scholarly journals Investment and Financing Policies of Nepalese Enterprises

2017 ◽  
Vol 8 ◽  
pp. 47-55
Author(s):  
Kapil Deb Subedi
Keyword(s):  
Capital Market ◽  
Data Set ◽  
Investment Policies ◽  
Financing Policies ◽  
Firm Financing ◽  
Investment And Financing ◽  
Internal Funds ◽  
Financing And Investment ◽  
World Bank Enterprise Survey ◽  
Enterprise Survey

Firm financing and investment policies are central to the study of corporate finance. In imperfect capital market, financing and investment policies of enterprises are dependent to each other. Firm’s investment decisions depend upon the access and availability of finance in capital market. But various capital market frictions like information and incentives wedge the efficient allocation of fund to each of marginally profitable project. Consequently, in asymmetric informational theoretic framework, firms change their strategies in raising their capital. Firms' first best choice for financing their investment in severity of information problem, rests on their internal funds since it is the cheapest and more unrestricted source of finance to the managers. To this milieu, this paper focuses on investigating whether the Nepalese enterprises depend on their internal funds to finance their investment or not? World Bank Enterprise Survey data set are employed to examine the investment and financing policies of Nepalese enterprises. The data set consist of financial information of 968 firms across multiple size, sector and age category. We employ simple measures of descriptive statistics like frequencies, percentage and arithmetic mean viz; the average of a set of numerical values to analyze the data by sorting the observations to various portfolios. The study result confirms that the firms heavily depend on their internal funds to finance their investment. These results are consistent with prior literatures for example; Fazzari, Hubbard, & Peterson (1988), Gilchrist & Himmelberg (1995), Hu & Schiantarelli (1998) etc when observed in cross section of size, sector, age and ownership pattern of enterprises.The Saptagandaki Journal Vol.8 2017: 47-55

Capital market supply and REITs’ financing and investment decisions

2014 ◽  
Vol 10 (2) ◽  
pp. 146-167 ◽  
Author(s):  
Qing Bai ◽  
Qingqing Chang ◽  
Avis Devine
Keyword(s):  
Capital Structure ◽  
Capital Market ◽  
Investment Decision ◽  
Content Type ◽  
Supply Shock ◽  
Firm Financing ◽  
Debt Market ◽  
Survey Results ◽  
Recent Financial Crisis ◽  
Financing And Investment

Purpose – In the wake of the recent financial crisis, there has been extensive commentary regarding the rise and fall of REIT leverage, how much debt REITs should use, and the trendy “deleveraging” practice among REIT managers. The paper aims to discuss these issues. Design/methodology/approach – Identifying the late 2000s credit crunch as a supply shock, the paper uses difference-in-difference methodology to isolate alternative firm financing strategies and investment decision responses to the shock. Findings – Consistent with corporate survey results, this empirical analysis suggests that changes in capital structure are largely supply driven, and REIT managers “time” the debt market in response to credit conditions. Originality/value – This research clarifies the causes of the documented leverage pattern and provides fresh insights about REIT capital structure.

The role of informal competition in driving export propensity of emerging economy firms

2020 ◽  
Vol 40 (1/2) ◽  
pp. 184-203 ◽  
Author(s):  
Rouhin Deb ◽  
Harsh Vardhan Samalia ◽  
Santosh Kumar Prusty
Keyword(s):  
World Bank ◽  
Emerging Economy ◽  
Data Set ◽  
Content Type ◽  
The World Bank ◽  
The World ◽  
World Bank Enterprise Survey ◽  
Primary Relationship ◽  
Enterprise Survey

