Financial Sector Development and Credit Risk: An insight of BRICS countries using Continuously Updated Fully Modified and Continuously Updated Bias Corrected Methods

2023 ◽  
Vol 1 (1) ◽  
pp. 1
Author(s):  
Aamir Syed ◽  
Mohd. Kamal
Keyword(s):  
Credit Risk ◽  
Financial Sector ◽  
Financial Sector Development ◽  
Brics Countries

scholarly journals Financial sector development & firm growth in BRICS countries

2017 ◽  
Vol 7 (4-1) ◽  
pp. 126-134
Author(s):  
Shame Mugova
Keyword(s):  
Firm Growth ◽  
Financial Sector ◽  
Productive Capacity ◽  
Growth Opportunities ◽  
Listed Firms ◽  
Speed Of Adjustment ◽  
External Finance ◽  
Financial Sector Development ◽  
Brics Countries ◽  
The Impact

The development of an economy’s financial sector facilitates improved access to capital. This study focuses on firm growth in terms of how much assets it controls and BRICS is chosen as the empirical medium of investigation. The impact financial sector development on firm growth amongst 3353 listed firms in BRICS countries is investigated using a GMM estimation technique. Firm’s investment in assets increases the organizational resources and productive capacity needed to achieve growth in the market. Financial sector development improves access to capital and firms with higher access to external finance pursue growth opportunities using debt. Financial sector development helps firms to adjust their capital structures quickly thereby minimizing the costs of staying off target. The speed of adjustment of firms towards their target capital structure facilitates financing of firm growth. The study found that listed firms in Brazil, Russia India, China and South Africa have a target total liabilities-to-total assets ratio and financial sector development helps firms to partially adjust towards target levels and pursue growth opportunities.

scholarly journals TRADE CREDIT POLICY: REVISITING TARGETING OF TRADE PAYABLES AND RECEIVABLES IN BRICS LISTED FIRMS

2020 ◽  
Vol 8 (3) ◽  
pp. 183-192
Author(s):  
Shame Mugova ◽  
◽  
Farai Kwenda ◽  
Keyword(s):  
Trade Credit ◽  
Generalized Method Of Moments ◽  
Financial Sector ◽  
Optimal Level ◽  
Dynamic Panel Data ◽  
Credit Policy ◽  
Financial Sector Development ◽  
Brics Countries ◽  
Additional Funding ◽  
The Difference

The study investigates if firms in BRICS countries pursue a target optimal level of trade credit policy. Trade payables levels may not always at the desired levels and firms take time to adjust from real to target levels. The level of financial sector development may influence firms’ speed and cost adjustment. Employing a dynamic panel data model estimated with the difference and system Generalized Method of Moments estimation techniques on a panel of 3353 listed BRICS non-financial firms, the study established that in pursuit of growth opportunities firms have a deliberate trade credit target levels. Firms pursue a target optimal level of trade payables and trade receivables and firm size affects creditworthiness and access to capital markets, which influences speed of adjustment from current to desired levels of trade payables. Investment in trade receivables require access to capital for additional funding and poorly developed financial sectors makes it costly to adjust towards optimal credit level. Different levels of financial sector development affect access to alternative sources capital which influences optimal trade credit policy.

The Impact Of Financial Sector Development On Economic Growth In The Middle East And North Africa

2019 ◽  
pp. 81
Author(s):  
محمد سعيد محمود بللور ◽  
عامر عبدالفتاح زكريا باكير
Keyword(s):  
Economic Growth ◽  
Middle East ◽  
North Africa ◽  
Financial Sector ◽  
Financial Sector Development ◽  
The Impact
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