Managerial risk incentives and a firm’s financing policy

Karpavičius, Sigitas; Yu, Fan

doi:10.1016/j.jbankfin.2019.01.013

Cited by 16 publications

(11 citation statements)

References 41 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Thus, there was relationship indications between debt and risk-seeking behaviour. Karpavičius and Yu (2019) underlined that person with a low-risk tolerance profile (high-risk seeker) would have a high tendency to take on debt. Arya et al (2013) and Raharja et al (2017) also declared that financial manager whose higher risk-seeking behaviour tend to have a higher probability of taking higher debt for financing their firms.…”

Section: Behavioral Attribute Of Smes Ownermentioning

confidence: 99%

The Behavioural Dimension of Sme’s Owner on Affecting the Financial Decisions

Raharja¹,

Bachtiar

Aziz

2022

Business: Theory and Practice

View full text Add to dashboard Cite

This research seeks the effect of behavioural and non-behavioural factors of SME’s owners and their business characteristic on the financing decisions. Moreover, this research categorized SMEs owners based on their behavioural aspects on establishing a behavioural mapping in SMEs industry. The sample of this research is the informal SMEs owners in Surakarta, Central Java, Indonesia. In investigating the relationship of the independent variable on financial decision making, this research employed the hierarchical linear multiple regression model (HLMR) and multiple logistic regression (LR). Furthermore, this research employed cluster analysis for building a behavioural mapping in SMEs industry. This study discovered a significant effect of behavioural aspects of SME’s owners on the financing decisions, which is, instead of having significant enforcement on the financing decisions, the non-behavioural aspects were more likely impacted on the SMEs owners’ investment decisions. The finding shows that there are three significant groups of SMEs owners in the Surakarta region. The result of this research gives key insights, mainly to the involved stakeholder to keep the sustainability of the SMEs industry.

show abstract

Section: Behavioral Attribute Of Smes Ownermentioning

confidence: 99%

The Behavioural Dimension of Sme’s Owner on Affecting the Financial Decisions

Raharja¹,

Bachtiar

Aziz

2022

Business: Theory and Practice

View full text Add to dashboard Cite

show abstract

“…Penelitian yang berkaitan dengan prilaku pembiayaan dalam suatu perusahaan telah banyak dilakukan oleh beberapa ahli, tetapi implikasinya hanya pada manajemen perusahaan dan kinerja perusahaan serta untuk ekonomi secara keseluruhan (Seo and Chung 2017;Karpavičius and Yu, 2019). Strategi pembiayaan di dalam perusahaan bisa dilakukan berdasarkan jenis pembiayaan.…”

Section: Pendahuluanunclassified

Prilaku Pendanaan dan Resiko Kebijakan pada Perusahaan Kelautan di Bursa Efek Indonesia

Husna

Sofia

2021

JKAA

View full text Add to dashboard Cite

This study aims to determine the risk of policies, company-specific characteristics that have an impact on the behavior of marine company financing in Indonesia. Samples were obtained using purposive sampling and obtained 16 samples of Marine companies that were Listed on the Indonesia Stock Exchange in the 2015-2018 Period. The data in this study were processed using the Stata 14.0 application. And the estimation method in this research is to use the random effect method. The results of this study for the independent variable risk policy consisting of EPU (economic policy uncertainty) and GPR (political risk) do not affect all types of funding, both debt, capital and actual financing. While the independent variable IOS has no significant effect on the three types of financing used, and cash flow variable has a significant effect on debt financing and actual financing while capital financing does not. Sales growth has a significant effect on the type of debt financing at alpha 5%, while actual financing has a significant effect on alpha 10% and has no effect on capital financing.

show abstract

“…This comprehensive effect would result from the manager's preference for riskier investment and financial policies. Therefore, we use leverage as a proxy for the financial policies (like in Cain & McKeon, 2016;Ferris et al, 2017;Karpavicius & Yu, 2019) and capital expenditures as a proxy for the investment policies of the firm (like in Andreou et al, 2017;Hayes et al, 2012).…”

Section: Hypothesesmentioning

confidence: 99%

“… 6. K. Kim et al (2017) and Karpavicius and Yu (2019) indicate that risk incentives and leverage are endogenously determined, hence it must be taken into account in the empirical design. …”

mentioning

confidence: 99%

Low interest rates and executive risk-taking incentives: Evidence from the United States

Castro

Fernández

Castaño

et al. 2020

BRQ Business Research Quarterly

View full text Add to dashboard Cite

This article contributes to the literature by indicating how certain monetary policies impact the compensation incentives of US managers to adopt riskier business policies. Specifically, based on the agency problems between shareholders and managers and between shareholders and creditors, a research framework is developed to identify the influence of low interest rates on managers’ risk-taking incentives proxied by the sensitivity of executive compensation to stock return volatility (Vega). We examine 1,293 firms in the United States between 2000 and 2016, and the results indicate that low interest rates increase the managers’ short-term risk-taking incentives and that those incentives contribute to the risk effectively taken by the firm. Our results are robust to the use of alternative monetary proxies and to the presence of passive versus active institutional shareholders. JEL CLASSIFICATION E41; E43; E51; M12; M52

show abstract

Managerial risk incentives and a firm’s financing policy

Cited by 16 publications

References 41 publications

The Behavioural Dimension of Sme’s Owner on Affecting the Financial Decisions

The Behavioural Dimension of Sme’s Owner on Affecting the Financial Decisions

Prilaku Pendanaan dan Resiko Kebijakan pada Perusahaan Kelautan di Bursa Efek Indonesia

Low interest rates and executive risk-taking incentives: Evidence from the United States

Contact Info

Product

Resources

About