Purpose The purpose of this paper is to analyze the corporate capital structure stability of listed firms in China during the period 1990–2013. Design/methodology/approach The study uses panel data from a sample of 716 firms that have been listed in China for at least 15 years. A fixed-effects panel data regression model with time effects is used in the estimation. Findings The findings show that size, profitability and investment opportunities have a significant influence on capital structure, whereas the tangibility of assets is not found to be significant. Few industries show significance in explaining differences and variation in leverage ratios. Social implications It is recommended by this study that corporate managers of listed firms in China should consider leverage ratios variation while choosing the capital structure. Originality/value This study can be helpful in assisting companies to make financing decisions and setting up strategies relevant in their growth and profitability. The study will also have a significant assistance to bring to light corporate issues to policy makers, especially in the areas of both equity and debt financing, particularly the bond market. To the society, this study will show the nature of Chinese-listed companies, and it can assist individual investors in making decisions regarding companies in which they hold investments and in making meaningful comparisons with other companies. The paper also aims at contributing to the existing literature on the empirical study on capital structure.
Nowadays the Central African Republic (CAR) is experiencing huge economic insecurity which mostly derives from the political governance crisis that the country has been continuously undergoing since its independence in 1960. This paper examines the relationship between political governance crisis and economic security in the country covering the period of 1996-2015, using two stage instrumental analysis and second order asymptotic tests. The results show that political stability and absence of violence/terrorism ,voice and accountability, proxies of political governance crisis played a different role on national income per capita, agricultural raw materials exports, agriculture value added, external balance on goods and services, food exports, food imports, foreign direct investment, GDP growth, GDP per capita growth, inflation, wage and salaried workers, industry value added, total natural resources rent and trade , proxies of economic security. The importance of sustainable political governance stability and the implementation of appropriate reforms at institutional level are a preconditions to economic security.
Political stability normally plays an essential role in the process of economic development of any country. The vector error correction model (VECM) is employed to examine the impact of political stability on economic growth in Tanzania covering the period of 1996–2014. The cointegration test has been ascertained through the application of augmented Dickey–Fuller (ADF) and Phillips–Perron (PP) tests showing that there is a long-run relationship. The results show that only political stability is statistically significant and has a positive relationship with economic growth, while gross domestic investments (GDI) and total labour forces are not statistically significant but have a positive relationship with economic growth.
To investigate the possible relationship among military expenditure, exports and foreign direct investment (FDI) on economic growth in Cameroon covering the period of 1996–2014, the vector autoregresssion (VAR) model was employed. The results show that military expenditure and the exports are significant at 0.0000 and 0.01 per cent, respectively, and have a positive relationship with gross domestic product growth and the FDI is not significant but has a positive relationship with the economic growth in short run. However, many efforts should be directed towards energy production and infrastructure developments in order to benefit plenty for FDI in the long run for economic sustainability.
PurposeThe purpose of this paper is to investigate the effect of corruption control on capital flight in the least corrupt African countries.Design/methodology/approachUsing panel data covering the period of 1996-2010.FindingsThe results show that the extent of corruption, the total natural resources rent are statistically significant and affect positively the capital across the pooled, random and fixed effects. Inflation and economic growth are also found to have a negative impact on capital flight. Moreover, the exchange rate has a negative and significant effect on capital flight.Practical implicationsThe findings of this study suggest that the extent of corruption control by responsible institutions can be considered as one of the most effective weapons in the fight against capital flight in the least corrupt African countries.Social implicationsThe paper recommends to the government of the least corrupt countries in Africa to create an enabling political and economic environment for investor’s attractiveness. This, in turn, will reduce the occurrence of capital flight and lead to the sustainable development.Originality/valueThe findings of this study suggest that the extent of corruption control by responsible institutions can be considered as one of the most effective weapons in the fight against capital flight in the least corrupt African countries. The paper recommends to the government of the least corrupt countries in Africa to create an enabling political and economic environment for investor’s attractiveness. This, in turn, will reduce the occurrence of capital flight and lead to the sustainable development.
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