scholarly journals What Does Debt Relief Do for Development? Evidence from India's Bailout for Rural Households

2016 ◽  
Vol 8 (4) ◽  
pp. 66-99 ◽  
Author(s):  
Martin Kanz
Keyword(s):  
Moral Hazard ◽  
Natural Experiment ◽  
Balance Sheet ◽  
Debt Relief ◽  
Informal Credit ◽  
Substantial Impact ◽  
Debt Overhang ◽  
Balance Sheets ◽  
Household Level ◽  
The Impact

This paper studies the impact of debt relief, using a natural experiment arising from India's “Agricultural Debt Waiver and Debt Relief Scheme,” one of the largest household-level debt relief initiatives in history. I find that debt relief has a substantial impact on household balance sheets, but does not affect savings, consumption and investment, as predicted by theories of debt overhang or balance sheet distress. Instead, debt relief leads to greater reliance on informal credit, reduced investment, and lower agricultural productivity. Consistent with moral hazard generated by the bailout, beneficiaries are significantly less concerned about the reputational consequences of future default. (JEL D14, G28, O12, O16, O18, Q14, Q18)

scholarly journals Certain aspects of methodology for accounting of intangible assets

2020 ◽  
pp. 219-233
Author(s):  
Valentyna Yasyshena
Keyword(s):  
Intangible Assets ◽  
Balance Sheet ◽  
Cash Flows ◽  
Investment Activity ◽  
Balance Sheets ◽  
Analysis And Synthesis ◽  
Statement Of Cash Flows ◽  
The Stability ◽  
Double Entry ◽  
The Impact

Introduction. In today’s competitive environment; there is an urgent need to find new approaches to managing an enterprise and its intangible assets in order to ensure the stability and development of domestic enterprises. For effective management of the enterprise; there is a need to conduct research aimed at improving the accounting methodology in accordance with the present requirements and to increase the formation of quality information and accounting support of the management system; etc. Objective. The study is aimed at studying such elements of the accounting method as double-entry; the balance sheet; reporting by disclosing their nature; determining the impact on accounting and the formation of reporting indicators in the IAs and goodwill in accordance with the requirements of the applicable law. Methods. Analysis and synthesis are used to identify the current state of the study of the elements of the accounting method. Scientific abstraction and historical methods have been used to outline the problems investigated by scientists arising in the theoretical and practical area of accounting for IAs. Groupings; tables; graphs are used to classify IAs and goodwill and to establish the interconnection of the accounting method elements; etc. Results. The problems of accounting and reporting of intangible assets through the prism of such elements of accounting method as accounts; double-entry; the balance sheet; reporting are revealed. It is emphasized that the balance sheet as an element of the method should be understood not only as a form of reporting but first and foremost as a model for ordering accounting objects and summarizing information on the facts about the economic activity. Not all intangible assets are reflected in the accounts and respectively in the balance sheets of domestic enterprises. This applies both to recognized intangible assets under PAS 8 and internally generated assets that do not meet the recognition criteria but which increase the value of the enterprise. It is stated that the internal goodwill should be reflected in the financial and management accounting of the enterprise because of its existence during all current activities of the company; and not only at the moment of its realization. Keeping current records of goodwill at the enterprise will reduce the gap between its market and book value to a minimum. The impossibility of simultaneous attribution of intangible assets transactions to two types of activities; which is disclosed in the financial statements; is proved. It is noted in the Statement of Cash Flows that the information on the sale of intangible assets should be recorded as an operating activity. The revision of the definition of «investment activity» was emphasized. Prospects. It is necessary to conduct research in the field of improving the methodology of domestic accounting in general; including intangible assets through the study of approaches to the accounting methodology.

scholarly journals The short and long run effects of debt reduction

2018 ◽  
Vol 25 (1) ◽  
pp. 144-162 ◽  
Author(s):  
Kelsey Gamel ◽  
Pham Hoang Van
Keyword(s):  
Foreign Investment ◽  
Capital Investment ◽  
Natural Experiment ◽  
Debt Relief ◽  
Content Type ◽  
Debt Overhang ◽  
Poor Countries ◽  
Long Run ◽  
Heavily Indebted Poor Countries ◽  
Short Run

