scholarly journals Capital Structure in Emerging Markets: Evidence from China

2020 ◽  
Vol 14 (1) ◽  
pp. 7-19
Author(s):  
Varvara Nazarova ◽  
Anastasia Budchenko
Keyword(s):  
Emerging Markets ◽  
Capital Structure ◽  
Large Scale ◽  
Oil And Gas ◽  
Negative Impact ◽  
Positive Impact ◽  
Bric Countries ◽  
Chinese Companies ◽  
Retained Earnings ◽  
Capital Intensive

Although corporate capital structure has been intriguing to scientists for a number of years, very little research has been conducted on the topic for companies in emerging markets. The purpose of this paper is to investigate the determinants of capital structure using a sample of 195 non-financial firms from emerging markets in 2012-2016.   The inclusion of a specific dataset from Chinese companies lends vital focus to this investigation and provides crucial ballast for the investigative function. The final sample contains data on 57 China companies and 90 other companies of emerging markets. Our article focusses on identifying the determinants of capital structure of Chinese companies in comparison with companies of other BRIC countries (Brazil, Russia, India), and sets out a series of hypotheses concerning capital structure with domestic and international variables. We compare and contrast our data using a series of custom evaluation models based on linear regressions.   The results confirm positive impact of tangibility on total debt ratio due to a high share of capital-intensive industries in the sample. It is revealed that growth rates and firm size have positive impacts on financial leverage in Chinese companies as compared to other BRIC countries, and these effects are stronger in capital-intensive industries. We illustrate how a strong negative impact of ROA has increased in recent years, and connect this phenomenon to a considerable decrease in lending rates following a large-scale stimulus program which encouraged Chinese companies to borrow money instead of relying on retained earnings. The presence of the Chinese state in the ownership structure of companies is revealed to be significant for the majority of Chinese companies, especially for the oil and gas and metallurgical sectors.   Our conclusions highlight the importance of government policies and special market conditions in explaining the financing behaviour of companies in emerging countries like China.  While capital structure choice varies significantly across industries, nevertheless the differences between Chinese and other BRIC companies reflect the differences in the institutional structure of financing mechanisms in countries. This research and evaluation is especially timely considering the increased focus on Chinese commercial exposure on the world stage, a tendency which is bound to increase research interest in the near future across a range of disciplines. As such, our study and our broad range of conclusions will prove invaluable for students, researchers, policymakers, and decision makers in business, commerce, politics and academia at all levels.

scholarly journals The Determinants of Capital Structure: Evidence from GCC and UK Real Estate Sectors

2019 ◽  
Vol 27 (2) ◽  
pp. 108-125 ◽  
Author(s):  
Ibrahim Yousef
Keyword(s):  
Real Estate ◽  
Capital Structure ◽  
Fixed Effects ◽  
Negative Impact ◽  
Positive Impact ◽  
Bivariate Analysis ◽  
Tobit Regression ◽  
Pecking Order ◽  
Trade Off ◽  
Retained Earnings

Abstract This paper investigates the determinants of capital structure in the context of the Gulf Cooperation Council (GCC) and United Kingdom (UK) real estate sectors. The results of a bivariate analysis indicate that leverage in the UK is much higher than in GCC countries. This may be attributable to UK companies facing a lower cost of debt, which would facilitate their raising of debt capital from the market. In addition, UK real estate firms tend to be larger and have higher levels of tangibility and retained earnings compared with GCC firms, while GCC firms tend to be more profitable and have more growth opportunities. The results of panel and Tobit regression analyses support both trade-off and pecking order theories; for instance, company size was found to have a significant positive impact on different types of debt measurements (market and book debt ratios), which is consistent with the trade-off theory, while profitability and retained earnings to total assets exhibited a significant negative impact for GCC and UK real estate firms, which is consistent with the pecking order theory. Importantly, these results hold true regardless of whether the regressions are estimated using an OLS, random effects, fixed effects panel estimation or a Tobit model.

