Debt Financing Frictions and Access to Public Debt

2012 ◽  
Author(s):  
Joon Ho Kim
Keyword(s):  
Public Debt ◽  
Debt Financing ◽  
Financing Frictions

scholarly journals A Critique of Debt Financing for Local Governments

2016 ◽  
Vol 10 (2) ◽  
pp. 73
Author(s):  
Daniel Hummel
Keyword(s):  
Public Debt ◽  
Local Governments ◽  
Debt Financing ◽  
Negative Effect ◽  
Fiscal Administration ◽  
Area Of Concern

<p class="Style2">The dichotomy between pay-as-you-go (taxation financing) and pay-as-you-use (debt financing) methods of financing municipal projects, etc, is the area of concern in this paper. While there arc advantaees and disadvantages to both forms, debt financing carries a considerable amount of baggage known as interest. Interest or usury has been a concern of economic and religious thinkers through the ages. Given the potentially negative effect this has on the debtor, Indonesia is forewarned as it decentralizes fiscal administration to local governments. Besides reliance on taxation financing, an alternative public debt option is highlighted.</p>

scholarly journals Does Debt Financing Affect the Sustainability of Transparent Accounting Information?

2021 ◽  
Vol 13 (7) ◽  
pp. 4052
Author(s):  
Hyun-Uk Jung ◽  
Tae-Hyoung Mun ◽  
Taewoo Roh
Keyword(s):  
Public Debt ◽  
Accounting Information ◽  
Negative Relationship ◽  
Debt Financing ◽  
Financial Industry ◽  
Private Debt ◽  
Corporate Financing ◽  
Private And Public ◽  
The Republic

With the classification of debt financing into private debt (borrowing) and public debt (bond), this study aims to figure out the relationship between corporate debt financing and transparent accounting information sustainability. Debt financing of a firm was measured as a ratio of private debt to sum of private and public debt while sustainability of transparent accounting information was measured as a matching level. The sample is selected from corporations listed on the stock market in the Republic of Korea, except for the financial industry, from 2011 to 2018. As a result, the ratio of private debt of a firm was found to have a negative relationship with the matching level. It indicates that the ratio of high-private debt of a firm reduces the matching level. These results were found to be consistent even using various methodologies (e.g., Prais–Winsten, and Newey–West). This study confirmed the negative sustainability of transparent accounting information when the ratio of borrowings in corporate financing is high. Our implications that different financing methods can have different effects on the sustainability of corporate transparent accounting information.

Five Views on the National Front Budget

1990 ◽  
Vol 15 (2) ◽  
pp. 57-80
Keyword(s):  
Public Debt ◽  
Debt Financing ◽  
Corporate Sector ◽  
Short Term ◽  
National Front ◽  
Rural Sector ◽  
Policy Makers ◽  
Economic Event ◽  
Annual Budget

The presentation of the Annual Budget every year can be viewed as the communication of certain important measures of public policy by a democratically elected government to various stakeholders in the country. Therefore, the event inevitably raises hopes of new perspectives and new measures from the policy makers to deal with short term as well as long term issues related to the process of economic development. The 1990-91 budget is no exception. However, it can be said that this budget is somewhat more significant than earlier budgets not only because it is the first budget of the newly elected National Front Government but also because it gives an opportunity for various stakeholders to get a glimpse of the economic and political thinking of the new government. It is precisely for this reason that we are featuring an analysis of the budget in this issue of Vikalpa. In order to facilitate the process of gaining valuable insights into the budget, five eminent academics have come forward to share their views with our readers. Professor Oza, for instance, argues that while the budget may be termed pragmatic, it is by no means a bold, path-breaking economic event. Professor Mody analyses the debt-financing aspect and comes to the conclusion that public debt should grow at a rate equal to the rate of growth of the economy minus the re~l rate of interest. Professor Srivastava adds another dimension to the debate by examining the extent to which the budget is oriented to the rural sector. Professor Venkiteswaran presents an interesting analysis of the process of restructuring of tax laws. In his opinion, this budget continues the process which was initiated earlier. Professor Ramesh Gupta rounds off the discussion by focusing on the withdrawal of investment allowance. He examines empirically whether this tax measure is a burden or a benefit to the corporate sector.

scholarly journals Impact of declining interest rates on European primary bond market

2017 ◽  
Vol 14 (2) ◽  
pp. 328-335
Author(s):  
Robert Verner ◽  
Peter Remiáš
Keyword(s):  
Economic Growth ◽  
Interest Rates ◽  
Public Debt ◽  
Global Market ◽  
Bond Market ◽  
Debt Financing ◽  
Political Risks ◽  
Low Interest Rates ◽  
The Impact ◽  
Over Time

The aim of this paper is to examine the growing popularity of debt financing in European based subjects. The development of issued volume was examined on the sample of 9,293 public debt offerings denominated in EUR issued between 30th November 2007 and 30th November 2016 and the impact of declining market interest rates on primary bond market was explored. More than 7.666 trillion EUR of debt were analyzed and the results indicate that despite low interest rates, the volume of issued bonds does not increase over time. Decline of interest rates only compensates slow economic growth as well as increasing global market and political risks.

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