scholarly journals RESEARCH ON THE IMPACT OF EQUITY PLEDGE ON ENTERPRISE VALUE—TAKE SMES AS AN EXAMPLE

2021 ◽  
Author(s):  
JUE-MING WANG ◽  
BAO-BAO LI ◽  
CHENG-XUAN GENG
Keyword(s):  
Monetary Policy ◽  
Negative Impact ◽  
Corporate Value ◽  
Controlling Shareholder ◽  
The Sustainable Development ◽  
Controlling Shareholders ◽  
Enterprise Value ◽  
Significant Negative Impact ◽  
The Impact ◽  
Policy Adjustments

The pledge of controlling shareholders’ equity is one of the important ways for small and medium-sized enterprises to raise funds. However, due to the complexity of controlling shareholders’ motivations for equity pledge, equity pledge has become a double-edged sword that affects the sustainable development of enterprises. This study explores the impact of controlling shareholder equity pledge on corporate value by constructing an empirical model, so as to provide suggestions for small and medium shareholders, regulatory agencies and related financial institutions. The empirical results show that the pledge of controlling shareholders’ equity is conducive to the improvement of corporate value; however, under different macro policy adjustments, the impact of equity pledges on corporate value is different. In the period of loose monetary policy, the pledge of controlling shareholders’ equity has a significant positive effect on corporate value .On the contrary, during the monetary policy tightening period, equity pledge has a significant negative impact on corporate value.

scholarly journals Impact of Controlling Shareholder Equity Pledge on Corporate Value

2019 ◽  
Vol 3 (1) ◽  
Author(s):  
Haifeng Li ◽  
Haiyi He ◽  
Yuanyuan Zhang
Keyword(s):  
Negative Impact ◽  
Point Of View ◽  
Corporate Value ◽  
Controlling Shareholder ◽  
Incentive Effect ◽  
Research Perspectives ◽  
Negative Effect ◽  
Financing Behavior ◽  
Cash Flow Rights ◽  
The Impact

As an innovative financing behavior, equity pledge breaks the limit of traditional financing, and broadens the financing channels of companies and major shareholders. This paper comprehensively considers the impact of controlling shareholder equity pledge on corporate value from three research perspectives. The main conclusions are as follows: (1) When the equity pledge is not considered, the cash flow rights and voting rights of the company owned by the controlling shareholder are positively correlated with corporate value. That is, this presents incentive effect, but the existence of the separation of the two powers brings the second type of agency problem and reduces corporate value. (2) When considering the equity pledge, the controlling shareholder’s equity pledge may weaken the incentive effect and strengthen the encroachment effect which causing a reduction of corporate value. (3) Based on the accounting point of view, the controlling shareholder’s equity pledge is negatively correlated with the corporate performance, while the concentration of ownership dilutes this negative effect. (4) The balance of equity weakens the negative effect of the controlling shareholder’s equity pledge on corporate value, thereby reduces the negative impact of the equity pledge.

Examining the Asymmetric Impact of Monetary Policy in India

2017 ◽  
Vol 11 (3) ◽  
pp. 290-314 ◽  
Author(s):  
Jeevan Kumar Khundrakpam
Keyword(s):  
Monetary Policy ◽  
Interest Rate ◽  
Negative Impact ◽  
Aggregate Demand ◽  
Jel Classification ◽  
Government Consumption ◽  
Policy Shocks ◽  
Significant Negative Impact ◽  
The Interest Rate ◽  
The Impact

Though an accumulating body of work has analysed monetary policy transmission in India, there are few studies examining the asymmetric aspect of the transmission. Against this backdrop, segregating the interest rate setting process captured by a Taylor rule type into unanticipated and anticipated components, this article analyses the asymmetric effects of monetary policy on aggregate demand and its components, and inflation in India using quarterly data from 1996–97Q1 to 2013–14Q3. It finds that unanticipated hikes and cuts in the policy rate have a symmetric impact on aggregate demand, but differentially impact the components. While the impacts on investment are negative and symmetric, they are asymmetric on private consumption, with only an unanticipated cut in policy rate having a significant negative impact. Government consumption is unaffected by monetary policy shocks. The impact of unanticipated interest rate changes on inflation is negative and symmetric. Anticipated policy rate changes also have a negative impact on aggregate demand and its components, except for government consumption, but between certain levels, such changes are ineffective, indicating a neutral impact. Anticipated policy rate changes have a negative impact on inflation at all levels. JEL Classification: C32, C51, E31, E52

scholarly journals The Stock Market’s Reaction to Strict Environmental Inspection: Evidence from Heavily Polluting Listed Companies in China

