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Purpose – Most empirical papers on threshold effects between debt and growth focus on developed countries or a mix of developing and developed economies, often using public debt. Evidence for developing economies is inconclusive, as is the analysis of other threshold effects such as those probably caused by the level of relative development or the repayment capacity. The objective of this study was to examine threshold effects for developing economies, including external and total debt, and identify them in the debt-growth relation considering three determinants: debt itself, initial real Gross Domestic Product (GDP) per capita and debt to exports ratio. Design/methodology/approach – We used a panel threshold regression model (PTRM) and a dynamic panel threshold model (DPTM) for a sample of 47 developing countries from 1970 to 2019. Findings – We found (1) no evidence of threshold effects applying total debt as a threshold variable; (2) one critical value for external debt of 42.32% (using PTRM) and 67.11% (using DPTM), above which this factor is detrimental to growth; (3) two turning points for initial GDP as a threshold variable, where total and external debt positively affects growth at a very low initial GDP, it becomes nonsignificant between critical values, and it negatively influences growth above the second threshold; (4) one critical value for external debt to exports using PTRM and DPTM, below which external debt positively affects growth and negatively above it. Originality/value – The outcome suggests that only poorer economies can leverage credits. The level of the threshold for the debt to exports ratio is higher than that found in previous literature, implying that the external restriction could be less relevant in recent periods. However, the threshold for the external debt-to-GDP ratio is lower compared to previous evidence.

The study was conducted to assess the impact of capital structure on the share price volatility in Tanzania. The study utilized quantitative secondary data spanning a ten (10) year period from 2013 to 2022, sourced from the Dar es Salaam Stock Exchange (DSE) and annual reports of six (6) chosen manufacturing companies. The data was analysed using the random effect panel regression model. Findings revealed that all independent variables (Short term, long term and total debt) have a negative statistically significant effect on share price volatility. On the basis of the study’s findings, the research suggested that, listed companies should adopt effective debt management strategy to mitigate share price volatility. Also, Capital market and security authorities (CMSA) are advised to provide regulatory guidance and enforce transparent reporting requirements for listed companies. Furthermore, Investors are encouraged to adopt a strategic investment approach, considering companies with effective debt management in their decisions. Future researches should use Autoregressive Distributed Lag (ARDL) model to capture both short- and long-term impact of capital structure changes, and include additional debt related metrics and microeconomic factors for a more nuanced understanding of share price volatility. [ABSTRACT FROM AUTHOR]

The effects of the worldwide economic slump, which was largely triggered by SARS-CoV-2, have undermined the profitability of businesses. As a result, the overarching goal of this research is to look into the impact of capital structure choices on the financial performance of services firms quoted on the Nigerian Exchange Group (NGX). With an adjusted population of 11 listed services firms in Nigeria, the analysis spans from 2011 to 2020. The secondary data was collected from the annual reports of the selected enterprises and African financials, using an ex-post facto design. The generalised least square model was employed for the analysis of the data. While both retained earnings and total debt have a positive and significant influence on earnings per share, short-term and long-term debts, and equity were insignificant, according to the findings. The study, on the other hand, suggests that company executives save earnings to be spent solely on rainy days in order to minimize negative shocks that could harm a company's going-concern objective. [ABSTRACT FROM AUTHOR]

The uncertainty that the COVID-19 pandemic has brought demonstrates that income redistribution and traditional debt relief mechanisms are insufficient to meet public spending needs, mitigate external debt, and comply with the UN's Sustainable Development Goals (SDGs), which aim to reduce multilateral debt to sustainable levels. Also, West African countries have focused their attention on the long-term fight against poverty and inequality and strengthening their social programs, especially in primary health care and macroeconomic stability. However, for more than a decade, the developing and least developed countries of West Africa have faced rapidly weakening macroeconomic conditions, combining several interrelated crises such as the sharp decline in oil prices, volatile financial markets and tourism disruptions, a global recession, the crisis of climate change, and shortages of food and energy, along with the economic contraction of COVID-19. Data from these countries show that health spending increases economic growth, minimizes infant mortality rates, and reduces debt. Furthermore, increasing government spending efficiency reduces the total debt and improves the health sector, in particular. [ABSTRACT FROM AUTHOR]

