Financial Structure Research Articles

Family firms, R&D outsourcing competitiveness and debt financing

PurposeThis paper aims to explore the role of a specific R&D strategy, that is, R&D outsourcing competitiveness, which consists of the firm’s decision to outperform their respective industry peers in terms of outsourcing R&D investments, as a determinant of capital structure. Moreover, it also considers the contingent role of family firms in the above-mentioned relationship.Design/methodology/approachWe conducted several panel data fixed-effects regressions based on a sample of 10,584 firm-year observations of privately held manufacturing firms over a 12-year period (2005–2016).FindingsThe obtained findings reveal that firms competing on the basis of R&D outsourcing are more prone to debt-based capital structures. Furthermore, being a family firm does not affect the R&D outsourcing competitiveness-indebtedness relationship. However, for firms that consider outsourcing R&D as a strategic priority, i.e. those that actually invest in external R&D, we found that family firms exert a negative moderating effect on the link between R&D outsourcing competitiveness and leverage, revealing the higher family firms’ aversion to finance R&D outsourcing competitiveness with debt.Practical implicationsA deeper understanding of the relationship between R&D outsourcing competitiveness and firm indebtedness allows external financers and investors to assess firms’ financing strategies more accurately. Moreover, this study uncovers meaningful heterogeneity within family firms: those family firms that consider R&D outsourcing as a strategic priority adopt a different capital structure than those family firms that do not. Advisors and policymakers should tailor financial support and instruments to the strategic profiles of these firms, fostering R&D outsourcing strategies while respecting family-specific constraints.Originality/valueThe main contribution of this study lies in examining how a dimension of corporate strategy, i.e. R&D outsourcing competitiveness, influences firms’ financial structure and, more specifically, their level of indebtedness in the context of privately held firms.

Regulation without repression: the effects of China’s New Asset Management Regulations on corporate profitability and the mechanisms

ABSTRACT As the financialization of the real economy deepens, shadow banking activities among non-financial firms may contribute to a shift from the real to the virtual sector, potentially increasing systemic financial risks and hindering the sustainable development of the economy. This paper investigates the causal effect of shadow banking regulations on firm operational performance, using a quasi-experimental design based on the New Asset Management Regulations in China in 2018. Using a generalized difference-in-differences design and panel data of China’s A-share non-financial listed firms from 2008 to 2021, the results indicate that the new regulations, aimed at curbing shadow banking activities among non-financial firms, significantly enhance corporate operational profitability, with a particularly stronger effect on state-owned enterprises and firms located in the eastern region in the heterogeneous analysis. The effect is persistent, and the results are robust. The effect of the new regulations is achieved through the mechanisms of increasing real investment, reducing financing constraints, and optimizing the firms’ financing structures. The paper suggests that well-designed financial regulation can support the real economy by ensuring that financial services align with productive activities, while maintaining flexibility in decision-making within financial markets.

Inclusive green finance: as an approach of developing a comprehensive indicator for BRICS and other emerging economies

While a large body of literature has provided evidence on how financial development can contribute to the increase in well-being and, more recently, to the quality of the environment, it remains under researched how emerging markets’ performance can be assessed in the two fields simultaneously. The study introduces a novel approach to assessing IGF, using BRICS and four Central European economies as examples to reveal key trends and performance metrics. It evaluates the financial structure of selected economies using World Bank and IMF data sets on financial inclusion, alongside indicators of green finance and innovation. The bunch of data are analysed with the help of three sub-indices contrasting the methodology of the HDI and the positivity constrained version of the two-stage PCA to reach a more stable and consistent evaluation. We find that though the ranking of emerging economies largely depends on the selection of the data set, the composite indicator based on the two-stage PCA provides more balanced results. Overall, the composite indicator developed in this study equips policymakers and international organisations with a practical tool to track progress in financial inclusion and green finance, enabling cross-country comparisons and timely interventions.

