scholarly journals The influencing power of apply and explain on capital structure

2021 ◽  
Vol 24 ◽  
pp. 348-361
Author(s):  
Nkwantabisa Agyeiwaa Owusu ◽  
Falistus Raphael Hadjor ◽  
Nelly Joel Tchuiendem
Keyword(s):  
Stock Options ◽  
Ordinary Least Squares ◽  
Executive Directors ◽  
Executive Board ◽  
Short Term ◽  
Corporate Capital ◽  
The Difference ◽  
Financial Firm ◽  
Retained Earnings

The paper investigated the suspension of Independent Non-Executive Directors (INEDs) stock options on corporate capital choices: Equity, retained earnings, long term borrowing and short term borrowing. The paper used a sample of 1250 non-financial Firm years from 2010 to 2019. The Ordinary Least Squares and the difference in difference method discovered that the firms' Leverage increased positively after the reform. In particular, the suspension of stock options impacts the high levels of long term borrowing in the "Apply and Explain" periods. The study submits that the suspension of stock options maximizes the independence of the INED on the executive Board and Subcommittees (Audit and Remuneration) to reduce the use of retained earnings and promotes the use of Long term debts in financing projects.  

scholarly journals The Impact of Economic Growth, Trade Openness and Technological Progress on Renewable Energy Use in Organization for Economic Co-Operation and Development Countries

2021 ◽  
Author(s):  
Md. Mahmudul Alam ◽  
Wahid Murad
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Least Squares ◽  
Technological Progress ◽  
Energy Use ◽  
Trade Openness ◽  
Oecd Countries ◽  
Ordinary Least Squares ◽  
Short Term

This study investigates the short-term and long-term impacts of economic growth, trade openness and technological progress on renewable energy use in Organization for Economic Co-operation and Development (OECD) countries. Based on a panel data set of 25 OECD countries for 43 years, we used the autoregressive distributed lag (ARDL) approach and the related intermediate estimators, including pooled mean group (PMG), mean group (MG) and dynamic fixed effect (DFE) to achieve the objective. The estimated ARDL model has also been checked for robustness using the two substitute single equation estimators, these being the dynamic ordinary least squares (DOLS) and fully modified ordinary least squares (FMOLS). Empirical results reveal that economic growth, trade openness and technological progress significantly influence renewable energy use over the long-term in OECD countries. While the long-term nature of dynamics of the variables is found to be similar across 25 OECD countries, their short-term dynamics are found to be mixed in nature. This is attributed to varying levels of trade openness and technological progress in OECD countries. Since this is a pioneer study that investigates the issue, the findings are completely new and they make a significant contribution to renewable energy literature as well as relevant policy development.

goods and cash are shown sometimes together, sometimes sepa­ rately. This inventory may be compared to the assets of modem bal­ ance sheets. It was accompanied by a cash statement. There were no liabilities since long-term debts had been forbidden by the stat­ utes since 1702. The Company relied only on the funds contrib­ uted by its partners or on profits. After 1785, short-term debts were separated from each corresponding item of receipts. It was not until 1820 when the use of double entry bookkeeping showed liabilities as they are shown at the present time. Those liabilities included short-term debts and estimated liabilities so that the net worth (called “capital net") could be calculated. Inventory was never compared to the receipts and payments statement as a means of verifying the inventory. For example, depreciation was calculated at the end of the 18th century in order to have an accurate inventory, but it was never featured clearly in the calcula­ tion of profit. The 18th item of the statutes of Plastrier’s Company3 men­ tions that profit is the difference between receipts and payments, and that "they were quarterly calculated after the constitution of a 15000£ (livres toumois) reserve." This was the only means the Company had of knowing how much could be paid to the owners. Such a simplified system was entirely in line with the desire to keep this information confidential. According to Sellon, an important Genevese shareholder of the Company, the simplified accounting system allowed any director, ignorant of accounting, to hold the Ledger sans confidens, that is without the help of a qualified accountant, so that secrets of the business could be preserved. The term "capital" was not used. The statutes only say fonds or effets, which correspond to the inventory value of all the assets of the Company at a fixed date. The owners' contributions to capital were made either in-kind (Venetian glass from Pocquelin in 1667) or in cash after 1702. They were considered an advance to the company, rewarded at a 10% rate. However, these advances were never refunded so that they can be considered as capital. The number of partners was fewer than ten before 1695. After that date, through inherit­ ances and the selling of ownership interests, the number of part­

