scholarly journals Lessons learned from the effect of tight monetary conditions and crises on corporate capital structure

2016 ◽  
pp. 27-38
Author(s):  
Marianna Gergelyné Kása
Keyword(s):  
Capital Structure ◽  
Lessons Learned ◽  
Empirical Literature ◽  
Financial Policy ◽  
External Financing ◽  
Corporate Capital ◽  
Research Areas ◽  
Open Research ◽  
Corporate Capital Structure ◽  
The Impact

The study reviews the theoretical and empirical literature on the effect of tight monetary conditions, crisis on corporate capital structure, further creates a framework for analyzing their relation, as well as sheds light on the lessons learned and open research areas. The results highlight that the supply side of capital has an effect on corporate capital structure, though the analysis of this relation is scarce. However, the impact of tight monetary conditions on capital structure is analyzed by several studies, there is limited evidence on the financial policy and the development of financing mix during a crisis period. The impact of the 2007/08 crisis on the corporate capital structure and especially in case of firms with impaired access to external financing is scarce. The study also highlights our lack in understanding of the relation of crisis and capital structure in case of the CEE region.

A Survey on the Effects of Defeasing Debt

1987 ◽  
Vol 2 (1) ◽  
pp. 65-78 ◽  
Author(s):  
David E. Mielke ◽  
James Seifert
Keyword(s):  
Capital Structure ◽  
Balance Sheet ◽  
Annual Reports ◽  
Corporate Capital ◽  
Disclosure Requirements ◽  
Practical Concern ◽  
Corporate Capital Structure ◽  
Accounting Rules ◽  
Financial Characteristics ◽  
The Impact

Defeasance of debt is a relatively new tool for the management of the corporate balance sheet. The accounting rules for reporting these transactions have generated a great deal of controversy. Critics claim that the ability to record an extraordinary gain from the defeasance of debt permits the reporting of paper profits. Additionally, some were concerned about the disclosure requirements and with potential for the promotion of wholesale major changes in corporate capital structure. A survey was conducted to gain insight as to why companies might defease debt, to examine the impact of defeasance on the firm's financial characteristics, and to investigate the type of disclosure provided in the annual reports. Analysis of the results indicates that the critics have little practical concern. The paper profits and balance sheet changes in this sample were relatively minimal. The major problem found was with the relatively little information that corporations provided regarding these transactions.

scholarly journals Uncertainty and Capital Structure: Evidence from an Emerging Country

2021 ◽  
Vol 11 (2) ◽  
pp. 1700-1715
Author(s):  
Hoang Duc Le
Keyword(s):  
Capital Structure ◽  
Policy Makers ◽  
Corporate Capital ◽  
Emerging Country ◽  
Corporate Capital Structure ◽  
Lag Model ◽  
High Level ◽  
General Method Of Moments ◽  
The Impact ◽  
General Method

This paper investigates the impact of uncertainty on corporate capital structure. Using a sample consists of manufacturing firms listed in the Vietnamese Stock Market during the period from 2010 to 2019, we find that an increase in uncertainty can lead to a reduction in the corporate use of debt. This result is robust when we use a lag model or a System General Method of Moments to deal with the endogeneity problems. Moreover, our result shows that firms decrease their leverage when facing a high level of uncertainty because the increase in leverage during the heightened uncertainty periods may reduce firms’ investment. Given that firms in emerging countries in general and in Vietnam in particular rely significantly on debt financing, the results of our paper suggest that policy makers should have solutions to mitigate the adverse impact of uncertainty on firm leverage.

scholarly journals Relationship between Corporate Capital Structure and Stocks Liquidity: Empirical Evidence in Vietnam

2020 ◽  
Vol 10 (2) ◽  
pp. 151
Author(s):  
Van Thi Thuy Vu ◽  
Thoa Thi Tran ◽  
Xuan Thanh Ngo ◽  
Linh Nhat Nguyen
Keyword(s):  
Capital Structure ◽  
Inverse Relationship ◽  
Stock Exchange ◽  
Ho Chi Minh City ◽  
Corporate Value ◽  
Corporate Capital ◽  
Corporate Capital Structure ◽  
Business Size ◽  
The Impact ◽  
The Capital Structure

The paper examines the impact of capital structure on the liquidity of listed shares on the Ho Chi Minh City Stock Exchange, which includes 1078 observations during the period of 2011 – 2017. In addition to the capital structure, the study also looked at the impact of controlled variables including profitability (ROS), corporate value (Tobin’s Q) and size of the business (SIZE) on the liquidity of listed shares. The results show that the capital structure has inherently inverse relationship, while the controlled variables in the model have a positive relationship with stocks’ liquidity.

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