2020 ◽  
Author(s):  
Xie Tingting ◽  
Wang Yong
Keyword(s):  
Environmental Governance ◽  
Negative Impact ◽  
Listed Companies ◽  
Small Scale ◽  
Corporate Value ◽  
Governance System ◽  
Study Approach ◽  
Significant Negative Impact ◽  
The Impact ◽  
Polluting Firms

As an important part of the new environmental governance system in China, the policy effect of Central Environmental Inspection has gained more attention. Based on the data from heavily polluting listed companies in China, this paper examines the impact of Central Environmental Inspection on corporate value by using an event study approach. The result of the study demonstrates that the Central Environmental Inspection causes a general and significant negative impact on the corporate value of heavily polluting listed companies. More specifically, the market value of private firms and small-scale firms declined more than that of state-owned firms and big-scale firms. In addition, under the deterrent of the Central Environmental Inspection, political connections have no longer become the effective way for polluting firms to evade strict environmental regulation.

scholarly journals The Stock Market’s Reaction to Strict Environmental Inspection: Evidence from Heavily Polluting Listed Companies in China

2020 ◽  
Vol 15 ◽  
pp. 95-117
Author(s):  
Xie Tingting ◽  
Wang Yong
Keyword(s):  
Environmental Governance ◽  
Negative Impact ◽  
Listed Companies ◽  
Small Scale ◽  
Corporate Value ◽  
Governance System ◽  
Study Approach ◽  
Significant Negative Impact ◽  
The Impact ◽  
Polluting Firms

As an important part of the new environmental governance system in China, the policy effect of Central Environmental Inspection has gained more attention. Based on the data from heavily polluting listed companies in China, this paper examines the impact of Central Environmental Inspection on corporate value by using an event study approach. The result of the study demonstrates that the Central Environmental Inspection causes a general and significant negative impact on the corporate value of heavily polluting listed companies. More specifically, the market value of private firms and small-scale firms declined more than that of state-owned firms and big-scale firms. In addition, under the deterrent of the Central Environmental Inspection, political connections have no longer become the effective way for polluting firms to evade strict environmental regulation.

scholarly journals The Influence of Urban Sprawl on Air Pollution and the Mediating Effect of Vehicle Ownership

Processes ◽  
2021 ◽  
Vol 9 (8) ◽  
pp. 1261
Author(s):  
Aiping Tao ◽  
Qun Liang ◽  
Peng Kuai ◽  
Tao Ding
Keyword(s):  
Air Pollution ◽  
Urban Sprawl ◽  
Negative Impact ◽  
Empirical Support ◽  
Mediating Effect ◽  
Vehicle Ownership ◽  
Mediating Role ◽  
Effect Model ◽  
Significant Negative Impact ◽  
The Impact

Based on the panel data of 224 prefecture-level and above cities in China from 2003 to 2016, this paper empirically studies the impact of urban sprawl on air pollution and introduces a mediating effect model to test the mediating role of vehicle ownership concerning the impact of urban sprawl on air pollution. The research in this paper arrives at three conclusions. First, urban sprawl has a significant positive effect on air pollution, and this conclusion is still valid after solving the endogeneity problem and conducting a robustness test. Second, the results of mediating effect test show that urban sprawl indirectly affects air pollution through the partial mediating effect of vehicle ownership. By removing the mediating effect, urban sprawl has a significant negative impact on air pollution, indicating that the mediating effect of vehicle ownership is higher concerning the impact of urban sprawl on air pollution. Third, further panel quantile regression results show that the higher the level of air pollution, the weaker the mediating effect of vehicle ownership and the stronger the direct effect of urban sprawl on air pollution. These conclusions can provide some empirical support for solving the air pollution problems caused by urban sprawl in China.

