Governance mechanisms and bank interest margins: an examination of loan commitment with external financing

Purpose The purpose of this paper is to investigate the effect of external financing needs on both firm value and corporate governance mechanisms within the UK SME context. This framework is of importance because of the limited external financial resources SMEs might face. Design/methodology/approach The authors consider the endogeneity problem between corporate governance mechanisms and firm value, and hence, the three stages least squares and the instrumental variables based on two stages least squares estimation methods are employed. Findings The authors find a positive relationship between external financing needs and firm value. In addition, the authors detect that size and profitability are positively associated with firm value in the sample. Concerning the corporate governance index (CGI), the authors detect that big SMEs and those with low-debt levels have better corporate governance structures. Originality/value The authors employ a CGI for the sample which is constructed using ten corporate governance variables. The authors also examine different factors that affect SMEs 2019 governance by applying different models including logistic analysis.

Download Full-text

Principles of Evolutionary Modernization of Transition Economies

Voprosy Ekonomiki ◽

10.32609/0042-8736-2009-7-85-96 ◽

2009 ◽

pp. 85-96 ◽

Cited By ~ 1

Author(s):

E. Rustamov

Keyword(s):

National Culture ◽

Transition Economies ◽

Transition Economy ◽

World Economic Forum ◽

Governance Mechanisms ◽

Beneficial Use ◽

Strategic Issues ◽

The World ◽

Comparative Advantages ◽

World Economic

The article considers strategic issues of modernization of the transition economy. The analysis is based on the methodology of the World Economic Forum where special attention is paid to the sequence of the transformation stages. The main conclusion is that modernization should combine implementation of the governance mechanisms with the beneficial use of comparative advantages of the national culture. In fact, modernization of the transition economy should be evolutionary. It is precisely this course of development that is relevant for Azerbaijan which has successfully upgraded its economy in the recent years.

Download Full-text

SOCIAL DYNAMICS AND SUSTAINABLE DEVELOPMENT

STATE AND DEVELOPMENT PROSPECTS OF AGRIBUSINESS. In the frame of the XXIII Agribusiness Forum of the South of Russia and the Exhibition «Interagromash» Volume 1 ◽

10.23947/interagro.2020.1.637-642 ◽

2020 ◽

Author(s):

V.N. Kurdyukov ◽

◽

A.I. Lebedev ◽

A. Ademu ◽

M. Hamdi ◽

...

Keyword(s):

Sustainable Development ◽

Economic System ◽

Social Dynamics ◽

Social Groups ◽

Social Processes ◽

Natural Growth ◽

Governance Mechanisms

The article examined different views on population with a view to identifying major trends. Social processes that impede the transition to sustainable development within existing governance mechanisms have been identified. It is noted that due to the high social dynamics, the exit from the "modernization trap" is to be sought both by territories with high natural growth of the population, and economically attractive regions with indicators of natural decline of the population. At the same time, social dynamics in different territories in modern conditions involve the risk of its use for the benefit of different social groups and can act as a manageable factor. In order to increase the sustainability of development, in resolving the contradictions of the existing socio-economic system, it is necessary to take into account the peculiarities of agricultural territories and to develop self-sufficient models of their development.

Download Full-text