This study examines the interactive relationship between corporate debt ratios and credit default risk before and after the 2008 global financial crisis and the 2020 COVID-19 pandemic, using these crises as contextual frameworks. Drawing on financial data from non-financial enterprises listed on China's A-share market between 2005 and 2023, the study employs descriptive statistics, panel data regression, and case analysis to examine the mechanisms through which debt ratios influence bond default rates and loan delinquency rates across distinct crisis phases. Findings reveal that corporate debt exhibits "non-voluntary" growth in response to crisis shocks. Average debt ratios rose by 6-8 percentage points during 2008-2009 compared to pre-crisis levels, and by 5-7 percentage points in 2020. Enterprises with debt ratios 70% exhibited significantly elevated default risks, with loan delinquency rates in 2009 and 2020 reaching 1.8 times and 1.6 times the industry average, respectively. Post-crisis deleveraging measures demonstrated substantial long-term efficacy, reducing bond default rates by 42% between 2010 and 2012, and by 38% between 2021 and 2023. However, these measures exacerbated short-term liquidity constraints, with short-term loan default rates for highly indebted enterprises rising by 15% in 2011 and 12% in 2021. This study combines multi-sector data with cutting-edge research to elucidate the transmission mechanisms of leverage ratios, providing empirical support for enterprises to optimise capital allocation and for regulators to implement targeted risk control.

Rapid development, constant changes in the market, changes in consumer habits and needs, numerous innovations, growth in storage and distribution costs, especially in the food industry, present challenges in supply chains and force companies to look for numerous innovative solutions for their business to survive. This paper aims to investigate the relationship between financial structure, asset turnover, and company profitability, with an emphasis on return on assets (ROA) and equity (ROE). In order to analyze the set goal, debt ratios and activity ratios were analyzed to assess their impact on the profitability of company in the cold supply chain sector. The results show that lower debt has a positive effect on ROA, while moderate debt can increase ROE through the leverage effect. Furthermore, higher asset turnover and effective accounts receivable and inventory management improve both ROA and ROE, highlighting the importance of operational efficiency in a capital-intensive industry. These findings confirm that both financial structure and asset utilization are key factors in company profitability.

Capital structure decisions play a critical role in shaping financial reporting behavior and the sustainability of firms in emerging capital markets. This study aims to examine the effect of capital structure, proxied by leverage measured using the debt ratio, on profit quality measured by discretionary accruals, while controlling for company size and sales growth. This study employs a quantitative approach using panel data from manufacturing companies listed on the Indonesia Stock Exchange for the period 2015–2024. A dynamic panel data model is estimated using the GMM Arellano–Bond estimator to address potential endogeneity and to examine both short-run and long-run effects of capital structure on profit quality. The estimates indicate a decline in profit quality associated with growing debt under a leverage capital structure, as financial reporting quality deteriorates and contractual pressures and profit management conflicts escalate. In contrast, a positive relationship exists between profit quality and company size and sales growth, such that companies with larger operations and better sales performance are more likely to produce financial statements of higher quality. The results indicate a need to balance debt and equity financing to maintain the quality of reporting and the business’s viability in Indonesia’s capital markets.

The era of digital transformation has resulted in a fundamental paradigm shift in organizational management, where financial health indicators have become the main determinants of the success of organizational transformation strategies. This study aims to comprehensively analyze the evolution of PT NPLC’s performance through a systematic literature review that integrates financial health indicators and organizational transformation strategies for the 2015–2024 period. The research method employs a systematic literature review following the PRISMA 2020 protocol, using a multi-model analysis that integrates 22 quantitative metrics and qualitative frameworks (SWOT, PESTEL, Porter’s Five Forces). The results show that the implementation of the organizational transformation strategy in 2021 had a significant positive impact, with an increase in Net Profit Margin from 4.98% to 13.83% (p = 0.0014), a strengthening of the Current Ratio from 1.05 to 1.42 (p = 0.0136), and a decrease in the Debt Ratio from 0.62 to 0.41 (p = 0.0143). The study concludes that an integrated digital transformation approach can create long-term value despite trade-offs in asset productivity. Therefore, organizations need to develop a multi-model analysis framework to optimize transformation strategies based on financial health indicators.

