Internal Control Disclosures and the Cost of Bank Loans: The Role of Bank Relationships

2008 ◽  
Author(s):  
David Y Shinn ◽  
Xue Wang
Keyword(s):  
Internal Control ◽  
Bank Loans ◽  
The Cost

scholarly journals CHARACTERISTICS AND CHALENGES OF BANK LANDING OF SMALL AND MEDIUM BUSINESSES IN RUSSIA

2017 ◽  
pp. 107-114
Author(s):  
Elena Nicolaevna Derbeneva
Keyword(s):  
High Growth ◽  
Bank Lending ◽  
Bank Loans ◽  
Market Segment ◽  
Current State ◽  
Business Entities ◽  
Medium Businesses ◽  
The Cost ◽  
Credit Portfolio

The article defines the role of Bank lending in the development of small and medium businesses. These businesses do not require a large amount of upfront investment; they provide a fast turnover of resources and high growth rates. Such kind of business allows innovating and solving important problems related to the unemployment and the restructuring of the economy. Bank loans and financial subsidies from the state have become the most popular sources of financing for these business entities. The article gives the analysis and assessment of the current state of Bank lending of small and medium businesses in Russia. The benefits of lending in this market segment for commercial banks are obvious. It is a highly profitable type of business that gives a possibility of diversifying the credit portfolio. The article reveals the basic problems of Bank lending in small and medium businesses and the reasons of their emergence. The main problems of decreasing demand at the market are the cost of borrowed funds and the need for collateral. The article presents further landing objectives. Banks need to implement approaches providing a combination of techniques appropriate to both corporate and retail customers, for creation a unified system of quick services for small and medium businesses.

The Role of Internal Control in the Equity Issue Market: Evidence From Seasoned Equity Offerings

2015 ◽  
Vol 32 (3) ◽  
pp. 303-328 ◽  
Author(s):  
Xinghua Gao ◽  
Yonghong Jia
Keyword(s):  
Internal Control ◽  
Risk Premium ◽  
Dominant Role ◽  
Seasoned Equity Offerings ◽  
Equity Capital ◽  
Equity Offerings ◽  
Equity Issue ◽  
Sarbanes Oxley ◽  
The Cost

This article examines the role of internal control requirements under the Sarbanes–Oxley (SOX) Act of 2002 in firms’ cost of raising equity capital. We find that, prior to the disclosure of internal control weaknesses (ICWs), ICWs are not directly associated with underwriters’ gross spread and seasoned equity offering (SEO) underpricing. After the disclosure, however, underwriters charge a risk premium on ICW issuers, especially on those disclosing ICWs in multiple consecutive years. We also find that SEO underpricing is exacerbated by multiple-year-disclosed ICWs but not by first-timers. More notably, we find that managers play a dominant role in deciding issue size pre-disclosure, but this dominance weakens post-disclosure. Taken together, our evidence suggests that internal controls help moderate the cost of raising equity capital and that ICW disclosures have significant implications for underwriters in the equity issue market.

scholarly journals RESERVES AND THE COST OF GOODS SOLD

2019 ◽  
Vol 30 (1) ◽  
pp. 147-151
Author(s):  
Blerim Shehu
Keyword(s):  
Internal Control ◽  
Balance Sheet ◽  
Measuring Accuracy ◽  
The Status ◽  
Material Goods ◽  
The Cost ◽  
Handling Method

This topic is about the role of stocks of commodities located in the warehouse, these goods are in the form of finished products, auxiliary materials semi-products. Control of material goods by enterprise executives, information provided to auditors. With internal control we can find the exact cost of the reserves, the exact cost of the goods sold and we can accurately determine the amount they are in the warehouse. Through accurate records, the true amount of material goods is determined, eliminating doubt about the valuation of the material goods that are in stock. Reports accepted the auditors for the status of material goods at the warehouse, analyzed the handling method, the form of records, the accuracy of the data, the stocks are the property of the enterprise or remain or are mortgaged or mixed or damaged, measuring accuracy and material assets, the stock part of the balance sheet. The auditor should ensure that all necessary actions for the stocks held by the enterprise are recorded until the closing of the books, stocks are the most important balance sheet items, the role of reserve control is very important.

