scholarly journals EFFECT OF DISAGGREGATED COUNTRY RISK SHOCKS ON FINANCING DECISIONS OF THE JSE LISTED FIRMS

2020 ◽  
pp. 32-49
Author(s):  
Edson Vengesai ◽  
Paul-Francois Muzindutsi
Keyword(s):  
Country Risk ◽  
Listed Firms ◽  
Financing Decisions

scholarly journals The Simultaneity of Corporate Financial Decisions Under Different Levels of Managerial Ownership: A Case of Pakistani Listed Firms

2019 ◽  
Vol 10 (2) ◽  
pp. 147
Author(s):  
Mohamad Helmi bin Hidthiir ◽  
Muhammad Farhan Basheer ◽  
Saira Ghulam Hassan
Keyword(s):  
Agency Theory ◽  
Random Effect ◽  
Order Theory ◽  
Managerial Ownership ◽  
Pecking Order ◽  
Pecking Order Theory ◽  
Financial Decisions ◽  
Listed Firms ◽  
Financing Decisions ◽  
The Impact

Purpose- The prime objective of the current study is to investigate the interdepended of financial decision. In addition to that the impact of different level of managerial ownership on the interdepended of financial decisions is also examined agency theory, pecking order theory and the signaling theory are used as the theoretical lenses to draw the theocratical framework.Design/methodology/approach- The balance panel of 161 nonfinancial firm over the period of five years from 2013 to 2017 is used to achieve the research objectives. Polled OLS, Fixed effect and Random effect estimates are employed to answer the reach questions Findings- The managerial ownership with an average mean ownership of 39 is appeared at the top. Interestingly more than 75 percent firms are being controlled by mangers and in more than 60 percent firms of our sample the controlling managers hold more than 40 percent of shares. The Wu Hausman test is performed to determine the existence of the endogeneity problem.  The results indicates that the financial decisions namely cash holding decisions, financing decisions and investment decisions has significant impact on each other. Where the managerial ownership is in nonlinear relationship with financial decisions. The results of the study are also providing support to agency theory, pecking order theory and the signaling theoryResearch implications- The study will be helpful for policymakers, researchers, corporate personals and financial institutions in understanding the interrelationship between financing decisions and the role of managerial ownership in there interdepended.Originality/value- The study is among the pioneering studies on the issue and will provide policy guideline on the said issues.

A Survey on Capital Structure Decisions of Hong Kong Firms

2000 ◽  
Vol 03 (03) ◽  
pp. 347-365 ◽  
Author(s):  
Dennis K. K. Fan ◽  
Raymond W. So
Keyword(s):  
Hong Kong ◽  
Capital Structure ◽  
Information Asymmetry ◽  
Firm Size ◽  
Pecking Order ◽  
Listed Firms ◽  
Financing Decisions

In this paper, the results of a survey on capital structure decisions of Hong Kong listed firms are reported. It is found that Hong Kong firms conformed more to the "pecking order" principle than a target long term debt-equity mix in their financing decisions. Financial managers' preferences over alternative capital raising instruments are also investigated. The degree of information asymmetry and firm size are found to have impacts on the ranking of some factors governing capital structure decisions. However, signaling motivation does not play a role in managers' financing decisions.

Analysis of capital structure stability of listed firms in China

2019 ◽  
Vol 10 (2) ◽  
pp. 213-228 ◽  
Author(s):  
Kelvin Henry Kyissima ◽  
Gong Zhang Xue ◽  
Thales Pacific Yapatake Kossele ◽  
Ahmed Ramadhan Abeid
Keyword(s):  
Panel Data ◽  
Capital Structure ◽  
Fixed Effects ◽  
Structure Stability ◽  
Individual Investors ◽  
Content Type ◽  
Corporate Managers ◽  
Listed Firms ◽  
Financing Decisions ◽  
Corporate Capital Structure

Purpose The purpose of this paper is to analyze the corporate capital structure stability of listed firms in China during the period 1990–2013. Design/methodology/approach The study uses panel data from a sample of 716 firms that have been listed in China for at least 15 years. A fixed-effects panel data regression model with time effects is used in the estimation. Findings The findings show that size, profitability and investment opportunities have a significant influence on capital structure, whereas the tangibility of assets is not found to be significant. Few industries show significance in explaining differences and variation in leverage ratios. Social implications It is recommended by this study that corporate managers of listed firms in China should consider leverage ratios variation while choosing the capital structure. Originality/value This study can be helpful in assisting companies to make financing decisions and setting up strategies relevant in their growth and profitability. The study will also have a significant assistance to bring to light corporate issues to policy makers, especially in the areas of both equity and debt financing, particularly the bond market. To the society, this study will show the nature of Chinese-listed companies, and it can assist individual investors in making decisions regarding companies in which they hold investments and in making meaningful comparisons with other companies. The paper also aims at contributing to the existing literature on the empirical study on capital structure.

scholarly journals Monetary Policy Restriction and Dividend Behaviour of Pakistani Firms: An Empirical Analysis