Purpose This study aims to investigate how firms’ positions within global semiconductor value chains shape their capital-structure decisions under varying institutional environments. It aims to clarify whether leverage is primarily determined by supply chain role, integration scope or institutional quality. Design/methodology/approach Using an unbalanced panel of 496 listed semiconductor firms across 26 countries from 2004 to 2022, we combine fixed-effects, correlated random effects and dynamic panel estimations. The analysis incorporates firm-level financial data and sector classifications. A two-step system generalized method of moments estimator is employed to mitigate endogeneity arising from leverage persistence, reverse causality and omitted variables. Robustness checks include alternative leverage definitions, winsorized samples and variance inflation factor diagnostics. Findings Functional specialization, rather than regional context or integration level, emerges as the primary determinant of leverage. Upstream firms exhibit significantly higher debt ratios than midstream counterparts, consistent with trade-off theory and capital-intensity arguments. The dynamic model confirms that leverage is persistent over time, while East Asian firms display lower leverage – suggesting that institutional support increasingly operates through equity participation and public investment rather than debt financing. Research limitations/implications Future research should explore instrumental-variable or matching designs and extend institutional measures to include policy-level and subregional indicators. Originality/value The study bridges corporate finance and global value chain research by integrating institutional quality into a dynamic, role-based model of capital structure. It demonstrates that supply chain position and institutional conditions jointly explain financial heterogeneity in high-technology industries.

Cash flow fluctuations in companies can indicate financial instability, making it essential to analyze whether cash is generated from sustainable operations or external financing. The study investigates PT Astra Agro Lestari Tbk cash flow statement performance from 2022 to 2024 while evaluating the company's capacity to generate operating cash flows and finance its investments and fulfill its funding needs. The research question in this study is how the company's cash flow performance is reviewed from cash flow ratios and common size analysis in operating, investing, and financing activities. The research method employed in this study uses quantitative descriptive research to analyze secondary data which includes cash flow statements obtained from the Indonesia Stock Exchange. The analysis technique used operating cash flow ratio calculation and current liability cash coverage ratio calculation and capital expenditure ratio calculation and total debt ratio calculation and common size analysis to determine cash flow component proportions. The results indicate that operating cash flow showed variable performance throughout the period yet reached its highest point which resulted in increased company liquidity. Companies spent most of their investment funds on fixed assets and biological assets while their financing activities depended on bank loans. The study results emphasize that companies need to achieve operational efficiency through better investment planning and funding structure control to achieve long term financial stability.

Purpose The paper examines how the introduction of a debt rule affects local governments’ debt and savings management. The analysis explores anticipatory and compliance behavior driven by blame avoidance rather than direct financial sanctions in Czech municipalities before and after the introduction of the numerical debt rule in 2017. Design/methodology/approach The paper uses a sharp regression discontinuity design. The analysis focuses on 676 municipalities with debt ratios near the debt limit at 60% of average revenues and compares debt and saving management below and above the limit using data for 2015 to 2020. Hypotheses describing the pre-rule, anticipation and post-rule behavior are verified. Findings The paper finds that Czech municipalities adjusted their fiscal behavior in response to the introduction of the debt rule. Before the rule, no significant differences in debt or savings management were observed. After the rule’s announcement, municipalities slightly above the limit reduced savings, demonstrating anticipatory behavior. After the rule was enforced, municipalities just below the debt limit actively managed their debt and savings to avoid exceeding the debt limit. These behavioral changes confirm the influence of reputational concerns and blame avoidance, even in the absence of immediate sanctions. Originality/value It applies the behavioral model of the budgetary process to municipal finance and integrates blame avoidance theory and cognitive biases into the analysis of fiscal rule effects. It uses a sharp regression discontinuity design to evaluate responses to debt rule implementation. It shows that fiscal rules have impact even without immediate formal sanctions.

Abstract The current study looks at how capital structure affects performance of few Indian electronic manufacturing companies. Decisions on the capital structure of a company are critical to its long-term growth, profitability, and financial stability. Based on secondary information gathered from the annual reports of specific firms listed on BSE and NSE over a five-year period from 2019 to 2024, the study uses a descriptive and analytical research design. Debt–Equity Ratio, Total Debt Ratio, Long-term Debt Ratio, and Short-term Debt Ratio are used to measure capital structure, and Return on Equity (ROE), Return on Assets (ROA), and Earnings per Share (EPS) are used to evaluate firm performance. The data is analyzed using multiple regression analysis, correlation analysis, and descriptive statistics. The findings show a strong negative correlation between leverage and company performance, suggesting that higher debt levels have a detrimental impact on profitability since they raise financial risk and interest costs. In order to improve financial performance and sustainability, electronic manufacturing companies in India should maintain an ideal balance between the debt and the equity, according to findings, which support the trade-off and also pecking order theory related to capital structure. Corporate managers, investors, and legislators can use the study's insightful findings to create financing plans that work for the electronic manufacturing industry. Keywords: Capital Structure, Firm Performance, Debt–Equity Ratio, ROA, ROE, EPS.