2014 ◽  
pp. 252-252
Keyword(s):  
18Th Century ◽  
Accounting System ◽  
Short Term ◽  
Net Worth ◽  
Knowing How ◽  
The Difference ◽  
Double Entry

Techniques to Predict Agricultural Droughts

2005 ◽  
Author(s):  
Zekai Şen
Keyword(s):  
Crop Yield ◽  
Satellite Data ◽  
Wheat Yield ◽  
Weather Variables ◽  
Short Term ◽  
Yield Model ◽  
Regression Techniques ◽  
The Difference ◽  
Effects Of Drought

In general, the techniques to predict drought include statistical regression, time series, stochastic (or probabilistic), and, lately, pattern recognition techniques. All of these techniques require that a quantitative variable be identified to define drought, with which to begin the process of prediction. In the case of agricultural drought, such a variable can be the yield (production per unit area) of the major crop in a region (Kumar, 1998; Boken, 2000). The crop yield in a year can be compared with its long-term average, and drought intensity can be classified as nil, mild, moderate, severe, or disastrous, based on the difference between the current yield and the average yield. Regression techniques estimate crop yields using yield-affecting variables. A comprehensive list of possible variables that affect yield is provided in chapter 1. Usually, the weather variables routinely available for a historical period that significantly affect the yield are included in a regression analysis. Regression techniques using weather data during a growing season produce short-term estimates (e.g., Sakamoto, 1978; Idso et al., 1979; Slabbers and Dunin, 1981; Diaz et al., 1983; Cordery and Graham, 1989; Walker, 1989; Toure et al., 1995; Kumar, 1998). Various researchers in different parts of the world (see other chapters) have developed drought indices that can also be included along with the weather variables to estimate crop yield. For example, Boken and Shaykewich (2002) modifed the Western Canada Wheat Yield Model (Walker, 1989) drought index using daily temperature and precipitation data and advanced very high resolution radiometer (AVHRR) satellite data. The modified model improved the predictive power of the wheat yield model significantly. Some satellite data-based variables that can be used to predict crop yield are described in chapters 5, 6, 9, 13, 19, and 28. The short-term estimates are available just before or around harvest time. But many times long-term estimates are required to predict drought for next year, so that long-term planning for dealing with the effects of drought can be initiated in time.

A Review of Metabolic Parameters in Quetiapine Studies Across Diagnoses

2009 ◽  
Vol 24 (S1) ◽  
pp. 1-1
Author(s):  
J. Newcomer ◽  
R. Ratner ◽  
M. Åström ◽  
H. Eriksson
Keyword(s):  
Atypical Antipsychotics ◽  
Extended Release ◽  
Term Treatment ◽  
Metabolic Parameters ◽  
Short Term ◽  
Pooled Data ◽  
Long Term Treatment ◽  
Potential Risks ◽  
The Difference

Background:Data pertaining to changes in weight during long-term treatment with quetiapine (QTP) have been published previously (1).Methods:Pooled data are presented from 26 short-term clinical studies (up to 12 weeks) of QTP or quetiapine extended-release (QTP XR)-as monotherapy or adjunct therapy-conducted by AstraZeneca up to November 2007. Studies were conducted in adult patients (18-65 years) across a number of psychiatric diagnoses. Variables were analyzed irrespective of fasting status with similar analyses planned in the fasting subset. LSM changes from baseline for the difference between QTP and placebo are presented.Results:Approximately 10000 patients were included in the analyses, 70% of whom were treated with QTP or QTP XR. Across the entire short-term dataset, the difference in LSM change in weight for QTP vs. placebo was 1.07 kg. Corresponding differences in glucose regulation parameters were 1.39 mg/dL for glucose and 0.04% units for HbA1C. the overall difference in total cholesterol was 5.48 mg/dL, with differences in HDL and LDL cholesterol of -0.62 mg/dL and 1.69 mg/dL. the difference in LSM change in triglycerides was 22.62 mg/dL.Discussion:Within the context of balancing potential risks against the acknowledged benefits of atypical antipsychotics, the degree and significance of variations in metabolic parameters is an area of continued interest. This analysis helps clinicians to better understand changes in important metabolic parameters across trials with QTP and QTP XR, and the size and uniqueness of the dataset permits further analyses within this important area.Supported by funding from AstraZeneca Pharmaceuticals LP.

