ROLE OF BUSINESS AGE, SCALE & RISK IN DEBT FINANCING CHOICES FOR THE PAKISTANI TEXTILE & APPAREL INDUSTRY

2021 ◽  
Author(s):  
Zahid Bashir
Keyword(s):  
Apparel Industry ◽  
Debt Financing ◽  
Financing Choices

scholarly journals Influence of Capital Structure on Corporate Performance of Listed Firm in PSX: Role of External Factors

2021 ◽  
Vol 7 (3) ◽  
Author(s):  
Abdul Hameed ◽  
Farheen Zahra Hussain ◽  
Khawar Naheed ◽  
Muhammad Sadiq Shahid
Keyword(s):  
Firm Performance ◽  
Capital Structure ◽  
Debt Financing ◽  
External Factors ◽  
Least Square ◽  
Total Debt ◽  
Integral Role ◽  
Equity Ratio ◽  
The Impact

Purpose: A company’s capital structure is a blend of its equity and debt financing and is considered a significant factor in the valuation of any firm. The decisions related to capital structure formation play an integral role for the firms, therefore; this research tends to explore the factors of capital structure and their impact on firm performance. For this purpose, financial data for different listed companies in PSX has been gathered, and dividends and taxes are used as firm external factors.  Design/Methodology/Approach: To examine the impact, the panel data has been used for the period 2016-2020 and panel least square has been applied. Findings: The findings suggest that among the variables current ratio, dividends, taxation, total debt to total equity ratio, and the firm size are statistically significant to profitability. The study also concludes that dividends and tax have a greater impact on capital structure and firm performance.   Implications/Originality/Value: Managers and owners of the firms must make sure that their profits are used for future investments rather than payment of debts to avoid bankruptcy.  

scholarly journals Debt financing and firm performance: The moderating role of board independence

2020 ◽  
Vol 45 (3) ◽  
pp. 141-151
Author(s):  
Hanh Song Thi Pham ◽  
Duy Thanh Nguyen
Keyword(s):  
Emerging Market ◽  
Debt Financing ◽  
Board Independence ◽  
Data Set ◽  
Listed Firms ◽  
Negative Effect ◽  
And Performance ◽  
The Relationship ◽  
Moderating Role

This article investigates the moderating role of board independence in the relationship between debt financing and performance of emerging market firms. We have used an empirical model in which the firm’s accounting profitability is a dependent variable and the independent variables are debt financing, board independence, the interaction variable made of debt financing and board independence as well as various control variables. Our analysis is based on a panel data set of 300 listed firms in Vietnam between 2013 and 2017. Our study finds that debt financing has a significantly negative effect and that board independence reduces the adverse impact of debt financing on accounting profitability. Our results are consistent across different estimation models and methods.

Role of Information in the Debt Financing of Technology-based Firms in Spain

2013 ◽  
Author(s):  
Ginés Hernández-Cánovas ◽  
Antonia Madrid-Guijarro ◽  
Howard Van Auken
Keyword(s):  
Debt Financing ◽  
Role Of Information

scholarly journals Role of Business Age, Scale & Risk in Debt Financing Choices for the Pakistani Textile & Apparel Industry

e-Finanse ◽  
2020 ◽  
Vol 16 (3) ◽  
pp. 119-136
Author(s):  
Zahid Bashir ◽  
Muhammad Usman Arshad ◽  
Muhammad Asif ◽  
Muhammad Abbas ◽  
Hasnain Ali
Keyword(s):  
Debt Financing ◽  
Future Research ◽  
Debt Ratio ◽  
Equity Financing ◽  
Tax Shield ◽  
Total Debt ◽  
Textile And Apparel ◽  
Financing Choice

Abstract The motivation for this research enquiry is to identify the role of the business age, size and risk for the choice of debt financing in the textile and apparel sector of Pakistan along with other controlled factors. The textile and apparel sector of Pakistan comprises 464 listed entities as the targeted population while the study randomly finalized 60 firms as the sample after carefully analyzing the required information from the financial statements during the annual revenue streams of 2013-2019. The predicted variable for this research enquiry is measured by short, long and total-debt ratios while the predictor variables include the business age, firm’s scale and risk. In addition, the research includes tax shield, tangibility, liquidity, profitability, and growth as the controlling factors. The study estimated that the choice of total-debt ratio is strongly affected by business age, size and risk along-with tax shield, tangibility, liquidity and profitability while the choice of short-term debt ratio mainly depends upon the firm’s scale and age along with the tax shield. In addition, the choice of long-term debt ratio is strongly explained by the firm’s scale and age along with the tax shield, liquidity and profitability. The estimated evidence provides management with the implications for the textile and apparel sector of Pakistan to consider as significant factors in deciding the debt financing choice of this sector. The estimated evidence of this research enquiry applies to the non-financial textile sector only and cannot be generalized to the financial sector. Future research may enhance the financing choice towards the inclusion of equity financing with the same set of variables.