Objective: Grounded in strategic management theory, this study examined the organizational characteristics and financial performance metrics associated with Centers for Medicare & Medicaid Services (CMS) star ratings across four domains: overall rating, staffing, quality measures, and health inspection. Methods: We analyzed 9,645 nursing homes using the 2023 CMS Medicare cost reports merged with the Nursing Home Care Compare data. Eight binary logistic regression models examined two outcomes per domain: facilities achieving high ratings (4-5 stars) versus lower ratings (1-3 stars), and facilities achieving the highest rating (5 stars) versus all others. Results: The bad debt ratio was consistently negatively associated with star ratings across all domains, with the strongest effects in staffing ratings (Odds ratio=0.66 for 4-5 stars; odds ratio=0.43 for 5 stars). Government facilities outperformed for-profit and non-profit facilities in staffing ratings. Nonprofit corporations showed higher odds of achieving high-quality measure ratings. Urban locations were positively associated with overall and health inspection ratings but negatively associated with quality measure ratings. Admissions per bed were positively associated with high ratings across all domains. Conclusion: Strategic management theory provides a framework for understanding variations in nursing home performance. Financial stability has emerged as a foundation for quality outcomes. Ownership structure shaped domain-specific performance patterns reflecting different strategic orientations. Healthcare systems seeking post-acute care (PAC) partners should conduct domain-specific analyses rather than relying solely on composite scores. Policymakers should target interventions for financially distressed facilities and increase the regulatory scrutiny of ownership conversions.

We investigate the relationship between the public debt ratio, austerity measures, and ideology and support for austerity policies in European Union (EU) member states from 2010 to 2019. We build and expand upon earlier research. We find a negative effect of austerity on support for austerity. Using a larger data set, we confirm prior findings that rising debt levels are associated with greater public support for austerity. So, we find a thermostatic dynamic: while support initially increases with debt, it declines once citizens experience the tangible effects of austerity. We also show that ideology moderates this relationship, with left-wing individuals’ support more responsive to economic conditions than that of their right-wing counterparts.

Indonesian State-Owned Enterprises (SOEs) are required to maintain a high level of transparency and accountability, particularly in the timeliness of audited financial reporting. However, audit delay remains a persistent issue among SOEs listed on the Indonesia Stock Exchange (IDX). This study examines the effects of independent commissioners, board size, operational complexity, debt ratio, and audit opinion on audit delay. Using a quantitative approach, this study analyses 65 firm-year observations from 13 SOEs over the period 2020–2024, employing multiple linear regression analysis. The results indicate that board size has a significant negative effect on audit delay, while operational complexity and debt ratio have significant positive effects. In contrast, independent commissioners and audit opinion do not significantly affect audit delay. These findings suggest that internal managerial capacity and organizational complexity play a more critical role than formal governance structures in determining audit timeliness. This study contributes to the audit timeliness literature by providing empirical evidence from state-owned enterprises in an emerging market context.

The purpose of this study is analyze the Financial Performance of the Balai Yasa Lahat Employee Cooperative in terms of the Financial Ratios of Liquidity, Solvency, and Profitability. The aim was to determine the financial position of the Balai Yasa Lahat Employee Cooperative. The research method used a quantitative descriptive approach in accordance with the standards of the Regulation of the Minister of Cooperatives and Small and Medium Enterprises of the Republic of Indonesia Number: 22/PER/M.KUKM/IV/2007 concerning Guidelines for Cooperative Rating. The results of the study show that the analysis of the financial report performance of the Liquidity Ratio at the Balai Yasa Lahat Employee Cooperative from 2021 - 2023 shows a figure with the criteria of "Very Not Ideal" because it is above 200%, in the Current Ratio analysis, namely 307% in 2021, 319% in 2022, and 527% in 2023. The Solvency Ratio analysis shows a figure with the criteria of "Very Not Ideal" because it is below 90% in the Debt Ratio analysis, namely 28% in 2021, 27% in 2022, and 16% in 2023. Meanwhile, in the Debt Equity Ratio (DER) analysis, namely 43% in 2021, 40% in 2022, and 20% in 2023. The Profitability Ratio analysis in the Return On Asset Ratio analysis in 2021 has The ratio is 6.04%, categorized as poor, falling between 4% and 7%. Meanwhile, in 2022 and 2023, the ratios were 2.28% and 2.39%, respectively, categorized as poor, falling below 4%. Meanwhile, in the Return on Equity analysis, the ratio for 2021 was 9.22%, categorized as quite good, falling between 8% and 11%. Meanwhile, in 2022 and 2023, the ratios were 3.26% and 2.96%, respectively, categorized as poor, falling below 4%.