The Impact of the Business Environment on the Formalization of Informal Firms. The Case of Kosovo

Südosteuropa ◽  
2020 ◽  
Vol 68 (4) ◽  
pp. 505-529
Author(s):  
Kujtim Zylfijaj ◽  
Dimitar Nikoloski ◽  
Nadine Tournois
Keyword(s):  
Negative Impact ◽  
Positive Impact ◽  
Business Environment ◽  
Positive Influence ◽  
Policy Implications ◽  
Tax Reforms ◽  
Firm Level ◽  
Characteristics Analysis ◽  
Significant Negative Impact ◽  
The Impact

AbstractThe research presented here investigates the impact of the business environment on the formalization of informal firms, using firm-level data for 243 informal firms in Kosovo. The findings indicate that business-environment variables such as limited access to financing, the cost of financing, the unavailability of subsidies, tax rates, and corruption have a significant negative impact on the formalization of informal firms. In addition, firm-level characteristics analysis suggests that the age of the firm also exercises a significant negative impact, whereas sales volume exerts a significant positive impact on the formalization of informal firms. These findings have important policy implications and suggest that the abolition of barriers preventing access to financing, as well as tax reforms and a consistent struggle against corruption may have a positive influence on the formalization of informal firms. On the other hand, firm owners should consider formalization to be a means to help them have greater opportunities for survival and growth.

Three strikes and you are out?

2017 ◽  
Vol 10 (4) ◽  
pp. 417-429 ◽  
Author(s):  
Michael Carriger
Keyword(s):  
Negative Impact ◽  
Univariate Analysis ◽  
Market Valuation ◽  
Financial Health ◽  
Content Type ◽  
Financial Measures ◽  
Significant Negative Impact ◽  
Three Strikes ◽  
Underlying Disorder ◽  
The Impact

Purpose Much has been written in both the management and finance literatures about the impact of downsizing on the financial health and market valuation of companies. However, surprisingly little attention has been paid to the frequency of downsizing and the impact of frequent downsizings. The purpose of this paper is to look at trends in downsizing, asking the question are companies that downsize once more likely to downsize again. The paper also looks at the impact of frequent downsizing, asking the question are frequent downsizers differentially impacted compared to less frequent downsizers. Design/methodology/approach Companies that appeared on the Fortune 500 in 2014 and were also on the list in 2008 were assessed for the impact of repeat downsizings on financial measures (profitability, efficiency, debt, and revenue) and market valuation. A trend analysis was conducted to assess the trend in downsizing and repeated downsizing from 2008 through 2014. A series of univariate analysis of variances were conducted to assess the impact of repeated downsizings on the financial and market valuation indicators. Findings Findings indicate that companies that downsize between 2008 and 2009 were more likely to downsize again in future years. And this repeat downsizing happened at a higher rate than would be expected by the percentage of companies that initially downsized. Findings also indicate that multiple downsizings had a significantly negative impact on the company’s financial performance as measured by two profitability ratios (return on assets and return on investment) and a borderline significant negative impact on the company’s market valuation as measured by stock equity, regardless of industry or initial financial health of the company. Originality/value Two competing theories were considered and the evidence found here support both. However, the “band-aid solution” theory, that downsizing may function as a band-aid addressing the symptoms that lead to the downsizing but not the underlying disorder or cause may be a more parsimonious explanation for the results here. It is hoped that these findings will inform both scholars and practitioners, giving both a clearer picture of the impact of multiple downsizings on corporate performance.