scholarly journals Role of Capital Structure in Firm’s Value: A Case of Pakistani Firms

2021 ◽  
Vol 1 (2) ◽  
pp. 55-64
Author(s):  
MUHAMMAD ASIF ◽  
MUHAMMAD USMAN HAMEED ◽  
ZAINULLAH KHALIL
Keyword(s):  
Capital Structure ◽  
Negative Relationship ◽  
Debt Financing ◽  
Financial Firms ◽  
Effect Regression ◽  
The Impact

The Most important and critical decision for a finance manager is adequate Capital structure. Modigliani and Miller had started the debate of capital structure in creating firm’s value. The research was conducted to find out the impact of capital structure and the value of the firm in Pakistan. The research was conducted on 71 non-financial firms of KSE 100 index. Using fix effect regression in the study it was found that there is significant effect of Capital structure on firm’s value but the use of debt financing had negative relationship with the firm’s value.

Patriarchy and (Un)Doing Factory of Women's Collective Identity in Sri Lanka's Localised Global Apparel Industry

2018 ◽  
pp. 19-36
Author(s):  
Dhammika Jayawardena
Keyword(s):  
Glass Ceiling ◽  
Collective Identity ◽  
Career Advancement ◽  
Apparel Industry ◽  
Global South ◽  
Ceiling Effect ◽  
Women's Career Advancement ◽  
Systemic Manifestations ◽  
Universal Structure

Systemic manifestations of women's subordination, such as the glass ceiling, are still a reality in organisations. Yet, the glass ceiling effect in the Global South is often conceptualised vis-à-vis (white) women's experience in ‘gendered organisations' and women's domestic role in the Southern societies. In this context, this chapter, based on a fieldwork research conducted in Sri Lanka's apparel industry, critically examines the glass ceiling effect of glass ceiling on women's career advancement in the Global South. Alongside the notion of ‘universal' patriarchy, it problematises the ‘universal' structure of the glass ceiling. And it shows that (un)doing factory women's collective identity—as lamai (little ones)—and the glass ceiling intermingle in the process of women's subordination in the apparel industry. The chapter concludes that, in the apparel industry, the role of managerial women —as well as of men in (un)doing factory women's collective identity—is crucial in keeping the glass ceiling in place.

Sensing and seizing in the apparel industry: the role of dynamic capabilities in fostering sustainable strategic orientations

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nicolas Chevrollier ◽  
Fons Kuijf
Keyword(s):  
Dynamic Capabilities ◽  
Apparel Industry ◽  
Strategic Orientation ◽  
Incremental Innovation ◽  
Future Research ◽  
Content Type ◽  
Strategic Orientations ◽  
Inductive Research

Purpose This paper aims to explore how the dynamic capabilities sensing and seizing could support a sustainable (either instrumental or stewardship) strategic orientation in the apparel industry. Design/methodology/approach Through qualitative and inductive research design, ten companies from the Sustainable Apparel Coalition, specifically focusing on brands, were researched. Employees in strategic positions were interviewed. Subsequently, thematic analysis was realized to extract findings from both instrumental and stewardship organizations. Findings Instrumental organizations focus on increasing their brand, mainly by following market demands. They sense opportunities via a hierarchical organizational structure that allows for incremental innovation based on internal competition. Stewardship organizations believe in a collective approach toward conducting business effectively. While building a “sustainable case for business”, a stewardship-oriented company senses by involving their stakeholders and seeks unorthodox opportunities using a long-term internal compass as a beacon for decision-making. Originality/value Key capabilities are revealed that allow businesses and managers to reach higher levels of sustainability in a specific sector: the apparel industry. Especially the capabilities of stewardship-oriented companies and its ambidexterity provide a fertile base for future research at the nexus of organization development and sustainability.

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