Purpose The purpose of this paper is to estimate benefits to debt reduction by using the natural experiment provided by the debt relief programs: the Heavily Indebted Poor Countries Initiative launched by the International Monetary Fund and World Bank in 1996 and the Multilateral Debt Relief Initiative extension in 2005. Design/methodology/approach The authors apply a time-shifted difference-in-differences strategy to evaluate the effects of this intervention. The date of each country’s decision to participate in the program is used as one treatment point while the date of the completion of the debt relief program is used as another treatment point. The exercise compares different economic outcomes such as domestic and foreign investment, schooling, and employment of the treated observations to the counterfactual of untreated country-years. The period between the decision and completion points is a short run while the period after the completion point is considered a long run. Findings The authors found that debt relief increased capital investment as much as 1.63 percent in the short run and 5.79 percent in the long run. However, there was no effect on foreign direct investment suggesting that debt overhang does not affect incentives of foreign investors. Output and schooling enrollment increased both in the short and long run. Originality/value This paper exploits a natural experiment of debt relief in a number of developing countries to shed light on the possible benefits to debt reduction. The authors are able to separate the short- and long-run effects of debt reduction. The finding that domestic but not foreign investment responds to debt reduction is suggestive of the differences in incentives across these two sources of investment.

scholarly journals The Impact Of The COVID-19 Pandemic On One Of The Biggest Technology Giant Shares: A Financial Analysis On Microsoft Corporation

2021 ◽  
Vol 10 (3) ◽  
Author(s):  
Romina Barrantes ◽  
Thomas Leach
Keyword(s):  
Global Economy ◽  
Swot Analysis ◽  
Financial Analysis ◽  
Balance Sheet ◽  
Financial Statements ◽  
Cash Flows ◽  
Health Crisis ◽  
Balance Sheets ◽  
Statement Of Cash Flows ◽  
The Impact

Big technology stocks have been on a roll since April 2020, escaping the consequences of the coronavirus outbreak. The coronavirus pandemic created a vast tailwind for technology giants, especially Microsoft by inciting shifts in the corporations’ behavior which are currently outliving the health crisis. The financial analysis on this firm aimed to develop a thorough analysis centered on its corporate history, market summary, financial statements (income statements, balance sheets, cash flows statements), normalized financial statements (normalized income statement, normalized balance sheet, and normalized statement of cash flows), stock valuation, SWOT analysis, and major competitors’ performance. The aim of the evaluation is to get enough information to construct a thorough evaluation concerning the company’s performance and analyze the effects of the coronavirus pandemic on the company. The evaluation indicated this giant technology company is booming during the pandemic even when the global economy is in a recessionary gap. The financial analysis may suggest further research into.

Banking regulation - burden or blessing?

2019 ◽  
Vol 11 (4) ◽  
pp. 548-562 ◽  
Author(s):  
Kim Abildgren
Keyword(s):  
Commercial Banks ◽  
Natural Experiment ◽  
Positive Impact ◽  
Causal Effect ◽  
Balance Sheet ◽  
Banking Regulation ◽  
Content Type ◽  
Savings Banks ◽  
Short Run ◽  
The Impact

Purpose The purpose of this paper is to explore the impact of regulation on previously unregulated banks’ balance-sheet growth using the 1880 Danish Savings Bank Act as a natural experiment. With the Act, Danish savings banks became, for the first time, subject to regulation and supervision whereas commercial banks continued as unregulated institutions. Design/methodology/approach The main elements of the Act focussed on supervision and provisions to improve information transparency. The paper estimates the impact of the Act on the balance-sheet growth of Danish savings banks using bank-level panel data and a difference-in-differences approach. Findings The paper finds no indications that the Act had a negative effect on the balance-sheet growth of savings banks compared to commercial banks in the short run. Furthermore, there are indications of a positive effect after a couple of years. This suggests that regulation is not always a burden for the regulated institutions and might even have a positive impact on their business activity. Originality/value This paper is the first study using the introduction of banking supervision and regulation in the 1800s as a natural experiment to evaluate the causal effect of regulation on the balance-sheet growth of previously unregulated financial intermediaries.

