scholarly journals Debt financing structure within the state-owned corporations in Kenya

2015 ◽  
Vol 5 (2) ◽  
pp. 22-30
Author(s):  
Micah Odhiambo Nyamita ◽  
Nirmala Dorasamy ◽  
Hari Lall Garbharran
Keyword(s):  
Financial Management ◽  
Developing Economies ◽  
The State ◽  
Debt Financing ◽  
Bank Loans ◽  
International Capital ◽  
Private Debt ◽  
International Capital Markets ◽  
Vision 2030 ◽  
Financial Securities

The current public sector financial management reforms agenda within the state-owned corporations in Kenya aimed at integrating and aligning their performance to vision 2030, has not yet achieved the traction required. This study, therefore, examined the different types of debt financing strategies applied by the various state-owned corporations in Kenya, in comparison to those applied by state-owned corporations from developed and developing economies. The study specifically revealed that private debt financing, through bank loans and payables is commonly used amongst Kenyan state-owned corporations. While, most state-owned corporations from developed and developing economies, such as in America, Europe, Asia and South Africa, use public debt financing, through financial securities, traded in both domestic and international capital markets.

Innovation on the choice of debt financing source: evidence from innovative firms

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
HyunJun Na
Keyword(s):  
Propensity Score ◽  
Propensity Score Matching ◽  
Debt Financing ◽  
Bank Loans ◽  
Private Debt ◽  
Content Type ◽  
Propensity Score Matching Analysis ◽  
Industry Level ◽  
Innovative Firms ◽  
The Impact

Purpose The purpose of this paper is to investigate how the innovative firm’s proprietary information has an impact on its debt financing preference. This study also examines the impact of industry-level competition on the debt financing orders and investigates how two exogenous shocks impacted on innovative firms’ financing policies. Design/methodology/approach This paper uses the three types of debt data, including bonds, private debt placements and bank loans and patent application data, in the USA from 1987–2008. The number of patents applications and industry-level competition are used as proxies for a firm’s innovation and industry-level sensitivity. In addition, to minimize endogenous concern, this study uses the propensity score matching analysis and difference-in-differences. Findings The patents are the primary determinants for innovative firms to choose the debt types. The paper shows that innovative firms have the debt preference order – public debt, private placement and bank loans. However, as competition increases, innovative firms devise the order reverse. Finally, the paper provides evidence that the American Inventor’s Protection Act (AIPA) and the tech bubble crash made investors depend more on firms with more patents. Originality/value This paper is the first to study the impact of the AIPA on innovative firms’ financial policies using the propensity score matching analysis. The findings imply that both patents and industry-level competition are important factors to understand the capital structures for innovative firms.

Extractive Revenues and Government Spending

2018 ◽  
Author(s):  
Frederick van der Ploeg ◽  
Anthony J. Venables
Keyword(s):  
Stochastic Volatility ◽  
Natural Resource ◽  
Government Spending ◽  
Developing Economies ◽  
Commodity Prices ◽  
Domestic Economy ◽  
International Capital ◽  
Price Shocks ◽  
International Capital Markets ◽  
Poor Access

This chapter looks at the prescription of optimally managing natural resource revenue windfalls by smoothing consumption across generations using an intergenerational sovereign wealth fund that only invests in foreign assets and is not appropriate for resource-rich developing economies. It is better for these economies to use their windfalls to boost investment in the domestic economy, especially when they confront capital scarcity and have poor access to international capital markets. However, it is important for such economies to have a parking fund to temporarily ‘park’ funds until absorption constraints are alleviated, and a stabilization fund to smooth out volatile budgets given the high stochastic volatility of commodity prices, especially if the economy is inflexible and has few other ways of adjusting to price shocks.

scholarly journals The drivers of debt financing within state-owned corporations in South Africa

2021 ◽  
Vol 9 (9) ◽  
pp. 240-257
Author(s):  
Micah Odhiambo Nyamita ◽  
Prof. Nirmala Dorasamy
Keyword(s):  
South Africa ◽  
Private Sector ◽  
Financial Management ◽  
Generalized Method Of Moments ◽  
The State ◽  
Management Style ◽  
Debt Financing ◽  
Debt Management ◽  
Cross Sectional ◽  
Reform Agenda

The public sector financial management reforms being adopted by many countries, such as South Africa, have encouraged the adoption of private-sector management style, such as debt management, within the state-owned corporations. The reform agenda on debt financing is that state-owned corporations should face competitive conditions regarding access to finance. To highlight on the achievements of these reforms, this study explored the questions as to whether the drivers of debt financing within state-owned corporations in South Africa are similar to those of private-sector corporations. Applying a hybrid of cross sectional and longitudinal quantitative surveys, a panel data regression model was used to analyse data from 26 income-generating state-owned corporations in South Africa for the eight-year period 2007-2014 using the generalized method of moments (GMM). The results identified the main determinants of debt financing within the state-owned corporations in South Africa to include asset tangibility, corporation’s growth and liquidity.  

