The impact of debt restructuring on firm investment: Evidence from China

2019 ◽  
Vol 81 ◽  
pp. 325-337 ◽  
Author(s):  
Jinglu Jiang ◽  
Bo Liu ◽  
Jinqiang Yang
Keyword(s):  
Firm Investment ◽  
Debt Restructuring ◽  
The Impact

Risk Attitude and Corporate Investment under Output Market Uncertainty: Evidence from The Mekong River Delta, Vietnam

2016 ◽  
pp. 59-70
Author(s):  
Ninh Le Khuong ◽  
Nghiem Le Tan ◽  
Tho Huynh Huu
Keyword(s):  
Negative Relationship ◽  
Risk Attitude ◽  
Business Strategies ◽  
Risk Averse ◽  
Market Uncertainty ◽  
Firm Investment ◽  
Output Market ◽  
The Impact ◽  
The Relationship

This paper aims to detect the impact of firm managers’ risk attitude on the relationship between the degree of output market uncertainty and firm investment. The findings show that there is a negative relationship between these two aspects for risk-averse managers while there is a positive relationship for risk-loving ones, since they have different utility functions. Based on the findings, this paper proposes recommendations for firm managers to take into account when making investment decisions and long-term business strategies as well.

scholarly journals Market Liberalization, Regulatory Uncertainty, and Firm Investment

2012 ◽  
Vol 13 (3) ◽  
pp. 352-361 ◽  
Author(s):  
Florian Baumann ◽  
Tim Friehe
Keyword(s):  
Market Entry ◽  
Market Liberalization ◽  
Firm Investment ◽  
Labor Costs ◽  
Regulatory Uncertainty ◽  
Internal Investment ◽  
The Impact

AbstractThis paper analyzes the effects of regulatory uncertainty regarding labor costs on investment in a liberalized market. We distinguish between the external investment margin (market entry) and the internal investment margin (technology), and establish that regulatory uncertainty affects these margins differently, encouraging market entry, but discouraging technological investment. As a consequence, the impact of regulatory uncertainty on competition in liberalized markets is a combination of these two countervailing forces.

The impact of shareholding structure on firm investment: Evidence from Chinese listed companies

2013 ◽  
Vol 25 ◽  
pp. 85-100 ◽  
Author(s):  
Alex A. Chen ◽  
Hong Cao ◽  
Dayong Zhang ◽  
David G. Dickinson
Keyword(s):  
Listed Companies ◽  
Firm Investment ◽  
Chinese Listed Companies ◽  
The Impact

scholarly journals Leverage and firm investment: the role of information asymmetry and growth

2019 ◽  
Vol 27 (1) ◽  
pp. 56-73 ◽  
Author(s):  
Albert Danso ◽  
Theophilus Lartey ◽  
Samuel Fosu ◽  
Samuel Owusu-Agyei ◽  
Moshfique Uddin
Keyword(s):  
Information Asymmetry ◽  
High Growth ◽  
Firm Investment ◽  
Financial Leverage ◽  
Content Type ◽  
Growth Firms ◽  
The Impact ◽  
The Relationship ◽  
Role Of Information

PurposeThis paper aims to demonstrate how financial leverage impacts firm investment and the extent to which this relationship is conditional on the level of information asymmetry as well as growth.Design/methodology/approachThe paper relies on data from 2,403 Indian firms during the period 1995-2014, generating a total of 19,544 firm-year observations. Analysis is conducted by using various panel econometric techniques.FindingsDrawing insights from agency theories, the paper uncovers that financial leverage is negatively and significantly related to firm investment. It is also observed that the impact of financial leverage on firm investment is significant for high information asymmetric firms. Finally, the paper shows that the relationship between leverage and firm investment is significant for low-growth firms. However, no significant relationship is found between leverage and investment for high-growth firms.Originality/valueThis paper provides fresh evidence on the leverage–investment nexus and, to the authors’ knowledge, it the first paper to examine the extent to which this leverage–investment relationship is driven by the level of information asymmetry.

