Do Friendly Boards Have an Influence on Corporate Financing Policy? Evidence from French-Listed Firms

Dividend behaviour has extensively been reviewed by many researchers from time to time across different countries. Empirical evidences observed in most of the studies reveal equivocal results about dividend theories [Bhattacharyya (2007)]. Since, in absence of any unanimous findings, need for future research has not been restricted, theoretically. In developing countries like Pakistan, where limited research is available on corporate dividend policy, need for future research is more looked for. Most of the available research papers, address only firm specific determinants of dividend policy. Do macroeconomic variables influence corporate financing decisions? The need to address this question is the prime motive of this research paper. Major objective of this paper is to observe dividend behaviour of listed firms in Pakistan under monetary policy restrictions and this is the first attempt of its kind in Pakistan to the best of my Knowledge. This study is very relevant in present scenario since State Bank of Pakistan (SBP) has been persistently pursuing restricted monetary policy since 2005 to control inflation.

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Corporate financing strategies employed by Zimbabwean listed firms in the multiple currency era

Risk Governance and Control Financial Markets & Institutions ◽

10.22495/rgcv5i3c2art1 ◽

2015 ◽

Vol 5 (3) ◽

pp. 161-166

Author(s):

Farai Kwenda

Keyword(s):

Stock Exchange ◽

Secondary Data ◽

Economic Crises ◽

Corporate Financing ◽

Balance Sheets ◽

Listed Firms ◽

Rights Issues

The aim of this study is to review the corporate financing strategies employed by Zimbabwean listed firms since the adoption of the multiple currency system which set the country on a recovery path after the decade-long political, social and economic crises. The adoption of the multiple currency system necessitated recapitalization and retooling because most firms’ balance sheets were wiped away during the hyperinflation era. The study is based on secondary data of 80 firms listed on the Zimbabwe Stock Exchange. The study found that rights issues and high retention ratios were the main strategies used by firms to recapitalize their operations. The recapitalization efforts have been by liquidity challenges that have characterised the multiple currency era

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The Harmonization of Accounting

Acta Universitatis Sapientiae Economics and Business ◽

10.1515/auseb-2017-0002 ◽

2017 ◽

Vol 5 (1) ◽

pp. 29-43

Author(s):

Noémi Hajnal

Keyword(s):

Secondary Analysis ◽

International Standards ◽

International Accounting ◽

International Accounting Standards ◽

Accounting Systems ◽

Financing Policy ◽

Corporate Financing ◽

Cultural Heterogeneity ◽

Advantages And Disadvantages ◽

Legal Structure

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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