Purpose Competitive pressure from informal firms has always been a threat to the formal enterprises. However, the strategic choices a firm makes to deal with such competitive pressures still remain under-explored. The purpose of this paper is to examine the influence of informal competitive pressures in driving export propensity of formal firms. Design/methodology/approach The paper is based on a standard error logistic model, and the model takes into account the contingent relationships along with the primary relationship. The authors draw the sample of 9,812 manufacturing firms spanning across the Indian sub-continent from the World Bank enterprise survey conducted in the year 2014. Findings The empirical results indicated that the level of competition from informal firms is positively associated with the propensity to export. The primary relationship is also affected by various contingent factors such as regulatory obstacles, bribery and new product development. Research limitations/implications Although the World Bank enterprise survey data provide a broad coverage, the study warranted few proxy measures in order to operationalize formal competition as it was not captured directly in the concerned data set. Practical implications The analysis demonstrates that informal competition has direct effect on the firm’s propensity to export. The findings indicate that export is an attractive action alternative for firms facing informal completion in an emerging economy. The results further indicate that this effect strengthens as institutional factors such as regulatory obstacles and bribery increase. Social implications The paper is an attempt to alter the prevailing negative view on informality. The findings indicate that informal competition spurs competitiveness in the formal sector indicating its positive role in the economic growth of the nation. Originality/value The paper takes cue from attention-based view of the firm and the institutional escapism logic to affirm the role of informal competition and various contingent institutional and strategic factors in driving export propensity.

Debt holdings and investment cash flow sensitivity of listed firms

2018 ◽  
Vol 13 (5) ◽  
pp. 943-958 ◽  
Author(s):  
Johnson Worlanyo Ahiadorme ◽  
Agyapomaa Gyeke-Dako ◽  
Joshua Yindenaba Abor
Keyword(s):  
Cash Flow ◽  
Empirical Modeling ◽  
Empirical Literature ◽  
Data Set ◽  
Content Type ◽  
Listed Firms ◽  
Flow Sensitivity ◽  
Cash Flow Sensitivity ◽  
Cash Flow Sensitivities ◽  
Internal Funds

Purpose The purpose of this paper is to examine the effect of debt holdings on the sensitivity of firms’ investment to availability of internal funds. Design/methodology/approach For a panel data set of 27 Ghanaian listed firms for the period 2007–2013, the paper applies the Euler equation approach to the empirical modeling of investment. Findings The study finds support for the assertion that listed firms face less severe corporate control problems and lower financing constraints, and thus, have lower investment cash flow sensitivities. The study also finds that a significant positive sensitivity of investment to internal funds is associated with firms that have high debt holdings. Practical implications An implication of this study is that firms with high debt holdings face greater challenges in accessing external finance. These firms are likely to experience under-investment which at a macro level would translate into lower investments and economic growth for the country. Originality/value Empirical literature document that in the presence of market imperfections, investments of financially constrained firms become sensitive to the availability of internal finance. There are also contradictory evidences regarding the pattern of the observed investment cash flow sensitivity. This study examines the effect of debt holdings on the sensitivity of firms’ investment to availability of cash flow. This is yet to be empirically tested despite some theoretical explanations.

scholarly journals Evaluating the Impact of the Informal Economy on Businesses in South East Europe: Some Lessons from the 2009 World Bank Enterprise Survey

2012 ◽  
Vol 7 (1) ◽  
pp. 99-110 ◽  
Author(s):  
John Hudson ◽  
Colin Williams ◽  
Marta Orviska ◽  
Sara Nadin
Keyword(s):  
World Bank ◽  
Informal Economy ◽  
Employment Relations ◽  
East Europe ◽  
South East Europe ◽  
Adverse Impacts ◽  
World Bank Enterprise Survey ◽  
Enterprise Survey ◽  
The Impact ◽  
Targeted Approach

Evaluating the Impact of the Informal Economy on Businesses in South East Europe: Some Lessons from the 2009 World Bank Enterprise SurveyThe aim of this paper is to evaluate the variable impacts of the informal economy on businesses and employment relations in South East Europe. Evidence is reported from the 2009 World Bank Enterprise Survey which interviewed 4,720 businesses located in South East Europe. The finding is not only that a large informal sector reduces wage levels but also that there are significant spatial variations in the adverse impacts of the informal economy across this European region. Small, rural and domestic businesses producing for the home market and the transport, construction, garment and wholesale sectors are most likely to be adversely affected by the informal economy. The paper concludes by calling for similar research in other global regions and for a more targeted approach towards tackling the informal economy.