This study investigates the relationship between capital structure and earnings management while using size as a moderator. Annual data for seventeen years (from 2004-2020) for ninety-seven companies listed in Egyptian stock market is obtained for the purpose of the study. Total debt, long term debt, and shortterm debt are used as measure of capital structure while discretionary accruals were used to measure earnings management. Jones Model was used for calculation of discretionary accruals. Data were checked using correlation analysis, panel data analysis regression to test fixed and random effect and Hausman test was used to select best model. The results indicate a significant impact of capital structure on earning management. While there was positive relationship between size and earning management and negative relationship between size and capital structure. Thus, we concluded that firms with a debt-based capital structure have creditors that act as a watchdog over its earnings management practices; however, the results were statistically significant when controlling for firm size. [ABSTRACT FROM AUTHOR]

Considering electricity utilization as the primary source for the firms to sustain and grow, this study examines the impact of an electricity shortfall on firms' access to financial leverage of 432 listed non-financial Pakistani firms from 2001 to 2020. The analysis uses pooled ordinary least squares (OLS), fixed effects (FE), and the generalized method of moments (GMM) and finds that an electricity shortfall adversely impacts access to financial leverage. This adverse effect increases with an increase in the intensity of the electricity shortfall and vice versa. The results suggest that capital structure is associated with the electricity supply to the listed firms. • The utilization of electricity is the primary source of energy for firms to operate and sustain themselves. • Inefficient electricity supply significantly affects the access of financial leverage for firms. • Electricity reliability enhances firms' performance and broadens the market for financial leverage. [ABSTRACT FROM AUTHOR]

This study analyzes the long run and short run impact of total government debt as well as external and internal debt on interest rate in Pakistan. The study follows the loanable funds theory to examine the relationship between government debt and interest rate and estimates three econometric models under ARDL framework. The study uses time series data of Pakistan from 1973 to 2018 at annual frequency. The results of the study found negative and significant effect of total government debt and external government debt on interest rate in the long run, while no relationship exists between internal government borrowing and interest rate in the long run. Unidirectional causality exists from total government debt, and external government debt to nominal long term interest rate, while no causality exists between internal government debt and nominal long term interest rate. Government has to reduce fiscal and foreign trade deficit by expanding export opportunities instead of lowering nominal interest rate to decrease the repayment of borrowing. Government has to increase internal borrowing resources instead of taking loans from external sources to control the increase in real interest rate. The government has to take long term debt instead of relying on short term debt. [ABSTRACT FROM AUTHOR]

The prime objective of the current study is to investigate the total sovereign debt on the economic growth of Thailand. Since domestic debt is considered to be an economic growth stimulator particularly during the period of recession, therefore, its instruments are intended to analyze in this research. In a country, the lack of funds may negatively influence economic growth, therefore, most countries like to use external debt to finance its expenditures, such as Thailand. This situation can be improved by focusing on these countries developmental research. In Thailand, the information scarcity regarding domestic debt acts as a policy constraint while designing an effective domestic debt mobilization policy. Thus, the present study predominantly aims to investigate the domestic debt effects on Thailand economic growth. The study has examined the domestic debt effects on the economic growth, during 1998-2018. The variables used in this study are extracted from the previous literature and the theoretical framework used in this study. The key variables analyzed are Treasury bills, Government securities, and Investment issues, not forgetting the loans mainly housing loans fund, market loans of Thailand. The study has used the Johansen and Juselius co-integration approach to examine the long run relationship while ECM approach was used to see the speed of adjustment in the short run. Furthermore, we have conducted the Lagrange Multiplier test to all variables to check the presence of autocorrelation. The results show that there is no autocorrelation in the variables. For the instrument of Government securities, we have found that all the variables which are financial sector, social security institutions, insurance companies, and financial sector show a statistically significant result in long run analysis. On the other hand, short run analysis based on ECM model shows that social security institution, insurance companies, financial sector and foreign holders turn to be significant while public sector show insignificant results. The result for ECM also shows that the model is well adjusted in the short run. [ABSTRACT FROM AUTHOR]

