scholarly journals Determinants of Enterprises’ Capital Structure in Energy Industry: Evidence from European Union

Energies ◽  
2021 ◽  
Vol 14 (7) ◽  
pp. 1871
Author(s):  
Jacek Jaworski ◽  
Leszek Czerwonka
Keyword(s):  
European Union ◽  
Capital Structure ◽  
Strong Evidence ◽  
Positive Relationship ◽  
Negative Impact ◽  
Positive Impact ◽  
Statistical Significance ◽  
Negative Relationship ◽  
Energy Industry ◽  
Corporate Debt

The aim of the study is to identify the main determinants of the capital structure of energy industry companies in the European Union. The study was based on a panel of 6122 companies from 25 EU countries, operating between 2011 and 2018. The study used multiple regression analysis. We have obtained strong evidence for a positive relationship between corporate debt and tangibility and size, and a negative relationship for profitability and liquidity. The factors that also affect the share of debt in capital have turned out to be growth (positive relationship) and non-debt tax shield (negative relationship), but the statistical significance of these relationships is ambiguous. We have shown that growth of industry business risk is accompanied by an increase in corporate debt and this is a distinguishing feature of the energy industry. For country-specific capital structure determinants, we have obtained strong evidence for the negative relationship between GDP growth, the level of stakeholder rights protection, the degree of capital markets development, and indebtedness of the companies studied. There has been moderate support for the hypotheses of a positive effect of inflation, taxation, and the degree of financial institutions development. Our study has also shown a negative impact of the volume of energy consumption and the share of renewable sources in its production and a positive impact of market monopolization on the indebtedness of companies from the energy industry in the EU.

scholarly journals Changes in consumers’ awareness and interest in cosmetic products during the pandemic

2022 ◽  
Vol 9 (1) ◽  
Author(s):  
Yeong-Hyeon Choi ◽  
Seong Eun Kim ◽  
Kyu-Hye Lee
Keyword(s):  
Positive Relationship ◽  
Negative Impact ◽  
Positive Impact ◽  
Negative Relationship ◽  
Marketing Strategies ◽  
Cosmetic Products ◽  
Consumer Awareness ◽  
The Future ◽  
Standard Information ◽  
The Impact

AbstractThis research investigates the impact of the COVID-19 pandemic on consumers’ perspectives of beauty and individual cosmetic products. Since the first confirmed case of COVID-19 was announced on December 31st, 2019, the search volumes of Google News have been updated and information on confirmed cases of the disease has been collected. This study used Python 3.7, NodeXL 1.0.1, and Smart PLS 3.0 to analyze consumer awareness of cosmetic products during the pandemic. The results reveal that consumers’ perspectives of beauty are impacted by a pandemic. Global consumers perceive skincare as an important aspect during the pandemic, while the importance of makeup fell after the outbreak. The awareness of skincare and makeup products has changed. The spread of the pandemic (SOP) has a positive impact on skincare products, but a negative impact on makeup products, except for eye makeup products, which was positive. Finally, the SOP was not significant in terms of consumers’ interest in masks. Fifth, interest in masks showed a positive relationship with interest in skincare products, such as cleansing products, while a negative relationship was observed with interest in makeup products. Overall, this study concludes that pandemics certainly have an impact on global consumers’ perspectives. As a pandemic spread, interest in skincare products increases, while interest in makeup products decreases. This study has academic significance in that it investigates the effects of consumption of cosmetic products during the stay-at-home rules. It can be used as standard information for setting marketing strategies in pandemic-like situations in the future.

Relationship between Budget Deficit and Economic Growth: Evidence from Ethiopia

2021 ◽  
Vol 2 (2) ◽  
pp. 10-15
Author(s):  
Desalegn Emana
Keyword(s):  
Economic Growth ◽  
Interest Rates ◽  
Budget Deficit ◽  
Time Series Data ◽  
Negative Impact ◽  
Positive Impact ◽  
Negative Relationship ◽  
Nominal Exchange Rate ◽  
Series Data ◽  
Long Run

