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This study examined the effect of finance choices on the financial performance of listed agricultural firms in Nigeria. This study adopted ex-postfactor research design. Data were sourced from annual reports and accounts of listed agricultural firms. The collated data were analyzed usingdescriptive statistics and Multiple Least Square Regression. The results revealed a significant positive relationship between short term debt,equity, interest coverage ratio and financial performance of listed agricultural firms in Nigeria at 0.05 level of significance. However, there was insignificant negative relationship between long term debt, firm size and financial performance of listed agricultural firms in Nigeria and also anegative but statistically significant relationship between debt ratio and financial performance was observed at 0.05 level of significance. Thisstudy therefore recommended that listed agricultural firms in Nigeria should use more of short term debt in financing their business activities;Government and financial sectors should provide available long term debt for registered farmers and also agricultural firms should be mindful of stringent conditions that may be attached to long term debts; listed agricultural firms in Nigeria should use debt to finance its activities butshould be careful of conditions attached to debt. It is also recommended that listed agricultural firms in Nigeria should increase their equity in financing their business activities; listed agricultural firms in Nigeria should be careful of acquiring unnecessary debt as finance choices for theirbusiness because of the charges and interest (interest coverage) which they may need to cover in the long run and lastly, listed agricultural firmsin Nigeria should enhance their firm size (such as the total asset value, the number of employees, or the total sales) for the purpose of improvingtheir financial performance as firm size is capable of enhancing the financial performance of firms.

Local governments provide a wide range of services and infrastructure to their residents including water, sewer, and storm water systems. In many jurisdictions, utilities are the most capital-inten...

Svrha ovog istraživanja je istražiti empirijske implikacije strukture kapitala na profitabilnost dioničkih društava u odabranim članicama Europske unije. Empirijsko istraživanje je provedeno na uzorku hrvatskih, slovenskih i čeških dioničkih društava čiji su financijski instrumenti uvršteni na tržište kapitala, a u istraživanju je upotrijebljena višestruka linearna regresija na cross sectional podacima. Rezultati istraživanja su pokazali da udjel zadržane dobiti u ukupnom kapitalu i obvezama ima pozitivan i statistički značajan utjecaj na profitabilnost poslovanja dioničkih društava u Republici Hrvatskoj te da udjeli dugoročnog i kratkoročnog duga imaju negativan utjecaj na performansu profitabilnosti. Varijabla udjel zadržane dobiti u ukupnom kapitalu i obvezama ima pozitivan utjecaj na profitabilnost dioničkih društava u Republici Sloveniji, dok udjeli dugoročnog i kratkoročnog duga imaju negativan utjecaj na performansu profitabilnosti. Rezultati empirijskog istraživanja su pokazali da udjel zadržane dobiti ima pozitivan utjecaj na profitabilnost čeških dioničkih društava koji nije statistički značajan. Znanstveni doprinosi istraživanja provedenog u ovom radu se ogledaju u utvrđivanju utjecaja komponenti strukture kapitala na profitabilnost dioničkih društava te da odluke o strukturi kapitala imaju utjecaja na održavanje i unapređenje profitabilnosti dioničkih društava u odabranim članicama Europske unije. Struktura kapitala dioničkih društava u odabranim članicama Europske unije se može smatrati relevantnom jer je utvrđen statistički značajan utjecaj udjela zadržane dobiti na profitabilnost dioničkih društava., The main purpose of the study was to investigate the impact of capital structure on the profitability of listed companies in the members of European Union. The empirical research was based on a sample of Croatian, Slovenian and Czech listed companies and multiple linear regression on cross sectional data was used for research data analysis. The research findings indicate that the retained earnings to capital ratio has a positive and significant impact on the profitability of listed companies in the Republic of Croatia as well as long-term debt to capital and short-term debt to capital ratios have a negative impact on the profitability of listed companies. The empirical results show that the retained earnings to capital ratio has a positive impact on the profitability of listed companies in the Republic of Slovenia while long-term debt to capital and short-term debt to capital ratios have a negative impact on the profitability of listed companies. The results indicate that the capital structure affects the profitability of listed companies differently in the Czech Republic. This study makes several contributions to the field: the impact of capital structure components on corporate profitability is determined as well as the capital structure decisions affect corporate profitability of listed companies in the members of European Union. The capital structure of listed companies in the members of European Union is relevant for the profitability because the retained earnings to capital ratio has a statistically significant impact on the profitability of listed companies.

