Short Debt Maturity and Corporate Investment: New Evidence from Chinese Listed Firms

2021 ◽  
pp. 1-21
Author(s):  
Zhixiao Wang ◽  
Qin Wang ◽  
Mingli Xu
Keyword(s):  
Corporate Investment ◽  
Debt Maturity ◽  
Listed Firms ◽  
New Evidence

scholarly journals Political elections and corporate investment: International evidence

2021 ◽  
Author(s):  
Mario Daniele Amore ◽  
Margherita Corina
Keyword(s):  
International Business ◽  
Political Institutions ◽  
Recent Literature ◽  
Electoral System ◽  
Corporate Investment ◽  
Listed Firms ◽  
International Evidence ◽  
Negative Effect ◽  
New Evidence

AbstractRecent literature shows that the spike in uncertainty during political elections harms firms’ investment. Bridging insights from international business and political science, we argue that the effect of political elections on firms’ investment activities is contingent on the country’s electoral system. In particular, we expect the negative effect of elections on corporate investment to be smaller for firms operating in plurality systems. We test our theory using a panel dataset of listed firms around the world, and a panel of US multinationals. Our results confirm that during an election period, firms in countries with a plurality system reduce investment less than firms in other countries. Additionally, we show that multinationals’ foreign investment is affected by elections abroad: their investment in a host country declines during an election in that country, though to a lesser extent if the election is held with a plurality system. Collectively, our findings provide new evidence on the role of political institutions for firms’ investment decisions.

Islamic banking and corporate investment efficiency: empirical evidence from Malaysia

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Moncef Guizani ◽  
Ahdi Noomen Ajmi
Keyword(s):  
Empirical Model ◽  
Generalized Method Of Moments ◽  
Corporate Investment ◽  
Investment Efficiency ◽  
Islamic Banks ◽  
Agency Conflicts ◽  
Content Type ◽  
Listed Firms ◽  
Lower Effect

PurposeThe purpose of this paper is to examine whether and how Islamic banks' financing affects corporate investment efficiency.Design/methodology/approachTo achieve the research purpose, an empirical model was constructed to describe the relationship between Islamic banks' financing and corporate investment efficiency. The empirical model was tested through generalized method of moments (GMM) estimation technique using a panel data of 163 Malaysian listed firms for the period 2007–2017.FindingsThis study provides evidence that Islamic banks' financing plays an important role in enhancing investment efficiency and that this positive effect comes mainly from non-PLS contracts. Moreover, the results show that the effect of Islamic banks' financing in preventing suboptimal investments is stronger in the financial crisis period. The results also reveal that the contribution of Islamic banks' financing in reducing suboptimal investments is more prominent when firms face over-investment problems.Research limitations/implicationsThis research contributes to the debate on the financial implications of Islamic banks' financing modes by exploring their effect on corporate investment efficiency.Practical implicationsFrom a managerial perspective, the research findings are beneficial to Islamic bank managers to the extent that they highlight the role of Islamic financial contracts in improving corporate investment efficiency. In addition, the lower effect of PLS contracts on investment efficiency implies that policymakers in Malaysia should multiply their efforts to further expand the PLS financing.Originality/valueThis paper offers some insights on the role of Islamic banks' financing in mitigating agency conflicts and reducing asymmetric information problems. It is the first attempt focusing on the role of Islamic financing in fostering corporate investment decisions.

scholarly journals The Sensitivity of Firms’ Investment to Uncertainty and Cash Flow: Evidence From Listed State-Owned Enterprises and Non-State-Owned Enterprises in China

SAGE Open ◽  
2020 ◽  
Vol 10 (1) ◽  
pp. 215824402090343 ◽  
Author(s):  
Muhammad Arif Khan ◽  
Xuezhi Qin ◽  
Khalil Jebran ◽  
Abdul Rashid
Keyword(s):  
Economic Policy ◽  
Cash Flow ◽  
Generalized Method Of Moments ◽  
Corporate Investment ◽  
Policy Uncertainty ◽  
Market Uncertainty ◽  
Negative Effects ◽  
Economic Policy Uncertainty ◽  
Listed Firms ◽  
Positive Effects

