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on Corporate Finance |
| By: | Rasid, Abdu |
| Abstract: | Introduction: This study aims to determine the impact of corporate governance structures on external fees in sharia stocks that are consistently listed in JII in 2013-2018. Methods: The number of samples in this study recorded 12 consistent sharia stocks listed in the years 2013-2018. This study uses a quantitative approach with panel data analysis method. Results: The results show that the average size of the board of commissioners is six to seven people, the average size of the board of directors is seven to eight people, the average size of the audit committees is three to four people, and the average size of the internal audit is fifteen to sixteen people. The hypothesis test shows that variables which have a significant impact on the audit fee are the size of the board of commissioners and the internal audit. Meanwhile, the size of the board of directors and the audit committees do not have a positive impact on audit fees. Conclusion and suggestion: Companies use more funding from debt than their own capital. Judging from the liquidity ratio, it shows that the company is in a liquid state, which is very capable of fulfilling obligations or debts that must be immediately paid by the company. |
| Date: | 2023–02–17 |
| URL: | https://d.repec.org/n?u=RePEc:osf:osfxxx:q6kmz_v1 |
| By: | Cicilia Anggadewi Harun (Bank Indonesia); Danny Hermawan (Bank Indonesia); Ade Dwi Aryani (Bank Indonesia); Fariz Ahmad Sultansyah (Bank Indonesia) |
| Abstract: | This study examines the trend of corporate deleveraging in Indonesia, particularly in response to economic uncertainties like the COVID-19 pandemic. Historically, corporate deleveraging has been observed globally, with companies in Japan, the US, and Europe adopting strategies to reduce debt levels during periods of financial crisis and stagnation. In Indonesia, companies tend to shift from debt financing to equity-based funding, especially in sectors that saw increased demand during the pandemic. This shift reflects a broader global trend of deleveraging as companies aim to mitigate risk and maintain financial stability. Using an analysis of financial ratios, this study identifies patterns of deleveraging among Indonesia’s nonfinancial companies and evaluates its potential impacts on banking performance. In response to COVID-19's financial challenges, many companies shifted from debt to equity-based financing to maintain stability. This shift led to a decrease in the debtto-equity ratio for non-financial companies in Indonesia, indicating reduced reliance on debt. An increase in the Interest Coverage Ratio post-pandemic showed that some companies became less dependent on debt as their earnings improved. The Bayesian network model use to analyzes banking performance, with factors such as the BI rate, Economic Condition, Macro-Prudential Policy, Corporate Leveraging, and Credit Risk playing a role. Results indicate a 57% likelihood of corporate deleveraging and a 79% probability of high banking performance, with Economic Condition and Credit Risk being the most significant factors for banking performance. Sensitivity analysis shows that low BI rate, economic expansion, and low credit risk are the most influential for high banking performance. |
| Keywords: | bayesian network, corporate leveraging, deleveraging, sensitivity analysis |
| JEL: | C11 E44 G21 G32 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:idn:wpaper:wp082024 |
| By: | Tesfaye T Lemma; Michael Machokoto; Tendai Gwatidzo |
| Abstract: | This study examines the impact of the Basel III regulatory framework on financing decisions within South Africas real sector. Using a sample of 2 045 firm-year observations spanning the years 20112015 and employing the difference-in-differences approach, we find a significant decrease in debt financing and debt maturity for firms deemed constrained relative to unconstrained firms in the post-Basel III implementation period. Further analyses suggest that the Basel III regulatory framework has a persistent effect on financing decisions in the real sector. Our findings indicate that the Basel III regulatory framework reduces leverage and debt maturity, especially for constrained firms. |
| Date: | 2024–10–14 |
| URL: | https://d.repec.org/n?u=RePEc:rbz:wpaper:11067 |
| By: | Holmberg, Johan (Department of Economics at Umea School of Business, Economics and Statistics, and Uppsala Center for Fiscal Studies (UCFS)); Selin, Håkan (Institute for Evaluation of Labour Market and Education Policy (IFAU) and UCFS) |
| Abstract: | An increase in the dividend tax on shares of Swedish closely-held corporations, scheduled for January 1, 2018, was canceled at short notice. In a difference-in-difference setting, we examine how firms reacted to the canceled reform. We find that dividends payments increased in 2016 and 2017 and declined sharply in 2018, especially for cash-rich firms. However, cash holdings recovered quickly in 2018 and 2019, and the excessive dividend payouts did not affect investments. Paradoxically, the discontinued reform implied an additional tax burden for those engaged in intertemporal tax arbitrage. |
| Keywords: | Owner level taxes; tax planning; investments; employment |
| JEL: | G35 H32 |
| Date: | 2025–04–08 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:ifauwp:2025_003 |
| By: | Ernest Liu (Princeton University); Yukun Liu (Rochester University); Vladimir Smirnyagin (University of Virginia); Aleh Tsyvinski (Yale University) |
| Abstract: | We study the impact of supply chain disruptions on U.S. firms based on the universe of seaborne shipment-level import transactions from 2013 to 2023. The granularity of the data allows us to build an index of firm-level disruptions of international suppliers and introduce a comprehensive set of stylized facts for supply chain relationships in the cross-section of firms. We build a general equilibrium heterogeneous firms model with two types of capital stocksÑphysical and international supplier capitals. Accumulation of supplier capital is an important endogenous margin of adjustment, and limiting this ability substantially delays recovery, especially in financially constrained firms. |
| Date: | 2024–02–13 |
| URL: | https://d.repec.org/n?u=RePEc:cwl:cwldpp:2402r1 |
| By: | Kiesel, Florian; Lübbering, Andreas; Schiereck, Dirk |
| Abstract: | This article applies the alternative three-factor model introduced by Chen / Novy-Marx / Zhang (2010) to the German stock market for the sample period of 2004 through 2015. We construct two new factors INV („investment") and ROA („return on assets") for companies listed on the highest segment of the Frankfurt Stock Exchange, and examine whether they can explain various stock market anomalies using linear time series regressions. Our results reveal that the theoretical assumptions of the model are valid for the German stock market. Firms with higher investments generally exhibit lower returns, while more profitable firms exhibit higher returns. However, we find that the alternative three-factor model does not explain capital market anomalies in the German market better than the factors of the traditional Fama / French (1993) three-factor model. |
| Date: | 2025–03–18 |
| URL: | https://d.repec.org/n?u=RePEc:dar:wpaper:153624 |
| By: | Chimwemwe Chipeta; Lerato Mapela |
| Abstract: | We examine the effects of the implementation of the Basel III accord on the growth of non-bank financial institutions and fintech platforms in South Africa. Using a difference-in-difference estimation procedure, we find evidence of regulatory arbitrage, suggesting that the imposition of minimum capital requirements results in the growth of deposit-taking non-bank financial institutions. Our results are robust to alternative event windows and falsification tests. In contrast, country-level estimations show that tighter minimum capital restrictions constrain the growth of fintech platforms in South Africa, while innovation plays a crucial role in driving the growth and funding of fintech ventures in select African economies. Our results highlight the need for targeted policies that enable and sustain a vibrant fintech ecosystem. |
| Date: | 2024–11–08 |
| URL: | https://d.repec.org/n?u=RePEc:rbz:wpaper:11070 |