scholarly journals Substitute or complement? The use of trade credit as a financing source among SMEs

2017 ◽  
Vol 40 (1) ◽  
pp. 10-27 ◽  
Author(s):  
Darush Yazdanfar ◽  
Peter Öhman
Keyword(s):  
Fixed Effects ◽  
Trade Credit ◽  
Generalized Method Of Moments ◽  
Short Term ◽  
Content Type ◽  
System Models ◽  
Accounts Payable ◽  
Short And Long Term ◽  
Retained Earnings

Purpose This study aims to investigate trade credit as a financing source among small- and medium-sized enterprises (SMEs), particularly the influence of short-term debt, long-term debt and profitability on the use of such credit. Design/methodology/approach Ordinary least squares (OLS), fixed-effects and generalized method of moments (GMM) system models were used to analyze a large cross-sectional panel data set of 15,897 Swedish SMEs in five industry sectors for the 2009-2012 period. Findings The study provides empirical evidence that long-term debt and profitability each significantly and negatively influence trade credit (i.e. accounts payable) and that short-term debt positively influences trade credit. Notably, while trade credit seems to complement other short-term debt, it replaces long-term debt. Moreover, firm size in terms of sales is positively related and firm age is negatively related to accounts payable. Industry affiliation is another significant explanatory variable. Practical implications The results provide debt holders, potential investors, policymakers and academic researchers with insights into the relationship between trade credit demand, on the one hand, and external financing (i.e. short- and long-term debt) and internal retained earnings (i.e. profit), on the other. From a manager’s perspective, the findings may be important for decision-making regarding trade credit use. Originality/value When investigating trade credit determinants, the literature has seldom distinguished between short- and long-term debt and considered that they may influence the use of trade credit in different ways. The present study adds to the literature by using OLS, fixed-effects and GMM system models to analyze a large cross-sectoral sample in a high-tax country where both bank loans and trade credit are considered important financing instruments.

Firm Performance, Capital Structure, and the Tax Benefits of Employee Stock Options

2005 ◽  
Vol 40 (1) ◽  
pp. 135-160 ◽  
Author(s):  
Kathleen M. Kahle ◽  
Kuldeep Shastri
Keyword(s):  
Capital Structure ◽  
Stock Options ◽  
Employee Stock Options ◽  
Short Term ◽  
Tax Shield ◽  
Tax Benefits ◽  
One Year ◽  
Increasing Function ◽  
Options Theory

AbstractThis paper analyzes the relation between the capital structure of a firm and the tax benefits realized from the exercise of stock options. Theory suggests that firms with tax benefits from the exercise of stock options should carry less debt since tax benefits are a non-debt tax shield. We find that both long- and short-term debt ratios are negatively related to the size of tax benefits from option exercise. Moreover, one-year changes in long-term leverage are negatively related to changes in the number of options exercised. Such a relation does not exist for changes in short-term leverage. Finally, firms with option-related tax benefits tend to issue equity, with the net amount of equity issued an increasing function of these tax benefits.

The Risk Premium on Ordinary Shares

1995 ◽  
Vol 1 (2) ◽  
pp. 251-330 ◽  
Author(s):  
A.D. Wilkie
Keyword(s):  
Risk Premium ◽  
Geometric Mean ◽  
Arithmetic Mean ◽  
Short Term ◽  
Arithmetic Means ◽  
Price Inflation ◽  
Geometric Means ◽  
True Model ◽  
The Difference

ABSTRACTThe risk premium on ordinary shares is investigated, by studying the total returns on ordinary shares, and on both long-term and short-term fixed-interest investments over the period 1919 to 1994, and by analysing the various components of that return. The total returns on ordinary shares exceeded those on fixed-interest investments by over 5% p.a. on a geometric mean basis and by over 7% p.a. on an arithmetic mean basis, but it is argued that these figures are misleading, because most of the difference can be accounted for by the fact that price inflation turned out to be about 4.5% p.a. over the period, whereas investors had been expecting zero inflation.Quotations from contemporary authors are brought forward to demonstrate what contemporary attitudes were. Simulations are used along with the Wilkie stochastic asset model to show what the results would be if investors make various assumptions about the future, but the true model turns out to be different from what they expected. The differences between geometric means of the data and arithmetic means are shown to correspond to differences between using medians or means of the distribution of future returns, and it is suggested that, for discounting purposes, medians are the better measure.