This study’s purpose is to analyse the influence of DAR, LDER, and TIER on Profitability. Populations of data are taken food and beverage companies listed in BEI from 2009-2011. Samples taken using purposive sampling method and total of samples used during study period is 39 samples. Hypothesis used in this study is multiple linear regression. Based on F test, the results indicated DAR, LDER, and TIER have a significant effect on Profitability. DAR, LDER, and TIER partial effect on Profitability was evaluated using T test. DAR have a negative and non-significant effect on ROE at -0,252. LDER have a negative and significant effect on ROE at -0,437 and TIER have a positive but non-significant effect on ROE at 0,00020.

The article presents the impact of CEO overconfidence on capital structure decisions for Indian firms. Using a sample of S&P BSE 200 companies between 2000 and 2015, this study presents results using regression models on the panel data. The findings of this study highlight the significance of behavioural bias of CEO overconfidence to better understand capital structure decisions. This study found that overconfident CEOs prefer debt financing over equity financing and such overconfident CEOs prefer short-term debt over long-term debt. The behavioural features of CEOs are crucial for board of directors, especially in designing the compensation packages. The robustness of results using multiple proxies corroborates previous finding of western nations and shows that CEOs’ overconfidence plays an important role for CEOs of developing nations too.

As the literature has studied the financing method of Chinese-listed firms for a long time, but with inconclusive indications, this research thus adopts non-financial Chinese-listed firms’ data fro...

This study, proposes an altenative technique for estimating the cost of capital. Specifically, it use discounted residualincome model. The examine firms characteristic that are systemati- cally related to this estimate of cost of capital, it show that a firm's cost of capital isa function of its long term Debt to Book Ratio (Ln D/B), Long Fim Size (Ln Size), Eaming Variability (Ln Ev) and Long Debt to Market Ratio (Ln D/M). These variables explain around 63% of the coss secional variaton in future implied costof capital. The findings suggest that they can be exploited to estimate future cost of capital in Indonesia.

This study aims to provide an in-depth overview of the selection of capital structure of manufacturing companies listed on the Indonesia Stock Exchange (IDX) from 2015 to 2017. The data of this study were 127 annual reports of manufacturing companies listed on the IDX, divided into three types of industry, namely basic and chemical industries, miscellaneous industries, and consumer good industries. The capital structure ratios used in this study were Debt to Asset Ratio (DAR) and Debt to Equity Ratio (DER). It also looked at the ratio of Current Liabilities to Total Debt (CL/TD) and the ratio of Long Term Debt to Total Debt (LTD/TD). The results showed the average DAR of manufacturing companies in Indonesia for 3 years was 45 percent. Meanwhile, the DER rate was 111 percent. The debt of manufacturing companies in Indonesia was dominated by current liabilities compared to long-term debt. The consumer good industries had the lowest DAR and DER levels compared to basic and chemical industries and miscellaneous industries. This study can be used as a basis and overview of the capital structure of manufacturing companies listed on the Stock Exchange for further studies. JEL Classification : G32, L60 DOI: https://doi.org/10.26905/jkdp.v24i4.4312

The objective of this article is to present, according to the Order of the Minister of Public Finance No. 1802/2014 for the approval of the Accounting regulations regarding the individual annual financial statements and consolidated annual financial statements, as subsequently amended and supplemented, the recognition of the long-term debt, the summary of accounting regulations regarding these balance sheet elements, the accounting for different transactions and events related to long-term debt, as well as the impact of these transactions and events on the balance sheet and the statement of cash flows.