Accidental Sustainability

2017 ◽  
Author(s):  
Geoffrey Jones
Keyword(s):  
Large Scale ◽  
Negative Impact ◽  
Positive Impact ◽  
Organic Food ◽  
The United States ◽  
Air Travel ◽  
Business Leaders ◽  
Natural Beauty ◽  
And Diffusion ◽  
Whole Foods

This chapter examines the scaling and diffusion of green entrepreneurship between 1980 and the present. It explores how entrepreneurs and business leaders promoted the idea that business and sustainability were compatible. It then examines the rapid growth of organic foods, natural beauty, ecological architecture, and eco-tourism. Green firms sometimes grew to a large scale, such as the retailer Whole Foods Market in the United States. The chapter explores how greater mainstreaming of these businesses resulted in a new set of challenges arising from scaling. Organic food was now transported across large distances causing a negative impact on carbon emissions. More eco-tourism resulted in more air travel and bigger airports. In other industries scaling had a more positive impact. Towns were major polluters, so more ecological buildings had a positive impact.

scholarly journals Mental health disorders among students from rural areas three months after returning to school: a cross-sectional study among Polish students (12-13 y.o.)

2022 ◽  
Author(s):  
Piotr Długosz
Keyword(s):  
Mental Health ◽  
Rural Areas ◽  
Large Scale ◽  
Negative Impact ◽  
Positive Impact ◽  
High Stress ◽  
Mental Health Disorders ◽  
Mental Condition ◽  
Health Disorders ◽  
Returning To School

Abstract: Background: All over the world, the negative impact of the Covid-19 pandemic on children and adolescents’ mental health is observed. The conducted research aims to verify whether returning to schools, to the education inside the classroom in the company of their peers, improved or undermined the students’ mental health. Metods: The study was carried out on a sample of students inhabiting rural areas in a borderland region. The research sample was collected using purposive sampling and consisted of 552 respondents from 7th and 8th grades of primary school. An auditorium questionnaire was used to gather the research material. Results: Three months after returning to school, the students are in a bad mental condition. 61% of the respondents are satisfied with their lives, 52% of the respondents show symptoms of depression measured with the WHO-5 index, whereas 85% of them have average and high stress levels as measured with the PSSC scale. Higher levels of mental disorders was observed among females, the students inhabiting villages and evaluating their financial status as worse. Conclusions: Returning to schools failed to have a positive impact on the students’ mental health. Disorders occurring at a large scale will have a negative influence on the students’ performance and hinder their re-adaptation to school. Educational authorities shall immediately provide the students with support and monitor the situation in the next months.

RISING COSTS IN AUSTRALIAN HYDROCARBON EXPLORATION AND DEVELOPMENT

1978 ◽  
Vol 18 (1) ◽  
pp. 204
Author(s):  
D. McMinn
Keyword(s):  
Large Scale ◽  
Oil And Gas ◽  
Hydrocarbon Exploration ◽  
Upward Movement ◽  
Oil And Gas Producers ◽  
Project Construction ◽  
Key Factor ◽  
Retained Earnings ◽  
Equipment Costs ◽  
Exploration And Development

Rapidly rising costs have created operating and investment problems for companies involved in the Australian hydrocarbon resource industry. Expenditure in this area has declined markedly in constant dollar terms, an adverse trend given Australia's outlook for increasing reliance on imported crude oil in the 1980's.Costs in hydrocarbon exploration appear to have risen in excess of general inflation in the Australian economy. This situation may be attributed to the strong upward movement in wages and equipment costs, and in some cases, the low level of domestic exploration in the mid-1970's.Capital costs for hydrocarbon development and pipeline projects in Australia have also escalated, a trend caused by rising wage levels in project construction and increases in equipment costs. Additional factors such as design alterations, environmental considerations and labour disputes, can also add significantly to costs. Large scale hydrocarbon projects, which have long lead times, are susceptible to inflationary trends.Increasing amounts of funds are required for exploration and development as a result of the rising cost trend. However, difficulty is being experienced in raising funds through capital and equity markets, as well as retained earnings. A key factor in securing adequate funds is profitability, which is largely determined by the State and Federal Governments. For the smaller oil and gas producers, the past profitability record has been inadequate, although the improvement in recent years should continue because of higher oil and gas prices.Costs may be expected to continue to increase in hydrocarbon exploration and development, but probably at a lower rate than experienced in the mid- 1970's. The future viability of the hydrocarbon sector is dependent on a favourable investment environment and higher profitability to offset the considerable risks in exploration and escalation in costs.

scholarly journals Assessment of Multi-Use Offshore Platforms: Structure Classification and Design Challenges

2020 ◽  
Vol 12 (5) ◽  
pp. 1860
Author(s):  
Walid M. Nassar ◽  
Olimpo Anaya-Lara ◽  
Khaled H. Ahmed ◽  
David Campos-Gaona ◽  
Mohamed Elgenedy
Keyword(s):  
Control System ◽  
Oil And Gas ◽  
Negative Impact ◽  
Positive Impact ◽  
High Energy ◽  
Vital Role ◽  
Offshore Platforms ◽  
Renewable Energy Resources ◽  
Energy Technologies ◽  
The World

