Impact Of Financial Structure Research Articles

Research on the Impact of Financial Structure on Economic Growth

Abstract Financial support for economic growth is an important lever for developing countries to enhance their international competitiveness. This article selected provincial panel data from 31 provinces in China from 2006 to 2022. Research the impact mechanism of financial structure on economic growth from both linear and nonlinear perspectives. The linear research results indicate that market-oriented financial structures can effectively promote economic growth and have a robust impact. The non-linear research results indicate that the impact of market-oriented financial structures on economic growth is influenced by the non-linear effects of the capital market and labor market. Specifically, with the improvement of the allocation efficiency of the capital market and labor market, the promoting effect of market-oriented financial structure on economic growth shows a first strengthening and then weakening effect. Keywords: Financial structure, Economic growth, Linear influence, Nonlinear effects.

Construction of Spatiotemporal Difference Image of the Impact of Financial Structure on China's Total Factor Productivity.

My country's current research on the influencing factors of total factor productivity has problems such as single evaluation method, low efficiency, and poor overall level in terms of evaluation methods and evaluation efficiency. Based on this, this study divides the financial structure into three traditional sections, banking, securities, and insurance, and uses the DEA model to study the temporal and spatial differences of the financial structure's influence on the total factor productivity of the four major political and economic regions of China's eastern, western, central, and northeastern China. First, establish a DEA model based on data mining algorithms, combine financial data comparisons over the years, to achieve a quantitative analysis of the financial structure's impact on China's total factor productivity, calculate financial efficiency, and then combine the DEA analysis data model with the grey correlation method. Analyze its internal influence rules, and design experiments for model verification analysis. The results show that the DEA analysis model can realize 8 iterations of data on the impact of financial structure on China's total factor productivity, and its evaluation accuracy can reach more than 96.2%.

Application of hierarchical method and fuzzy AHP-TOPSIS method for multi-criteria decision making in financing

Purpose: One way to make more profit in different companies is to choose the right method of financing. While the impact of financial structure on the economic structure is so important that today they believe that economic growth cannot be achieved without an efficient financial sector. The method of financing is financial. At first, in this study, the fuzzy Delphi method (Delphi) has been used in order to identify the factors and criteria of supply. Research methodology: The absorption of foreign capital has been identified as a method of financing. For this purpose, in this research, AHP hierarchical analysis method is used. Results: In this article, the application of fuzzy AHP - TOPSIS method for the problem of financing is investigated. The process of managing financial resources is one of the reasons for allocating its technical equipment to various applications in this company. Limitations: However, the results of our studies show that although a set of known values in this company, the financing process may not adhere strongly to these values. Emphasis on evaluation aspects - changes in various areas that indicate local values may also affect the supply trend. Contribution: Multi-criteria decision methods are useful in that they provide a basis for analyzing and transforming complex and complex problems into simpler ones; In that framework, the planner can easily evaluate the options with the help of criteria and sub-criteria. Using these methods can help a lot in choosing the best available solution. Other advantages of these methods include flexibility, simplicity of calculations and the possibility of the final ranking of options.

Green technology innovation and financial development: Do environmental regulation and innovation output matter?

This research combines the DEA-SBM (Data Envelopment Analysis-Super Slack Based Measure) model and GML (Global Malmquist-Luenberger) index to measure the efficiency of green technology innovation in 30 provinces of China from 2003 to 2017. It uses financial structure, financial scale, and financial efficiency to describe the degree of financial development and examines the relationship between financial development and green technology innovation. We further analyze the moderating effect of environmental regulation and the mediating effect of innovation output, first offering evidence that there are differences in the impact of financial structure, financial scale, and financial efficiency on green technology innovation. Second, financial structure is conducive to the development of green technology innovation, while financial scale and financial efficiency have a negative impact on green technology innovation. Third, environmental regulation plays a positive role as a moderating effect between financial structure and green technology innovation, but a negative role as a moderating effect between financial efficiency and green technology innovation. Fourth, innovation output has a mediating role between financial development and green technology innovation. Finally, there is an integrated boundary role that environmental regulation has between financial development, innovation output, and green technology innovation.

