Credit Ratings and Short-term Debt Financing: An Empirical Analysis of Listed Firms in Korea

2015 ◽  
Vol 44 (1) ◽  
pp. 88-128 ◽  
Author(s):  
Byung-Uk Chong ◽  
In-Deok Hwang ◽  
Young Sang Kim
Keyword(s):  
Empirical Analysis ◽  
Credit Ratings ◽  
Debt Financing ◽  
Short Term ◽  
Listed Firms

Corporate social responsibility and debt financing of listed firms: a quantile regression approach

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kofi Mintah Oware ◽  
T. Mallikarjunappa
Keyword(s):  
Quantile Regression ◽  
Debt Financing ◽  
Short Term ◽  
Content Type ◽  
Leverage Ratio ◽  
Listed Firms ◽  
Conditional Mean ◽  
Natural Logarithm ◽  
Corporate Social

Purpose The purpose of the study is to examine the effect of corporate social responsibility (CSR) on debt financing (natural logarithm of debt and leverage ratios) of listed firms. Design/methodology/approach Using content analysis for data extraction, the study examines listed firms on the Bombay Stock Exchange (BSE) from 2010 to 2019 financial year. It uses a quantile regression and panel fixed effect regression as the model's application. Findings The study shows that CSR expenditure has a positive and strong correlation with debt financing (i.e. natural logarithm of long-term and short-term debts). The first findings show that CSR expenditure has a negative and statistically significant association with total leverage ratio, using conditional mean and median percentile. However, there is a positive and statistically significant association between CSR expenditure and long-term leverage ratio at the 25th and 50th percentile. The second findings show that CSR expenditure has a positive and statistically significant association with long-term debt but an insignificant association with short-term debt and total debt under a conditional mean average. The application of quantile regression addresses the values that fall outside the confidence interval and therefore document a positive and statistically significant association between CSR expenditure and debt financing (short-term debt, long-term debt and total debt) at the 25th, 50th and 75th percentile. Originality/value The introduction of quantile regression gives a novelty in CSR and debt financing study, which to the best of the authors’ knowledge, has not received any attention. Similarly, firms have better information on how to position their CSR expenditure to attract providers of debt financing.

scholarly journals A Dynamic Perspective On Determinants Of Short-Term Debt Financing: Evidence From South African Listed Firms

2013 ◽  
Vol 30 (1) ◽  
pp. 183 ◽  
Author(s):  
Farai Kwenda ◽  
Merle Holden
Keyword(s):  
Debt Financing ◽  
Adjustment Process ◽  
Method Of Moment ◽  
Target Level ◽  
Short Term ◽  
Partial Adjustment ◽  
Listed Firms ◽  
Internal Resources ◽  
State Of The Economy ◽  
Dynamic Perspective

<p>This study analyses the determinants of short-term debt financing using the generalised method of moment (GMM) of estimation to attest whether it follows a partial adjustment process. The study analyses data collected for 92 firms listed on the JSE Securities Exchange (JSE) for the period 2001 to 2010. The evidence obtained from the study suggests that firms have a target level of short-term debt and follow an adjustment process towards the target level. Spontaneous and internal resources, investment opportunities and the state of the economy play an important role in the use of short-term debt as a short-term financing instrument among the listed companies. The study recommends that managers pay particular attention to the key factors that drive the use of short-term debt because of its importance in financing working capital.</p>

Volatility of Corporate Debt Financing and Cross-Section of Stock Returns : Empirical Analysis of Financial Constraint Puzzle in Korea

2017 ◽  
Vol 25 (1) ◽  
pp. 97-138
Author(s):  
Heonsoo Kim ◽  
Byung-Uk Chong ◽  
In-Deok Hwang
Keyword(s):  
Stock Returns ◽  
Empirical Analysis ◽  
Debt Financing ◽  
Size Factor ◽  
Financial Constraint ◽  
Firm Characteristics ◽  
Cross Sectional ◽  
Listed Firms ◽  
Book To Market Ratio ◽  
Negative Impacts

This paper investigates the effects of the volatility of debt financing on cross-sectional variation of stock returns. Through the empirical analysis of listed firms in Korea for the 2005-2016 estimation period, this paper provides persistent and significant evidence that the volatility of debt financing has negative impacts on stock returns while controlling for market factor and firm characteristics such as size factor (firm size, market capitalization), value factor (book-to-market ratio), and momentum factor. While using both monthly average of stock returns and Fama-French-Carhart 4-factor risk-adjusted stock returns as dependent variables, the estimations of Fama-MacBeth cross-sectional regressions produce negative and statistically significant coefficient on the volatility of debt financing. The findings of this paper makes an academic contribution by providing the evidence that the volatility of debt financing, as a measure of financial constraint, plays a role as an anomaly factor for “financial constraint pricing puzzle” in Korean stock market.

An Empirical Analysis of the Obtrusiveness of and Participants' Compliance with the Electronically Activated Recorder (EAR)

2007 ◽  
Vol 23 (4) ◽  
pp. 248-257 ◽  
Author(s):  
Matthias R. Mehl ◽  
Shannon E. Holleran
Keyword(s):  
Empirical Analysis ◽  
Sampling Method ◽  
Daily Life ◽  
Assessment Method ◽  
Data Confidentiality ◽  
Short Term ◽  
Naturally Occurring ◽  
Two Samples ◽  
Audio Recorder ◽  
Term Monitoring

Abstract. In this article, the authors provide an empirical analysis of the obtrusiveness of and participants' compliance with a relatively new psychological ambulatory assessment method, called the electronically activated recorder or EAR. The EAR is a modified portable audio-recorder that periodically records snippets of ambient sounds from participants' daily environments. In tracking moment-to-moment ambient sounds, the EAR yields an acoustic log of a person's day as it unfolds. As a naturalistic observation sampling method, it provides an observer's account of daily life and is optimized for the assessment of audible aspects of participants' naturally-occurring social behaviors and interactions. Measures of self-reported and behaviorally-assessed EAR obtrusiveness and compliance were analyzed in two samples. After an initial 2-h period of relative obtrusiveness, participants habituated to wearing the EAR and perceived it as fairly unobtrusive both in a short-term (2 days, N = 96) and a longer-term (10-11 days, N = 11) monitoring. Compliance with the method was high both during the short-term and longer-term monitoring. Somewhat reduced compliance was identified over the weekend; this effect appears to be specific to student populations. Important privacy and data confidentiality considerations around the EAR method are discussed.

Sign in / Sign up

Export Citation Format

Share Document