A comparative analysis of the implications of the Islamic religion on corporate capital structures of firms in emerging market countries

2014 ◽  
Vol 7 (3) ◽  
pp. 277-287 ◽  
Author(s):  
Theresa Gunn ◽  
Joshua Shackman
Keyword(s):  
Emerging Market ◽  
Empirical Studies ◽  
Short Term ◽  
Content Type ◽  
Corporate Capital ◽  
Muslim Countries ◽  
Total Debt ◽  
Islamic Religion ◽  
The Impact

Purpose – The purpose of this study is to examine the impact of the Muslim religion on firm capital structure. Design/methodology/approach – The authors compare financing patterns in Muslim versus non-Muslim countries using 658 firms in 16 countries covering a period of seven years. Findings – No significant differences between Muslim and non-Muslim countries were found in terms of total debt ratios. However, significant differences were found in the choice of short-term versus long-term debt, with firms in Muslim countries showing a strong preference for short-term debt. Research limitations/implications – The findings confirm existing theories on the impact of the Islamic religion on short-term versus long-term debt preferences. However, the findings concerning the lack of an impact of the Islamic religion on total debt preferences are surprising and contrary to existing theories. Practical implications – Firms in Muslim countries appear to have the flexibility to adopt overall leverage ratios comparable to those in non-Muslim countries. However, firms in Muslim countries may be disadvantaged in that there appear to be impediments to the use of long-term debt. Originality/value – This paper presents one of the first empirical studies of the impact of the Muslim religion on corporate financing choices across a large cross-section of firms in Muslim and non-Muslim countries.

Managing Director's Statement on Strengthening Surveillance - 2011 Triennial Surveillance Review

Policy Papers ◽  
2011 ◽  
Vol 2011 (87) ◽  
Author(s):  
Keyword(s):  
World Economy ◽  
Recent Progress ◽  
Executive Directors ◽  
Executive Board ◽  
The World ◽  
Near Term

After inputs from country authorities, outside experts, and staff; after extensive deliberations at the Executive Board; after further guidance from ministers and governors at the IMFC meetings—after all that, we need to move from diagnosis to action. The goal of making surveillance as interconnected as the world economy remains an inherently long-term endeavor. Nevertheless, building on recent progress, we can do better even in the near term. I want to take this opportunity to put forward some specific measures, based on Executive Directors’ many thoughtful comments and suggestions (Table 1)

scholarly journals Re-analysis of ground-based microwave ClO measurements from Mauna Kea, 1992 to early 2012

2013 ◽  
Vol 13 (17) ◽  
pp. 8643-8650 ◽  
Author(s):  
B. J. Connor ◽  
T. Mooney ◽  
G. E. Nedoluha ◽  
J. W. Barrett ◽  
A. Parrish ◽  
...  
Keyword(s):  
Atmospheric Composition ◽  
Composition Change ◽  
Major Focus ◽  
Short Term ◽  
Data Set ◽  
Long Term Changes ◽  
The Difference ◽  
Long Term Trend ◽  
Linear Decline

Abstract. We present a re-analysis of upper stratospheric ClO measurements from the ground-based millimeter-wave instrument from January 1992 to February 2012. These measurements are made as part of the Network for the Detection of Atmospheric Composition Change (NDACC) from Mauna Kea, Hawaii, (19.8° N, 204.5° E). Here, we use daytime and nighttime measurements together to form a day–night spectrum, from which the difference in the day and night profiles is retrieved. These results are then compared to the day–night difference profiles from the Upper Atmosphere Research Satellite (UARS) and Aura Microwave Limb Sounder (MLS) instruments. We also compare them to our previous analyses of the same data, in which we retrieved the daytime ClO profile. The major focus will be on comparing the year-to-year and long-term changes in ClO derived by the two analysis methods, and comparing these results to the long-term changes reported by others. We conclude that the re-analyzed data set has less short-term variability and exhibits a more constant long-term trend that is more consistent with other observations. Data from 1995 to 2012 indicate a linear decline of mid-stratospheric ClO of 0.64 ± 0.15% yr−1 (2σ).

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