scholarly journals Impact of Financial Leverage on Debt Servicing Capability - A Comparative Study Between Listed MNCs and Domestic Companies of Bangladesh

2019 ◽  
Vol 9 (4) ◽  
pp. 290
Author(s):  
Syed Md. Khaled Rahman ◽  
Tasmina Chowdhury Tania
Keyword(s):  
Correlation Coefficient ◽  
Negative Relationship ◽  
Secondary Data ◽  
Financial Leverage ◽  
Coverage Ratio ◽  
Quota Sampling ◽  
The Impact ◽  
Domestic Companies ◽  
Two Populations ◽  
Selection Of

The use of debt in a firm’s capital structure is called financial leverage. The main objective of the study was to analyze the impact of financial leverage on debt servicing capability of DSE-listed MNCs & domestic companies in Bangladesh over a 20-year period (1998-2017).The study was based on secondary data. There are two populations in the study-one for MNCs and other for domestic companies. Stratified and Quota Sampling techniques were applied for the selection of sample items of MNCs and domestic companies respectively. Seven companies from each of the two populations were selected as sample from six industrial sectors.It is seen that MNCs’ interest paying ability and debt repayment capability is far higher than that of domestic companies in every year. In case of both types of firms, correlation coefficient between DFL (CS) and coverage ratio is significant. Weakly negative relationship is seen between DFL (General) and coverage ratios. MNCs show comparatively stronger negative relationship between all measures of DFL and coverage ratios than domestic companies. In case of domestic companies, correlation coefficient between coverage ratios and three leverage ratios (TD/TA, TD/SE and TD/CE) are significant. In case of MNCs, correlation coefficient between TIE and LTD/CE is significant.

Impact of liquidity and financial leverage on firm’s profitability – an empirical analysis of the textile industry of Pakistan

2019 ◽  
Vol 23 (4) ◽  
pp. 291-305 ◽  
Author(s):  
Asif Hussain Samo ◽  
Hadeeqa Murad
Keyword(s):  
Textile Industry ◽  
Negative Impact ◽  
Negative Relationship ◽  
Secondary Data ◽  
Annual Data ◽  
Strong Impact ◽  
Financial Leverage ◽  
Content Type ◽  
The Impact ◽  
Textile Sector

Purpose This study aims to determine the impact of liquidity and financial leverage on the profitability, using a sample of 40 selected publicly quoted companies in the textile sector of the Pakistani economy. Design/methodology/approach Through quantitative approach, pooled panel regression and descriptive statistics models are used by taking annual data of Pakistan’s textile sectors from 2006 to 2016. Secondary data has been gathered from financial statements of the firms. Findings The results revealed that there is a positive relationship between liquidity and profitability and negative relationship between financial leverage and profitability. The results for liquidity measure CR revealed positive strong impact on ROA and the financial leverage measure D_E ratio showed negative but not strong impact on ROA. The other part of result concluded that there is a positive strong impact of C_R on ROE too and D_E has a negative impact on ROE. Research limitations/implications The results are showing the impact among these ratios for the textile sector of Pakistan only. Practical implications This study can help higher management of textile firms firm in decision-making stating clearly about how to perform well to enhance financial health of company, which can encourage investors to invest in companies having sound market standing. Originality/value This study takes the latest empirical data with different analysis technique.

scholarly journals Pengaruh Program "Yuk Nabung Saham" Terhadap Minat Investasi Pada Kelompok UKM di Kota Prabumulih Sumatera Selatan

2020 ◽  
Vol 4 (1) ◽  
pp. 364-370
Author(s):  
Zakaria Harahap
Keyword(s):  
Correlation Coefficient ◽  
Secondary Data ◽  
Primary Data ◽  
Coefficient Of Determination ◽  
Survey Method ◽  
Simple Linear Regression ◽  
Purposive Sampling ◽  
Independent Variables ◽  
The Impact ◽  
Selection Of