The Impact of Financial Structure on Technical Innovation

We employed the fixed effects model to examine (1) the relationship between China’s financial structure and technical innovation and (2) the impact of China’s financial structure on heterogeneous technical innovation. This study was conducted using China’s provincial panel data from 2004 to 2016. Results show that the market-oriented financial structure had an incentive effect that led to improvement in the level of technical innovation. Furthermore, we found that financial structure had different impacts on heterogeneous technical innovation. Specifically, the market-oriented financial structure significantly enhanced the improvement in the output level of regional original technical innovation; however, it had no significant impact on imitative technical innovation. Keywords: financial structure, technical innovation, empirical research DOI: 10.7176/RJFA/11-17-01 Publication date: October 31 st 2020

The Impact of Financial Structure on Export Perfor-mance: The Case of Manufacturing Sectors in Turkey

A substantial amount of empirical research has explored the decisive role of var-ious external and internal forces on determining the sector export performance. However, there are a few studies, considering financial structure as a determi-nant of export performance. This paper aims to provide a better understanding of the relationship between a set of financial variables and export performance in Turkey’s 24 manufacturing sectors for the period between 2008 and 2016. According to the panel EGLS results, short-term debt, bank loans, size, interest expenses and return on equity have a positive effect on export intensity in con-trast to the return on asset, current asset ratio and foreign exchange rate. Conse-quently, we find substantial evidence that more short term-debt and bank loans in the capital structure lead to an increase in export performance. Further, firms with larger sizes, higher return on equity tend to present higher export performance.

Money Matters: An Examination of the Impact of Financial Structure on Nascent Venture Performance; Evidence from the Kauffman Firm Survey

This study was carried out to empirically test the impact of financial structure on nascent enterprise performance. The study used a centralistic nomothetic longitudinal methodology to examine a panel data derived from the first four years of the Kauffman firm Survey (KFS). The result revealed that financial structure (equity financing, debt financing, and trade-financing) influenced nascent enterprise performance, but inconsistently over the first four years of business existence. The average capital structure of the sample was supported by the literature and followed the pecking order of equity, debt, and trade financing. Results suggested that capital structure has an important ramification for nascent enterprise performance, but the capital mix of successful nascent enterprises do not necessarily follow an orthodox format.

Financial Structure and Financial Performance of Listed Firms in Nigeria

The instability and fluctuations in the financial performance of firms listed on the floor of the Nigerian Stock Exchange has continued to trigger researchers mind on the factors influencing it. In view of this, the study examined the impact of financial structure on financial performance of listed firms in Nigeria Stock Exchange. Data for the study were obtained from the audited annual report of the seventy-one sampled firms for a period of 10 years covering 2009 to 2018. Return on asset (ROA) was used as a measure of financial performance while long term debt to equity, long term debt and short term debt to total asset were used as financial structure variables. The study employed dynamic system generalized method moment (GMM) as technique of analysis and testing of hypotheses. The result shows that long term debt to equity ratio has positive and insignificant impact on ROA while short term debt to total assets ratio have negative and significant impact on return on assets. The study concludes that higher long term and short term debt in the financial structure influences the financial performance of listed firms in Nigeria Stock Exchange. The study recommends among others, managers of firms listed in the Nigeria Stock Exchanges in determination of optimal financial structure should seek for debt with less cost to the firms. Keywords : financial structure, financial performance, long term debt, short term debt, Nigeria Stock Exchange. DOI: 10.7176/RJFA/11-14-15 Publication date: July 31 st 2020

The Impact of Financial Structure on Profitability: Empirical Evidence from Vietnam’s Construction Sector

The purpose of this study is to empirically investigate the impact of financial structure—the balance between a firm’s liabilities and equities—on profitability, based on a sample of listed construction companies in Vietnam. Following a literature review, the hypothesis that there is a positive relationship between financial structure and profitability was formulated and tested through pooled ordinary least square, fixed effects, and random effects models. The empirical results revealed that the total, short-term, and long-term debt ratios exert a negative impact on profitability, while asset tangibility, inventory ratios, and growth rate, as well as size and age of firm all positively affect profitability; however, short-term receivable ratios had no effect. These findings contribute empirical evidence, in the context of emerging economies, to the existing body of literature.