Major obstacles facing business enterprises in an emerging economy: the case of Ghana using the World Bank Enterprise Survey

2021 ◽  
Vol 28 (3) ◽  
pp. 475-487
Author(s):  
Ibrahim Mohammed ◽  
Alhassan Bunyaminu
Keyword(s):  
World Bank ◽  
Emerging Economy ◽  
Probit Regression ◽  
Cross Sectional ◽  
Content Type ◽  
The World Bank ◽  
The World ◽  
Business Enterprises ◽  
World Bank Enterprise Survey ◽  
Enterprise Survey

PurposeThis paper aims at identifying the major obstacles to business enterprise in an emerging economy and how these obstacles are associated with different characteristics of the enterprises.Design/methodology/approachThe study relied on the World Bank Enterprise Survey data on Ghana and applied binary and ordinal probit regression techniques to estimate the associations between the characteristics of the enterprises and the identified obstacles. Significance testing of the associations is also conducted.FindingsThe five main obstacles perceived by most of the enterprises in the study are access to finance, electricity, access to land, customs and trade regulations and tax rates. These obstacles are associated in different ways to growth rate (high vs low growth), scale (small and medium vs large), age, size of employees, the experience of the top manager and ownership (wholly domestic vs foreign ownership).Research limitations/implicationsAs a cross-sectional study focusing on Ghana, the findings are informative about the major obstacles facing business enterprises in an emerging economy; however, the ecological validity of these findings may be limited to factors specific to Ghana.Originality/valueGiven the representativeness of the Enterprise Survey, policymakers can rely on these findings to formulate useful policies to promote the operations of business enterprises.

The Venezuelan Enterprise: Current Situation, Challenges and Opportunities

2021 ◽  
Author(s):  
José Luis Saboin
Keyword(s):  
Firm Level ◽  
Challenges And Opportunities ◽  
Investment And Financing ◽  
Basic Services ◽  
Different Dimensions ◽  
And Performance ◽  
And Migration ◽  
Comprehensive Recovery ◽  
Enterprise Survey ◽  
Infrastructure Services

Using Enterprise Survey data, this study describes the characteristics of current Venezuelan firms the survivors of one of the deepest economic contractions of modern historyacross different dimensions, such as access to infrastructure services, firms investment and financing, labor and skills, foreign trade, the legal environment, and firms innovation and performance. The study identifies the main challenges faced by the surviving firms (notably: macroeconomic and political instability, unreliability of basic services, lack of credit, and migration), while identifying some of the opportunities for these firms to exploit if a comprehensive recovery strategy for the country were to be implemented. In this sense, I find that the representative Venezuelan survivor firm has managed to internationalize through several channels (foreign ownership, exports, and international quality certifications), as well as to match skills with current business and market demands and keep innovating. The study also briefly analyzes some of the traditional determinants of (labor) productivity at the firm level, bringing the most interesting aspects to the fore so they can be explored further in more topic-focused research.

Economics of savings-based finance: an interest-free model of rotating savings and credit association in Turkey

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yusuf Dinç ◽  
Rashed Jahangir ◽  
Ruslan Nagayev ◽  
Fahrettin Çakır
Keyword(s):  
Financial Market ◽  
Design Methodology ◽  
Data Set ◽  
Content Type ◽  
Unique Data ◽  
Credit Associations ◽  
Free Model ◽  
Savings And Credit Associations ◽  
Financing And Investment ◽  
Credit Association

Purpose The emerging markets have been witnessing a remarkable revival of rotating savings and credit associations (ROSCAs) serving as alternative informal financing and investment platforms, also known as savings-based finance (SBF) in Turkey. The purpose of this study is to present the SBF model mathematically, analyse the performance of the SBF sector and propose a new Sharīʿah-compliant SBF model for the acquisition of durables. Design/methodology/approach The paper thoroughly reviews the concept and practice of ROSCA across the globe, mathematically models and empirically analyses the performance of Turkish SBF companies using a unique data set. Findings The study formulates a two-person SBF model and proposes a Mudarabah-Wakalah hybrid model with a new investment feature. It is found that the concept of ROSCA is being operationalized in 105 countries across the globe under different names with slight business model modifications. The research also reveals that the demand for financing of durables in Turkey significantly increased in recent years with the demand for housing is twice greater compared to vehicles. Most importantly, a strong significant inter- and intra-comovement is observed between these durables implying that the success of the sector in one segment has attracted the customers to other SBF products. It shows that the SBF institutions can effectively serve as the alternative financing houses for pooling savings and financing the durables, and they have strong potential to capture a larger financial market share in Turkey and even globally. Originality/value The study constructs mathematical models and proposes a new investment wing to an existing SBF wealth fund.

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