scholarly journals The impact of leverage on firm investment: Canadian evidence

2005 ◽  
Vol 11 (1-2) ◽  
pp. 277-291 ◽  
Author(s):  
Varouj A. Aivazian ◽  
Ying Ge ◽  
Jiaping Qiu
Keyword(s):  
Firm Investment ◽  
The Impact

Dispute management in Islamic financial institutions: a case study of near sukuk defaults

2014 ◽  
Vol 13 (3) ◽  
pp. 198-214 ◽  
Author(s):  
Umar A. Oseni
Keyword(s):  
Case Studies ◽  
Management Practices ◽  
Islamic Law ◽  
Debt Restructuring ◽  
Case Study Methodology ◽  
Content Type ◽  
Vital Importance ◽  
Finance Industry ◽  
The Impact

Purpose – The purpose of this paper is to examine the vital importance of dispute management in cases of both near and outright sukuk defaults. With the case studies, this study examines the vital importance of dispute management in cases of both near and outright sukuk defaults. With a number of case studies, the study shows how debt restructuring can play a significant role as a dispute management procedure recognized in Islamic law. Design/methodology/approach – The study uses the case study methodology to determine the impact of debt restructuring in instances of near and outright sukuk default and the process taken to reach a win-win settlement among the parties. Due to some sensitive financial information, the study has fully anonymized the sukuk companies examined. Findings – The paper finds that for a more sustainable and stable and resilient Islamic finance industry, the role of law through dispute management cannot be ruled out, as appropriate dispute management mechanism facilitates the underlying contracts. Research limitations/implications – This study limits its focus to near and outright sukuk defaults and the need to come up with Shari’ah-based mechanisms for dispute management when things seem to have fallen apart. Practical implications – The study proposes an integrated regulatory-cum-remedial framework which may serve as sustainable mechanism for handling circumstances involving near and outright sukuk defaults with a view to protecting the rights of all the stakeholders. Originality/value – Though few studies have been conducted on sukuk defaults in cross-border transactions, there has not been much focus on dispute management of cases involving such defaults. This study seeks to fill such an important gap, which has the potential of streamlining dispute management practices in the sukuk industry.

An empirical analysis of the impact of trade credit on bank debt restructuring

2018 ◽  
Vol 36 (2) ◽  
pp. 415-438 ◽  
Author(s):  
Antonio Fabio Forgione ◽  
Carlo Migliardo
Keyword(s):  
Empirical Analysis ◽  
Trade Credit ◽  
Bank Debt ◽  
Debt Restructuring ◽  
The Impact

scholarly journals ARE INVESTMENT AND FINANCING DECISIONS REALLY INDEPENDENT? EVIDENCE FROM CHEMICAL SECTOR OF PAKISTAN

2016 ◽  
Vol 04 (01) ◽  
pp. 31-37
Author(s):  
Zeeshan Mukhtae ◽  
◽  
Shujahat Haider Hashmi ◽  
Muhammad Asad ◽  
◽  
...  
Keyword(s):  
Firm Size ◽  
Investment Decision ◽  
Cash Flows ◽  
Firm Investment ◽  
Financial Leverage ◽  
Independent Evidence ◽  
Financing Decisions ◽  
Negative Effect ◽  
Drastic Effect ◽  
The Impact

The study aimed at exploring the impact of financial leverage on investment decision to identify the contradictions in theories like Fisher Separation Theorem (1930), MMIrrelevance Theory (1958), and Theory of Investment (1969). A sample of 30 chemical sector companies was taken. Panel regression was applied to check the impact of financial leverage, liquidity, cash flows, profitability, firm size and growth on firm investment decision. Results revealed that financial leverage had a significant negative effect on investment decision, while liquidity, profitability, cash flows and firm size had a positive significant effect on firm investment. The findings imply that investment decision should not be treated separately by finance managers and investors as excessive level of leverage has a drastic effect on investment opportunities.

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