The impact of flooding on marriage: evidence from Pakistan

2018 ◽  
Vol 27 (1) ◽  
pp. 115-128 ◽  
Author(s):  
Riaz Ahmed
Keyword(s):  
Natural Experiment ◽  
Negative Impact ◽  
Geographic Location ◽  
Well Being ◽  
Content Type ◽  
Household Level ◽  
Marriage Rates ◽  
And Gender ◽  
The Impact

Purpose The purpose of this paper is to examine the effect of the flood on marriages in flooded households compared to marriages in unaffected households by utilizing the 2010 Pakistani flood as a type of natural experiment. Design/methodology/approach A difference-in-difference approach is used to estimate the effect of the flood on marriages in 62 flooded districts compared with those in 53 non-flooded districts by utilizing the six waves of the household level surveys data from the Pakistan Social and Living Standards Measurement, 2004-2005 to 2014-2015. Findings Results show that the flood decreased marriages; by 17 marriages per 1,000 individuals aged 15-50 years in flooded districts during the flood year and the effect disappeared after the flood year. The negative impact of the flood on rural marriages is significantly higher and robust. Social implications The flood seemingly discouraged individuals in flooded districts to be engaged in long term relationship mainly due to the flood related economic and financial losses. In order to acquire and maintain individual overall well-being, sexual health in vital to maintain mental and physical health, so policy makers/humanitarian aid-providers should assist the affected adults financially or by arranging their marriages at least during the flood year. The study also suggests that the delay of marriages means the accumulation of human capital in the form of school attainment of male marriages, so younger adult should be discouraged marrying at early age. Originality/value This study contributes to the literature in the following ways: first, the study empirically investigates the impact of flood – both immediate and long term – on marriage rates by using a natural experiment. Second, it examines the relationship based on geographic location and gender. Third, it investigates the impact of natural hazards on child marriage.

Effects of credit restrictions in the Netherlands on credit growth and inflation

2021 ◽  
pp. 1-22
Author(s):  
Gabriele Galati ◽  
Jan Kakes ◽  
Richhild Moessner
Keyword(s):  
The Netherlands ◽  
Financial Institutions ◽  
Banking Sector ◽  
Balance Sheet ◽  
Policy Instrument ◽  
Credit Growth ◽  
Balance Sheets ◽  
The 1960S ◽  
The Impact

Credit restrictions were used as a monetary policy instrument in the Netherlands from the 1960s to the early 1990s. Since these restrictions were aimed at containing money rather than credit growth, their focus was on net credit creation by the financial sector. We document the rationale of these credit restrictions and how their implementation evolved in line with the evolution of the financial system. We study the impact on the balance sheet structure of banks and other financial institutions. We find that banks mainly responded to credit restrictions by making adjustments to the liability side of their balance sheets, particularly by increasing the proportion of long-term funding. Responses on the asset side were limited, while part of the banking sector even increased lending after the adoption of a restriction. These results suggest that banks and financial institutions responded by switching to long-term funding to meet the restriction and shield their lending business. Arguably, the credit restrictions were therefore still effective in reaching their main goal. Indeed, we do find evidence of a significant effect of credit restrictions on inflation.

scholarly journals Capitalisation of operating lease and its impact on firm’s financial ratios: Evidence from Italian listed companies

2018 ◽  
Vol 15 (3-1) ◽  
pp. 152-162 ◽  
Author(s):  
Roberto Maglio ◽  
Valerio Rapone ◽  
Andrea Rey
Keyword(s):  
Balance Sheet ◽  
Listed Companies ◽  
Financial Accounting ◽  
Financial Ratios ◽  
Substantial Impact ◽  
Balance Sheets ◽  
Operating Leases ◽  
Accounting Rules ◽  
Profitability Ratios ◽  
Lease Accounting

Lease accounting will never be the same again. The endorsement of IFRS 16 on November 2017 sets out new rules for the recognition and measurement of the lease. The new standard removes the lessee’s distinction between operating and financial lease and it will have a substantial impact for companies have previously kept a large proportion of their financing off balance sheets. Under IAS 17 companies have exploited a financial accounting loophole by structuring lease transactions as operating leases, favouring opportunistic behaviours by managers and distorting the investors’ perception of the disclosure. IFRS 16 removes the so-called bright lines companies used to avoid capitalisation of leases and turns any attempt to hide lease liabilities off the balance sheet into a futile exercise to improve transparency of information. The purpose of this research is to analyse the potential impact of the new accounting rules on key financial ratios of Italian listed companies using a refined constructive capitalisation method. The results of the study show that the reflection of the operating leases on the balance sheet shall cause a significant increase in the assets and liabilities and for this reason, there shall be a significant effect on the main debt, liquidity and profitability ratios.

scholarly journals An Empirical Analysis of Cash Flow and Investment Fluctuations Using Firm-Level Panel Data