Impact of financial structure on environmental quality: evidence from panel and disaggregated data

ABSTRACTThis paper examines two unresolved issues regarding the nexus between financial system development and environmental quality. (i) Does the structure of the financial system matter? (ii) Is there a nonlinear relationship? We employ the newly developed dynamic common correlated effect (CCE) and the dynamic panel generalized method of moments (GMM) estimators in order to address potential endogeneity, heterogeneity and cross-sectional dependence in a panel of 58 countries. The panel data analysis reveals that the structure of the financial system matters in safeguarding environmental quality. More precisely, bank-based financial development enhances environmental quality, whereas the impact of market-based financial development is tenuous. We find some evidences of a nonlinear relationship between financial system development and environmental quality. The disaggregated data reveals the countries where financial structure matters for environmental quality, and countries where a nonlinear relationship exists between the variables. Therefore, countries that want to maintain environmental quality should strengthen the development of bank-based financial system. Moreover, effort to develop and reposition the stock markets should be prioritized in countries’ environmental policies with a view to sustaining environmental quality.

Reducing risk and leveraging markets: The impact of financial structure on federal contractor performance

This paper analyzes how financial controls, as established through the payment structure, are used and whether they influence federal contractor performance. These payment structures include variants on three primary types of contract: firm fixed-price, cost-reimbursement, and time-and-materials. Each of these payment structures creates different performance incentives for contractors, provides government contract managers with varying levels of information on contractor activities, and alters the dispersion of risk between the partners. The Federal Acquisition Regulation (FAR) prefers fixed-price contracts whenever possible, as they theoretically place the risk on the contractor, who is required to finish the work for the allocated price. Based on an analysis of nearly 25,000 federal definitive contracts that concluded between 2005 and 2014, findings indicate federal contracting officials tend to use payment structures in expected ways: to limit exposure to risk, leverage market forces, and reduce transaction costs when possible. Findings also show that there are important performance differences between contracts that use different financial structures, even when accounting for information asymmetries, asset specificity, and the complexity of the contracted work. Cost-reimbursement contracts are highly correlated with early contract termination.

The Impact of Financial Structure on Firm Performance: A Study of Nigeria Agricultural and Healthcare Sector

The Impact of Financial Structure on Firm Performance: A Study of Nigeria Agricultural and Healthcare Sector

Understanding the Impact of Entrepreneurial Orientation on Smes’ Performance. the Role of the Financing Structure

Based on a sample of 300 small and medium enterprises (SMEs) located in the Province of Udine (north East of Italy) and the Kärtner Region (South of Austria) we perform an analysis of the impact of Entrepreneurial Orientation (EO) on SMEs’ subjective performances. We develop a model in which EO dimensions are moderated by the role of financial leverage The present work is part of a research project on an interregional co-operation programme Italy-Austria (INTERREG IV) financed by the European Regional Development Fund whose program areas include the Province of Udine and the Kärtner Region. Subjective performances has been widely investigated in academic literature where various streams of research have been developed. A prominent field of research focuses on the constructs of EO orientation and their ability to prompt performances through innovative attitude, risk taking behaviour, aggressiveness, autonomy and competitive energy. Another established field of research focuses on the impact of financial structure (i.e. leverage) on performances, although with ambiguous results.. We find support to the hypothesis that competitive energy might have a significant and positive impact in driving performance, which has obvious implications for managers and theoreticians. We also find that leverage might have a significant moderating role through interactions with EO dimensions.

The Impact of Financial Structure on the Performance of European Listed Firms

By considering different systems of legal protection this study examines the impact of capital structure on the performance of listed firms in European region. Based on 5050 listed firms in eight European countries, the results of the study reveal that the owners in low level of legal protection are more likely to use the capital structure of the firms in order to serve their proper interests. In high level of legal protection, the market based system and the debts are enrolled to constraint the expropriation of private benefits.

What Financial Structure will be conducive to Poverty Reduction? The effects of Financial Liberalisation

Countries differ in the extent to which their financial systems are bank-based or market-based. This paper presents evidence on the impact of financial structure on poverty reduction. Is a bank-based or market-based financial system preferred? If the theoretical literature on the subject does not offer a precise rethink on this issue, the majority of empirical studies argue for a bank oriented financial system. This paper stains to contribute to the debate on the financial structure and poverty. Particular attention is paid to the role of the financial liberalisation and its interaction with the financial system structure. Using panel data on a sample composed of 38 developing countries over the period 1990-2011 and applying the Generalized Method of Moment technique, we investigate the issue that the used financial structure indicators don’t favour any financial sector. That is, in the presence of liberalised financial system, a bank-based financial system is better in reducing poverty.