Financial structure and economic efficiency in Sub-Saharan Africa

Financial structure and economic efficiency in Sub-Saharan Africa

Evaluating the impact of audit quality and financial indicators on corporate earnings management practices: A case study of Nigerian financial institution

Financial drivers and governance structures are two of the many aspects that affect earnings management. Firms can be encouraged to display consistent financial performance by financial drivers such as net income, total assets, annual revenue, and cash flow volatility. The effectiveness of governance procedures, particularly audit quality, is crucial in preventing earnings manipulation. The trustworthiness of financial accounts is increased by high-quality audits, especially those carried out by Big 4 audit companies. Because of their solid reputations and strict procedures, these companies are linked to less profit manipulation. Moreover, audit effectiveness and objectivity are strongly impacted by auditor independence and audit tenure. This study examines selected Nigerian deposit money banks, including Zenith Bank, Polaris Bank, First Bank, Access Bank, Union Bank, United Bank for Africa (UBA), and Wema Bank, from 2013 to 2023. The study’s goal is to close the gap between raw data and strategic decision-making by analyzing financial data from these institutions. This analysis is required to understand how financial measurements and audit characteristics affect the dependability of financial reporting. To assess the connections between their operational efficiency, profitability, and financial sustainability, important variables like Earnings Per Share (EPS), Cash Flow from Operations, Annual Revenue, Total Assets, Net Income, Audit Tenure, Revenue-to-Asset Ratio, and Net Income Margin are examined. The study uses multiple regression analysis as a methodological tool to investigate the relationships between independent variables, such as auditor independence, affiliation with the Big 4 audit firms, and financial metrics, such as cash flow operations and total assets, and dependent variables, such as Discretionary Accruals (DA), Earnings Quality (EQ), and Earnings Per Share (EPS). Bayesian Model Averaging (BMA) emphasized strong predictors and addressed model uncertainty. The accuracy and relevancy of the data were guaranteed by their sourcing from audit firm databases and publicly accessible financial reports. Earnings Per Share was found to be significantly predicted by annual revenue and audit tenure. Longer audit tenures and higher yearly revenues have a favorable impact on EPS. The significance of these variables in explaining variations in EPS was highlighted by the BMA method, which validated the findings’ robustness. No significant variables for categorical earnings quality classifications were found using multinomial regression.

Infrastructure-360: Analyzing the Performance of the Infrastructure Sector from Multiple Sides

The infrastructure sector serves as the backbone of national economic growth, with both state-owned enterprises (SOEs) and non-state-owned enterprises (Non-SOEs) playing strategic roles in public service delivery and investment. However, the Covid-19 pandemic has disrupted the sector's stability and performance, highlighting the need for a more comprehensive analysis of the internal and external factors influencing company performance across different periods. This study aims to examine the impact of corporate fundamentals, macroeconomic indicators, the Indonesia Composite Index (ICI), and Environmental, Social, and Governance (ESG) factors on the profitability and stock returns of SOEs and Non-SOEs in the infrastructure sector before, during, and after the Covid-19 pandemic. Using a descriptive quantitative approach and quarterly financial data from 2018 to 2023 for 42 companies, the study finds that SOEs demonstrate greater financial stability, while Non-SOEs exhibit higher operational adaptability. ESG-implementing firms generally report better profitability and healthier capital structures, albeit with higher volatility. These findings suggest the importance of enhancing operational efficiency, reinforcing ESG adoption, and maintaining sound financial structures to ensure business sustainability. Future studies are encouraged to explore qualitative aspects such as strategic innovation and governance transformation for more holistic insights. Keywords: Infrastructure, SOEs, Non-SOEs, Company Performance, Covid-19 Pandemic

Including Indigenous knowledge in biomedical research: a co-autoethnography.

Including Indigenous knowledge in biomedical research: a co-autoethnography.

GERMAN AUTOMOBILE INDUSTRY: THE FINANCIAL IMPACTS OF BRENT OIL AND STEEL

The automobile industry is nourished by two important resources: steel and oil. For this reason, the financial structure of the steel and oil industries is so important for the sake of the automobile industry and also the industrializing world. To understand the world steel market, we should concentrate on the Chinese steel market as its world steel leadership. This paper aims to make a financial analysis of these three industries by utilising DCC GARCH (Dynamic Conditional Correlation Multivariate GARCH) models. According to the main results, the German automobile industry’s financial structure is largely impacted by Brent oil returns. There is no statistical evidence of the impact of the Chinese steel futures’ returns on the returns of German automobile brands in a relationship. These findings can mean that the German automobile industry has financial immunisation against steel fluctuations but oil fluctuations. In this context, the international politics of Germany is so important, on the other side, German automobile giants and their relationships with Chinese affiliates can be another part of the conclusion.

대학 통폐합 사례 분석 연구

This study aims to analyze the process of university mergers and the factors contributing to institutional stabilization following merger, amid the ongoing crisis in higher education driven by declining student populations, intensified competition, and financial pressures. Grounded in new institutionalism theory, the research conceptualizes university mergers not merely as structural adjustments but as institutionalized processes requiring social legitimacy and procedural appropriateness. Three universities that completed mergers and obtained institutional accreditation were selected as case studies. In-depth interviews with key administrators and middle managers involved in the mergers were conducted to collect qualitative data. The findings reveal that while the decision-making process was largely top-down, stakeholder participation and consensus-building during implementation were critical in securing legitimacy. Post-university merger stability was influenced by improvements in financial structure, organizational reconfiguration, and the rebuilding of internal trust—all of which were found to be essential for the long-term sustainability of merged institutions.