This study examines the influence of the green board committee, board size, return on assets, and debt ratio on green innovation in 79 Indonesian companies listed on the stock exchange. Data analysis used multiple linear regression using STATA and showed that green board committees and larger board size encourage green innovation, while a high ROA also contributes positively. In contrast, a high debt ratio inhibits green innovation. These findings indicate that firms need to balance between good governance, solid financial performance, and debt risk management to effectively adopt green innovation. Previous studies tend to focus on non-financial factors such as the Green Board Committee and Board Size, while research examining the interaction between non-financial and financial factors in driving GI is still very limited, especially in Indonesia. In fact, a comprehensive understanding of the combined influence of non-financial and financial factors is essential to effectively drive GI adoption.

ABSTRACT Using quarterly South Korean data spanning from 2000 to 2020, we empirically show an intertemporal trade‐off between household debt and economic growth. Beneath this result lies the dynamic interplay between banks, driven by their incentive to expand loan supply—particularly, in the housing mortgage sector—and policy authorities, who implement macroprudential regulations in response to a rapid increase in household debt. This channel—the so‐called ‘credit supply channel’—is key in explaining predictable fluctuations in credit supply and changes in the household debt ratio. Employing a three‐step regression specification, we document that the credit supply channel accounts for 72% of the growth rate sensitivity over the next 2 years to the household debt ratio.

The purpose of this study is to determine the effect of working capital on the financial performance of the SMP Negeri 1 Kikim Timur Cooperative, Lahat Regency. This study aims to determine the relationship between working capital and financial performance at the SMP Negeri 1 Kikim Timur Cooperative, Lahat Regency. The liquidity ratio calculation yields a Current Ratio > 1 (greater than one). This indicates that the SMP Negeri 1 Kikim Timur Cooperative, Lahat Regency, has current assets greater than its current liabilities from 2020 to 2024. This indicates a good liquidity position, and the SMP Negeri 1 Kikim Timur Cooperative, Lahat Regency, is able to meet its short-term obligations. The profitability ratio calculation indicates that the gross margin or contribution of the SMP Negeri 1 Kikim Timur Cooperative, Lahat Regency, from 2020 to 2024 is quite good. (Profitability ratio with good criteria generally with a ratio value above 10% - 15% is considered good enough), with this ratio value indicating that the SMP Negeri 1 Kikim Timur Cooperative, Lahat Regency is able to generate good profits from each sale, indicating efficiency in managing production costs and appropriate selling prices. The results of the solvency ratio calculation explain that the debt ratio value owned by the SMP Negeri 1 Kikim Timur Cooperative, Lahat Regency is quite high, where the debt ratio value is <1, where in this case a low solvency ratio (below 1) indicates that the assets owned by the Cooperative are mostly funded by debt. This could be an indication that the SMP Negeri 1 Kikim Timur Cooperative, Lahat Regency has a higher financial risk and may have difficulty paying its debt obligations, especially if there is a decline in financial performance or worsening economic conditions. The activity ratio calculation results indicate that the asset turnover ratio of the SMP Negeri 1 Kikim Timur Cooperative, Lahat Regency, for 2021-2023 was >1. This indicates the low efficiency and capability of the SMP Negeri 1 Kikim Timur Cooperative, Lahat Regency, in generating sales from its assets.