Decision on the capital structure of an enterprise is very important because a bad decision can affect a company's profitability leading to a decrease in the shareholders value. The good financial decision can increase the market value of the owners' equity and poor financial decisions can decrease it. The main objective of financial decisions is to maximize the wealth of stockholders. The effect that capital structure decisions have on profitability and enterprise value is that it increases value through the present value of tax savings from the use of debt. The enterprises can use debt or equity capital to finance their assets. The best what they do is to mixture the debt and equity. This paper analyses how far the capital structure affects the profitability of agricultural holdings in the Czech Republic for a period of six years from 2008 to 2013. Data was obtained from the Albertina and was analysed by using the descriptive statistics, the correlation analysis and the regression analysis. The results show that there is a negative relationship between the short-term debt to the total assets and profitability, between the long-term debt to the total assets and profitability, and between the total debt to the total assets and profitability.

This work presents the evolution for the main economic and financial indicators and the risk of bankruptcy for a company who is the most modern maritime - river port on the Danube, in the period 2009-2013. The evolution of the main economic and financial indicators in the last years 2009- 2013 is very dramatic, because Net profit margin (%) decreased from 65.76% in 2009 at 9.93% in 2013 and after tax ROE (Return on Equity) decreased from 6.69% in 2009 at 2.93% in 2013, so less than half. Bankruptcy risk has always been very important both for investors, for company managers, and for banking institutions and if this intensifies then it becomes a warning for them. Regression models can be used to explain relationships among economic and financial indicators.

This study aims to determine the relationship between the capital structure and economic value added. In this context, the rates of total debt to total asset, total current debt to total asset, total long debt to total asset and total debt to total equity are distinguished as the measures of capital structure. The data used in this study consisted of a sample of 133 companies listed in Tehran Stock Exchange from 2008 to 2012. To analyze the data and to perform hypothesis tests, a linear regression model, based on combinatorial methods or data panel, and also a nonparametric Spearman correlation analysis have been applied. The results of the research hypothesis tests based on regression analysis revealed an insignificant relationship between capital structure and economic value added. Furthermore, the results showed that, there was an inverse moderate relationship between rate of total debt to total asset and total current debt to total asset with economic value added. There is an inverse weak relationship between rate of total long debt to total asset and total debt to total equity with economic value added.

This study examines the effects of lending constraints on the financial policies of UK publicly listed companies during the 2007–2009 financial crisis. Using a sample of 2039 publicly listed firms, the results of our analysis indicate that financial policies of firms are sensitive to variations in the supply of external finance and credit, suggesting that liquidity-constraint firms with low cash reserves suffered more at the time of the credit crunch. While managing through the potential negative effects of the financial crisis, majority of the sample companies increased the use of internal finance and deferred the payments of dividends which helped them apply effective financial policies during the crisis period. The findings of this study also document that during the crisis period, financial policies of firms were exposed to variations in the supply of finance and credit, which, by implication, posed a threat to their operations, sustainability and growth. Our findings produce awareness about the negative effects of the non-availability of external finance and credit supply to listed companies, and signify the role of different financing channels and credit system in the operations and growth of listed companies. These findings have implications for financial regulation and policy making in the UK. [ABSTRACT FROM AUTHOR]

The importance of cities in the economic system of the country is unquestionable. They group and attract a large number of economic actors and allow them to realize intense economic interactions between them. To offer long-term benefits for inhabitants and entrepreneurs and remain attractive for them, cities need to develop continuously. Ensuring the development of the city means to create and acquire resources to increase its capacity and use of the available potential. This article deals with the financial capacity of Slovak cities, which reflects their ability to ensure their development. The financial capacity of Slovak cities was investigated in time period 2009 -2014. Investigated were all 138 Slovak cities and they were divided into three size groups: small cities with population up to 20 000 inhabitants, medium-sized cities with population between 20 001 and 50 000 inhabitants and large cities over 50 001 inhabitants. The evaluation of financial capacity was realized on six indicators: current account balance, capital account balance, total debt, debt service, immediate liquidity and net worth. The comparison of the calculated values of each group showed that the highest amount of resources allocate to their development the group of largest cities. On the other hand, that group has also the highest debt. [ABSTRACT FROM AUTHOR]

