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on Corporate Finance |
| By: | zainal, nursyafikin |
| Abstract: | The purpose of this study sought to examine the overall performance of Chin Teck Plantation Bhd with explicit risk factors and macroeconomic factor on profitability performance. The data obtained from annual report of Chin Teck Plantation Bhd. Starting from 2011-2015. The measurement of index for corporate governance, return on asset, few risk assessment and used to see the overall performance of Chin Teck Plantation Bhd. The further measurement is the asset size, this variable has a negative and no significant relationship with return on asset. To see the relationship of risks factors to the profitability, this paper is utilizing liquidity, inflation ratio, GDP and operating ratio. Data was analyzed by utilizing regression. The regression analysis shows factor of profitability is significant to liquidity and leverage ratio which is ROA with the highest impact to the profitability. However, the liquidity and GDP is not significant to profitability with low impact to the profitability. |
| Keywords: | Credit Risk, Liquidity, Profitability and macroeconomic |
| JEL: | G30 G32 G33 G34 M4 M41 M42 |
| Date: | 2017–03–31 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:78391&r=cfn |
| By: | Bruche, Max; Malherbe, Frédéric; Meisenzahl, Ralf |
| Abstract: | Leveraged term loans are typically arranged by banks but distributed to institutional investors. Using novel data, we find that to elicit investors' willingness to pay, arrangers expose themselves to pipeline risk : They have to retain larger shares when investors are willing to pay less than expected. We argue that the retention of such problematic loans creates a debt overhang problem. Consistent with this, we fi nd that the materialization of pipeline risk for an arranger reduces its subsequent arranging and lending activity. Aggregate time series exhibit a similar pattern, which suggests that the informational friction we identify could amplify the credit cycle. |
| Keywords: | Debt overhang; lead arranger share; leveraged loans; pipeline risk; syndicated loans |
| JEL: | G23 G24 G30 |
| Date: | 2017–04 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:11956&r=cfn |
| By: | Max Bruche; Frederic Malherbe; Ralf R. Meisenzahl |
| Abstract: | Leveraged term loans are typically arranged by banks but distributed to institutional investors. Using novel data, we find that to elicit investors' willingness to pay, arrangers expose themselves to pipeline risk: They have to retain larger shares when investors are willing to pay less than expected. We argue that the retention of such problematic loans creates a debt overhang problem. Consistent with this, we find that the materialization of pipeline risk for an arranger reduces its subsequent arranging and lending activity. Aggregate time series exhibit a similar pattern, which suggests that the informational friction we identify could amplify the credit cycle. |
| Keywords: | Debt Overhang ; Lead Arranger Share ; Leveraged Loans ; Pipeline Risk ; Syndicated Loans |
| JEL: | G23 G24 G30 |
| Date: | 2017–04–06 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedgfe:2017-48&r=cfn |
| By: | Baker, Colleen (Independent Consultant); Cumming, Christine M. (Federal Reserve bank of New York (retired)); Jagtiani, Julapa (Federal Reserve Bank of Philadelphia) |
| Abstract: | This paper discusses the new financial regulations in the post–financial crisis period, focusing on capital and liquidity regulations. Basel III and the capital stress tests introduced new requirements and new definitions while retaining the structure of the pre-2010 requirements. The total number of requirements increased, making it difficult to determine which constraints are binding. We find that the new common equity tier 1 (CET1) and Level 1 high-quality liquid assets (HQLAs) are the binding constraints at large U.S. banks, especially for banks that are active in capital markets activities. Banks have been holding more CET1 and a larger share of Level 1 HQLAs since the financial crisis of 2007 to 2009. We also find that the market pricing of bank debt appears to have responded to changes in liquidity measures, especially at large capital markets banks. The Basel III regulatory capital ratios appear to have little direct influence on spreads. |
| Keywords: | bank capital regulations; bank liquidity; CET1; high-quality liquid assets (HQLAs); Basel III; Dodd–Frank Act; financial stability |
| JEL: | G12 G18 G21 G28 |
| Date: | 2017–04–24 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedpwp:17-10&r=cfn |
| By: | Harun, Nur Ilyani |
| Abstract: | The study aims to measure corporate governance and its impact firm performance and risk of United Malacca Berhad (UMB). The method of the study is regression analysis of United Malacca Berhad by using SPSS System. The study found that UMB has a positive relationship between return on asset and return on equity. However, the ROA and leverage ratio was negative relationship. Meaning that the company has borrowed too much money even though they earns profit. The regression analysis show that 2 out of 13 factors are significantly influence the profitability of UMB. |
| Keywords: | credit risk; liquidity risk; profitability; and macroeconomics |
| JEL: | G0 G2 G22 G3 G32 M1 |
| Date: | 2017–04–07 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:78381&r=cfn |
| By: | Khalil, Nur Syafiqah |
| Abstract: | The main purpose of this study is to examine the relation between the overall performance of Hwa Tai Sdn Bhd with firm specific risk and some macroeconomics factor involved. The data collected are from Hwa Tai Sdn Bhd’s annual report starting from 2011 until 2015. The calculation of liquidity ratio, profitability ratio and operating ratio are used to see the overall performance of Hwa Tai Sdn Bhd. A correlation model comprise of dependent variable which is ROA and numerous independent variable was used to analyse the performance of Hwa Tai Sdn Bhd. This study empirical results showed that ROI is the most significant meaning in the performance of Hwa Tai Sdn Bhd. |
| Keywords: | firm specific risk; macroeconomics factor; liquidity ratio; profitability ratio; operating ratio; ROA; ROI |
| JEL: | G0 G01 G02 G2 G21 G23 G28 |
| Date: | 2017–04–17 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:78510&r=cfn |
| By: | Stanimir Morfov (University of Miami); Manuel Santos (University of Miami) |