This research gauges the influence of the cash gap (CG) on firms’ performance and value for Jordanian industrial firms listed in the Amman Stock Exchange (ASE) during the period (2010–2019). By applying a panel data analysis on a sample of 39 firms, the study used the CG as the main independent variable. However, for dependent variables, the research focused on two measures of companies’ performance, which are operating profit margin (OPM) and return on assets (ROA). By employing Tobin’s Q (TQ) as a proxy for firm value (FV), the research reveals that there is a significant and inverse linkage between CG and both OPM and ROA. These results align with previous studies conducted by Kouaib and Bu Haya (2024) and Ruguru (2023). The results also revealed that reducing the CG and debt ratio, while increasing volume, financial assets ratio, and sales growth, improves company performance. Moreover, based on the Arellano-Bond estimation results, the research notes a significant and inverse nexus between the CG and FV. The results of this research suggest fruitful insights for decision-makers, executive managers, and debt holders, contributing to their financing and investing activities.

This paper investigates how the composition of corporate debt relates to shareholders’ wealth across the distribution of firm valuation in a high cost borrowing environment. Using a balanced panel of 43 listed Nigerian manufacturing firms from 2013 to 2023, we compare pooled Ordinary Least Squares with year effects to quantile regressions at the 25th, 50th and 75th quantiles of shareholders’ wealth. Shareholders’ wealth is proxied by market capitalisation; the key regressors are short-term and long-term interest-bearing debt ratios, with the cost of debt as a conditioning variable and profitability and firm size as controls. Interaction terms between cost of debt and debt structure are constructed from mean-centred regressors. The results show that short-term debt is positively associated with shareholders’ wealth throughout the distribution, while long-term debt is negatively associated. The cost of debt is adverse on average and most pronounced around the median quantile. Interaction terms are not statistically significant across quantiles, which suggests that, conditional on observables, the cross-quantile differences are driven largely by the level effects of debt structure and borrowing costs rather than by moderation. The findings highlight distributional heterogeneity in the debt–value nexus that is not captured by mean regressions alone and have implications for tenor policy, treasury management, investor screening and credit-market design in emerging economies.

ABSTRACT This paper provides new evidence on the effects of public investment shocks on output, unemployment, private investment, and public debt in the European Union. Using forecast errors, we identify public investment shocks and estimate their effects in the 27 EU member countries. The results indicate that public investment shocks (a) boost output and reduce unemployment in the short to medium run, (b) do not crowd out private investment, and (c) do not jeopardize public debt sustainability.

This study examines the impact of Environmental, Social, and Governance Performance (ESGP) on profitability and firm value, focusing on 75 listed companies on the Stock Exchange of Thailand (SET) over the period 2014 to 2023. ESGP has emerged as a critical measure of corporate sustainability, yet its financial implications in emerging markets like Thailand remain underexplored. Employing the Generalized Method of Moments (GMM) approach the findings reveal that ESGP positively impacts ROA, ROE, and TBQ, emphasizing its role in enhancing operational efficiency, stakeholder trust, and market confidence. However, short- and long-term debt and cash ratio exhibit a negative impact on all financial metrics, highlighting inefficiencies linked to excessive leverage and liquidity. Firm size positively influences ROA and ROE but negatively affects TBQ, indicating challenges in market perception of growth potential for larger firms. Conversely, firm age positively impacts ROA, reflecting stability and operational experience, but presents mixed effects on ROE and TBQ due to innovation inertia and equity inefficiencies. Robustness checks using Difference GMM validate these findings, confirming the relationships between ESGP, financial metrics, and control variables. This study offers insights for corporate managers and policymakers, advocating for sustainable financial practices, optimal capital structures, and innovation-driven strategies to maximize profitability and market valuation. It contributes to the literature on sustainable finance by providing empirical evidence from an emerging market perspective and aligns with Thailand’s national sustainability agenda. JEL Classification: G32, G34, Q56, M14, C33

The pandemic that erupted in 2020 generated a significant increase in public debt, which is likely to draw the attention of economic policy and the economic profession to the evolution and sustainability of debt. This study first shows how the gross sovereign nominal consolidated government debt of the euro area member states developed between 2011 and 2019. Using conventional breakdown and correlation calculation methods, the study analyzes how closely the three components are related to the government debt ratio. The three components are: budget balance, economic growth, and real interest rates. The study then groups the member states into groups using the hierarchical cluster analysis of the SPSS program. The “composite” rankings formed on the basis of the correlation coefficients proved to be well-understood, and the examined countries were given a clear position within the cluster. Finally, a verbal macroeconomic analysis of the member states in the same group follows in terms of the relevance of each component in the evolution of their public debt. The analysis shows that each independent variable had a significantly different effect on the change in the government debt ratio of each member state. The results and the correlations established can also be used later to examine the sustainability of public debt in the euro area.