The Management of Sterling, 1932–1939

1980 ◽  
Vol 40 (1) ◽  
pp. 53-60 ◽  
Author(s):  
Susan Howson
Keyword(s):  
Capital Markets ◽  
The State ◽  
International Capital ◽  
International Capital Markets ◽  
Exchange Management

This article briefly discusses the operations of the British Exchange Equalization Account, 1932–1939, on the basis of the Treasury records of the time and in the light of modern views on exchange management. Its conclusion is that although the float may not have been “clean,” the intervention was probably justified by domestic objectives and the state of international capital markets.

SHOULD THE PRIVATE SECTOR PROVIDE PUBLIC CAPITAL?

2007 ◽  
Vol 11 (3) ◽  
pp. 318-346
Author(s):  
SANTANU CHATTERJEE
Keyword(s):  
Open Economy ◽  
Public Capital ◽  
Borrowing Constraints ◽  
International Capital ◽  
Standard Assumption ◽  
Production Externalities ◽  
International Capital Markets ◽  
Private Provision ◽  
Large Production ◽  
Government Provision

The choice between private and government provision of a productive public good like infrastructure (public capital) is examined in the context of an endogenously growing open economy. The accumulation of public capital need not require government provision, in contrast to the standard assumption in the literature. Even with an efficient government, the relative costs and benefits of government and private provision depend crucially on the economy's underlying structural conditions and borrowing constraints in international capital markets. Countries with limited substitution possibilities and large production externalities may benefit from governments encouraging private provision of public capital through targeted investment subsidies. By contrast, countries with flexible substitution possibilities and relatively smaller externalities may benefit either from governments directly providing public capital or from regulation of private providers. The transitional dynamics also are shown to depend on the underlying elasticity of substitution and the size of the production externality.

PERTANGGUNGJAWABAN KERUGIAN NEGARA DALAM PENGELOLAAN KEUANGAN DAERAH

EDUKASI ◽  
2018 ◽  
Vol 16 (1) ◽  
Author(s):  
Hendra Karianga
Keyword(s):  
Financial Management ◽  
Criminal Liability ◽  
The State ◽  
Legal Proceedings ◽  
Regional Finance ◽  
Regional Budget ◽  
State Finance ◽  
Budget Policy ◽  
Definition Of ◽  
The Impact

Sources of revenue and expenditure of APBD (regional budget) can be allocated to finance the compulsory affairs and optional affairs in the form of programs and activities related to the improvement of public services, job creation, poverty alleviation, improvement of environmental quality, and regional economic growth. The implications of these policies is the need for funds to finance the implementation of the functions, that have become regional authority, is also increasing. In practice, regional financial management still poses a complicated issue because the regional head are reluctant to release pro-people regional budget policy, even implication of regional autonomy is likely to give birth to little kings in region causing losses to state finance and most end up in legal proceedings. This paper discusses the loss of state finance and forms of liability for losses to the state finance. The result of the study can be concluded firstly,  there are still many differences in giving meaning and definition of the loss of state finace and no standard definition of state losses, can cause difficulties. The difficulty there is in an effort to determine the amount of the state finance losses. The calculation of state/regions losses that occur today is simply assessing the suitability of the size of the budget and expenditure without considering profits earned by the community and the impact of the use of budget to the community. Secondly, the liability for losses to the state finance is the fulfillment of the consequences for a person to give or to do something in the regional financial management by giving birth to three forms of liability, namely the Criminal liability, Civil liability, and Administrative liability.Keywords: state finance losses, liability, regional finance.

Corporations, comity and the ‘revenue rule’: a jurisprudence of offshore

2021 ◽  
Author(s):  
Clair Quentin
Keyword(s):  
The State ◽  
Company Law ◽  
Tax Law ◽  
International Capital ◽  
Economic Relations ◽  
Corporate Capital ◽  
Corporate Form ◽  
Mutual Antagonism ◽  
Prevailing View ◽  
Property Regime

Abstract This article contrasts the territorial unboundedness of company law, arising from ‘comity’, with the territorial constraint imposed on tax law i.e. ‘the revenue rule’. ‘Comity’ is found to be a judicial fig-leaf disguising a form of corporate sovereignty arising from the fact that economic relations are always already constituted through the corporate form before any scrutiny of their ontology. This observation is developed into a theory of ‘offshore’. The prevailing view of offshore is that the state bifurcates its sovereignty to create juridical spaces where international capital is relieved of local tax/regulatory regimes. This article seeks to underpin that view with an analysis whereby corporate capital and state sovereignty are rival species of property regime, existing in a state of mutual antagonism. On this view offshore is the juridical space, manifesting itself through the aforementioned bifurcations, where the company is sovereign over the state rather than vice-versa.

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