Let's Save Stocks Against Investment Interest in SMEs Group in Prabumulih City, South Sumatra. The purpose of this study is to analyze the impact of the "Yuk Nabung Saham" program on investment interest in the SME group in Prabumulih City, South Sumatra. The research method used in this study using a survey method. By collecting primary data and secondary data. The selection of the research location was determined deliberately (purposive sampling) then the data obtained would be analyzed using the T test with simple linear regression. The population selection in this study was the UKM group in Prabumulih as many as 5,436 UKM, the method of determining the sample used was purposive sampling with the consideration of respondents who were influencers / deciders, with sampling using the Slovin Umar formula (2013), so the sample to be used in this study is as many as 98 respondents representing a randomly selected population. The results show that the value of the correlation coefficient and the coefficient of determination can be used to determine the proportion of the independent variables (X) in explaining the Y variable.The correlation coefficient of 0.827 indicates that there is a strong and unidirectional influence between saving stocks and investment interest in the Prabumulih City UKM group. . The coefficient of determination is 0.827 or 82.7%, the variation of saving stocks, which can explain the investment interest variable, while the remaining 13.7% is explained by other variables not examined in this study. Keywords: Saving Stocks and Investment Interest

scholarly journals The Impact of Government Debt on the Economic Growth of Ghana: A Time Series Analysis from 1990-2015

2015 ◽  
Vol 2 (5) ◽  
pp. 31-39 ◽  
Author(s):  
Lucy Anning ◽  
Collins Frimpong Ofori ◽  
Ernest Kwame Affum
Keyword(s):  
Economic Growth ◽  
World Bank ◽  
Negative Relationship ◽  
Secondary Data ◽  
Government Debt ◽  
Ordinary Least Squares ◽  
Poor Countries ◽  
High Dependency ◽  
Heavily Indebted Poor Countries ◽  
The Impact

In this study we investigate the impact of government debt on the economic growth of Ghana adopting the methodology of the simple Ordinary Least Squares with data spanning from 1990 to 2015. Ghana has unfortunately found itself in the tragic situation of high external government debt which has led to high dependency on aid and other loans to support its development. These aids and loans have seen the debt of Ghana rise steadily over the years. As a result of the Heavily-Indebted Poor Countries (HIPC) which was presented by the IMF and World Bank in 1999, Ghana was judged to be a HIPC with unsustainable debt enabling the country to benefit from debt relief. We investigate the impact of government debt (both external and domestic) by testing three related models at the domestic and external levels including the general growth of the Ghanaian economy. In constructing our dataset, we build on the study of many scholars including a substantial amount of new materials from both primary and secondary data sources being Ministry of Finance (MOF) or Treasury Latest actual data: Government Finance Statistics Manual (GFSM), Ghana and World Bank. The research findings revealed that there is a negative relationship between debt (domestic and external) and growth in the economy of Ghana and recommend among others that government debt borrowing should be discouraged while increasing the revenue base through tax reform programs is encouraged.

The Social Issue in the Company

2019 ◽  
Vol 5 (1) ◽  
pp. 37-43
Author(s):  
Abdelatif Kerzabi ◽  
Nawal Chemma
Keyword(s):  
World Bank ◽  
Negative Relationship ◽  
Secondary Data ◽  
Government Debt ◽  
Ordinary Least Squares ◽  
Poor Countries ◽  
High Dependency ◽  
Heavily Indebted Poor Countries ◽  
Research Findings ◽  
The Impact

In this study, we investigate the impact of government debt on the economic growth of Ghana adopting the methodology of the simple Ordinary Least Squares with data spanning from 1990 to 2015. Ghana has unfortunately found itself in the tragic situation of high external government debt which has led to high dependency on aid and other loans to support its development. These aids and loans have seen the debt of Ghana rise steadily over the years. As a result of the Heavily-Indebted Poor Countries (HIPC) which was presented by the IMF and World Bank in 1999, Ghana was judged to be a HIPC with unsustainable debt enabling the country to benefit from debt relief. We investigate the impact of government debt (both external and domestic) by testing three related models at the domestic and external levels including the general growth of the Ghanaian economy. In constructing our dataset, we build on the study of many scholars including a substantial amount of new materials from both primary and secondary data sources being Ministry of Finance (MOF) or Treasury Latest actual data: Government Finance Statistics Manual (GFSM), Ghana and World Bank. The research findings revealed that there is a negative relationship between debt (domestic and external) and growth in the economy of Ghana and recommend among others that government debt borrowing should be discouraged while increasing the revenue base through tax reform programs is encouraged.