This study examined the relationship between budget deficit and economic growth in Ethiopia using time series data for the period 1991 to 2019 by applying the ARDL bounds testing approach. The empirical results indicate that budget deficit and economic growth in Ethiopia have a negative relationship in the long run, and have a weak positive association in the short run. In line with this, in the long run, a one percent increase in the budget deficit causes a 1.43 percent decline in the economic growth of the country. This result is consistent with the neoclassical view which says budget deficits are bad for economic growth during stimulating periods. Moreover, in the long run, the variables trade openness and inflation have a positive impact on Ethiopian economic growth, and on the other hand, the economic growth of Ethiopia is negatively affected by the nominal exchange rate in the long run. Apart from this, in the long run, gross capital formation and lending interest rates have no significant impact on the economic growth of the country. Therefore, the study recommends the government should manage its expenditure and mobilize the resources to generate more revenue to address the negative impact of the budget deficit on economic growth.

scholarly journals Determining the Factors Affecting Capital Structure Decisions of Real Sector Companies Operating in ISE

2017 ◽  
Vol 9 (8) ◽  
pp. 25 ◽  
Author(s):  
Bengü Vuran ◽  
Nihat Tas ◽  
Burcu Adiloglu
Keyword(s):  
Capital Structure ◽  
Firm Growth ◽  
Positive Impact ◽  
Stock Exchange ◽  
Negative Relationship ◽  
Order Theory ◽  
Service Firms ◽  
Factors Affecting ◽  
Tax Shield ◽  
The Capital Structure

Corporate capital structure remains a controversial issue in modern corporate finance. Since the seminal work by Modigliani and Miller (1958), a plethora of research has been undertaken in attempting to identify the determinants of capital structure. This paper analyzes the capital structure determinants of manufacturing, merchandising and service firms operating in Istanbul Stock Exchange (ISE) during the period from 2010 to 2013 comprising of 218 companies. This study addresses the following questions: Are the capital structure determinants of three types of firms in ISE driven by different factors? To answer this question, panel data methodology is applied to the sample of firms for the period from 2010 to 2013. The results show that the manufacturing and merchandising firms exhibit similarities in their capital structure choices. For those firms, size and firm growth are positively related to leverage, whereas profitability have a negative relationship with their debt to assets ratio. For service firms, size and non-debt tax shield have significant positive impact on leverage but profitability negatively related to leverage. These findings provide evidence in favour of trade off theory and pecking order theory.

scholarly journals What Drives Private Saving in Botswana?

2013 ◽  
Vol 5 (9) ◽  
pp. 603-611
Author(s):  
Naledi. C. Modisaatsone
Keyword(s):  
Interest Rates ◽  
Positive Relationship ◽  
Negative Impact ◽  
Negative Relationship ◽  
Series Data ◽  
Dependency Ratio ◽  
Real Interest Rates ◽  
Private Saving ◽  
Financial Depth ◽  
Private Savings

This study examines the determinants of private saving in Botswana for the period covering 19942009. We use quarterly time series data to evaluate the magnitude and direction of the effects of key policy and non-policy variables on private saving. The variables examined are inflation, real interest rates, real gross national disposable income, degree of financial depth and dependency ratio. The dependency ratio is included in order to capture the effect of demographic influence on private savings. The stated determinants of savings are articulated in the context of the life cycle hypothesis. We investigate the short and long run behavior of the variables using an ARDL-ECM. The results suggest that there is a positive relationship between household income and their savings. The dependency ratio exerts a negative impact on private savings which supports the Lifecycle Hypothesis. The results also suggest that financial sector development has induced a positive impact on private savings in Botswana. Interest rates have a positive relationship with private savings; and, lastly, inflation has a negative relationship with private savings. Financial depth and real interest rates are the core policy instruments that the government can use to encourage savings in Botswana.

scholarly journals The Capital Structure and It’s Impact on the Profitability of the FMCG Companies in India – A Study

2021 ◽  
Vol 04 (10) ◽  
Author(s):  
Dr. Amalesh Patra ◽  
Keyword(s):  
Capital Structure ◽  
Negative Impact ◽  
Positive Impact ◽  
Stock Exchange ◽  
Book Value ◽  
Coverage Ratio ◽  
Total Debt ◽  
Lm Test ◽  
The Impact ◽  
The Capital Structure