The purpose of this research is to determine the capital structure owned by the company and its impact on company profitability. The sample used is companies incorporated in the JII index in the December 2018-May 2019 period. The data used are financial statements in 2019. The variables observed in this study are capital structure variables represented by the LTDA ratio (Long Term Debt to Total Assets) and DER (Debt to Equty Ratio) as the independent variable and ROE (Return on Equity) as the dependent variable. Research conducted on 30 companies included in the JII index shows that there is a significant influence of LTDA and DER variables on company ROE. Judging from the form of influence, LTDA variable gives a negative influence on ROE while the DER variable gives a positive effect on ROE

In a recent article of this journal, Claudio Sardoni ([2019]. ‘Investment and Saving in a Dynamic Context: The Contribution of Athanasios (Tom) Asimakopulos.’ Review of Political Economy 31 (2): 23...

The article is devoted to solving the problematic issues of confirming the amounts of income and expenses that arise in accounting for long-term debt. A review of the literature has shown that domestic researchers do not pay enough attention to the method of determining the effective rate in various situations. It is incorrect to use the approaches of western researchers in determining the effective rate, as in Ukraine there is no unified approach for determining a risk-free rate. The purpose of the article is to justify the approaches to determining the effective interest rate when accounting for long-term debt in order to reflect correctly income and expenses arising from the discount calculation. Over the past few years, during tax audits, tax inspectors do not recognize or recognize income and expenses of income taxpayers that arise from the reflection of the discount in an incomplete amount. As a result, the taxpayers have income tax arrears, the amounts of which they do not agree with, and therefore they must go to court. The issue of confirmation of the amount of income or expenses arising as a result of reflection of the discount is controversial and complicated, therefore often requires the involvement of a forensic expert economist. In practice, there are nonstandard situations, namely: reflection in the accounting of long-term debt with an uncertain maturity; – reflection in the accounting of interest-free financial aid; reflection in the accounting of non-standard loans. It has been determined that the source of the problem is the lack of common approaches to justify the effective rate used in discounting. The court practice of settling disputes between taxpayers and the tax service has been analyzed. It is grounded, in what non-standard operations problems can arise in determining the effective rate. It is determined what approaches to the determination of discount rate should be applied in the realities of Ukraine. It has been substantiated that in order to protect the position of judicial experts when preparing opinions on the issues of reflection of income and costs arising from the discount, it is necessary to develop and approve the methodology for determining the effective rate for calculating the discount.

The debt rescheduling cases have significantly increased in recent years as well. The author employs an analytical qualitative and quantitative method to examine the new forms of external debt in developing nations from 2000 to 2019, and the findings are as follows: (1) Trends in external debt by country group, (2) External debt stocks of PPG long term debt, PNG long term debt increased between 2000 and 2019. (3) Between 2000 and 2019, the external debt stock as a percentage of GDP dropped, while PNG long and short term debt rose somewhat. ((4) In both 2018 and 2000, East and South-East Asia and Oceania and Latin America and the Caribbean exchanged first and second place in terms of largest amount, (5) Between 2000 and 2019, the highest amount of debt carried by SIDS was debt servicing on long-term external PPG. (6) In 2000 and 2021, the redemption schedules of both high-income and low- and middle-income countries increased the amount of redemption from around 2 to 2.32 trillion USD and 0.67 to 1.07 trillion USD, respectively. This demonstrates that they at least have a plan in place to resolve their external debt.

PT Multistrada Arah Sarana, is one of the companies from Indonesia whose products have met the needs of both domestic and overseas. However, in the past 5 years, the company which is often abbreviated as MASA has experienced a decline in sales which has an impact on Indonesia's economic condition. This study is intended to look at what factors cause a decline of the MASA company by looking at the data within a period of 5 years. Based on the Z-score analysis for the years 2012-2016 obtained a result of 1.80, meaning that it is predicted that MASA has the risk of bankruptcy for some future periods.

This chapter aims at analyzing the financing pattern of 1681 Micro, Small and Medium Enterprises (MSMEs) in India for the period 2006–2017. Specifically, we analyze the financial pattern of MSMEs over time and across the cross-section of firms classified on size, geographical spread, sector of operation and ownership type. The study results suggest that Indian MSMEs are heavily dependent on the short-term debt for their financing needs. Additionally, we find that the major constituents of short-term debt are bank loans, payables and inter-corporate borrowings. Further, we find that long-term debt is mostly financed by bank loans, financial institution borrowings, foreign currency borrowings and other borrowings. Further, such pattern has been witnessed across the time period and across firm type. Therefore, no considerable differences have been witnessed across the cross-section of the firms except that of firms with different sizes.

