The Effect of Capital Structure, Size and Revenue Growth on the Effectiveness of Garment Businesses Listed on Vietnam’s Stock Market

Author(s):  
Do Huy Thuong ◽  
Tran Luu Ngoc ◽  
Nguyen Thi Phuong Hong

Considering the impact of the capital structure on the effectiveness of businesses is extremely important. Therefore, this study is conducted in order to find the influences of capital structure, firm size and revenue growth on the performance of the garment businesses listed on Vietnam stock market in the period of 2013-2018 with the representation of return on equity (ROE). The research with the use of panel data has shown that the ratio of short-term debt on total assets, the firm size and the revenue growth all have positive impacts on business performance. Meanwhile, the ratio of long-term debt on total assets has a negative impact on the performance of garment businesses at the statistically significant level of 5%.

2018 ◽  
Vol 7 (2) ◽  
pp. 1-6
Author(s):  
Atif Ghayas ◽  
Javaid Akhter

This study aims to empirically examine and analyze the impact of capital structure decision on the firm’s profitability by using a sample of 35 Indian pharmaceutical companies listed on Bombay Stock Exchange (BSE) during the period of 5 years from 2012 to 2016. Regression Analysis is used to measure the extent and nature of the relationship. Capital structure variables used in the study are ratio of long-term debt to total assets (LDA), ratio of short-term debt to total assets (SDA) and ratio of Total debt to total assets (DA) while profitability has been measure by Return on Equity (ROE). Firms Size (SIZE)and Salesgrowth(GROW) are also used as control variables. Results reveal a positive effect of SDA and DA on ROE, while a weak-to-no effect was found of LDA on ROE.


2019 ◽  
Vol 10 (6) ◽  
pp. 78 ◽  
Author(s):  
Ahmed Sakr ◽  
Amina Bedeir

The purpose of this paper is to investigate the impact of capital structure decisions on the performance of the firm. The investigation has been performed using a data of 62 listed non-financial Egyptian firms over a period of fourteen years from 2003-2016. This study used two measures for performance the dependent variable which are ROA and ROE, the most common used measures agreed upon on the majority of previous studies. Whereas, for the independent variable “the capital structure, the study uses the three measures of capital structure which are total debt to total assets (TD), total short-term debt to total assets (STD), and total long-term debt to total assets (LTD). The results showed when using ROA as a measure of performance, a significant negative impact of capital structure (TD, STD, and LTD) exists; while in case of using ROE as a measure of performance, there’s a significant negative impact of capital structure only when using STD, otherwise a positive significant impact of capital structure exist.


2013 ◽  
Vol 30 (1) ◽  
pp. 27 ◽  
Author(s):  
Taoufik Bouraoui ◽  
Ting Li

This paper examines the impact of adjustment in capital structure on 850 US acquirers business performance, within five years after mergers. We consider both leverage changes and adjustment in leverage deficit as our independent variables, and use Return On Equity (ROE) and Return On Assets (ROA) to measure post-merger performance. We find that leverage changes have a negative impact on performance, in both the short and long run after Mergers & Acquisitions (M&A), indicating that financial flexibility contributes to acquirers post-merger performance. The results also show that acquirers with movement toward target leverage ratio enjoy better performance after M&A, but the correlation is not significant in the long run. Therefore, high financial flexibility created by low leverage is more essential to acquirers facing costly and sophisticated post-merger integration, than target leverage ratio that minimizes financing cost immediately.


