Financially constrained firms

Our research aims at investigating by what means do firms decide debt maturity (DM) structure in Vietnamese context involving certain levels of financial constraints. It is found that, with stronger financial profiles, unconstrained firms are more likely to endure the effects of liquidity risk and information asymmetry, whereas those constrained seem to be subjected to various consequences resulting from these frictions.

11p sotritu 18-09-2021 24 3   Download

The study found that the firms which hold cash above the optimal level of cash holdings have higher speed of adjustment than the firms which hold cash below the optimal level. Financially constrained (FC) firms also adjust their cash holdings faster than financially unconstrained (FUC) firms but high speed of downward adjustment does not remain persistent after financial constraints are controlled. Findings of this study reveal this asymmetric adjustment in above and below target firms and extend these results in FC and FUC Pakistani listed firms, respectively.

22p nguathienthan5 03-06-2020 24 0   Download

With a full sample of 1,281 observations collected from 193 firms listed in Ho Chi Minh Stock Exchange during the period from 2009 to 2017, the author find that the proportion of independent directors is negatively related to firm investment but its interactive term with Tobin’s Q is positively related to corporate investment. These findings imply that independent directors can help firms reduce overinvestment and improve investment efficiency. Moreover, the research findings indicate that these effects of independent directors are stronger for financially constrained firms.

12p caygaocaolon5 19-05-2020 18 0   Download

This paper documents that state ownership is associated with higher stock liquidity, a finding consistent with lower investor risk perception of firms which benefit from state ownership, like preferential financing and regulation, and implicit government guarantees. The effect is found to be stronger when government ownership confers stronger benefits like firms with state controlling rather than non-controlling shareholders, and when the benefits of government ownership are important – for smaller firms, for financially constrained firms, and especially during the financial crisis period.

54p caygaocaolon4 04-04-2020 15 1   Download

This study is to investigate the sources of finance imposing the constraints on Vietnamese listed firms, after the introduction and rapid growth of the equity markets and the privatization wave that started since 1992. Using accounting data of listed firms on the Vietnamese stock markets, we find that listed firms are financially constrained with respect to both external funding sources, equity and long-term debt finance.

9p vithomasedison2711 14-08-2019 25 0   Download

Using accounting data of listed firms on the Vietnamese stock market this study documents that listed Vietnamese firms still face finance constraints, even after the introduction and rapid growth of the equity markets and the privatization wave that started since 1992. Contrary to most of the existing literature, especially large state-dominated firms were documented to be significantly more financially constrained.

13p vithomasedison2711 14-08-2019 18 0   Download

We examine the impact of leverage and state and foreign ownership structure on dividend payout policy of non-financial listed firms on both Ho Chi Minh and Hanoi Stock Exchange of Vietnam from 2010-2015. Our results suggest that firm with high level of debt tend to pay less dividend due to their financial constrain.

32p vixuka2711 12-06-2019 48 2   Download

The small size of the private bond market also constrains its role. One of important benefits of a developed private bond market is that it can act as an alternative funding source when corporations’ access to overseas markets is limited or in the face of a domestic bank credit crunch. The disruption in the global money and credit markets in 2008 led to a liquidity squeeze for Brazilian corporations and financial firms.

15p hongphuocidol 04-04-2013 71 9   Download

More precisely, the question to be addressed is whether there are substitutes available at less cost than the true cost of Chemical A. Substitutes that meet this requirement will not always be available. For instance, "retro-fitting" existing production facilities in order to employ substitutes is, as a rule, likely to be quite expensive. The availability of financially viable alternative actions may be higher at the design stage of a process or product's development.

7p taisaovanchuavo 26-01-2013 51 5   Download

First, there are a number of challenges for the first step of the credit creation, the decision of the lower tier of the financial system to extend credit to some enterprise which wants to conduct some investment project. The first problem is that a number of entrepreneurs and firms which in principle could conduct some profitable investment project have no or very constrained access to formal credit. There are a number of reasons for this phenomenon. First, in developing countries, the informal sector usually is of a larger relative size than in developed countries.

0p enterroi 01-02-2013 42 5   Download

Based on our visits and mystery shopping, we think that consumers are more likely to get poor outcomes in the PPI markets which have these features. The purchase of PPI is usually a secondary focus for customers; their primary purpose is to get another financial service or product such as a secured or unsecured loan. PPI is also a product that is generally sold to consumers, rather than one they actively choose to buy.

15p quaivatxanh 29-11-2012 37 6   Download