2012 ◽  
Vol 51 (4II) ◽  
pp. 683-693
Author(s):  
Muhammad Shahzad Ashraf ◽  
Hasan M. Mohsin
Keyword(s):  
Developing Countries ◽  
Monetary Policy ◽  
Dividend Policy ◽  
Future Research ◽  
Research Papers ◽  
Major Objective ◽  
Corporate Financing ◽  
Macroeconomic Variables ◽  
Listed Firms ◽  
Financing Decisions

Dividend behaviour has extensively been reviewed by many researchers from time to time across different countries. Empirical evidences observed in most of the studies reveal equivocal results about dividend theories [Bhattacharyya (2007)]. Since, in absence of any unanimous findings, need for future research has not been restricted, theoretically. In developing countries like Pakistan, where limited research is available on corporate dividend policy, need for future research is more looked for. Most of the available research papers, address only firm specific determinants of dividend policy. Do macroeconomic variables influence corporate financing decisions? The need to address this question is the prime motive of this research paper. Major objective of this paper is to observe dividend behaviour of listed firms in Pakistan under monetary policy restrictions and this is the first attempt of its kind in Pakistan to the best of my Knowledge. This study is very relevant in present scenario since State Bank of Pakistan (SBP) has been persistently pursuing restricted monetary policy since 2005 to control inflation.

scholarly journals IMPACT OF FINANCING DECISIONS ON FIRM’S PERFORMANCE: AN EMPIRICAL STUDY OF PAKISTANI LISTED FIRM’S IN KSE

2017 ◽  
Vol 12 (1) ◽  
pp. 3050-3056
Author(s):  
Dr Mohammad Salih Memon ◽  
AKMAL KHAN ◽  
Maria Shaikh ◽  
Aisha Bashir Shah ◽  
Imtiaz Zahid ◽  
...  
Keyword(s):  
Empirical Study ◽  
Research Paper ◽  
Listed Firms ◽  
Financing Decisions ◽  
Basic Purpose ◽  
The Impact

The basic purpose of our research paper is to analyze the impact of financing decisions on the firm’s performance in Pakistani listed firms in KSE. The OLS has been employed on a sample of conveniently selected 100 pakistanilisted firms in KSE (with 600 observations) over the period of 2004 to 2009.Financing decisions are measured through debt to equity and firm’s performance measured through ROE, ROA, Tobin’s Q and market capitalization.Ourresults show that the financing decisions have no significant impact on firm’s performance in Pakistan.

scholarly journals Board governance, ownership structure and financing decisions in emerging market

2016 ◽  
Vol 13 (3) ◽  
pp. 355-365 ◽  
Author(s):  
Md Safiullah
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
Ownership Structure ◽  
Emerging Market ◽  
Board Governance ◽  
Agency Conflicts ◽  
Minority Shareholders ◽  
Listed Firms ◽  
Financing Decisions ◽  
Agency Conflict

This paper aims to contribute to the corporate governance literature by examining the effects of board governance and ownership structure on financing decisions in an emerging country context. Using hand collected corporate governance data from a panel sample of 110 publically-listed firms in Bangladesh over 2009-2012, this study finds that the corporate debt ratio is not related to standard board of directors mechanisms.The results indicate that board of directors play little role in resolving conflicts in an environment with the presence of strong principal-principal agency conflict. The study also finds no evidence of institutional investors’ activism in a manner that is consistent with the goals of other outside stockholders due to the weak regulatory and market discipline. This empirical evidence from the principal-principal agency conflicts (conflict of interest between majority shareholders and minority shareholders) offers insights to policy makers in emerging countries interested to protect minority shareholders’ rights and to ensure effective corporate governance of capital structure decisions.

scholarly journals Country Risk

2021 ◽  
Author(s):  
Tarek A. Hassan ◽  
Jesse Schreger ◽  
Markus Schwedeler ◽  
Ahmed Tahoun
Keyword(s):  
Interest Rates ◽  
Direct Evidence ◽  
Country Risk ◽  
Global Risk ◽  
Firm Level ◽  
Listed Firms ◽  
Quarterly Earnings ◽  
Global Investors ◽  
Definition Of ◽  
Market Valuations

We construct new measures of country risk and sentiment as perceived by global investors and executives using textual analysis of the quarterly earnings calls of publicly listed firms around the world. Our quarterly measures cover 45 countries from 2002-2020. We use our measures to provide a novel characterization of country risk and to provide a harmonized definition of crises. We demonstrate that elevated perceptions of a country's riskiness are associated with significant falls in local asset prices and capital outflows, even after global financial conditions are controlled for. Increases in country risk are associated with reductions in firm-level investment and employment. We also show direct evidence of a novel type of contagion, where foreign risk is transmitted across borders through firm-level exposures. Exposed firms suffer falling market valuations and significantly retrench their hiring and investment in response to crises abroad. Finally, we provide direct evidence that heterogeneous currency loadings on global risk help explain the cross-country pattern of interest rates and currency risk premia.

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