One of the biggest problems small businesses face is obtaining funding, and many of the traditional sources of financing are not available to small businesses. The capital structure of an enterprise is determined by the relationship between its own and borrowed sources of financing. Capital structure can be measured in different ways, and different approaches to understanding and measuring capital structure can be encountered in the literature. The subject of this research is the analysis of the capital structure of small businesses. The aim of this paper is to determine the level of debt of small enterprises in the Republic of Serbia by applying the debt indicators. The main research findings indicate a relatively low level of long-term debt in total sources of financing. These results are in line with the results of other studies, which emphasize that small businesses are more financially risky and that they have difficulty accessing certain sources of financing, especially long-term debt.

How to promote technological innovation with green finance policy has been a focal topic in the global green finance field in recent years. Using the difference-in-difference approach model, this paper investigated the impact of the Green Credit Guidance (GCG) policy implemented by the Chinese government in 2012 on the technological innovation of firms in pollution-intensive industries. The empirical results indicated that GCG had a negative impact, not only on research and development (R&amp, D) input, but also on innovation output, and the impacts on firms with different property rights and different scales were consistent. Further research showed that GCG reduced the long-term debt of firms in pollution-intensive industries, and then significantly decreased the R&amp, D input and innovation output, that is, long-term debt is a mediator in GCG and technology innovation. The results revealed that GCG fails to promote the technological innovation of firms in pollution-intensive industries. This paper suggests that China&rsquo, s green credit policy should pay more attention to the technological innovation, transformation, and upgrading of firms in pollution-intensive industries.

We have created a novel index that classifies U.S. public firms by their leverage choice. Our statistical approach to the construction of this index considers the interaction of all firm characteristics and unpredictable events that shapes the observed leverage choices. We have subsequently associated our estimates of the degree and persistence of short-term and long-term debt fluctuations with pecking-order, market-timing, and static and dynamic trade-off theories. Our index reveals that: (i) one-third of firms have a stationary leverage target, (ii) adjustments to targets are faster for short-term debt, and (iii) the persistence of long-term debt ratios is driven by investment constraints and market conditions.

The aim of the paper is to evaluate the effects of loose monetary policy on corporate investment of manufacturing firms in the Czech Republic during the period between 2006 and 2015. The main focus of the paper is on the effect of low interest rates on investment activity of Czech firms; additionally, the effects of interactions between interest rate and other firm-specific variables are investigated. The results indicate that corporate investment is positively associated with firm size, investment opportunities, and long term debt. Also, a negative effect of the cash position is found. Further, the findings show that monetary policy is a significant determinant of firm investment activity: when the monetary policy is loose, investment is positively affected. Furthermore, differences in the determinants of investment between highly and low leveraged firms were revealed.

Motivated by the recent European debt crisis, this paper investigates the scope for a bailout guarantee in a sovereign debt crisis. Defaults may arise from negative income shocks, government impatience or a “sunspot”-coordinated buyers strike. We introduce a bailout agency, and characterize the strategy with the minimal actuarially fair intervention which guarantees the no-buyers-strike fundamental equilibrium, relying on the market for residual financing. The intervention makes it cheaper for governments to borrow, inducing them borrow more, leaving default probabilities possibly rather unchanged. The maximal backstop will be pulled precisely when fundamentals worsen.

Because it focuses on the moderating role of political institutions – which emphasize equilibrium policy outcomes under different institutional arrangements derived from the interaction of policy s...

We investigate the extent of financial integration in both short and long term government debt markets of five South Asian economies from January 2004 to May 2016. We employ copula functions and find weak dependencies in their short and long term debt markets. We supplement our analysis using Diebold and Yilmaz spillover index and find low level of return spillover across both short and long term debt markets, thereby reconfirming low level of financial integration in the debt markets of the region. Linkages between short and long term debt markets are also weak suggesting underdeveloped nature of these markets.