Review of empirical studies from both developed and developing countries show that the findings on the impact of corporate financial structure on financial performance continue to yield conflicting and inconsistent findings. While some findings reveal positive and significant effects, many studies show negative and significant findings. At the same time there are some studies that show insignificant effects and as such the debate continue to call for more empirical investigations. The objective of this study is to investigate how employing ownership structure could moderate the effect of corporate financial structure on a firm's long-term performance using return on assets (ROA), return on equity (ROE), and Tobin's Q as measures of corporate financial performance. The proposed study would be conducted in Nigerian banking industry, and the study would examine the banks' operations for 6 years (2010-2015). The regression analysis would be employed in analyzing the panel data. [ABSTRACT FROM AUTHOR]

Decision on the capital structure of an enterprise is very important because a bad decision can aff ect a company's profitability leading to a decrease in the shareholders value. Th e good fi nancial decision can increase the market value of the owners' equity and poor fi nancial decisions can decrease it. Th e main objective of fi nancial decisions is to maximize the wealth of stockholders. Th e eff ect that capital structure decisions have on profitability and enterprise value is that it increases value through the present value of tax savings from the use of debt. Th e enterprises can use debt or equity capital to fi nance their assets. Th e best what they do is to mixture the debt and equity. Th is paper analyses how far the capital structure aff ects the profitability of agricultural holdings in the Czech Republic for a period of six years from 2008 to 2013. Data was obtained from the Albertina and was analysed by using the descriptive statistics, the correlation analysis and the regression analysis. Th e results show that there is a negative relationship between the short-term debt to the total assets and profitability, between the long-term debt to the total assets and profitability, and between the total debt to the total assets and profitability. [ABSTRACT FROM AUTHOR]

The objective of this paper is to examine the association between the Corporate Leverage (cl) and the Dividend Policy (dp) of firms across industries in India in respect of Size of Corporate Firms. The investigation is conducted on a panel sample of 73 firms across industries [Cement, Chemical and Fertilizer, it, Oil and Gas, Pharmaceutical, Shipping, and Textiles], which listed their shares in National Stock Exchange (nse) in India for the period 1996-2007. The impacts of Capital Structure (cs) variables (leverage) on dp measures - dividend payout (Net dividend paid/net income) in the presence of some basic fundamental variables are considered to be the determinants of dp, using the Multiple Regression Technique (ols method). The results of the cross-sectional ols Model for the selected sample firms under various sectors show that there is a significant effect of selected independent variables, dpoα+β1dpot-1 +β2pat+β3tde+β4cf+β5size+β6inv+ β1ltd + β8std + e. Therefore, this study proves that the dp of Small Size, Medium Size, Large Size, and Overall Corporate Firms across industries in India is dependent on the level of debt in cs. [ABSTRACT FROM AUTHOR]

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• This study was the suicide trends related to three economic and life indicators during the 40-year period in Japan. • Among the females who committed suicide, suicide trends were associated with the difference between actual income and consumer spending and with the total debt. • Among the males who committed suicide, suicide trends were associated only with the total debt. • It is necessary to perform further suicide prevention based on the results in several areas including legal medicine. Each year in Japan from 1990 to 1997, approx. 21,000–24,000 individuals committed suicide. In 1998, the number of suicides increased to >30,000, and a trend of high suicide numbers then persisted for >10 years. Although Japan's annual number of suicides has recently been decreasing, it remains among the highest worldwide. Herein, we assessed the annual suicide data (numbers and rates) related to three economic and life indicators: (1) the difference between actual income and consumer spending of one average month per year in one household, (2) the annual difference between exports and imports, and (3) the annual total debt determined by statistical analyses for both sexes/males/females during the 40-year period from 1979 to 2018 in Japan. Our findings indicated that [1] total debt may be associated with both the number of suicides and the suicide rate for both sexes, for males, and for females, and [2] the difference between actual income and consumer spending may be associated with both the number of suicides and the suicide rate only in females. These findings revealed factors that are clearly suicide-related, and it is necessary to design suicide prevention strategies based on the factors. Relevant public and private entities should become aware of the involvement of both debt and the difference between income and spending in suicide trends as they plan suicide prevention measures. Further analyses of suicide data should be performed in a wide range of fields including legal medicine, toward a greater understanding of suicide risk factors. [ABSTRACT FROM AUTHOR]