As the world continues to experience problems including a lack of seafood and high energy demands, this paper provides an assessment for integrated multi-use offshore platforms (MUPs) as a step towards exploiting open seawater in a sustainable way to harvest food and energy. The paper begins with background about MUPs, including information regarding what an MUP is and why it is used. The potential energy technologies that can be involved in an offshore platform are introduced while addressing similar applications all over the world. The paper presents the state of the art of MUP structures on the light of EU-funded programs. An MUP would have a positive impact on various marine activities such as tourism, aquaculture, transport, oil and gas and leisure. However, there are concerns about the negative impact of MUPs on the marine environment and ecosystem. Building an MUP with 100% renewable energy resources is still a challenge because a large storage capacity must be considered with a well-designed control system. However, marine bio-mass would play a vital role in reducing battery size and improving power supply reliability. Direct Current (DC) systems have never been considered for offshore platforms, but they could be a better alternative as a simpler control system that requires with lower costs, has lower distribution losses, and has an increased system efficiency, so studying the feasibility of using DC systems for MUPs is required.

scholarly journals The Capital Structure and It’s Impact on the Profitability of the FMCG Companies in India – A Study

2021 ◽  
Vol 04 (10) ◽  
Author(s):  
Dr. Amalesh Patra ◽  
Keyword(s):  
Capital Structure ◽  
Negative Impact ◽  
Positive Impact ◽  
Stock Exchange ◽  
Book Value ◽  
Coverage Ratio ◽  
Total Debt ◽  
Lm Test ◽  
The Impact ◽  
The Capital Structure

The purpose of this study is to examine the impact of the capital structure on the profitability of the companies under the FMCG sector listed in the National Stock Exchange (NSE) of India. The sample of 10 companies over 14 years from 2007 to 2020 is considered in this study. To examine the impact of capital structure on the profitability, Total Debt to Total Assets (TDTA) Debt- Equity (DE), Interest Coverage Ratio (ICR) consider as the independent variables, Price to Book Value Ratio (PBVR) and Growth (GROW) considered as the control variables and Return on Capital Employed (ROCE) considered as dependent variable (profitability). To fulfil the objective of the study Pearsons' Correlation has been conducted for testing the Collinearity, Shapiro- Wilk test has been run for normality test of the variables, to test the Stationary Hadri LM test, Kao and Pedroni test for cointegration test and to choose the appropriate model Hausman test and finally, for the result, I run Fixed Effect Model. The result of the Regression analysis showed that Total Debt to Total Assets (TDTA), Debt- Equity (DE), Interest Coverage Ratio (ICR), and Price to Book Value are the factors that have an impact on the Profitability (ROCE) of the company. The empirical result also suggests that total debt to Total Assets (TDTA), Interest Coverage Ratio (ICR), and Price to Book Value of the company have a positive impact but Debt -Equity has a negative impact on the ROCE

scholarly journals The Relationship between the Ownership Structure, Capital Structure and Performance

2018 ◽  
Vol 1 (25) ◽  
pp. 1 ◽  
Author(s):  
Ali Al-Thuneibat
Keyword(s):  
Capital Structure ◽  
Ownership Structure ◽  
Negative Impact ◽  
Positive Impact ◽  
Stock Exchange ◽  
Return On Assets ◽  
Service Companies ◽  
Concentrated Ownership ◽  
And Performance ◽  
The Relationship

This paper aims at providing an empirical evidence concerning the relationship between the ownership structure, capital structure and financial performance of the shareholding companies listed in Amman Stock Exchange (ASE). To measure the ownership structure, the researcher used four variables including foreign, institutional, managerial and concentrated ownership. The capital structure is measured by using the leverage, and the performance is measured by using the return on assets (ROA). To achieve the objectives of the study, a sample of 86 firms from the industrial and service companies listed in ASE during the period 2010 and 2014 is used. The results of the study showed that the relationship between ownership structure in general, and performance is positive and statistically significant, however, the results showed that the various types of ownership structure have different types of relationships with performance. More specifically, there is a negative impact of institutional and foreign ownerships on the performance and positive impact of concentrated and managerial ownerships. The results also revealed that there is a positive impact of the financial leverage on the relationship between ownership structure and firm performance. The findings of the study provide implications to the regulators, investors and managers in Jordan to take into consideration the environment-specific factors when developing corporate regulations and encourage concentrated and managerial ownership because they have positive impact on performance.

