Impacts Of External Financing Research Articles

The impact of external financing during wartime on the economy of a country in war

This study delves into the effects of external financial support (official development assistance and foreign direct investments) on economic activity and welfare based on data from five nations injured by similar military conflicts from 2006 to 2021. Focusing on Ukraine, the research recommends ways for policymakers to navigate external financing during wartime. The employment rate, GDP per capita, inflation rate, and exports are the foundations for our analysis. The methodological approach employed regression analysis to measure the economic effect of external financing in wartime in these conflict-ridden nations. The findings reveal that increased foreign direct investment during wartime correlates with reduced employment rates, heightened GDP per capita, and increased exports. In addition, the negative impact of official development assistance ODA on employment was found, and it had a positive effect on exports but no significant effects on GDP per capita. A statistically significant impact on the inflation rate was not seen.

Banking crises and economic growth in developing countries: Why privileging foreign direct investment over external debt?

AbstractThe impact of external financing on the economies of developing countries is still a subject of debate among economists and policy makers. The objective of this paper is to contribute to this debate by shedding light on the interaction between foreign direct investment (FDI) and external debt. To this end, we begin by formulating an overlapping generation growth model that integrates a banking sector and find two complementary results. First, we show that external financing boosts investment projects and accelerates the dynamic of capital accumulation and economic growth. The second one mitigates this channel by showing two opposite indirect effects of external debt and FDI. Indeed, while external debt financing increases the vulnerability to a bank run that generates a recessionary impact on economic growth, FDI attenuates this recessionary impact and plays the role of a shock absorber. We empirically confirm these results for 67 developing countries over the period 1972–2015 using the GMM estimation of growth models and panel‐logit models to predict the determinants of banking crises. Hence, this study provides a comprehensive assessment of developing countries’ involvement in financial globalization and offers recommendations for their future international economic policies.

The Relationship between Capital Structure and Financial Performance of the Company

The article examines and analyzes the relationship of key performance indicators (ROA, ROIC, change in market capitalization and price-to-book ratio) and the capital structure of the company based on the pharmaceutical industry in the UK for the 2009-2019 period. The study seeks to provide a practical evidence on the impact of external financing on company’s financial performance and test applicability of the pecking order theory for the chosen companies. The research conducted uses panel data regression and Wald test to determine and analyze the effect of capital structure on the financial indicators of the company performance. The study used a sample of 185 UK companies from the pharmaceutical industry. The result of the research showed that equity has negative effect on price-to-book ratio and ROA and positive effect on change in market capitalization, while long-term debt has a positive relationship with price- to-book ratio and change in market capitalization. In addition, short-term debt has a negative effect on change in market capitalization, ROA and ROIC. The study also provides only partly coincidence of the results with the pecking order theory.

Equilibrium strategies in a supply chain with capital constrained suppliers: The impact of external financing

<p style='text-indent:20px;'>In this study, we consider a two-echelon supply chain, where two capital constrained suppliers compete to sell their products through a common retailer. The retailer may provide advance payment to one or two suppliers. We show that whether the retailer considers merging with only one supplier depends upon the revenue sharing ratio and the additional administrative costs of the revenue sharing contract. Meanwhile, the supplier who drops out of the market may adopt a hybrid financing scheme by combining bank credit with equity financing to return to the market. We find that the deselected supplier can be allowed to participate in the market when the bank loans ratio is below a certain threshold. We further investigate the impact of the bank loans ratio and competition intensity on the players' decisions and profits. In addition, we find that there exists an optimal bank loans ratio for the deselected supplier. Specifically, it is optimal for the deselected supplier to adopt pure bank credit if the production cost is sufficiently low.</p>

The impact of external financing on firm value and a corporate governance index: SME evidence

PurposeThe purpose of this paper is to investigate the effect of external financing needs on both firm value and corporate governance mechanisms within the UK SME context. This framework is of importance because of the limited external financial resources SMEs might face.Design/methodology/approachThe authors consider the endogeneity problem between corporate governance mechanisms and firm value, and hence, the three stages least squares and the instrumental variables based on two stages least squares estimation methods are employed.FindingsThe authors find a positive relationship between external financing needs and firm value. In addition, the authors detect that size and profitability are positively associated with firm value in the sample. Concerning the corporate governance index (CGI), the authors detect that big SMEs and those with low-debt levels have better corporate governance structures.Originality/valueThe authors employ a CGI for the sample which is constructed using ten corporate governance variables. The authors also examine different factors that affect SMEs 2019 governance by applying different models including logistic analysis.

