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.

scholarly journals Debt Origin and Investment Efficiency from Korea

2020 ◽  
Vol 8 (3) ◽  
pp. 47
Author(s):  
Heung Joo Jeon ◽  
Hyun Min Oh
Keyword(s):  
Financial Reporting ◽  
Public Debt ◽  
Negative Relationship ◽  
Optimal Investment ◽  
Capital Gains ◽  
Investment Efficiency ◽  
Private Debt ◽  
Significant Negative Relationship ◽  
Private And Public

This study empirically analyzes the effect of debt origin on investment efficiency. According to previous studies that report that the quality of financial reporting may vary depending on the origin of the debt, the empirical analysis predicted that the effects of the origin of the debt on investment efficiency would be differential. Debt origin was divided into private and public debt. The analysis results of this study are as follows. First, there is a significant negative relationship between the private debt and investment efficiency, while there is a significant positive relationship between public debt and investment efficiency. This means that capital gains under public debt may be more profitable to managers by improving the quality of their accounting information than those under private debt. This is in line with the previous research which found that, when financing with public debt, the earnings management is reduced and accounting transparency is high. This study focuses on the origin of debt as a determinant of investment efficiency and analyzes the level of investment efficiency according to the origin of debt. We examine the sustainability of firms from the perspective of investment efficiency, such as raising capital and selecting optimal investment options. The results of this study suggest that the level of incentives and investment efficiency of managers may be differentiated depending on the origin of the debt.

Public and Private Debt: The Historical Record (1870–2010)

2014 ◽  
Vol 15 (1) ◽  
pp. 191-207 ◽  
Author(s):  
Moritz Schularick
Keyword(s):  
Private Sector ◽  
Public Debt ◽  
Financial Crises ◽  
Positive Response ◽  
Historical Record ◽  
Private Debt ◽  
Public And Private ◽  
Advanced Economies ◽  
Private And Public ◽  
History Of

Abstract Economists routinely emphasize the risks of excessive public borrowing, but tend to have a more benign view of private sector debt. In this study, I draw on recent comparative studies of the macroeconomic history of advanced economies since 1870. I synthesize four historical facts and argue that a more balanced view of public and private borrowing is warranted. First, while both public and private debts have increased markedly, private, not public debts have climbed to historically unprecedented levels. Second, outside war times, financial crises have typically originated in the private sector, yet the costs have increasingly been socialized. Third, the historical record shows that modern democracies have been relatively successful in managing their financial affairs, evidenced by a systematically positive response of primary balances to high debt ratios. Fourth, I demonstrate that private and public debt cycles have been tightly linked since the 1970s.

scholarly journals Debt Buildup and Currency Vulnerability: Evidence from Global Markets

2020 ◽  
Author(s):  
Donghyun Park ◽  
Arief Ramayandi ◽  
Shu Tian
Keyword(s):  
Emerging Markets ◽  
Empirical Analysis ◽  
Public Debt ◽  
Global Markets ◽  
External Financing ◽  
Private Debt ◽  
Public And Private ◽  
Currency Depreciation ◽  
Private And Public ◽  
The Impact

In this study, we examine how public and private debt buildup is related to currency depreciation pressure. Our empirical analysis of a panel dataset of 59 advanced and emerging markets reveals that both private and public debt exacerbate currency vulnerability. However, the evidence of a significant effect on currency depreciation pressure is more robust and consistent for private debt than public debt. Furthermore, we find that excessive private debt buildup can be particularly harmful in emerging markets. In addition, our evidence suggests that greater dependence on external financing exacerbates the impact of debt buildup on currency stress. Overall, the evidence highlights the importance of a comprehensive debt surveillance framework which monitors both public and private debt buildup, especially in emerging markets.

scholarly journals THE IMPORTANCE OF PUBLIC DEBT IN THE ECONOMY- THE CASE OF THE REPUBLIC OF MACEDONIA