Does Financial Structure Matter for Economic Growth: Evidence from Nigeria

This paper examines specifically the impact of financial structure on long-run economic growth in Nigeria, using time serial data for 16 year period: 1992 – 2006. The Ordinary Least Square multiple regression was used to estimate the necessary models. The gross domestic product per capita growth was adopted as the dependent variable, while the independent variables were liquid liability divided by GDP, bank total credit to the private sector divided by GDP for bank-based financial structure, value of shares traded divided by GDP and total market capitalization divided by GDP for market-based financial structure. The regression result shows that the component of bank structure size defined by liquid liability divided by GDP is not positive in predicting growth. However, bank structure activity defined by credit to the private sector divided by GDP exhibited positive relationship in explaining long-run economic growth. Also, the result shows that stock market structure size proxied by market capitalization divided by GDP does not promote growth, while market structure activity defined as value of shares traded divided by GDP was found to be positive in explaining economic growth. The empirical evidence suggests that both bank-based and market-based financial structure promote economic growth. However, bank-based financial structure exerts more positive influence on long-run economic growth than market based financial structure.

The Impact of Financial Structure on Firms' Financial Constraints: A Cross-Country Analysis

We estimate firms’ cash flow sensitivity of cash to empirically test how the financial system’s structure and activity level influence their financial constraints. For this purpose we merge Almeida et al. (2004), a path-breaking design for evaluating a firm’s financial constraints, with Levine (2002), who paved the way for comparative analysis of financial systems around the world. We conjecture that a country’s financial system, both in terms of its structure and its level of development, should influence the cash flow sensitivity of cash of constrained firms but leave unconstrained firms unaffected. We test our hypothesis with a large international sample of 80,000 firm-years from 1989 to 2006. Our findings reveal that both the structure of the financial system and its level of development matter. Bank-based financial systems provide constrained firms with easier access to external financing. (JEL Classification Numbers: G32, G30)

Innovation and Stock Markets: International Evidence on Manufacturing and Services

The paper investigates the link between stock markets and innovation, by focusing on the relationship between firms' innovativeness and their participation in public stock markets. It reviews theoretical and empirical literature on capital structure and going-public decision, combined with insights from innovation studies, to argue that there are no reasons, why a positive relationship between innovativeness and stock market participation should not apply to both manufacturing and services firms. This hypothesis is confirmed through the analysis of data from 30 European countries, as well as the USA and Japan, which shows that the positive relationship between innovativeness and stock market participation is actually stronger for services than for manufacturing firms. It is also shown that the relationship differs between countries as a reflection of their diverse institutions. It is weak or absent in countries where institutional environment of stock markets is weak, e.g. transition economies or Italy, and pronounced where institutions are particularly stock market friendly e.g. the USA and the UK. Finally, the paper shows that while the Internet boom brought hoards of innovative firms to stock markets, the positive relationship between innovativeness and stock market participation is likely to have existed before. Implications are drawn for research on the impact of financial structure on innovation and growth.

The Impact Of Financial Structure On Corporate Governance Mechanisms

The theory and practice of corporate finance has allocated over time an important field of study in favor of the main corporate decisions regarding financial structure and its implications over: the shareholders, the debt holders, other stakeholders and on the participants from inside the corporation. The first section of this paper contains a theoretical synthesis of several cornerstone studies on this subject. The second section is a research proposal which can be undertaken in order to materialize theory into practice, by testing these implications on the Romanian corporate environment.

A Survey of Non-functional Sector Balance Sheets in Industrialised Countries: Implications for the Monetary Policy Transmission Mechanism

This paper identifies the similarities and differences in the balance sheets of the household and business sectors in 14 industrialised countries with a view to identifying their implications for the transmission mechanism of monetary policy. The analysis draws on the central bank responses to a detailed questionnaire and other available information. Differences in the size and sectoral pattern of potential income and wealth effects are highlighted. The paper is part of a broader BIS cross-country study on the impact of financial structure on the transmission mechanism.