АНАЛІЗ СУЧАСНОГО СТАНУ ТА ПЕРЕДУМОВ РОЗВИТКУ ЗАКЛАДУ ОХОРОНИ ЗДОРОВ’Я

The article studies the current state and prerequisites for the development of health care institutions. The relevance of the topic of the study is due to the fact that the level of social security, the state of socio-economic development of the country are inextricably linked with the population's ability to receive affordable, sufficient, safe and high-quality medical care. That is why the state of the health care industry in general and each individual health care institution in particular requires a thorough study in order to analyze the current state and identify trends in promising strategic changes and opportunities for the future prospective growth of the medical industry and the institutions that represent it. The article is aimed at studying the current state and prerequisites for the development of health care institutions. The methodological basis of the study was the methods of analysis and synthesis, observation, comparison; systemic, structural, integrated scientific approaches; process, functional, methodological approaches. The scientific results obtained consist in the study of the current state and prerequisites for the development of health care institutions and the identification of significant dynamics, transformations associated with changes in the structure of functioning and financing of health care institutions, the signing of contracts and the transition to receiving funding under the programs of the National Health Service of Ukraine with an increase in the volume of funding and at the same time an increase in the costs of medical institutions for the purchase of material resources, necessary for their provision, purchase of goods and services, growth of personnel costs. It has been established that the reform has changed not only the organizational structures of health care institutions, but also the very approaches to their functioning and management. A significant increase in the volume of financing necessary for the functioning of medical bases of health care institutions has been revealed, which indicates general trends in improving the provision of the medical sector of Ukraine and changes associated with its gradual and systemic reform. Prospects for further research lie in the relevance of identifying, identifying and substantiating indicators of indicators in the main areas of activity of a medical institution, the study of which will make it possible to structure, as well as analyze and evaluate the factors influencing the external and internal environment on the activities of a health care institution, assessing the effectiveness of the development and functioning of the management system of a health care institution.

The financial cost and profitability structures of the European air navigation service providers for Covid-19 period: a Monte Carlo analysis

Civil aviation activities are open to various ambiguities regarding air traffic flow. Small changes in political, economic and technological bodies of civil aviation can change the direction of air traffic flow and air navigation. Likewise, the civil aviation industry and its dependent branch air logistics lived through hard times during the COVID-19 period. The airlines, airports, and service providers suffered from a lot of negativities. It was an expected result for Air Traffic Flow Management to come near a financial crisis with capacity deficiencies. This paper aims to investigate this period of 2017-2021 one more time, but with a slightly different simulation methodology which assumes the period lasted for 300 years and with specific variables of Return on Investment (ROI), Return on Assets (ROA), Return on Equity (ROE), Capital Expenditures (CAPEX) and Operational Expenditures (OPEX) in Air Navigation Service Provider Industry of Europe. According to findings, geographical location (for Central Europe, Turkey, the Mediterranean region and the United Kingdom) and the situation of states regarding development, routes and the situation of airports are the main variables of profitability and investment structures of Air Navigation Service Providers. It also concluded that the financial and economic situation of Air Navigation Service Providers in Europe cannot be changed considering these variables if this period continues for 300 years because of air the main air traffic routes and airflow order of Europe.

The growth effect of EU funds – the role of institutional quality

Abstract This paper investigates the impact of the EU's Structural, Cohesion, and Pre-accession Funds on economic growth. We look at a large sample of 27 EU countries and the UK between 1989 and 2020, essentially covering the full history of these funds. We show that the growth effect of the funds is conditional on institutional quality: the funds contribute to economic growth only in countries with strong institutions: low corruption, strong rule of law, effective governments, and strong regulatory quality.Our research has important messages for the expected economic impact of the Next Generation EU (NGEU) and the Recovery and Resilience Facility (RRF), and the design of future EU funds. Our findings highlight the risk that countries with weaker institutions, which tend to receive more funds, may use such funds less efficiently. It is, therefore, important that funding is linked to requirements to improve the quality of institutions. In this respect, countries that receive more RRF funds are indeed expected to introduce more structural reforms, some of which have the potential to improve institutional quality and thereby improve the effectiveness of the RRF and EU funds in general – this is a promising approach that could be used in case of the EU funds too.

