Short- and long-term debt determinants in Swedish SMEs

Yazdanfar, Darush

doi:10.1108/raf-08-2015-0118

Cited by 40 publications

(69 citation statements)

References 57 publications

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“…Profitable firms depend heavily on their internal funding to finance investments, leading to a decline in both STD and LTD. Similar evidence is reported by Michaelas et al (1999) and Öhman and Yazdanfar (2017). The firm size coefficient is significantly positive for all models, except for Model 5 which is insignificant.…”

Section: Regression Resultssupporting

confidence: 89%

“…Thus far, these studies are only confined to either STD (Baum et al 2009;Caglayan & Rashid 2014) or LTD (Kirch & Terra 2012;Orman & Köksal 2017), without considering both STD and LTD. Meanwhile, other papers have investigated the determinants of STD and LTD without accounting for the combined effects of both uncertainties (Mac an Bhaird & Lucey 2014; Michaelas, Chittenden & Poutziouris 1999;Öhman & Yazdanfar 2017). We find that macroeconomic and firm-specific uncertainty do not exert similar effects on STD and LTD.…”

Section: G a L L E Y P R O O Fmentioning

confidence: 50%

“…Turning to the effect of firm size on STD and LTD, past literature finds that larger firms possess better ability to borrow long-term because they are better diversified, have more collateralizable assets and lower information asymmetry problems and risk of bankruptcy than smaller firms. Conversely, creditors are more reluctant to provide LTD to smaller firms since they suffer from more information asymmetry problems and are considered to be riskier (Myers 1984;Öhman & Yazdanfar 2017).…”

mentioning

confidence: 99%

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The Effect of Firm-Specific and Macroeconomic Uncertainty on Firm Leverage, Short-Term and Long-Term Debt in the Philippines

Chow¹,

Muhammad

Bany‐Ariffin³

et al. 2019

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Firms often face uncertainties which may affect corporate financing decisions. As uncertainty has potential adverse and destabilizing effects on firms, this study is carried out to examine the influence of firm-specific and macroeconomic uncertainty on firm leverage, short-term and long-term debt. Based on a panel of Philippine listed firms from 2004-2014, we adopt a dynamic panel data estimation technique, namely the Generalized Method of Moments to conduct our analyses. The results provide strong evidence of the adverse influence of firm-specific and macroeconomic uncertainty on leverage. Furthermore, the results indicate that while short-term debt is adversely impacted by firm-specific and macroeconomic uncertainty, long-term debt is merely influenced by macroeconomic uncertainty. This implies that although Philippine firms consider firm-specific and macroeconomic uncertainty in their short-run financing decisions, they are primarily concerned about macroeconomic uncertainty in the long-run. This paper addresses the paucity of research that has been conducted in this area, particularly in the context of developing countries. The findings provide important insights into the way firms derive their short-and long-run corporate financing decisions when encountering uncertainties. The insights can guide policymakers to formulate suitable policies to ensure stability in the business and macroeconomic environment.

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Section: Regression Resultssupporting

confidence: 89%

Section: G a L L E Y P R O O Fmentioning

confidence: 50%

mentioning

confidence: 99%

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The Effect of Firm-Specific and Macroeconomic Uncertainty on Firm Leverage, Short-Term and Long-Term Debt in the Philippines

Chow¹,

Muhammad

Bany‐Ariffin³

et al. 2019

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“…Most studies focus on total indebtedness as a proxy for the capital structure, however, Bevan and Danbolt (2000) conclude that the determinants of indebtedness strongly depend on the component of indebtedness under analysis and that there are significant differences between the determinants of short-term indebtedness and those of long-term indebtedness. In line with several studies (Bevan & Danbolt, 2002;Lisboa, 2017;Mac an Bhaird & Lucey, 2010;Maes et al, 2019;Öhman & Yazdanfar, 2017;Yazdanfar & Öhman, 2016), in this research, we analyze the determinants of total indebtedness, long-term indebtedness, and short-term indebtedness.…”

Section: Determining Factors Of the Capital Structurementioning

confidence: 66%

What are the determining factors in the capital structure decisions of small and medium-sized firms in Cabinda, Angola?,

Lussuamo

Serrasqueiro

2021

Rev. contab. finanç.

