scholarly journals EQUITY RECYCLING VS FINANCIAL CONSTRAINTS

Author(s):  
S. I. Lutsenko

The influence of major factors on financial policy of the Russian companies is considered. The author researches process of change of an equity (recycling) in the conditions of financial con-straints. The given work tries to give the answer to a question - whether there is a redistribution of an equity in the company. The models considered in work are tested for a subject of a choice of the most adequate, from the point of view, forecasting. For each of models three kinds of specifications are estimated: pooled regression, regression with a random effect and regression with the fixed ef-fect. Task of the presented work is penetration into an essence of financial policy of the Russian companies: whether there is a dividend payout of shareholders in process an equity recycling or the received incomes go on development the companies (reinvesting). Novelty of the presented work consists in consideration an equity recycling as mechanism with which help the Russian companies direct the income of an equity on its shares repurchase and accumulations of profit for the reinvesting. Equity recycling gives the chance to reserve the companies certain level of a debt for the further use as a financing sources. Besides, influence of other sources of financing is considered in the conditions of financial constraints. The Russian companies resolve a problem of adverse selection (a choice of the cheapest sources of financing — profit). The author notices that low information asymmetry allows the companies to choose cheaper sources of financing. The mechanism an equity recycling gives the chance to the companies to regulate the debt level, actively correcting capital structure.

2019 ◽  
Vol 22 (02) ◽  
pp. 1950013
Author(s):  
Hong-Yi Chen ◽  
Cheng Few Lee ◽  
Tzu Tai

We develop a simultaneous determination model of capital structure and stock returns. Specifically, we incorporate the managerial investment autonomy theory into the structural equation modeling with confirmatory factor analysis to jointly determine the capital structure and stock return. Besides attributes introduced in previous studies, we introduce indicators affecting a firm’s financing decision, such as managerial entrenchment, macroeconomic factors, government financial policy, and pricing factors. Empirical results show that stock returns, asset structure, growth, industry classification, uniqueness, volatility, financial rating, profitability, government financial policy, and managerial entrenchment are major factors of the capital structure.


2013 ◽  
Vol 1 (2) ◽  
pp. 131 ◽  
Author(s):  
Mohamed Syazwan Ab Talib ◽  
Lim Rubin ◽  
Vincent Khor Zhengyi

This is a preliminary study developed to explore the determinants of capital structure of Shariah-compliant firms listed in Bursa Malaysia. This study is primarily motivated by the issue of the determinants still being inconclusive in the area of capital structure. The study is performed using the static models namely Pool Ordinary Least Square, Fixed Effect and Random Effect Model. Empirical analysis on the determinants reveals that country specific factor which is GDP and sector specific factor which is industry concentration are also significant in influencing the corporate financing decisions in this country along with firm specific factors such as efficiency, bankruptcy risk, profitability, tangibility, liquidity and size of the firm. The findings revealed that results are sensitive to models employed in the study. Nevertheless, the applicability of capital structure theories such as the trade-off theory, agency theory and pecking order theory diverge across sectors in Malaysia. The pecking order theory and agency theory are found to be the dominant theories governing the corporate financing decision in the country as well. It indicates strong evidence of hierarchy practised in firms’ financing decision. The finding on agency theory being dominant justifies the function of short-term debt as a controlling mechanism to mitigate the agency problem arises within firms across sectors. 


Author(s):  
Оксана Василівна Бондар-Підгурська ◽  
Алла Олександрівна Глєбова

The scientific and methodological approach to the evaluation and analysis of the efficiency of system management by innovation factors for sustainable development of national economy from the point of view satisfaction vital interest’s population is developed. This is the calculation of the modernized index human development based on the adjective model based on 26 indicators (social, economic and environmental subsystems), as well as using the methods of the main components and the slip matrix. The resultant value is the modernized Human Development Index (MHDІ) of Ukraine. The architectonics MHDІ of Ukraine in 2007–2017 from the position of sub-indices of the ecological, social and economic subsystems is analyzed. Consequently, the scientific and methodological approach based on the MHDI change allows us to draw conclusions regarding the effectiveness of the work and public administration bodies in the context of making managerial decisions regarding the satisfaction of the vital interest’s population. MHDI considers the main regulated parameter of the system management in the innovation factors of sustainable development in socially oriented economy. The tendency of steady decline MHDI of Ukraine in 2007–2017 on 53.45 % was confirmed, which confirms inefficient state regulation of crisis situations in Ukraine. In order to increase the efficiency management of innovative factors by sustainable development of the national economy, from the standpoint of satisfaction vital interest’s population, it is proposed to intensify the use of public debt and savings bonds, market and non-market methods of relief and debt load. This is due to the fact that at the current stage of development in the national economy, public external debt is one of the most significant indicators of the state economy. It is at the same time a criterion for the effectiveness of public financial policy, as well as a threat and opportunity for the Ukrainian economy. In order to optimize its size, various methods, approaches, tools are used. Based on the analysis of world experience, it has been established that the securities market, in particular debt securities, plays a strategic role in regulating this issue. Therefore, it makes sense to recommend government debt bonds and government savings bonds to optimize the amount of external public debt.


