Convertible bond issuance volume, capital structure, and firm value

Liao, Yulu; Huang, Paoyu; Ni, Yensen

doi:10.1016/j.najef.2022.101673

Cited by 5 publications

(4 citation statements)

References 81 publications

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“…Companies that can minimize the weighted average cost of capital will maximize firm value (Anarfo & Appiahene, 2017). Meanwhile, Liao et al (2022) and Doorasamy (2021) stated that capital structure affected the firm value.…”

Section: Capital Structurementioning

confidence: 99%

“…Information disclosure of large companies can reduce misunderstandings of information about companies compared to small companies (Baek, 2022). The bank size, the greater the bank's ability to fund the bank funding needs with equity by issuing new shares (Al-Eitan et al, 2022; Liao et al, 2022;Carosi, 2016).…”

Section: Bank Sizementioning

confidence: 99%

“…Hypothesis assessment summary on loans decreases, increasing the bank's firm value(Dzeha et al, 2022). The negative influence of capital structure of bank on firm value of bank, as revealed byLiao et al (2022) andLiu et al (2020), states that the lower the capital structure, the lower the bank's dependence on debt. In addition, if the bank owes too much, it will increase the loan's potential default risk of interest and principal (Doorasamy, 2021).…”

mentioning

confidence: 96%

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The effect of profitability and bank size on firm value sustainability: The mediating role of capital structure

Linawati

Moeljadi

Djumahir

et al. 2022

Investment Management and Financial Innovations

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Sustainable firm value is the central concept for corporations, including the banking industry. This study examines the effect of profitability and bank size on firm value through capital structure. This study surveyed six banks registered in BUKU 4-member commercial banks operating in Indonesia that have been listed on the Indonesian Stock Exchange and implemented digital banking practices from 2007 to 2019. The six banks are Bank Mandiri, Bank Rakyat Indonesia, Bank Negara Indonesia, Bank Central Asia, Bank CIMB Niaga, and Bank Panin. Data collection is carried out by tracing the banks’ reports from the Bloomberg system terminal. Data analysis used a two-stage least squares technique. The results showed that profitability negatively and significantly affected the capital structure with a coefficient of –0.374. Moreover, bank size influences the capital structure with a negative coefficient value of –0.334. In addition, profitability positively affects firm value with a coefficient value of 0.387. Furthermore, bank size influences capital structure with a beta coefficient value of 0.158. Finally, the bank size affects firm value with a coefficient value of –0.419. These findings provide an insight for bank management to enhance firm value by assessing profitability, bank size, and capital structure. This study also contributes to the ongoing research in financial management.

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Section: Capital Structurementioning

confidence: 99%

Section: Bank Sizementioning

confidence: 99%

mentioning

confidence: 96%

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The effect of profitability and bank size on firm value sustainability: The mediating role of capital structure

Linawati

Moeljadi

Djumahir

et al. 2022

Investment Management and Financial Innovations

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“…This mixture of the proper debt-toequity ratio will cause a reduction in the weighted cost of capital due to the fund mix chosen (Shrestha, 2019). If a firm's capital structure decision affects its value, it would like to have a capital structure that optimizes its market value (Liao et al, 2022). The relationship between capital structure and financial performance has been seen to be impacted by variables such as stock market development, country growth, and firm specific characteristics such as firm size (Abdullah and Tursoy 2021b).…”

Section: Hypothesis Developmentmentioning

confidence: 99%

The Moderating Effect of Agency Cost on the Relationship Between Capital Structure and Financial Performance

2023

QZJ

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This study investigates the relationship between capital structure and financial performance. It also examines the moderating effect of agency theory on the proposed relationship. Panel secondary data is collected for 11 industry firms quoted on the Iraqi Stock Exchange during the period 2004-2020. Financial performance is measured using ROA and MBV. According to the data analysis, the study findings confirm that capital structure has a significant negative effect on ROA but positively effects MBV. Regarding the moderating effect of agency cost, there are strong interactions in the model, which indicate that AUR has a significant impact. Moreover, firm size as a control variable has a positive impact on firm performance. These results support the agency theory argument from an emerging country. The results provide significant insights for managers of the sector, particularly for the current rapid development of the sector.

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Examining the effect of agency cost on capital structure-financial performance nexus: empirical evidence for emerging market

Sdiq

Abdullah

2022

Cogent Economics & Finance

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Convertible bond issuance volume, capital structure, and firm value

Cited by 5 publications

References 81 publications

The effect of profitability and bank size on firm value sustainability: The mediating role of capital structure

The effect of profitability and bank size on firm value sustainability: The mediating role of capital structure

The Moderating Effect of Agency Cost on the Relationship Between Capital Structure and Financial Performance

Examining the effect of agency cost on capital structure-financial performance nexus: empirical evidence for emerging market

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