2020 ◽  
Vol 3 (1) ◽  
Author(s):  
Grace Amin

Bullying is deliberate aggressive action, using an imbalance of strength physically or mentally by hurting physical, verbal, or emotional / psychological forms repeatedly. In the last decade, cases of bullying in Indonesia continue to increase and if not handled properly will increasingly have a negative impact on the development of the children of the nation's next generation. Bullying does not only affect children who are bullied but can also affect children who bully, children who witness bullying. Some of the effects of bullying include anxiety, depression, and low self-esteem. The purpose of community engagement is to socialize the impact of bullying and how to increase self-esteem to adolescents. Through psychoeducation programs in adolescents such as schools and teenagers religious communities in the Cikarang - Bekasi region, young people gain an in-depth understanding of bullying, its effects and how to increase their confidence. Through this psychoeducation, teenagers understand the understanding, types and effects of bullying both short term and long term so they promise to resist bullying starting from themselves. Teenagers learn that humans are social beings who need each other. They learn about the meaning of diversity and bhineka tunggal ika and try to implement it in their next lives by respecting the differences in their environment. These teenagers learn to respect themselves more, see the positive things that God has given them. They try to always believe in themselves that they are perfect and valuable beings in God's eyes so that even though the environment around them may not appreciate, they can still see positive things in themselvesABSTRAK:Bullying adalah tindakan agresif yang disengaja, menggunakan ketidakseimbangan kekuatan secara fisik atau mental dengan cara menyakiti bentuk fisik, verbal, atau emosional/ psikologis secara berulang – ulang. Dalam satu decade terakhir, kasus bullying di Indonesia terus meningkat dan bila tidak ditangani dengan baik akan semakin berdampak negative bagi perkembangan anak – anak generasi penerus bangsa. Tindakan bullying tidak hanya berdampak pada anak yang di-bully tetapi juga dapat berdampak pada anak yang mem-bully, anak yang menyaksikan bullying. Beberapa dampak bullying diantaranya kecemasan, depresi, serta rendahnya harga diri (self-esteem). Tujuan dari pengabdian kepada masyarakat ini adalah untuk mensosialisasikan dampak bullying serta cara meningkatkan self-esteem kepada para remaja. Melalui program psikoedukasi di lingkungan remaja seperti sekolah maupun komunitas keagamaan remaja wilayah Cikarang – Bekasi, para remaja mendapatkan pemahaman mendalam mengenai bullying, dampaknya serta bagaimana cara meningkatkan kepercayaan diri mereka. Melalui psikoedukasi ini, para remaja memahami pengertian, jenis serta dampak bullying baik jangka pendek maupun jangka panjang sehingga mereka berjanji untuk bersikap menolak bullying mulai dari diri mereka sendiri. Para remaja belajar bahwa manusia adalah mahluk social yang saling membutuhkan. Mereka belajar tentang makna keberagaman dan Bhineka Tunggal Ika serta berusaha mengimplementasikannya dalam kehidupan mereka selanjutnya dengan cara menghargai perbedaan yang ada di lingkungannya. Remaja ini belajar untuk lebih menghargai diri mereka, melihat hal positif yang telah diberikan Tuhan kepada mereka. Mereka mencoba untuk selalu menanamkan dalam diri bahwa mereka adalah mahluk yang sempurna dan berharga di mata Tuhan sehingga walaupun lingkungan di sekitar mereka mungkin tidak menghargai, mereka tetap dapat melihat hal positif dalam diri mereka.


2021 ◽  
Vol 5 (1) ◽  
pp. 123-142
Author(s):  
Kim Foong Jee ◽  
Jia En Joanne Ngui ◽  
Pei Pei Jessica Poh ◽  
Wai Loon Chan ◽  
Yet Siang Wong

This paper examines the relationship between capital structure and performance of firms. The study is confined to plantation sector companies in Malaysia and is based on a sample of 39 firms which listed in Bursa Malaysia for the period from 2009 to 2019. This study uses two performance measures which are ROA and ROE as the dependent variable. Besides, the capital structure measures are the short-term debt, long-term debt, total debt and firm growth, which as the independent variables. Size will be the control variable in this study. Moreover, a fixed-effect panel regression analysis has been used to analyse the impact of capital structure on firm performance. The results indicate that firm performance, which is in term of ROA, have an insignificant relationship with short-term debt (STD) and long-term debt (LTD). For the total debt (TD) and growth, there is a significant relationship with ROA. However, for the performance measured by ROE, it has an insignificant relationship with short-term debt (STD), long-term debt (LTD) and total debt (TD). Furthermore, there is a significant relationship between the growth and the performance firms from plantation sector in Malaysia.


2005 ◽  
Vol 1 (1) ◽  
pp. 20
Author(s):  
Ari Christianti ◽  
Murti Lestari

The study aims at empirically proving and analyzing the balance model of Capital Asset Pricing Model (CAPM with the multifactor of risks, consisting of: outstanding stocks value, capital structure represented by Debt EquiQ Ratio (DER), market risk as represented by stock market beta, and the interest rate on company return on stock.This research uses a dynamic model approach considering the existence of the weaknessesin a classic linear model. Since the investment is related to investors behavior that need a lag to market change, the use of the dynamic model approach will be better. It is because the dynamic model uses autoregressive approach containing the lag. The dynamic model used here is Partial Adjustment Model (PAM) and Error Correction Model (ECM).  Based on the estimation of the PAM model it is proven that the model is inefficient in finding the evidence confirming the hypothesis. Subsequently,based on the result of the examination of the ECM model it isconcluded that outstanding stocks value has a positive and signiJicant impact in short term and a negative impact in long term. It means that in the short term outstanding stocks value serves as the consideration for investors in making an investment. However in the long term they are likely to believe that the use of smaller internal capital proportion will be more beneficial for them. The capital structure has only a longierm impact on the return on stock. It means that the impact of DER on stock return on miscellaneous industry sector needs the quite long lag to influence the investors in determining stocks return. It indicates that in the long term they believ:e that the use of increasing number of loan will causes the decrease in company liquidity. Consequently, the opportunity for the company to go bankrupt is bigger Beta stock in the study has a negative impact in the long term. Theoretically, it is not consistent with the parameter direction and indicated that beta stock does notserve as an app;r,pviate prory in measuring the rislcs on. miscellaneous industry sector The interest rate has in the long term a negative impact on stocks return and needs the long lag to influence the investors in determining the return on stocks.Keywords: Stock return, outstanding stock value, DER (Debt Equity Ratio), beta, interest rote, ECM (Eruor Correction Model)