Purpose This paper aims to empirically investigate the capital structure determinants of small and medium-sized enterprises (SMEs) with a particular focus on short- and long-term debt. Design/methodology/approach Several methods were used to analyse a sample of 15,897 Swedish SMEs for which complete financial information was available for a four-year period following the 2008 financial crisis, i.e. the 2009-2012 period. Findings The results indicate that eight explanatory variables – i.e. size, age, growth, profitability, liquidity, asset tangibility, non-debt tax shields and industry affiliation – are associated to various extents with SME debt policy. Research limitations/implications The current study is limited to examining a sample of Swedish SMEs in five industry sectors covering the 2009-2012 period. Further research could examine the generalizability of the present results by considering other countries, industry sectors and periods. Practical implications As debt policy influences firm performance, value and survival, SME owners and managers, regulators and financial institutions may benefit from studies considering a relatively large number of capital structure determinants, several of which are linked to short- and long-term debt in various ways. Originality/value This study is one of the few to examine the determinants of short- and long-term debt in SMEs, which play a fundamental role in the economy, using a large-scale cross-sectional database covering a period following the 2008 financial crisis.

В статье анализируется долговая устойчивость национальных экономик в условиях общемировой тенденции роста долговой нагрузки и увеличения внешних заимствований развитых и развивающихся стран. Авторы используют различные абсолютные и относительные показатели для выявления вероятности наступления долгового, финансового кризисов и необходимости реорганизации государственных финансов. Особое внимание уделяется основным трендам долговой устойчивости, соотношению долговых и макроэкономических (ВВП, ВНД, импорт) показателей, а также изменениям объемов золотовалютных резервов и доли золота в них.

We find that US firms increase their use of long-term debt after hedge fund activism (HFA). This increase in long-term debt is not correlated to hedge funds’ private benefit extraction but is associated with target firms’ post-HFA corporate governance reforms. Our analysis of new debt issuances shows that the increased debt maturity is related to targets’ increased reliance on long-term public debt and it is not influenced by supply-side constraints. Overall, our findings indicate that post-HFA, target firms substitute their creditor-driven governance with a governance mechanism influenced by activist hedge funds.

En este trabajo se analizan las repercusiones de la crisis fi nanciera subprime en la estructura fi nanciera de las grandes empresas mexicanas del sector manufacturero en el período 2000-2015. Con base en el marco del planteamiento de la Hipótesis de la Inestabilidad Financiera de Minsky, se estudia la evolución de los estados financieros y un indicador de fragilidad fi nanciera en estas empresas. Los resultados muestran que la crisis acentúo la fragilidad financiera de las grandes empresas manufactureras, la cual se gestó en los años previos como resultado de procesos de inversión en activos físicos e intangibles relativos a la expansión de sus mercados, y que se financiaron mediante deuda de corto y largo plazo. La incidencia de los niveles de endeudamiento en su fragilidad financiera se confirma en la estimación econométrica de datos panel para la muestra de 14 grandes empresas manufactureras analizadas.

The purpose of this research was to identify the strategic factors of the country and the companies, to incorporate long term debt in the capital structure of the companies of services and the communication sector that they quoted on the Mexican Stock Exchange in the periods 2000-2012.The mathematical model and the factors used in this empirical study were used in the investigations that were analyzed in the theoretical framework.

This study aims to examine the influence of Capital Structure on Stock Returns in Industrial Jordanian companies listed in ASE. The data collected for 60 Industrial companies in the ASE listed during 2014 – 2018. The study concluded that the Long term debt to equity, Short term debt to equity, and total debt to total assets have a positive effect on stock return and the conclusions advise that industrial companies in Jordan must focus on short-term borrowing and reduce the long-term borrowing to avoid the company's inability to afford more interests.

Using cross-sectional panel data over eleven years (2009–2019), or 1001 firm-year observations, this study examines the relationship between capital structure and firm performance of service sector firms from Australian stock market. Unlike other studies, in this study directional causalities of all performance measures were used to identify the cause of firm performance. The study finds that long-term debt dominates debt choices of Australian service sector companies. Although the finding is to some extent similar to trends in debt financed operations observed in companies in developed and developing countries, the finding is unexpected because the sectoral and institutional borrowing rules and regulations in Australia are different from those in other parts of the world.