scholarly journals Integrating Capital Structure, Financial and Non-Financial Performance: Distress Prediction of SMEs

2019 ◽  
Vol 4 (2) ◽  
pp. 56-63
Author(s):  
Farida Titik Kristanti ◽  
Sri Rahayu ◽  
Deannes Isynuwardhana
Keyword(s):  
Capital Structure ◽  
Financial Performance ◽  
Financial Distress ◽  
Positive Impact ◽  
Jel Classification ◽  
Operating Income ◽  
Distress Prediction ◽  
Retained Earnings ◽  
Research Period ◽  
Made In

Objective – The growth of SMEs in Indonesia is rising from year to year. As an anticipation of bankruptcy, predictions can be made in an integrated means from the perspective of capital structure, financial, and non-financial performance. Methodology/Technique – A sample of 39 companies were selected using purposive sampling during the research period of 2013-2017. The results of the statistical logistic regression show that profitability is an important factor in predicting financial distress of the SMEs in Indonesia. Findings – The operating income to total assets has a negative and significant effect on SMEs financial distress. Meanwhile, retained earnings to total assets have a positive impact. Indonesian SMEs must be efficient in their operational costs to avoid financial distress. Novelty – In addition, sales are also important. If the company's sales are high, and the operational cost efficiency is maintained, the retained earnings will increase. This means that the company will be safe and able to avoid financial distress. Type of Paper: Empirical. Keywords: Capital Structure; Financial; Distress; Non-Financial; Performance. Reference to this paper should be made as follows: Kristanti F T; Rahayu S; Isynuwardhana D; 2019. Integrating Capital Structure, Financial and Non-Financial Performance: Distress Prediction of SMEs, Acc. Fin. Review 4 (2): 56 – 62 https://doi.org/10.35609/afr.2019.4.2(4) JEL Classification: G32, G33, G34.

scholarly journals Decomposing the Effect of Domestic and Foreign Economic Policy Uncertainty Shocks on Real and Financial Sectors: Evidence from BRIC Countries

2020 ◽  
Vol 13 (12) ◽  
pp. 315
Author(s):  
Ameet Kumar ◽  
Muhammad Ramzan Kalhoro ◽  
Rakesh Kumar ◽  
Niaz Hussain Ghumro ◽  
Sarfraz Ahmed Dakhan ◽  
...  
Keyword(s):  
Negative Impact ◽  
Positive Impact ◽  
Extended Period ◽  
Policy Uncertainty ◽  
Foreign Economic Policy ◽  
Substantial Impact ◽  
Bric Countries ◽  
Policy Shocks ◽  
The Impact ◽  
Foreign Shocks

This study examines the impact of domestic and foreign shocks on the real and financial sector of BRIC countries. For this purpose, we use a structural vector autoregressive (SVAR) model over the extended period of 1997 to 2016. We conclude that domestic policy shocks have a more substantial impact on Brazilian, Indian, and Russian economy than foreign shocks, while foreign shocks have more contribution in the case of China. Interestingly, results show the negative impact of policy shocks on bank credit provided, implying its role in multiplying the impact of shocks on real variables. Surprisingly EPU of USA has a positive impact on stock markets of India and China, implying capital flight phenomenon, where investor transfer investment from risky to safer places.

scholarly journals Relationship Between Capital Structure and Stock Returns of Jordanian Commercial Banks

2020 ◽  
Vol 13 (2) ◽  
pp. 100
Author(s):  
Sufian Radwan Al-Manaseer
Keyword(s):  
Capital Structure ◽  
Stock Returns ◽  
Firm Size ◽  
Commercial Banks ◽  
Negative Impact ◽  
Positive Impact ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
The Impact ◽  
The Relationship

This study aims to analyze the relationship between capital structure and stock returns of Jordanian banks listed on the Amman Stock Exchange from 2009 to 2018. The study sample is composed of 13 commercial banks in Jordan. The e-views program is used to conduct the statistical analysis of study variables. Initially, a simple linear regression analysis is conducted to determine the impact of capital structure as measured by financial leverage on stock returns and vice versa. Then, several control variables are added: growth in assets, liquidity, firm size, and profitability. This study has found that growth, capital structure, and profitability have a positive impact on stock returns. By contrast, liquidity and firm size have a negative impact on stock returns. Stock returns and firm size have a positive impact on capital structure, whereas liquidity, growth, and profitability have a negative impact on capital structure.

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