Economic Integration and Financial Development Effect on Selected SSA Countries' Economic Growth

This study investigates the relationship between financial development (FD) and economic growth within the context of economic integration in five African countries over the period 1970–2018. Employing a VECMX(p,s) model, the analysis provides evidence of both long-term equilibrium relationships and short-term dynamics among the variables. The empirical findings reveal that in Cameroon, financial development has a positive cumulative impact on economic growth. In contrast, no significant effect of FD—whether through broad money or domestic credit—is observed in Benin and Niger. In Chad, FD (as proxied by broad money) exerts a negative influence, while domestic credit remains statistically insignificant. Nigeria shows a positive linkage between broad money and growth, yet no statistically significant effect from domestic credit is detected. Moreover, inter-country spillover effects are observed, suggesting a regional dimension to financial interactions. Overall, the estimated VECMX (3,0) model demonstrates satisfactory predictive performance. Policy implications emphasize the need for country-specific adjustments in fiscal and monetary frameworks to improve credit access, particularly for SMEs and cooperative entities. Regionally, the African Union should design integration strategies that are responsive to the heterogeneous financial structures and institutional realities across member states.

Investment strategies in energy transition projects: Balancing financial returns and sustainability goals

The global energy transformation has raised the stakes for the kind of investment approaches that will not only generate competitive financial returns, but will also help achieve climate ambitions and inclusive development. Yet, integrating this profitability of such investments with sustainability poses a significant challenge facing institutional investors and policy-makers, especially in emerging markets. This paper examines how investment tactics in the projects of energy transition would be optimally approached in order to reconcile financial performance and environmental and social issues. Based on Sustainable Investment Theory, ESG-constrained Modern Portfolio Theory, Stakeholder Theory, and the Triple Bottom Line framework, a mixed-method approach that integrates a qualitative case review with a multicriteria investment evaluation model is used in the paper. Data were collected from World Bank, IEA, UNPRI, BloombergNEF, and case reports from institutions. Three illustrative cases—green hydrogen in Germany, solar auctions in India, and mini-grids in Nigeria—were compared across return on investment, carbon reduction, and social equity. The results show that blending instruments, ESG-linked instruments, and incentive compatible models have a positive impact on investment allocations when combined with regulatory consistency, aligned disclosure standards, and risk de-risking mechanisms. The research presents an integrated investment model that links ROI with ESG factors and SDG goals. It ends by also stressing the importance of scalable financing structures, strong ESG governance, and the need to track performance over the longer-term. These findings enrich the growing discussion on sustainable finance and provide policy implications for capital deployment in energy transition trajectories.

Comparative Analysis of Financial Structures: An Application on the BIST Sustainability Participation Index Using the Mabac Method

This study aims to analyze the financial structure performance of companies listed in the Borsa Istanbul Sustainability Participation Index using the MABAC method based on 2023 data. Eight different financial ratios were used in the study, and all criteria were given equal weight. The difference of this study is that it focuses on an index (XSRDK) determined solely by sustainability and participation principles and analyzes the concept of sustainable financial structure within a multi-criteria decision-making framework. In the literature, MABAC has often been used in conjunction with objective weighting methods such as CRITIC and AHP. In this study, however, a more direct approach was adopted by assigning equal weight to all criteria. Additionally, this method, aims to provide investors and decision-makers with a comprehensive perspective. According to the findings, Galata Wind (A10) ranks first, followed by Akçansa Çimento (A1), Aksa Akrilik (A2), Margün Enerji (A16), and Esenboğa Elektrik (A9).

PERBANDINGAN ORGANISASI SEKTOR PUBLIK DAN SEKTOR SWASTA: TUJUAN, PEMBIAYAAN, DAN STRUKTUR

This article discusses the comparison between the public sector and the private sector in terms of goals, financing, and organizational structure. The public sector focuses on public services and fulfilling basic needs, with limited resource management and a more complex bureaucracy. In contrast, the private sector prioritizes profit and efficiency, with a more flexible and decentralized organizational structure. Public sector financing is based on taxes and community contributions, while the private sector relies on investors, debt, and equity capital. While both sectors play complementary roles, this article also identifies the challenges each sector faces in resource and managerial management. Implications and recommendations for both sectors are discussed to enhance operational efficiency and sustainability.