scholarly journals How Do the Volume and Maturity of Debt Relate to Investment Efficiency? The Case of Asia

2020 ◽  
Author(s):  
Ehsan Poursoleiman ◽  
Gholamreza Mansourfar ◽  
Sazali Abidin
Keyword(s):  
Negative Relationship ◽  
Debt Maturity ◽  
Investment Efficiency ◽  
Financial Leverage ◽  
Short Term ◽  
Optimal Capital Structure ◽  
Optimal Capital ◽  
The Impact ◽  
Practical Implications

This study aims to investigate the impact of debt volume and maturity on investment efficiency. It also analyzes the role of debt maturity in the association between debt volume and investment efficiency. The sample consists of 8,741 firm-year observations from 1,301 Asian corporations, covering the period 2007-2017. Financial leverage is employed as a proxy for debt volume as well as short-term debt for debt maturity. The findings reveal that debt volume and short-term debt are inversely related to investment efficiency. It also shows that the negative relationship between financial leverage and investment efficiency is weaker (closer to zero) for firms with higher use of short-term debt than those with lower use of short-term debt. This paper tries out agency and information asymmetry theories and provides practical implications regarding the optimal capital structure for firms headquartered in Asia.

scholarly journals Impact of equity and debt financing on financial performance of quoted manufacturing companies in Nigeria

2020 ◽  
Vol 3 (2) ◽  
pp. 64-76
Author(s):  
Bibiana Njogo ◽  
◽  
Jaiyeoba Oladele ◽  
Oladotun Mabinuori ◽  
◽  
...  
Keyword(s):  
Corporate Governance ◽  
Empirical Studies ◽  
Negative Relationship ◽  
Secondary Data ◽  
Debt Financing ◽  
Least Square ◽  
Manufacturing Companies ◽  
Earnings Per Share ◽  
The Impact ◽  
A Company

Empirical studies have shown that equity and debt financing is one of the important determinants affecting the performance of a company. This study sought to examine the impact of equity and debt financing on performance on quoted manufacturing companies in Nigeria using the Panel Fully Modified Least Square on secondary data on earnings per share, debt and equity covering the period 2010-2018. To increase earnings, findings show that equity positively influences earnings per share while a negative relationship exists between earnings per share and debt. The study recommends that firms should finance their company majorly with equity shares rather than debt. KEY WORDS: Corporate governance, Equity, Debt, Earnings per share, and Firm’s performance.

scholarly journals The Effect of Working Capital Management on Corporate Profitability: Evidence from Nigerian Food Product Firms

2015 ◽  
Vol 1 (2) ◽  
pp. 55 ◽  
Author(s):  
Sabo Muhammad ◽  
Rabi’U Saminu Jibril ◽  
Usman Sani K. Wambai ◽  
Fatima Bello Ibrahim ◽  
Tjjani Habibu Ahmad
Keyword(s):  
Stock Exchange ◽  
Negative Relationship ◽  
Secondary Data ◽  
Food Product ◽  
Annual Reports ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Short Term Investment ◽  
The Impact

The paper examines the impact of working capital management on corporate profitability through the periods of 2008 to 2012. The total of seven firms listed on the floor of the Nigerian Stock Exchange was studied, using secondary data generated from annual reports and accounts of the sampled companies and the Nigerian Stock Exchange Fact book. The data were analyzed by means of descriptive statistics and GLS regression analysis using STATA 11. The study finds a positive relationship among Average Collection Period (ACP), Current Ratio (CR) and the size of the firm (LOGSIZE) with Profitability and a negative relationship with Inventory Turnover Period (ITP), Average Payment Period (APP). The paper therefore recommends that cash collected should be re-invested into short-term investment to generate profits and fund left idle in the cash or excessive liquidity is costly and do not lead to profitability.

scholarly journals Analisis Pengaruh Mental Blocking Terhadap Berpikir Analitis Dan Kritis Dalam Kegiatan Promosi