scholarly journals Control aspect of modeling of transport and warehouse processes

2021 ◽  
pp. 21-23
Author(s):  
Serhii SELISHCHEV
Keyword(s):  
Internal Control ◽  
Organizational Support ◽  
Scientific Literature ◽  
Advantages And Disadvantages ◽  
Internal Control System ◽  
Control Procedures ◽  
Material Values ◽  
The Cost

The paper proves the relevance of the importance and determining role of the internal control system in the design and modeling of transport and warehousing processes. The peculiarities of warehousing and transportation of the researched material are investigated and systematized. A number of methods for controlling the quantity and quality of the studied material are described, and their advantages and disadvantages are described. One of the main factors that must be taken into account when developing a design model of the transport and warehousing process is the ability of this process to conduct quality control procedures for its implementation. That is, if the process cannot be controlled, it cannot be controlled. It is necessary to take into account the cost of control procedures, in relation to the project itself. It is possible that the cost of control will exceed the cost of the project itself, which with all the forecast indicators of profitability and investment attractiveness may make its implementation impractical. The purpose of the paper is to study the control aspect of transport and warehouse modeling. The analysis of the scientific literature indicates the need for additional development of methodological and organizational support for internal control systems in the modulation of transport and warehousing processes. The study of this issue allowed to reveal a number of features of warehousing and transportation of certain groups of material values, on the example of the studied material – cement. There are also a number of typical methods for controlling the quantity and quality of cement in the warehouse. This approach allows us to identify the features of the control environment of this material, which must be taken into account in the transport – warehouse modeling.

scholarly journals Justification of sale terms as a way to minimize the cost of trade credit

2020 ◽  
Vol 17 (3) ◽  
pp. 360-372
Author(s):  
Tetiana Konieva
Keyword(s):  
Food Processing ◽  
Trade Credit ◽  
Negative Influence ◽  
Bank Loans ◽  
Short Term ◽  
Cheap Alternative ◽  
Rate Method ◽  
The Individual ◽  
The Cost

The individual and implicit nature of the trade credit cost can provoke its increase, and, as a result, violate payment discipline and negative influence on the business price.This research is dedicated to improving the sale terms definition to minimize the cost of trade credit. The methods for determining the cost of trade credit of a particular company are proposed to apply, considering the results of the comparative analysis of other enterprises from the same industry. Based on the example of Ukrainian food processing enterprises, it was revealed that 66% of them for the period 2013–2018 had an aggressive policy, and in 44% of the cases, it was connected with the growing role of trade credit. Minimum (23 days) and average (79 days) days payable outstanding, defined in the industry, were equated, respectively, to discount period and payment delay. Considering and comparing the cost of trade credit with alternative financial resources, the marginal level of the discount was determined. Considering the rate of short-term credit, according to the failed discount method, this level is 2.7% for 2018; toward the effective annual rate method – 2.48%. In the case of the overdraft, the marginal discount is 2.9% and 2.66%, respectively.When the actual discount is equal or below this level, the buyer attracts trade credit instead of bank loans. Discount higher than marginal, longer discount period, and cheap alternative financing sources provide early payments, positive financial results, and make trade credit free of charge.

Hostile Takeovers and Anti-takeover Defenses in the Russian Corporate Market

2007 ◽  
pp. 70-84 ◽  
Author(s):  
E. Demidova
Keyword(s):  
Cost Benefit Analysis ◽  
Cost Benefit ◽  
Benefit Analysis ◽  
Costs And Benefits ◽  
Hostile Takeovers ◽  
Russian Market ◽  
Takeover Defenses ◽  
The Cost ◽  
European Markets

This article analyzes definitions and the role of hostile takeovers at the Russian and European markets for corporate control. It develops the methodology of assessing the efficiency of anti-takeover defenses adapted to the conditions of the Russian market. The paper uses the cost-benefit analysis, where the costs and benefits of the pre-bid and post-bid defenses are compared.

