Explanatory Factors of the Capital Structure

Silva, Marta; Gomes, Luís; Lopes, Isabel Cristina

doi:10.28991/esj-2020-01249

Cited by 7 publications

(19 citation statements)

References 29 publications

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“…It is used in institutional and policy analysis as well as in social science. It is utilized to study how certain contextual and rule factors shape incentives for behavior, and the evolution of institutions over time, which can be explained from actors that look for cooperative solutions for social dilemmas [48,[51][52][53]. Furthermore, desk-studies also suggest that formal game theory models can create a range of realworld games, which can be used to explore fairness and allocation questions in the distribution of values among actors [53,54].…”

Section: -5-thematic Evolution Of Policy Research Theoriesmentioning

confidence: 99%

Bibliometric Analysis of Trends in Theory-related Policy Publications

et al. 2021

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This study's bibliometric analysis evaluates the scope and trends of theory-related policy publications in various international journals. The method used the Scopus search engine on random journals in identifying policy-related publications. The study also used a data visualization software called VOSviewer to analyze the results, underlying network linkages, and information production trends in policy analysis. The findings shows that only a few proportions of policy-related researches apply theories in their study. Field-specialized journals were having practitioners publish less research as compared to interdisciplinary science and technology journals. This article calls for greater engagements among scholars, and for policy researchers to more explicitly consider how their work might contribute to the understanding of the policy challenges. The findings also shows that it is important to recognize the approach and theory behind policy development to determine the incremental nature of aspects involved in policy development. It is extremely valuable to be clear that if one deals only with conceptual level of policy research without testing those ideas against independent empirical information, then scientific theory development is not possible. Thus, failure to consistently and clearly make theory connection towards policy research is a lost opportunity for scholars to influence policy thinking and public argument. Doi: 10.28991/esj-2021-01261 Full Text: PDF

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Section: -5-thematic Evolution Of Policy Research Theoriesmentioning

confidence: 99%

Bibliometric Analysis of Trends in Theory-related Policy Publications

et al. 2021

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“…Capital structure decisions are supported by trade-off theory (TOT) and pecking-order theory (POT) (Agyei et al, 2020;Silva et al, 2020). TOT suggests that the firm has a maximum value when the benefits of debt are equal to its marginal cost.…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

Institutional Environment and Bank Capital Ratios: Empirical Evidence from SAARC Countries

Zeb

2022

LJB

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: The purpose of this study is to investigate the impact of the institutional environment on the capital ratios of banks operating in the South Asian Association for Regional Cooperation (SAARC) area. We apply the Hausman-Taylor methodology to unbalanced panel data of 145 banks (109 conventional and 36 Islamic banks) for the period 2010 to 2019. The findings demonstrate that banks with greater creditors’ rights have a low regulatory capital ratio. Similarly, banks are reluctant to hold a high regulatory capital ratio as a result of greater corruption perception. However, countries with more financial openness hold higher regulatory capital ratios to present greater financial strength. We also provide evidence that the impact of creditors’ rights is more distinct in conventional banks than in Islamic banks. Finally, we demonstrate that with more financial openness, small banks hold a higher regulatory capital ratio than large banks.

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“…In the case of Portuguese SMEs in the hospitality sector, Pacheco and Tavares (2017) identified profitability and liquidity as driving factors of business capital structures, along with growth, firm size, asset tangibility (the proportion of tangible assets in total assets), and non-debt tax benefits. Other variables, such as cash flow to total assets, legal form of the business sector of activity, and country-specific factors were introduced by De Jong et al (2008), Majumdar (2014), Silva et al (2020), and Lopes and Carvalho (2021).…”

Section: Research Backgroundmentioning

confidence: 99%

Solvency Risk and Corporate Performance: A Case Study on European Retailers

Horobeț

Curea

Popoviciu

et al. 2021

JRFM

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This paper proposes a new approach toward understanding the financial performance dynamics in the EU retail sector (pre-pandemic); we focus on the connection between indebtedness and solvency risk and other areas of corporate performance (e.g., liquidity, assets efficiency, and profitability). Its contribution resides in identifying the drivers behind solvency risk in a sector that went through significant transformations in recent decades, as well as the links between the various areas of performance of retailers, and their impacts on solvency risk, using the machine-learning random forest methodology. The results indicate a declining trend for solvency risk of EU food retailers after the global financial crisis and up until the beginning of the pandemic, which may reflect their maturity on the market, but also an adjustment to legal changes in the EU, meant to equalize the tax advantages of debt versus equity financing. Solvency risk accompanied by liquidity risk is a mark of the retail sector, and our results indicate that the most critical trade that EU retailers face is between solvency risk and liquidity, but is fading over time. The volatility of liquidity levels is an important predictor of solvency risk; hence, sustaining a stable and good level of liquidity supports lower risks of financial distress, and may mitigate the shock impacts for EU retailers. A higher solvency risk was accompanied by increased efficiency of asset use, but reduced profitability levels, which led to higher returns available to shareholders for high solvency risk retailers. Overall, retailers should focus on operational performance evidenced by financial indicator levels than on the volatility of these indicators as predictors of solvency risk.

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Explanatory Factors of the Capital Structure

Cited by 7 publications

References 29 publications

Bibliometric Analysis of Trends in Theory-related Policy Publications

Bibliometric Analysis of Trends in Theory-related Policy Publications

Institutional Environment and Bank Capital Ratios: Empirical Evidence from SAARC Countries

Solvency Risk and Corporate Performance: A Case Study on European Retailers

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