2019 ◽  
Vol 30 (1) ◽  
pp. 99-106
Author(s):  
Hasan Ademi
Keyword(s):  
Public Debt ◽  
The State ◽  
Budget Deficits ◽  
Social Infrastructure ◽  
Private Debt ◽  
Tax Rate ◽  
Long Run ◽  
Domestic Debt ◽  
The Republic ◽  
The Many

The issue of public finance stability is one of the many issues for which many analyzes are made whether high budget deficits are causing them or not. Also, the sustainability of the state debt is presented as a global political and economic challenge. In the long run, public debt impacts on economic growth, lowering the tax rate, promoting macroeconomic income savings, and facilitating equality between layers in society. Public debt is different from private debt, which makes it even more important to analyze its effects. Public debt in general is a disturbing term. Public debt represents the accumulated loan value that the state has taken to finance past deficits. Huge part of the public debt is in short-term securities such as government bonds that carry interest. Public debt poses a burden on the economy because it must also return, reducing national incomes. It may be external and internal debt. Domestic debt represents the share of public debt that the state owes to its businesses and citizens. Domestic debt arises from the state's need for money, for boosting economic or social infrastructure.

Coordination of technology of railway operation of the Republic of Tajikistan and organization of railways in international traffic

2018 ◽  
Vol 77 (4) ◽  
pp. 211-217 ◽  
Author(s):  
P. N. Pulatov
Keyword(s):  
Rolling Stock ◽  
Railway Transport ◽  
Transport Services ◽  
Railway Infrastructure ◽  
External Conditions ◽  
The Republic ◽  
Railway Operation ◽  
Required Quality

Current geopolitical and economic conditions for the functioning of railway transport in most post-Soviet states are such that it is extremely difficult to provide required quality of transport services and break-even operations at high expenses for maintaining the railway infrastructure and rolling stock. Dynamics of transportation of the Tajik Railway (TSR) is shown, which displays that most of its sections are classified as low-intensity ones. The paper proposes methodical principles, setting and qualitative analysis of the task of rationalization of operational work and organization of car flows for international transportation, taking into account the specifics of the Tajik Railway. There is a problem of complex maintenance of the efficiency of operational work in modern conditions based on the synthesis of the tasks of self-management (rational internal operational technology of the Tajik Railway) and coordination tasks (technological interaction with railway administrations of other states). Author substantiated the necessity of solving this problem. Proposed classification of technological restrictions and controlled variables in the performance of transport takes into account methods for changing external conditions for the functioning of the railway landfill and methods for increasing internal efficiency of its operation. The search for the solution of the problem involves direct search of variants along its ordered set with clipping of groups of variants that do not correspond to constraints, with the subsequent finding of compromise control over a set of effective alternatives.

THE SEC PREEMPTS THE ACCOUNTING PRINCIPLES BOARD IN 1965: THE CLASSIFICATION OF THE DEFERRED TAX CREDIT RELATING TO INSTALLMENT SALES

2007 ◽  
Vol 34 (1) ◽  
pp. 1-23 ◽  
Author(s):  
Stephen A. Zeff
Keyword(s):  
Securities And Exchange Commission ◽  
Accounting Practice ◽  
Slow Pace ◽  
Accounting Principles ◽  
Private And Public ◽  
Deferred Tax ◽  
Accounting Procedure ◽  
The U.S ◽  
Do So

In 1959, the Accounting Principles Board (APB) replaced the Committee on Accounting Procedure because the latter was unable to deal forthrightly with a series of important issues. But during the APB's first half-dozen years, its record of achievement was no more impressive than its predecessor's. The chairman of the Securities and Exchange Commission (SEC), Manuel F. Cohen, criticized the APB's slow pace and unwillingness to tackle difficult issues. This article discusses the circumstances attending the SEC's issuance of an Accounting Series Release in late 1965 to demonstrate forcefully to the APB that, when it is unable to carry out its responsibility to “narrow the areas of difference” in accounting practice, the SEC is prepared to step in and do so itself. In this sense, the article deals with the tensions between the private and public sectors in the establishment of accounting principles in the U.S. during the mid-1960s. The article makes extensive use of primary resource materials in the author's personal archive, which have not been used previously in published work.

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