The role of bank loans in economic growth of troubled regions

2019 ◽  
Vol 25 (12) ◽  
pp. 2859-2877
Author(s):  
N.V. Koloskova ◽  
◽  
G.F. Balakina ◽  
Keyword(s):  
Economic Growth ◽  
Bank Loans

Changing Role of Agriculture in Income and Employment, and Trends of Agricultural Worker Productivity in Indian States

2020 ◽  
pp. 183-189
Keyword(s):  
Green Revolution ◽  
Positive Trend ◽  
Worker Productivity ◽  
Indian States ◽  
Agricultural Worker ◽  
The Sixties ◽  
High Level ◽  
The Cost ◽  
Changing Role

The productivity of land has been often discussed and deliberated by the academia and policymakers to understand agriculture, however, very few studies have focused on the agriculture worker productivity to analyze this sector. This study concentrates on the productivity of agricultural workers from across the states taking two-time points into consideration. The agriculture worker productivity needs to be dealt with seriously and on a time series basis so that the marginal productivity of worker can be ascertained but also the dependency of worker on agriculture gets revealed. There is still disguised unemployment in all the states and high level of labour migration, yet most of the states showed the dependency has gone down. Although a state like Madhya Pradesh is doing very well in terms of income earned but that is at the cost of increased worker power in agriculture as a result of which, the productivity of worker has gone down. States like Mizoram, Meghalaya, Nagaland and Tripura, though small in size showed remarkable growth in productivity and all these states showed a positive trend in terms of worker shifting away from agriculture. The traditional states which gained the most from Green Revolution of the sixties are performing decently well, but they need to have the next major policy push so that they move to the next orbit of growth.

Music publications in Galicia in the 19th — beginning of the 20th centuries: production, advertising, pricing

2019 ◽  
pp. 481-499
Author(s):  
Olga Osadtsia
Keyword(s):  
Book Publishing ◽  
Initial Form ◽  
Music Production ◽  
Bibliographic Information ◽  
Financial Factor ◽  
Determining Factors ◽  
Book Selling ◽  
The Cost ◽  
Import Trade

The main forms and methods of distribution of music publications in Galicia in the XIX — early XX centuries are scrutinized. The demand for the relevant music production is one of the determining factors in the formation of the musical publishing repertoire, its structure and special features in the process of the existence of music publications in society. It is noted that export-import trade in books has become especially widespread in Galicia; there are facts about the links between publishers and booksellers in Lviv and Warsaw. The basic types of presentation of book advertising of music products, its regional peculiarities, and ways of its placement are considered. Special emphasis is placed on the role of specialized press in the advertising of music products, typical examples of press advertising. The registration bibliographic information as the initial form of music bibliography and the forms of its compilation are distinguished. The emphasis is placed on the importance of thorough critical articles as a separate typological group of bibliographic publications under the conditions of formation of the Ukrainian bibliography, in which the main importance is given to the disclosure of the content and evaluation of the reviewed work. The combination of article genres and reviews on examples of separate publications by Stanislav Lyudkevych and Ivan Franko is traced. Special book-selling and book-publishing catalogs are characterized. While executing the marketing and advertising function, these directories were addressed primarily to foreign consumers and distributors (the so-called commissioners).One way to distribute music is to subscribe through libraries. A significant financial factor in the distribution of any printed matter was the price that depended primarily on the cost of each process associated with its publication. Keywords: music publications, bookstore, book-trading enterprise, advertising of publications, pricing.

Sign in / Sign up

Export Citation Format

Share Document