scholarly journals The Effect of Government Guarantee on SOEs’ Credit Rating and Cost of Capital

2017 ◽  
Vol 34 (2) ◽  
pp. 1-31
Author(s):  
Hansoo Choi ◽  
CHANGMIN LEE
Keyword(s):  
Cost Of Capital ◽  
Credit Rating ◽  
Government Guarantee

scholarly journals The Approaching Lease Accounting Regulations and Its Impact on Cost of Capital, "A Practical Case Study"

2015 ◽  
Vol 7 (2) ◽  
pp. 201
Author(s):  
Shahir El-qawaqneh ◽  
Dr Nur Hidayah Binti Laili ◽  
Dr Khairil Bin Khairi
Keyword(s):  
Financial Risk ◽  
Cost Of Capital ◽  
Credit Rating ◽  
Positive Impact ◽  
Balance Sheet ◽  
Weighted Average ◽  
Point Of View ◽  
Practical Case ◽  
Term Operation ◽  
Lease Accounting

<p>We examine how the approaching international lease accounting regulations influence credit rating of particular airfreight company, we capitalize all of still effective operation lease agreements commencing in 2002 and expired on 2026. In particular we use actual operation lease data, not only the disclosed with off-balance sheet. Our results suggest that, on average, capitalization of over 12 months term operation leases, dramatically alter capital structure. Results either reports a positive impact on weighted average cost of capital WACC, credit rating is a financial risk assessment measurement used by credit holders, investors, and analysis, our results is consistent with the lease accounting standard sitters point of view; investors and credit holders have the right to obtain a full transparent picture about firms lease activities in benefit of all parties. We also find some evidence that the positive change in WACC is related to the increasing portion of capitalized lease liability accompanied with an escalating decreeing in conventional debt, in certain conditions, this result suggests that financial lease has the advantage over conventional debt. </p>

MULTI-METHOD MODEL FOR INFRASTRUCTURE PORTFOLIO MANAGEMENT

2018 ◽  
Vol 5 (1) ◽  
Author(s):  
Gregory J. Fitch ◽  
Ibrahim Odeh ◽  
Frederick Kautz
Keyword(s):  
Best Management Practices ◽  
Management Practices ◽  
Cost Of Capital ◽  
Credit Rating ◽  
Weighted Average ◽  
Management Plan ◽  
Facilities Management ◽  
Best Management ◽  
Method Model ◽  
New Infrastructure

Management practices have a direct impact on the cost of capital used for financing the operations and maintenance of existing infrastructure on a concurrent basis with planning and constructing new projects. This paper identifies best management practices that can improve credit rating, which in-turn theoretically lowers the interest paid on debt. As a result, these best management practices lower the weighted average cost of capital used to maintain existing assets on a concurrent basis with the construction of new infrastructure. As a practical example, this paper identifies the best management practices from the perspective of municipal credit rating agencies in the United States. The current research then constructs a deterministic integer programming model based on these best management practices. The deterministic model is part of multi-method model that will be mathematically embedded into a system dynamics model that can then be used as a facilities management plan. The facilities management plan aims at lowering the weighted average cost of capital for maintaining existing assets while planning and constructing new infrastructure. While the multi-method model is based on municipal credit rating in the U.S., the research goal is to nevertheless show how a system dynamics model is used to implement best management practices that are generally accepted as economically sustainable worldwide.

Formation Of An Estimate For A State Contract With A Firm Price In The Construction Sector

2020 ◽  
pp. 47-57
Keyword(s):  
Construction Projects ◽  
Cost Of Capital ◽  
Federal Budget ◽  
The State ◽  
Structural Elements ◽  
Construction Sector ◽  
Construction Process ◽  
Practical Application ◽  
Stage Of Development ◽  
Capital Construction

The issues of determining the estimated cost of capital construction projects with the involvement of Federal budget funds at the stage of development of project documentation, during verification of the accuracy of determining the estimated cost and the initial (maximum) contract price are considered. On the basis of the assessment of amendments to urban planning legislation for the purpose of implementing a state contract by the contractor ( based on the results of competitive procedures or without competitive procedures by decision of state authorities), the procedure for forming the estimate as part of a state (municipal) contract, the price of which is firm, is presented. For the purpose of mutual settlements between the customer and the contractor for the work performed, the formation of primary accounting documentation, as well as for checking the work performed by regulatory authorities, an example of drawing up an estimate of the state (municipal) contract on the basis of grouping costs according to structural elements and complexes of work is given. The result of the research conducted was the development of regulations and the formation of criteria for their practical application by state bodies, institutions, organizations and other participants in the investment-construction process, as well as recipients of budget funds, who perform the functions of the state (municipal) customer, developer and technical customer.

Cost of Capital—Rate of Return

1968 ◽  
Vol 24 (4) ◽  
pp. 113-116
Author(s):  
William C. Keefe
Keyword(s):  
Cost Of Capital ◽  
Rate Of Return

Role of Credit Rating in determining Capital structure: Evidence from Non-Financial sector of Pakistan

2020 ◽  
Vol 38 (3) ◽  
Author(s):  
Shoaib Ali ◽  
Imran Yousaf ◽  
Muhammad Naveed
Keyword(s):  
Capital Structure ◽  
Credit Rating ◽  
Least Square ◽  
Annual Data ◽  
Leverage Ratio ◽  
Financial Decisions ◽  
Financial Firms ◽  
High Level ◽  
The Impact ◽  
The Capital Structure

This paper aims to examine the impact of external credit ratings on the financial decisions of the firms in Pakistan.  This study uses the annual data of 70 non-financial firms for the period 2012-2018. It uses ordinary least square (OLS) to estimate the impact of credit rating on capital structure. The results show that rated firm has a high level of leverage. Moreover, Profitability and tanagability are also found to be a significantly negative determinant of the capital structure, whereas, size of the firm has a significant positive relationship with the capital structure of the firm.  Besides, there exists a non-linear relationship between the credit rating and the capital structure. The rated firms have higher leverage as compared to the non-rated firms. The high and low rated firms have a low level of leverage, while mid rated firms have a higher leverage ratio. The finding of the study have practical implications for the manager; they can have easier access to the financial market by just having a credit rating no matter high or low. Policymakers must stress upon the rating agencies to keep improving themselves as their rating severs as the measure to judge the creditworthiness of the firm by both the investors and management as well.

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