Corporate Financing Policy and Taxation

AbstractThe development and configuration of the regulatory framework of the accounting systems in Romania and Hungary took place in different ways. Among the reasons for the diversities in these countries’ accounting systems, the following can be certainly mentioned: different purposes of taxation, legal structure, the accountancy’s connection with the corporate law and family law, diversification on corporate financing policy, and cultural heterogeneity. Both countries quickly caught up with the international accounting harmonization standards. The adaptation of the international accounting standards has many advantages and disadvantages; these have been discussed in several previous researches. This paper aims at comparing the Romanian and Hungarian states’ accounting regulations from the early 1990s, which were implemented in order to harmonize the states’ accountancy regulations with the international standards, and their impact on the economy, based on secondary analysis.

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Effect of Disagreement on Corporate Financing Policy and Investment Level

Asian Economic and Financial Review ◽

10.18488/journal.aefr/2017.7.4/102.4.349.357 ◽

2017 ◽

Vol 7 (4) ◽

pp. 349-357 ◽

Cited By ~ 2

Author(s):

Niu Weining

Keyword(s):

Financing Policy ◽

Corporate Financing ◽

Investment Level

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The sensitivity of payouts to corporate financing decisions

Journal of Financial Economic Policy ◽

10.1108/jfep-01-2015-0005 ◽

2015 ◽

Vol 7 (4) ◽

pp. 290-300 ◽

Cited By ~ 2

Author(s):

Edward C. Hoang ◽

Indrit Hoxha

Keyword(s):

Negative Relationship ◽

Cash Flows ◽

Stock Repurchases ◽

Net Income ◽

Financing Policy ◽

Corporate Financing ◽

Content Type ◽

Public Firms ◽

Financing Decisions ◽

Panel Regressions

Purpose – The purpose of this article is to empirically explore the sensitivity of payouts to cash flows and the other financing decisions, such as debt and investment, of firms. Design/methodology/approach – Using panel regressions based on COMPUSTAT data for 7,544 public firms during the period 1973–2013, we estimate the sensitivity of total payouts. Specifically, following the theory presented in Lambrecht and Myers (2012), we test the interdependent financing decisions of the firm. First, we compute total payout as the sum of cash dividends and net stock repurchases; second, we examine the sensitivity of total payouts to changes in the firm’s net income, debt and investment. Furthermore, we present several tests to demonstrate the robustness of our results. Findings – We suggest evidence in support of the theory in Lambrecht and Myers (2012) showing that there is a negative relationship between total payouts and investment. Furthermore, we find that total payouts are positively associated with net income and debt of the firm. Originality/value – Previous research has shown how cash flows affect different financing decisions, but it is not clear how total payouts are sensitive to other financing decisions. The focus of this paper is the response of total payouts to investment policy, debt financing policy and changes in cash flows.

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