2019 ◽  
Vol 11 (5) ◽  
pp. 1491 ◽  
Author(s):  
Keling Wang ◽  
Yaqiong Miao ◽  
Ching-Hui Su ◽  
Ming-Hsiang Chen ◽  
Zhongjun Wu ◽  
...  

We examined whether corporate charitable giving (CCG) in China benefits corporate performance (CP) in terms of sales growth (SG), return on asset (ROA), return on equity (ROE), and Tobin’s Q (TQ), and revealed several findings. First, testing shows variation in the impact of CCG on CP. Whereas the ratio of corporate charitable giving (RCCG) to total sales revenue does not significantly enhance SG, ROA, and ROE, it is positively related to TQ. Second, the positive relationship between RCCG and TQ originates from non-state-owned firms (NSOFs) rather than state-owned firms (SOFs). Third, Chinese firms may use CCG as traditional philanthropy to enhance long-term performance instead of strategically using it to generate short-term performance. Lastly, an inverted U-shaped relationship exists between RCCG and TQ, especially for NSOFs.


1982 ◽  
Vol 16 (4) ◽  
pp. 757-780 ◽  
Author(s):  
Nader Fergany

Labor migration among Arab countries is the most important phenomenon in the political economy of that region at present and will remain so for some time. The focus of this article is the impact of emigration on national development in labor sending countries experiencing wide-scale emigration, the main contention being that, due to the characteristics of contemporary labor movements among Arab countries, there obtains a contradiction between short term benefits and long term adverse effects. The article briefly defines development, then presents empirical evidence from the Yemen Arab Republic of the negative impact of labor emigration.


2019 ◽  
Vol 10 (1) ◽  
pp. 40
Author(s):  
Mohammad Mazibar Rahman ◽  
Umme Khadija Kakuli ◽  
Shahnaz Parvin ◽  
Ayrin Sultana

This paper aims to empirically investigate the impact of capital structure choice on the firm performance of the firms listed under the Dhaka Stock Exchange of Bangladesh. Multiple regression has been employed in this research to determine the relationship between the capital structure and the firm’s financial performance. Three ratios of financial performance, i.e., return on assets, return on equity, and gross margin, have been used as a sample of non-financial Bangladeshi companies, selected from 2010 to 2015. The study records numerous findings. First, the result shows a significant negative influence of long-term debt (LTD) and total debt (TTD) on firm financial performance measured by return on assets (ROA), but no significant relationship is found between short-term debt (STD) and this measure of firm’s financial performance. Moreover, the research found that there is no significant effect of short-term debt, long-term debt and total debt on the firm financial performance measured by return on equity (ROE). Finally, the result shows that a significant negative influence of short-term debt and total debt on firm performance measured by GM, but no significant relationship was found between long-term debt and financial performance. In general terms, the results of this study may suggest that capital structure has a negative influence on firms’ financial performance in Bangladesh.


2016 ◽  
Vol 8 (10) ◽  
pp. 130 ◽  
Author(s):  
Maziar Ghasemi ◽  
Nazrul Hisyam Ab Razak

<p class="Content">For many years, liquidity of a company’s asset and its effect on the optimal debt level has been a controversial issue among scholars in finance studies. Prior studies have demonstrated that in some countries, asset liquidity increased debt level while in other countries liquid companies were less leveraged and more regularly financed by their own capital. This study investigates the effect of liquidity on the capital structure among the 300 listed companies in the Main market of Bursa Malaysia from 2005 to 2013 fiscal years. Pooled OLS is applied to investigate the impact of liquidity ratios on different Debt ratios. Liquidity of a company, which is the independent variable of this study, is measured by two common ratios which are: quick ratio and current ratio. Additionally, the Debt/Equity and Debt/Asset ratios represent the capital structures based on the short-term, long-term and total debt. The results show that all the measures of liquidity have significant impacts on all the proxies of leverage. According to the results, Quick ratio has a positive effect on leverage; although, Current ratio is negatively related to leverage. Moreover, short-term debt is more influenced by liquidity compared to long-term debt.</p>


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