The purpose of this study is to examine the impact of the capital structure on the profitability of the companies under the FMCG sector listed in the National Stock Exchange (NSE) of India. The sample of 10 companies over 14 years from 2007 to 2020 is considered in this study. To examine the impact of capital structure on the profitability, Total Debt to Total Assets (TDTA) Debt- Equity (DE), Interest Coverage Ratio (ICR) consider as the independent variables, Price to Book Value Ratio (PBVR) and Growth (GROW) considered as the control variables and Return on Capital Employed (ROCE) considered as dependent variable (profitability). To fulfil the objective of the study Pearsons' Correlation has been conducted for testing the Collinearity, Shapiro- Wilk test has been run for normality test of the variables, to test the Stationary Hadri LM test, Kao and Pedroni test for cointegration test and to choose the appropriate model Hausman test and finally, for the result, I run Fixed Effect Model. The result of the Regression analysis showed that Total Debt to Total Assets (TDTA), Debt- Equity (DE), Interest Coverage Ratio (ICR), and Price to Book Value are the factors that have an impact on the Profitability (ROCE) of the company. The empirical result also suggests that total debt to Total Assets (TDTA), Interest Coverage Ratio (ICR), and Price to Book Value of the company have a positive impact but Debt -Equity has a negative impact on the ROCE

scholarly journals The Relationship between the Ownership Structure, Capital Structure and Performance

2018 ◽  
Vol 1 (25) ◽  
pp. 1 ◽  
Author(s):  
Ali Al-Thuneibat
Keyword(s):  
Capital Structure ◽  
Ownership Structure ◽  
Negative Impact ◽  
Positive Impact ◽  
Stock Exchange ◽  
Return On Assets ◽  
Service Companies ◽  
Concentrated Ownership ◽  
And Performance ◽  
The Relationship

This paper aims at providing an empirical evidence concerning the relationship between the ownership structure, capital structure and financial performance of the shareholding companies listed in Amman Stock Exchange (ASE). To measure the ownership structure, the researcher used four variables including foreign, institutional, managerial and concentrated ownership. The capital structure is measured by using the leverage, and the performance is measured by using the return on assets (ROA). To achieve the objectives of the study, a sample of 86 firms from the industrial and service companies listed in ASE during the period 2010 and 2014 is used. The results of the study showed that the relationship between ownership structure in general, and performance is positive and statistically significant, however, the results showed that the various types of ownership structure have different types of relationships with performance. More specifically, there is a negative impact of institutional and foreign ownerships on the performance and positive impact of concentrated and managerial ownerships. The results also revealed that there is a positive impact of the financial leverage on the relationship between ownership structure and firm performance. The findings of the study provide implications to the regulators, investors and managers in Jordan to take into consideration the environment-specific factors when developing corporate regulations and encourage concentrated and managerial ownership because they have positive impact on performance.

scholarly journals INFLUENCE OF RISK ASSETS IMPAIRMENT ON PERFORMANCE OF NIGERIAN LISTED DEPOSIT MONEY BANKS

2020 ◽  
Vol 5 (3) ◽  
pp. 41-63
Author(s):  
Adewale Joel Adebisi ◽  
Adeyemi Wasiu Alabi ◽  
Kolawole Fatimehin
Keyword(s):  
Gross Domestic Product ◽  
Negative Impact ◽  
Positive Impact ◽  
Random Effect ◽  
Negative Relationship ◽  
Secondary Data ◽  
Negative Influence ◽  
Domestic Product ◽  
Return On Assets ◽  
Operating Profit

Profitability is critical to the survival of Nigerian deposit money banks which is consistently been eroded by the impaired risk assets. Hence, this study was conducted to examine influence of risk assets impairment on performance of Nigerian deposit money banks. The specific objectives of the study were to; (i) determine the effect of impairment loss on operating profit; (ii) analyze effect non-performing loans ratio affect return on assets of Nigerian deposit money banks. Secondary data were collected and analysed using fixed and random effect regression analysis methods from a sample of 14 listed Nigerian deposit money banks. The study revealed that impairment loss, have significant negative relationship with operating profit (β=2.294, p‹ 0.01) and non-performing loan ratio have significant positive relationship with return on assets (β=0.067, p‹ 0.1). However, other variables such as inflation, liquidity and gross domestic product per capital also have effect on banks performance. The study concluded that risk assets impairment has significant negative influence on performance and that inflation, liquidity and gross domestic product have negative impact on profitability, while bank size has positive impact on profitability. The study recommended that; bank directors should put effective risk assets impairment test in place to boost reported profitability; the bank management should ensure effective management of liquidity ratio to boost return on equity; government policymakers should ensure that banks are mandated to disclose their risk assets impairment and expand their size by extending banking services to the unbanked areas.

scholarly journals Mergers, Acquisitions and Financial Performance: A Study of Selected Financial Institutions