Do Financial Ratios Send Value-Relevant Signals in Sharia Markets? (Evidence from IDX Sharia Growth)

This study aims to empirically examine the effect of financial performance indicators on firm value in companies listed on the IDX Sharia Growth Index during the 2021–2023 period. Specifically, the research investigates whether Liquidity, Leverage, Profitability, Asset Growth, and the Investment Opportunity Set individually and simultaneously influence firm value, as measured by Price to Book Value (PBV). The sample consists of 30 companies consistently listed in the IDX Sharia Growth Index, observed over a three-year period, resulting in 90 firm-year observations. Panel data regression analysis was employed using EViews 10 as the data processing tool. The findings reveal that Leverage, Profitability, and the Investment Opportunity Set have a significant positive effect on firm value. Conversely, Liquidity and Asset Growth do not show a statistically significant influence. Moreover, all five variables simultaneously have a significant effect on firm value. These results highlight the importance of financial structure, operational efficiency, and growth expectations in determining firm value, particularly within the context of sharia-compliant firms

What Drives Tax Avoidance? Profitability and Governance in Indonesia’s Manufacturing Sector

This study takes a look at the manufacturing firms listed on the Indonesia Stock Exchange (IDX) from 2021 to 2023 and how tax avoidance is related to all these other aspects. Among these considerations are the company's size, profitability, audit committee make-up, percentage of independent commissioners, and ownership by institutions. Although tax avoidance is legally permitted, it remains controversial due to its potential to reduce state tax revenues and signal weak corporate governance. The variables examined represent financial performance and governance structures to explore their impact on tax behavior. The study employs a quantitative approach using a causal-comparative design. A total of 59 manufacturing firms were selected through purposive sampling, resulting in 177 firm-year observations. Secondary data were obtained from audited annual reports. The natural logarithm of total assets is used to evaluate firm size, return on assets (ROA) is used to reflect profitability, and the effective tax rate (ETR) is used to show tax evasion. The data analysis validated the model using multiple linear regression and conventional assumption tests. The data demonstrate that profitability significantly enhances tax avoidance, indicating that highly successful enterprises are more inclined to reduce their tax liabilities through avoidance strategies. Corporate size, the proportion of independent commissioners, institutional ownership, and the audit committee do not significantly impact tax evasion operations. The findings indicate that the rules and systems within a company might not be strong enough to stop aggressive tax practices, as profit motives tend to take priority in how managers make tax decisions. This research adds to what is already known about the causes of tax avoidance in developing countries. Furthermore, it provides regulators and business stakeholders with pragmatic insights to enhance regulations and bolster oversight, thereby improving governance efficacy and increasing tax compliance.

Cryptocurrency in the Digital Economy: A Critical Analysis of Technological Foundations, Evolutionary Trends, and Macroeconomic Implications

Cryptocurrency has transitioned from a cryptographic curiosity to a transformative force in the global economy. Rooted in blockchain technology, it has catalysed financial innovation, disrupted traditional monetary systems, and spurred new economic paradigms like decentralized finance (DeFi). This paper explores the fundamentals of crypto currency, critically evaluates its technological underpinnings, and traces its evolution over time. Furthermore, it examines the macroeconomic implications of large-scale adoption, including monetary policy challenges, regulatory dilemmas, and the shifting structure of global finance. Through a multidisciplinary lens combining technology, economics, and policy analysis, this paper contributes to a deeper understanding of crypto currency's complex role in shaping the digital economy.

The Influence of Window Dressing and Leverage on Investment Decisions in Consumer Non-Cyclical Companies Listed on the Indonesia Stock Exchange

Consumer non-cyclical companies represent a stable sector that provides essential goods and services, often attracting investors seeking long-term, low-volatility opportunities. This study investigates how financial strategies—specifically window dressing and leverage—influence investment decisions in 68 consumer non-cyclical companies listed on the Indonesia Stock Exchange for the period 2019–2023. Investment decisions are measured using two key valuation indicators: Price to Book Value (PBV) and Price to Earnings Ratio (PER). Window dressing is quantified through changes in quarterly cash holdings, while leverage is proxied by the Debt to Equity Ratio (DER). Employing a quantitative descriptive method, this research uses purposive sampling and multiple linear regression analysis, preceded by classical assumption tests. The findings reveal that both window dressing and leverage have a significant positive effect on PBV, indicating that these factors play a role in shaping market perceptions of firm value. Conversely, neither variable has a significant influence on PER, suggesting that investors in this sector rely more on consistent fundamentals than on short-term financial appearances or capital structure when evaluating profitability. These results support signaling theory, emphasizing that while financial signals can influence market behavior, their effectiveness depends on the credibility of the signal and the investor’s focus. This study provides practical implications for managers aiming to enhance firm value and for investors seeking to interpret financial signals more accurately.