Author(s):  
Ирина Викторовна Евстафьева

В статье исследуются вопросы попечительства в отношении несовершеннолетних, отбывающих наказание в виде лишения свободы. Проблема, поднимаемая автором настоящей статьи, многогранна, касается различных аспектов отбывания наказания несовершеннолетними в воспитательных колониях и требует комплексного исследования, способного ответить на определенно значимый вопрос: является ли колония законным представителем находящихся в ней несовершеннолетних со всеми вытекающими из статуса законных представителей последствиями. При этом необходимо обращать внимание на специфику правового статуса лиц, отбывающих наказание в воспитательных колониях, которые, во-первых, являются несовершеннолетними, то есть не обладают дееспособностью в полном объеме и нуждаются в особой заботе, защите и представительстве, а во-вторых, осуждены за совершение тяжкого или особо тяжкого преступления, влекущего изоляцию от общества и определенные ограничения и лишения. Отечественное законодательство достаточно детально регламентирует особенности режима отбывания наказания в виде лишения свободы несовершеннолетними, не определяя при этом статуса воспитательных колоний, кем они являются: воспитателями, попечителями или исключительно учреждениями исполнения наказаний. Между тем правильное понимание значения и роли воспитательной колонии в жизни находящихся в ней несовершеннолетних преступников, по мнению автора, поможет избежать ряда проблем, объективно складывающихся в учреждениях подобного рода. С этой точки зрения предлагаемая тема представляет интерес не только для ученых-теоретиков, но и для практиков - сотрудников соответствующих учреждений. Особо следует подчеркнуть, что исследований по данной тематике в специальной литературе нет. Отдельные исследования, встречающиеся в современной литературе, касаются исключительно общего гражданско-правового статуса несовершеннолетних осужденных. Однако это обстоятельство может свидетельствовать только о новизне данной темы, но никак не об отсутствии самой проблемы. The article analyzes the issues of the status of educational colonies as guardians of minors serving a sentence of imprisonment. In fact, the problem raised by the author of this article is multifaceted, concerns various aspects of the serving of punishment by minors in educational colonies and requires a comprehensive study that can answer, it seems, a definitely significant question: whether the colony is the legal representative of the minors in it with all the consequences arising from the status of legal representatives in the form of duties and responsibilities. At the same time, it seems, it is necessary to pay attention to the specifics of the legal status of citizens serving sentences in educational colonies, who, firstly, are minors, i.e. do not have full legal capacity and need special care, protection and representation, and, secondly, are convicted of committing a serious or particularly serious crime, entailing isolation from society and certain restrictions and deprivation. Domestic legislation regulates in sufficient detail the peculiarities of the regime of serving sentences in the form of deprivation of liberty by minors, without determining the status of educational colonies. Who are they: educators, Trustees or only institutions of execution of punishments. Meanwhile, the correct understanding of the importance and role of the educational colony in the life of juvenile offenders in it, according to the author, will help to avoid a number of problems that objectively develop in institutions of this kind. From this point of view, the proposed topic is of interest not only for theoretical scientists, but for practitioners-employees of relevant institutions. It should be emphasized that there are no studies on this subject in the special literature. However, this circumstance can testify only about novelty of the given subject, but in any way about absence of the problem. It seems that the relevance and importance of a problem is not always measured by the number of studies devoted to it. Sometimes these its traits are manifest only under particularly careful consideration.