2019 ◽  
Vol 9 (1) ◽  
pp. 36-44
Author(s):  
Tarila Boloupremo ◽  
Samson Ogege
Keyword(s):  
Mergers And Acquisitions ◽  
Capital Structure ◽  
Financial Performance ◽  
Financial Institutions ◽  
Significant Relationship ◽  
Positive Relationship ◽  
Cost Control ◽  
Control Variable ◽  
Negative Relationship ◽  
The Impact

The aim of the study is to examine the impact of mergers and acquisition on financial performance in the Nigerian financial system. The study examined selected financial institutions in the banking sector. Specifically, some financial indicators such as asset profile, credit risk, capital structure, liquidity, size and cost control ratios, were extracted from the audited financial reports of the selected banks for the period 2000-2010 to compare the performance of the selected financial institutions in the ex-ante period and compare these performance with the ex post period of their mergers and acquisitions. Longitudinal and time series analyses were employed to observe the performance of the selected banks. Results from the analysis suggest that credit risks showed a better post merger performance, but were statistically insignificant and negatively related with the performance of the selected financial institution pre-merger. Asset profile was found to be significant and positively related with post-merger in relation to the performance of the selected financial institutions, but it was insignificant and negatively related to the financial performance of the selected firms pre-merger. Capital structure of the selected firms was found to be significant and positively related to the performance of the firms’ pre-merger, but insignificant and negatively related to the performance of the firms post-merger. Liquidity of the firms indicated a significant and positive relationship with the performance of the banks pre-merger. However, post merger result indicates that, there was no significant and positive relationship between the liquidity of the firms and financial performance post-merger. The size of the selected banks indicated a significant relationship with their performance in both the pre-merger and post-merger periods. The cost control variable indicated a statistically significant and negative relationship with the performance of the banks post-merger period, but showed no significant relationship with performance of the banks in the pre-merger period. Finally, the results indicate that mergers and acquisitions can have significant impact on the performance of the selected financial institutions in Nigeria.

Capital Structure, Growth and Profitability: Evidence from Domestic Commercial Banks in Cambodia

2018 ◽  
Vol 5 (1) ◽  
pp. 31-38
Author(s):  
Khun Sokang ◽  
Nop Ratanak
Keyword(s):  
Capital Structure ◽  
Commercial Banks ◽  
Positive Relationship ◽  
Negative Impact ◽  
Return On Assets ◽  
Significance Level ◽  
Return On Equity ◽  
The Impact ◽  
The Relationship ◽  
Pls Method

This paper aims to examine the impact of capital structure and growth on the profitability of domestic commercial banks in Cambodia. The study uses a panel least squares (PLS) method using a sample of 10 domestic commercial banks in Cambodia over the period of 2005-2013 to examine the relationship between capital structure, growth, and profitability of commercial banks. The finding reveals that capital structure variables including debt to equity (DE), equity to loan (EL), and equity to deposit (ED) have a significantly negative impact on return on assets (ROA) and return on equity (ROE) with 1% significance level. Moreover, the growth variables including growth in assets (GA) and growth in equity (GE) have shown a positive relationship with ROA and ROE. A significant relationship exists only between GE and ROE at 1% significance level.

scholarly journals Relationship Between Capital Structure and Stock Returns of Jordanian Commercial Banks

2020 ◽  
Vol 13 (2) ◽  
pp. 100
Author(s):  
Sufian Radwan Al-Manaseer
Keyword(s):  
Capital Structure ◽  
Stock Returns ◽  
Firm Size ◽  
Commercial Banks ◽  
Negative Impact ◽  
Positive Impact ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
The Impact ◽  
The Relationship

This study aims to analyze the relationship between capital structure and stock returns of Jordanian banks listed on the Amman Stock Exchange from 2009 to 2018. The study sample is composed of 13 commercial banks in Jordan. The e-views program is used to conduct the statistical analysis of study variables. Initially, a simple linear regression analysis is conducted to determine the impact of capital structure as measured by financial leverage on stock returns and vice versa. Then, several control variables are added: growth in assets, liquidity, firm size, and profitability. This study has found that growth, capital structure, and profitability have a positive impact on stock returns. By contrast, liquidity and firm size have a negative impact on stock returns. Stock returns and firm size have a positive impact on capital structure, whereas liquidity, growth, and profitability have a negative impact on capital structure.

Sign in / Sign up

Export Citation Format

Share Document