2021 ◽  
pp. 49-58
Author(s):  
Dimas Perdana Oskar ◽  
Andhika Anggawira
Keyword(s):  
Critical Thinking ◽  
Negative Relationship ◽  
Secondary Data ◽  
Small Enterprise ◽  
Cross Sectional ◽  
Business People ◽  
Descriptive Research ◽  
Future Researcher ◽  
Business Women ◽  
The Impact

Failure in promotional activities if not well managed will make business people in some condition that is known as mental blocking. This research design is descriptive research into secondary data with cross sectional approach which was held to understand the impact of mental blocking toward analytical and critical thinking in micro and small enterprise promotion activities. This research location was in Padang by collecting 229 research questionnaires from micro and small business women from July 28th 2020 to August 7th 2020 with 5% error rate. We can conclude that there was negative relationship between mental blocking and analytical and critical thinking with R -0.62. On the same hand, this research finding is that mental blocking have no significant impact toward analytical and critical thinking where R2is 4 percent. This was due to majority in scoring distribution of mental blocking aspect were in low level while majority in scoring distribution of analytical and critical thinking in higher level. This study suggested that future researcher must simplified the research scale and deeper analysis in finding other variable.

Effect of Financial Leverage on Firm's Market Value Creation in Bangladesh

2017 ◽  
Vol 4 (2) ◽  
pp. 41-58
Author(s):  
Syed Md. Khaled Rahman
Keyword(s):  
Value Creation ◽  
Tobin’S Q ◽  
Financial Leverage ◽  
Tobin's Q ◽  
Book Value ◽  
Explanatory Variables ◽  
Basic Objective ◽  
Equity Ratio ◽  
The Impact ◽  
Domestic Companies

This article contends that a firm's performance is affected by various factors and capital structure is one of the factors among them. The basic objective of the research is to analyze and compare the impact of financial leverage on firms' Market to Book Value (MV/BV) and Tobin's Q ratio of DSE-listed MNCs & domestic firms of Bangladesh over a 20-year period (1996-2015). Explained variables are Market to Book Value (MV/BV) and Tobin's Q ratio. Explanatory variables of the interest are indicators of six financial leverage ratios. MV/BV is negatively related with leverage ratios of both types of companies. Domestic companies' MV/BV decreases by 0.016 times for 1% increase of debt ratio while MNCs' MV/BV decreases by 0.048 times for 1% increase of debt-equity ratio and vice-versa. With debt-equity ratio, domestic companies' Tobin's Q is positively related while that of MNCs is negatively related.

The impact of marketing innovation on companies’ environmental orientation

2020 ◽  
Vol 35 (1) ◽  
pp. 1-12 ◽  
Author(s):  
Natalia Medrano ◽  
María Cornejo-Cañamares ◽  
Cristina Olarte-Pascual
Keyword(s):  
Technological Innovation ◽  
Negative Relationship ◽  
Secondary Data ◽  
Manufacturing Companies ◽  
Path Modeling ◽  
Environmental Orientation ◽  
Content Type ◽  
Marketing Innovation ◽  
Service Companies ◽  
The Impact

Purpose The purpose of this study is to explore the relationship between companies’ marketing innovation and environmental orientation and to determine how this relationship differs between manufacturing and service companies. Design/methodology/approach The study uses secondary data from the Technological Innovation Panel (PITEC) to look at 6,435 Spanish companies during the 2013-2015 period. To examine the contingency effect of the activity sector, the sample is divided into two subsamples: manufacturing companies and service companies. Partial least squares path modeling is used to test and validate the research model and proposed hypotheses. Findings The results show there is a statistically significant negative relationship between marketing innovation and environmental orientation. Significant differences were also found between manufacturing and service companies depending on the companies’ activity sector and size. Practical implications The analyzed manufacturing and service companies still use traditional marketing and have yet to embrace the “green marketing” or “marketing 3.0” concept. The marketing innovations a company undertakes should be positively, rather than negatively, related to its environmental orientation. In today’s companies, the two actions must go hand in hand. Originality/value Most studies on environmental orientation have focused on its relationship with technological innovation. In this sense, it is important to analyze its relationship with marketing innovation as well, as nowadays, when consumers are deciding between different companies’ products, they look for “companies with values.” Companies thus need to engage in environmentally oriented marketing innovation.

Sign in / Sign up

Export Citation Format

Share Document