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The objective of this study was to analyze the determining factors that explain the capital structure decisions of small and medium-sized enterprises (SMEs) in the province of Cabinda, Angola. In this study, debt maturity was also analyzed and, therefore, total indebtedness was broken down into short, medium, and long-term debt ratios. This study is motivated the poor number of studies on the determinants of the capital structure of SMEs in developing countries, more specifically in Cabinda, Angola. This research is relevant for Corporate Finance, particularly regarding the capital structure of SMEs located in a developing country like Angola. Also, it corroborates previous studies on the applicability of the principles of the pecking-order theory to SMEs in developed countries. This research present contributions to Corporate Finance, as it identifies the determinants of the capital structure of SMEs in a developing country - considering the debt maturity -, through the analysis of total debt ratios-, short-, medium- and long-term debt. Based on a sample of 73 SMEs for the period between 2011 and 2016, we used panel data models (pooled OLS, fixed and random effects). The results of this study show that tangibility, age, liquidity, and non-debt tax shield are determining factors in the decisions of the capital structure of SMEs in the province of Cabinda, Angola. Furthermore, they suggest that these firms follow the principles of pecking-order theory in capital structure decisions. The research contributes to increase studies in Corporate Finance, particularly concerning the determinants of the capital structure of SMEs located in a developing country.

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“…Growth opportunities are defined by the annual percentage change of total assets (Pandey, 2001;Pandey, 2004;Eriotis, Vasilious, & Ventoura Neokosmidi, 2007;Abor & Biekpe, 2009;Karadeniz Kandir, Balcilar, & Onal, 2009;Chadha & Sharma, 2015;Ahsan, Wang, & Qureshi, 2016;Ohman & Yazdanfar), as shown by:…”

Section: Total Assetsmentioning

confidence: 99%

Board Education, Growth and Performance of Family CEO Listed Firms in Malaysia

Ibrahim

Zulkafli

Jabeen

2020

International Journal of Banking and Finance

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This paper examines the relationship between board education, board size, growth, ownership and firm performance of family CEO and nonfamily CEO listed firms in Malaysia. A sample of 37 firms and data were collected over a period of five years from 2012 to 2016. The 37 samples of family firms were subdivided into family CEO (21), and non-family CEO (16) firms. The independent variables were board education as measured by the proportion of board degrees (BDEG) and the proportion of board professional qualifications (BPRO), board size (BSIZE), growth, and ownership. Meanwhile, firm performance was measured by using return on equity (ROE) and return on assets (ROA). The findings showed that there was a significant difference between family CEO and non-family CEO firms at a five percent level for board professional qualifications confirming that altruism and nepotism were observed among family members which supported the argument of characteristics of nepotism such as granting jobs to family members regardless of merit. In addition, this study also found board professional qualifications as significant but negatively related to external firm performance in family CEO firms. This showed that board education has not really been emphasized among board members. Besides, growth has significant influence on family firm performance which is evidently reflected in their contribution to the country’s GDP.

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Short- and long-term debt determinants in Swedish SMEs

Cited by 40 publications

References 57 publications

The Effect of Firm-Specific and Macroeconomic Uncertainty on Firm Leverage, Short-Term and Long-Term Debt in the Philippines

The Effect of Firm-Specific and Macroeconomic Uncertainty on Firm Leverage, Short-Term and Long-Term Debt in the Philippines

What are the determining factors in the capital structure decisions of small and medium-sized firms in Cabinda, Angola?,

Board Education, Growth and Performance of Family CEO Listed Firms in Malaysia

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