The Order Quantity Decision of Newsboy Retailer with Financing

AbstractWe analyze the retailer’s optimal order with capital constraint under stochastic demand. We consider the impact of external financing, that is inventory financing, and the internal financing, that is trade credit, on the order strategy of retailer separately. We establish revenue model of retailer and solve, and give revenue of retailer and supplier respectively. Finally, we give the impact of own funds on the retailer’s order quantity, retailer’s revenue, supplier’s revenue, as well as the impact on the overall revenue gains of the supply chain. And some analysis and statement are also given in the end.

Impacts of External Financing on the Risk Level of Viet Nam Water Industry During and after the Global Crisis 2007-2009

Impacts of External Financing on the Risk Level of Viet Nam Water Industry During and after the Global Crisis 2007-2009

Impacts of External Financing on the Risk Level of Viet Nam Consumer Good Industry During and After the Global Crisis 2007-2009

Impacts of External Financing on the Risk Level of Viet Nam Consumer Good Industry During and After the Global Crisis 2007-2009

Impacts of External Financing on the Risk Level of Viet Nam Software Industry During and After the Global Crisis 2007-2009

Impacts of External Financing on the Risk Level of Viet Nam Software Industry During and After the Global Crisis 2007-2009

Impacts of External Financing on the Risk Level of Viet Nam Stock Investment Industry During and after the Global Crisis 2007-2009

Impacts of External Financing on the Risk Level of Viet Nam Stock Investment Industry During and after the Global Crisis 2007-2009

Impacts of External Financing on the Risk Level of Viet Nam Wholesale and Retail Industry During and After the Global Crisis 2007-2009

Impacts of External Financing on the Risk Level of Viet Nam Wholesale and Retail Industry During and After the Global Crisis 2007-2009

Impacts of External Financing on the Risk Level of Viet Nam Manufacturing Material Industry During and After the Global Crisis 2007-2009

Impacts of External Financing on the Risk Level of Viet Nam Manufacturing Material Industry During and After the Global Crisis 2007-2009

Impacts of External Financing on the Risk Level of Viet Nam Natural Gas and Oil Industry During and after the Global Crisis 2007-2009

Impacts of External Financing on the Risk Level of Viet Nam Natural Gas and Oil Industry During and after the Global Crisis 2007-2009

Impacts of External Financing on the Risk Level of Viet Nam Insurance Industry During and after the Global Crisis 2007-2009

Impacts of External Financing on the Risk Level of Viet Nam Insurance Industry During and after the Global Crisis 2007-2009

Impacts of External Financing on the Risk Level of Viet Nam Electric Power Industry During and after the Global Crisis 2007-2009

Impacts of External Financing on the Risk Level of Viet Nam Electric Power Industry During and after the Global Crisis 2007-2009

Impacts of External Financing on the Risk Level of Viet Nam Investment and Financial Service Industry During and after the Global Crisis 2007-2009

Impacts of External Financing on the Risk Level of Viet Nam Investment and Financial Service Industry During and after the Global Crisis 2007-2009

The Measurement of Impacts of External Financing on The Risk Level of Viet Nam Construction Material Industry During and After The Global Crisis 2007-2011

This research paper aims to analyze the impacts of external financing on market risk for the listed firms in the Viet nam construction material industry, esp. after the financial crisis 2007-2009. First, by using quantitative and analytical methods to estimate asset and equity beta of total 57 listed companies in Viet Nam construction material industry with a proper traditional model, we found out that the beta values, in general, for many institutions are acceptable. Second, under 3 different scenarios of changing leverage (in 2011 financial reports, 30% up and 20% down), we recognized that the risk level, measured by equity and asset beta mean, decreases when leverage increases to 30% and vice versa. Third, by changing leverage in 3 scenarios, we recognized the dispersion of risk level increases (measured by equity beta var) if the leverage increases to 30%. Finally, this paper provides some outcomes that could provide companies and government more evidence in establishing their policies in governance.

The Measurement of Impacts of External Financing on the Risk Level of Viet Nam Construction Industry During and After the Global Crisis 2007-2011

The Measurement of Impacts of External Financing on the Risk Level of Viet Nam Construction Industry During and After the Global Crisis 2007-2011

The Measurement of Impacts of External Financing on the Risk Level of Viet Nam Real Estate Industry During and after the Global Crisis 2007-2011

The Measurement of Impacts of External Financing on the Risk Level of Viet Nam Real Estate Industry During and after the Global Crisis 2007-2011

The Measurement of Impacts of External Financing on the Risk Level of Viet Nam Construction Material Industry During and after the Global Crisis 2007-2011

The Measurement of Impacts of External Financing on the Risk Level of Viet Nam Construction Material Industry During and after the Global Crisis 2007-2011