This study examines the association between various uncertainties and corporate investment and further investigates this association between state-owned enterprises (SOEs) and non-state-owned enterprises (non-SOEs). Moreover, this study analyzes the indirect effects of uncertainty on corporate investment through cash flow. The current research uses an unbalanced panel data of Chinese nonfinancial listed firms for the period 1999–2016. To control endogeneity issues, this study applies a robust two-step system generalized method of moments (GMM) technique to estimate the model. Empirical findings indicate that market-based and firm-specific uncertainties have positive effects, whereas economic policy and CAPM-based uncertainties have negative effects on corporate investment. Furthermore, results indicate that the effects of market-based, CAPM-based, and firm-specific uncertainties (economic policy uncertainty) were less (more) prominent for SOEs. Additional analyses show that cash flow stimulates the effect of firm-specific uncertainty on SOEs’ investment, whereas it weakens the influence of CAPM-based uncertainty (economic policy uncertainty) on investment of non-SOEs (SOEs). Moreover, cash flow attenuates the market uncertainty effect on investment.

scholarly journals Debt maturity and corporate R&D investment – the empirical study of US listed firms

2018 ◽  
Vol 13 (4) ◽  
pp. 1-16 ◽  
Author(s):  
Hai-Chin Yu ◽  
Thi-Thanh Phan
Keyword(s):  
Information Asymmetry ◽  
Private Information ◽  
Small Businesses ◽  
Negative Impact ◽  
Debt Maturity ◽  
Bank Debt ◽  
Listed Firms ◽  
Sarbanes Oxley ◽  
Maturity Structure ◽  
D Investment

This study investigates the relationships between debt maturity structure and corporation R&D investment. Using a large sample of US listed firms over the period of 1995 to 2015, it was found that the use of bank debt positively influences R&D investment, whereas the use of public debt exerts a negative impact. However, the Sarbanes-Oxley Act (SOX) mitigates the information asymmetry such that the advantages of private information from banks shrunk. As a result, public debtholders benefit more from the SOX and turn out to be positively influenced by the R&D investment after SOX. Moreover, bank debt impact on R&D spending reduces over the post-SOX. The results also find that the SOX influences the debt maturity on corporate R&D investment only for large corporations, the effects remain unchanged for small businesses.

scholarly journals Analyzing the Factors of Firm Liquidity in Chemical Products and Pharmaceuticals Sector of Pakistan

2018 ◽  
Vol 1 (1) ◽  
pp. 1-7
Author(s):  
Rana Yassir Hussain ◽  
Hira Irshad ◽  
Shahzad Akhtar ◽  
Hina Ismail
Keyword(s):  
Capital Structure ◽  
Negative Influence ◽  
Debt Maturity ◽  
Standard Errors ◽  
Current Ratio ◽  
Firm Level ◽  
Macroeconomic Variables ◽  
Listed Firms ◽  
Country Level ◽  
Chemical Products

Current study aims at identifying the firm level and country level determinants of liquidity in listed firms of chemical products and pharmaceutical sector at PSX. The data sample consists of 36 firms over a period of five years ranging from 2013 to 2017. A panel OLS regression with robust standard errors is used to estimate the relationships. Results proved a positive and significant impact of debt maturity, profitability and risk on liquidity. Capital structure and asset tangibility turned out as significant negative influencer of current ratio. All the three macroeconomic variables had a significant role in defining liquidity position. However, GDP influenced liquidity positively but KIBOR and CPI had negative influence.

scholarly journals Does board structure drive dividends payout? Evidence from the Sultanate of Oman

2021 ◽  
Vol 18 (4) ◽  
pp. 218-230
Author(s):  
Badar Alshabibi ◽  
Shanmuga Pria ◽  
Khaled Hussainey
Keyword(s):  
Institutional Environment ◽  
Gender Diversity ◽  
Board Structure ◽  
Corporate Board ◽  
Listed Firms ◽  
Board Characteristics ◽  
Oil Crisis ◽  
And Gender ◽  
The Impact ◽  
New Evidence

The study investigates whether corporate board characteristics influence dividends policy in Omani listed firms. It also examines whether this relationship is determined by the recent global oil crisis. Using a sample of 109 listed firms in Muscat Securities Exchange between 2009 and 2019, we find that dividends payout is positively associated with board independence, board activity, and board nationality diversity. Though, no evidence is found that board size and gender diversity have an impact on dividends payout. Interestingly, when controlling for the global oil crisis, none of the corporate board attributes influence dividends payout. This study presents new evidence on the influence of board structure on dividends policy. The findings suggest that the impact of corporate board characteristics on dividends policy is contingent on the surrounding institutional environment (i.e., the recent global oil crisis).

The Effects of Debt Maturity on Corporate Investment Efficiency

2018 ◽  
Vol 31 (5) ◽  
pp. 1539-1559
Author(s):  
Min-Shik Shin ◽  
Hwa-Cheol Jung ◽  
Jae-Ik Lee
Keyword(s):  
Corporate Investment ◽  
Debt Maturity ◽  
Investment Efficiency
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