IMPACT OF FACEBOOK ADDICTION DISORDER (FAD) ON STUDY HABITS AND ACADEMIC ACHIEVEMENT OF ADOLESCENTS

2021 ◽  
pp. 195-207
Author(s):  
Shivani Vashishtha ◽  
Sona Ahuja ◽  
Mani Sharma
Keyword(s):  
Academic Achievement ◽  
Social Networking Sites ◽  
Negative Impact ◽  
Age Groups ◽  
Negative Influence ◽  
Study Habits ◽  
Study Habit ◽  
Significant Negative Impact ◽  
Facebook Addiction ◽  
The Impact

With the present era being technology driven, social media has become an indispensable part of many people irrespective of their age. Among different age groups, the maximum users are adolescents and among different social networking sites (SNS), Facebook shares the major part of usage by them. Many adolescents are tending towards excessive usage of Facebook leading to its addiction. Does this addiction have negative influence on adolescents or it actually helps them to keep up with their counterparts and be socially connected to them for their betterment? This question is unanswered specifically when it concerns the impact that it has on the study habits and academic achievement of adolescents. The hypotheses were tested in order to explore the impact of six dimensions (mood modification, deficient self-regulations, salience, loss of control, withdrawal, and relapse) of Facebook Addiction Disorder (FAD) using Bergens' Facebook Addiction Scale (BFAS), developed by Andreassen (2012). The results are based on the survey conducted on 200 adolescents studying in different schools of India. The findings indicate that there is a significant negative impact of Facebook Addiction Disorder (FAD) on study habits and academic achievement of adolescents. The major implication derived is that the higher the addiction to Facebook the study habit become poor and academic achievement decreases resulting in lower grades.

scholarly journals Taxing impact of terrorism on global economic openness of developed and developing countries

2018 ◽  
Vol 68 (3) ◽  
pp. 311-335
Author(s):  
Abubakr Saeed ◽  
Yuhua Ding ◽  
Shawkat Hammoudeh ◽  
Ishtiaq Ahmad
Keyword(s):  
Developing Countries ◽  
Negative Impact ◽  
Developed Countries ◽  
Terrorist Attacks ◽  
Economic Openness ◽  
Significant Negative Impact ◽  
Military Expenditures ◽  
The Developed Countries ◽  
The Impact ◽  
The Relationship

This study examines the relationship between terrorism and economic openness that takes into account both the number and intensity of terrorist incidents and the impact of government military expenditures on trade-GDP and foreign direct investment-GDP ratios for both developed and developing countries. It uses the dynamic GMM method to account for endogeneity in the variables. Deaths caused by terrorism have a significant negative impact on FDI flows, and the number of terrorist attacks is also found to be significant in hampering the countries’ ability to trade with other nations. The study also demonstrates that the developing countries exhibit almost similar results to our main analysis. The developed countries exhibit a negative impact of terrorism, but the regression results are not significant.

scholarly journals Nature of Academic Programs, Epistemological Beliefs and Their Impact on Pakistani University Students’ Academic Performance

2021 ◽  
Vol 4 (4) ◽  
pp. 781-803
Author(s):  
Rafaquat Ali ◽  
Bushra Shoukat ◽  
Rabia Bahoo
Keyword(s):  
Academic Performance ◽  
University Students ◽  
Epistemological Beliefs ◽  
Negative Impact ◽  
English Literature ◽  
Academic Programs ◽  
Physical Sciences ◽  
Field Of Study ◽  
Significant Negative Impact ◽  
The Impact

The students’ academic behaviours and academic performance differ with their epistemological beliefs. Different social-cultural and educational contexts inculcate differences in students’ epistemological beliefs. However, the impact of the nature of the academic programs on students’ epistemological beliefs is most obvious. The students of different disciplines can have different epistemological beliefs. These different epistemological beliefs differ in their impact on students’ academic performance and academic behaviour. Hence, the current study evaluated the interrelationships of various educational programs and epistemological beliefs and their importance in students’ academic performance. The volunteer university students provided data about their academic programs, epistemological beliefs, and academic performance. Researchers used the Generalized Structured Component Analysis approach to calculate the suitability of specified measurement and structural models. The impact of subjects of the soft field of study such as Behavioural Sciences, English Literature was negative on naive epistemological beliefs in knowledge structure and omniscient authority compared to subjects of the hard field of studies such as Mathematical, Physical Sciences, and Biological Sciences. The Business Sciences from the soft applied field of study had the least noticeable negative impact on naive epistemological beliefs compared to other subjects of pure soft and pure hard field of studies. Only, the belief in quick learning had a significant negative impact on students’ academic performance.

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