2005 ◽  
Vol 7 (1) ◽  
pp. 95
Author(s):  
Abdul Ghafar Ismail ◽  
Nur Azura Sanusi
Keyword(s):  
Capital Structure ◽  
Focal Point ◽  
Stock Exchange ◽  
Balance Sheet ◽  
Kuala Lumpur ◽  
Firm Level ◽  
Balance Sheets ◽  
Inventory Investment ◽  
The Impact ◽  
Means Of Production

Since the pioneering work of Gurley and Shaw (1955), the attempt has been done to justify money as a primary focal point of macroeconomic theorizing. However, other researchers argue that variables such as financial development and indicators are also important to be linked with macroeconomic performance. Here, if money can be thought as means of production and consumer goods as the ultimate end toward which production is directed, and then capital also occupies a position that is both logically and temporarily intermediate between original means and ultimate ends. This temporarily intermediate status of capital is not in serious dispute, but its significance for macroeconomic theorizing is rarely recognized. The firms’ decision to acquire funds through debt and equity financings affects the capital structure, and, in the firm’s balance sheet, the impact of capital appears to influence the inventory investment. Hence, the significance of capital structure –induced inventory distortions in the context of firm-level is the basis for our article. The sample for our analysis is compiled from the balance sheets of listed syaria firms in the Kuala Lumpur Stock Exchange for the period 1995-2000.

The Digital Divide and K-12 Student Computer Use

10.28945/2926 ◽  
2005 ◽  
Author(s):  
James N. Morgan ◽  
Craig A. VanLengen
Keyword(s):  
Digital Divide ◽  
Computer Use ◽  
Census Data ◽  
Internet Access ◽  
Demographic Characteristics ◽  
The Internet ◽  
Substantial Impact ◽  
Limited Basis ◽  
K 12 ◽  
The Impact

The divide between those who have computer and Internet access and those who do not appears to be narrowing, however overall statistics may be misleading. Measures of computer availability in schools often include cases where computers are only available for administration or are available only on a very limited basis (Gootman, 2004). Access to a computer and the Internet outside of school helps to reinforce student learning and emphasize the importance of using technology. Recent U.S. statistics indicate that ethnic background and other demographic characteristics still have substantial impact on the availability and use of computers by students outside of the classroom. This paper examines recent census data to determine the impact of the household on student computer use outside of the classroom. Encouragingly, the findings of this study suggest that use of a computer at school substantially increases the chance that a student will use a computer outside of class. Additionally, this study suggests that computer use outside of the classroom is positively and significantly impacted by being in a household with adults who either use a computer at work or work in an industry where computers are extensively used.

The Role of Migration in the Formation of Regional Labour Markets Amidst the Second Wave of Depopulation in Modern Russia

2020 ◽  
Vol 27 (6) ◽  
pp. 26-36
Author(s):  
A. V. Topilin ◽  
A. S. Maksimova
Keyword(s):  
Labour Market ◽  
Oil And Gas ◽  
Labour Markets ◽  
Labour Migration ◽  
Sample Surveys ◽  
Balance Sheets ◽  
Permanent Migration ◽  
Regional Labour Markets ◽  
The Impact

The article reflects the results of a study of the impact of migration on regional labour markets amidst a decline in the working-age population in Russia. After substantiating the relevance of the issues under consideration, the authors propose a methodological analysis toolkit, the author’s own methodology for calculating the coefficients of permanent long-term external and internal labour migration in regional labour markets, and the coefficient of total migration burden. In addition, the authors provide an overview of the information and statistical base of the study. According to current migration records, data of Rosstat sample surveys on Russian labour migrants leaving for employment in other regions, regional labour resources balance sheets based on the calculated coefficients of labour market pressures, the authors analyzed the impact of migration on the Russian regional labour markets over the past decade. It revealed an increasing role of internal labour migration in many regions, primarily in the largest economic agglomerations and oil and gas territories. At the same time, the role of external labour migration remains stable and minimum indicators of the contribution of permanent migration to the formation of regional labour markets continue to decrease. It has been established that irrational counter flows of external and internal labour migration have developed, which indicates not only an imbalance in labour demand and supply but also a discrepancy between the qualitative composition of migrants and the needs of the economy. It is concluded that the state does not effectively regulate certain types of migration, considering its impact on the labour market. The authors justified the need for conducting regular household sample surveys according to specific programs to collect information about labour migrants and the conditions for using their labour. In addition to the current migration records, using interregional analysis, this information allows making more informed decisions at the federal and regional levels to correct the negative situation that has developed in the regional labour markets even before the coronavirus pandemic had struck.

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