2020 ◽  
Vol 6 (1) ◽  
Author(s):  
Moncef Guizani

AbstractThe purpose of this paper is to examine whether or not the basic premises according to the pecking order theory provide an explanation for the capital structure mix of firms operating under Islamic principles. Pooled OLS and random effect regressions were performed to test the pecking order theory applying data from a sample of 66 Islamic firms listed on Kingdom of Saudi Arabia stock market over the period 2006–2016. The results show that sale-based instruments (Murabahah, Ijara) track the financial deficit quite closely followed by equity financing and as the last alternative to finance deficit, Islamic firms issue Sukuk. In the crisis period, these firms seem more reliant on equity, then on sale-based instrument and on Sukuk as last option. The study findings also indicate that the cumulative financing deficit does not wipe out the effects of conventional variables, although it is empirically significant. This provides no support for the pecking order theory attempted by Saudi Islamic firms. This research highlights the capital structure choice of firms operating under Islamic principles. It explores the implication of the relevant Islamic principles on corporate financing preferences. It can serve firm executive managers in their financing decisions to add value to the companies.


2021 ◽  
pp. 227797522096830
Author(s):  
Palaniappan Gurusamy

The study aims to examine the relationship between corporate ownership structure and capital structure of BSE listed manufacturing firms in India. The study has included the sample of 357 companies which covers 16 major sectors during the period of 2006–2015. Considering the dynamic panel nature of the data relating to the capital structure and the ownership structure variables. The analysis undertakes a novel approach of examining the determinants both single equation and reduced equation models. In order to determine the most appropriate model, based on the F test, the Breusch Pagan LM test and finally the Hausman Test is conducted. The Hausman test result has been estimated by the fixed effect model is better than the other two models such as pooled OLS and random effect estimation. Based on the fixed effects results, size, risk and profitability have a highly significant relationship with leverage. Meanwhile, the growth opportunities and tangibility represent insignificant values. The study found that the explanatory variables of the promoters’ ownership and the institutional ownership have a negative impact on leverage, while the corporate ownership has a positive influence on the capital structure decision. The individual or public ownership has a negative and significantly related to the capital structure, whereas the effect of the foreign ownership inversely related to the firm’s leverage.


2020 ◽  
Vol 0 (0) ◽  
Author(s):  
Ryuya Namba

AbstractModerate deviation principles (MDPs) for random walks on covering graphs with groups of polynomial volume growth are discussed in a geometric point of view. They deal with any intermediate spatial scalings between those of laws of large numbers and those of central limit theorems. The corresponding rate functions are given by quadratic forms determined by the Albanese metric associated with the given random walks. We apply MDPs to establish laws of the iterated logarithm on the covering graphs by characterizing the set of all limit points of the normalized random walks.


2015 ◽  
Author(s):  
Fabián Vera ◽  
Casee Lemons ◽  
Ming Zhong ◽  
William D. Holcomb ◽  
Randy F. LaFollette

Abstract This study compares reservoir characteristics, completion methods and production for 431 wells in 6 counties producing from the Wichita-Albany reservoir to assess major factors in production optimization and derive ultimate recovery estimates. The purpose of the study is to analyze completion design patterns across the study area by combining public and proprietary data for mining. Integrating several analyses of different nature and their respective methods like statistics, geology and engineering create a modern approach as well as a more holistic point of view when certain measurements are missing from the data set. Furthermore, multivariate statistical analysis allows modeling the impact of particular completion and stimulation parameters on the production outcome by averaging out the impact of all other variables in the system. In addition to completion type, more than 18 predictor variables were examined, including treatment parameters such as fracture fluid volume, year of completion, cumulative perforated length, proppant type, proppant amount, and county location, among others. In this sense, this contribution seems unique in unifying statistical, engineering, and geological perspectives into a singular point of view. This work also provides complementary views for well production consideration.


2020 ◽  

This paper examines the relationship between financial constraints and the stock returns explaining the pricing of stock through financially constrained and unconstrained firms in Pakistan. Three proxies; total assets, tangible to total assets and cash holding to total assets ratios) have been used for financial constraints and the study tried to investigate that either the investors are compensated for taking the extra risk or not in Pakistan Stock Exchange (PSX). We find that the financially constrained firms don’t earn higher returns when their capital structure is heavy with liquid assets and their cash flows are more than the unconstrained firms in PSX. Moreover, the time series results showed that the risk-adjusted returns of the most constrained firms give the mix and somewhat negative and significant and insignificant results for the Pakistani firms listed in PSX sorted based on tangible to total assets and Cash holding to total asset ratios. Keywords: Asset Pricing, Financial constraints, risk-adjusted performance of portfolios


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