-term financing, as corporate debt maturity depends on economic development, institutional environment, banking structure and firm size. Originality/value This study incorporates economic development in explaining the relationship between country-level determinants and corporate debt maturity.

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