| Abstract: | In this paper we present an adverse selection model of managerial talent. The model can account for some empirical regularities in executive compensation such as the higher level of CEO pay and the prominence of incentive pay in large and high-volatility firms as well as the controversial evidence on career concerns. Relative performance evaluation (RPE) is only obtained if the performance function is weakly separable on managerial talent and internal productivity factors. These predictions stand in sharp contrast to those of competing theories based upon moral hazard, managerial talent, and rent extraction. |
| Keywords: | Managerial talent; adverse selection; optimal contract; firm’s size; volatility of company returns; CEO age; relative performance evaluation Publication Status: Ex. Under Review |
| JEL: | D82 G30 J33 |
| Date: | 2017–03–28 |
| URL: | http://d.repec.org/n?u=RePEc:mia:wpaper:2017-03&r=cfn |
| By: | Jono, Siti Junaidah |
| Abstract: | The purpose of this study is to examine the overall performance of Vivocom Intl Holdings Berhad with specific risk and corporate governance variables on profitability performance. The data obtained from annual report of Vivocom Intl Holdings Berhad starting from 2011-2015. The measurement of liquidity ratio and operating ratio used to see the overall performance of Vivocom Intl Holdings Berhad in 5 years which allegedly beyond benchmark. To see the relationship of risks factors to the profitability, this paper is utilizing liquidity (current ratio), operating ratio, corporate governance (index and BOD’s remuneration). Data was analysed by utilizing regression and bivariate correlation. The regression analysis and bivariate correlation shows that index, BOD’s remuneration, current ratio, liquidity ratio, operating ratio, and size have a significant relationship on profitability. However, the leverage, exchange rate, inflation rate, GDP and unemployment rate is not significant to profitability with low impact to the profitability. |
| Keywords: | Liquidity Risk: Operational Risk: Systematic Risk: Corporate Governance: Profitability |
| JEL: | G1 G20 G30 G32 G33 G34 Z0 Z00 |
| Date: | 2017–04–18 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:78590&r=cfn |
| By: | Ghani, Luqman |
| Abstract: | The purpose of this study is to examine the overall performance of the company APB Resources Berhad with the specific risk and their profitability factor on performance. The data that are use is annual report of APB Resources Berhad starting from 2012-2016. The measurement of return on asset, leverage, current ratio and inventory turnover ratio to see overall the performance of this company. The additional measurement is the method of SPSS that give a specific results on the risk and profitability on performance during five years. The relationship return on asset, current ratio, leverage, gross domestic product, inflation remuneration board are the factors of the performance. The regression analysis and correlation shows only the impact and effect on the performance during five years. |
| Keywords: | Credit Risk, Profitability, Risk Management, Corporate Governance |
| JEL: | G21 G32 |
| Date: | 2017–04–16 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:78376&r=cfn |
| By: | Othaman, Ridhuan |
| Abstract: | The main study is to analyze about the overall of the risk and the performance of the Fraser & Neave Holdings Bhd (F&N). All the is get from annual report that get from the Bursa Malaysia. The measurement of the company is used in variety of ratio such as liquidity risk, operational risk, credit risk and financial risk. These ratio is useful to know well about the company. |
| Keywords: | Risk and performance of the company, profitability and Liquidity. |
| JEL: | G0 G00 G3 G30 L1 P0 |
| Date: | 2017–03–30 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:78503&r=cfn |
| By: | Nuri Ersahin |
| Abstract: | I analyze the impact of strengthening of creditor rights on productivity using plant-level data from the U.S. Census Bureau. Following the adoption of anti-recharacterization laws that improve the ability of lenders to access the collateral of the firm, total factor productivity of treated plants increases by 2.6 percent. This effect is mainly observed among plants belonging to financially constrained firms. Furthermore, treated plants invest in capital of younger vintage and newer technology, and become more capital-intensive. My results suggest that strengthening of creditor rights leads to a relaxation in borrowing constraints, and helps firms adopt a more efficient production technology. |
| Keywords: | Creditor Rights; Productivity; Anti-Recharacterization Laws; Bankruptcy |
| JEL: | D24 G32 G33 K22 |
| Date: | 2017–01 |
| URL: | http://d.repec.org/n?u=RePEc:cen:wpaper:17-36&r=cfn |
| By: | Mohamad, Wahidah |
| Abstract: | This study examines the performance of Amanahraya Real Estate Investment Trusts (ARREIT) with risk factor and macroeconomic factor towards profitability performance. The information from annual report of ARREIT starting from 2011-2015. This study can assist investors, regulatory body, fund managers and academics to make a better informed investment decision on Malaysia REITs. This study has provided interesting and important information and insights into the performance of Malaysia REITs. There are internal and external factors which are return on assets, return on equity, return on investment, current ratio, total assets turnover and debt ratio. |
| Keywords: | Credit risk, liquidity, profitability and macroeconomics. |
| JEL: | G3 |
| Date: | 2017–04–19 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:78594&r=cfn |
| By: | Heitor Almeida; Kristine Watson Hankins; Ryan Williams |
| Abstract: | Purchase obligations are forward contracts with suppliers and are used more broadly than traded commodity derivatives. This paper is the first to document that these contracts are a risk management tool and have a material impact on corporate hedging activity. Firms that expand their risk management options following the introduction of steel futures contracts substitute financial hedging for purchase obligations. Contracting frictions – such as bargaining power and settlement risk – as well as potential hold-up issues associated with relationship-specific investment affects the use of purchase obligations in the cross-section as well as how firms respond to the introduction of steel futures. |
| JEL: | G32 |
| Date: | 2017–04 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:23331&r=cfn |