Długoterminowe decyzje w zakresie finansów przedsiębiorstw, na przykładzie przedsiębiorstw z branż 25.22.Z i 25.99.A (Long-Term Decisions for Corporate Finance for Companies in Industries 25.22.Z and 25.99.A)

Purpose The purpose of this paper is to examine the influence of institutional investors’ investment horizons (IIIH) on a wide variety of key corporate policies. Design/methodology/approach The authors perform regression analysis to a panel data set of quarterly financial statement data for US firms over the 1981-2014 using several measures of IIIH. Findings The authors argue that an increase in the presence of long-term investors contributes to more effective monitoring and information quality. This results in a reduction in agency costs and informational asymmetry problems for firms that are more heavily influenced by long-term investors, which in turn influences the corporate policies they pursue. Consistent with these arguments, the evidence suggests that firms with a greater long-term institutional investor base maintain lower investment outlays, higher dividend payments, lower levels of cash and higher levels of leverage. All results hold after controlling for potential endogeneity issues. Originality/value The authors show that a greater presence of long-term institutional investors leads to higher dividends, lower investment outlays, lower cash holdings and higher leverage. The comprehensive nature of the predictions with respect to overall corporate finance policies and the supporting evidence provided represents an important contribution, as previous studies have tended to focus on one specific area of corporate behavior (i.e. such as cash holdings).

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Do local governments use municipal companies for off-balance-sheet financing?

Central European Economic Journal ◽

10.2478/ceej-2020-0014 ◽

2020 ◽

Vol 7 (54) ◽

pp. 242-257

Author(s):

Weronika Stobieniecka ◽

Anna Białek-Jaworska

Keyword(s):

Capital Structure ◽

Corporate Finance ◽

Local Governments ◽

Balance Sheet ◽

Agency Problems ◽

Ordinary Least Squares ◽

Explanatory Variables ◽

The Public ◽

Debt Capacity

AbstractThis paper investigates whether municipalities in Poland use their municipal companies to increase debt capacity beyond the limitations imposed by the fiscal debt rules. The article presents corporate governance and agency problems on the example of relations between local government units and affiliated companies. We review and link literature on corporate finance, in particular capital structure, and public finance - debt liabilities of municipalities. We analyse a sample of 2,019 observations of municipalities and their municipal companies using the Ordinary Least Squares (OLS) method, where explanatory variables were taken from the public and corporate finance (leverage and its determinants). Results show that long-term debt of municipalities is positively associated with the leverage and size of municipal companies, but it is negatively related to their profitability.

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THE NEED FOR A PARADIGM SHIFT IN FINANCE: SUSTAINABLE CORPORATE FINANCE

Management of Sustainable Development ◽

10.54989/msd-2021-0006 ◽

2021 ◽

Vol 13 (1) ◽

pp. 33-38

Author(s):

Simona Marcela AGÂRBICEANU ◽

◽

Tatiana PĂUN ◽

Keyword(s):

Corporate Finance ◽

Critical Role ◽

Low Carbon ◽

Responsible Behavior ◽

Recent Developments ◽

Decision Making Processes ◽

Sustainable Finance ◽

Financial Decision ◽

The Impact

Under current global conditions, finance may play a critical role in allocating investment to sustainable enterprises and projects, thereby hastening the transition to a low-carbon circular economy. Finance promotes risk assessment and, as a result, can aid in addressing the inherent ambiguity surrounding environmental concerns such as the impact of carbon emissions on climate change. In recent decades, thinking about sustainable finance has progressed through several stages, with the emphasis steadily changing from short-term profit to long-term value creation. This study seeks to conduct an examination of the concept and premises of sustainable corporate finance based on literature research, with the goal of bringing arguments to the need to shift the financial paradigm. This emerging perspective emphasizes that, while profit creation and maximization are important, firms must also seek other goals that have an impact on society, such as those connected to sustainable development. The integration of environmental, social, and governance components into financial decision-making processes is referred to as sustainable finance. Recent developments highlight the importance of businesses' commitment to responsible behavior in transforming the company into a truly sustainable enterprise that adds value to the business, society, and the environment.

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