Lower Debt Levels Research Articles

Capital flow freezes

AbstractThe period following the 2008 financial crisis focused attention on “twin-crises,” where banking crises precipitate sovereign crises due to increased bank support. We show that when private sector debt is renegotiated centrally, and bargaining power is low, it results in suboptimally low levels of debt and default rates (haircuts). If, instead, the bargaining power is sufficiently high, the supply of debt exceeds its demand and capital inflows “freeze”. These inefficiencies arise because the decentralized borrowers fail to consider how their bond supply impacts debt renegotiation outcomes, affecting both bond prices and the asset span. These issues can be addressed through macroprudential policies in the form of taxing capital inflows.

Assessing the Role of Financial Literacy in Enhancing Personal Financial Decision-Making among Students

As students develop long-term financial habits, financial literacy has been increasingly recognised as an essential skill for effective personal financial management. The objective of this research is to assess the impact of financial literacy on improving personal financial decision-making of students. Efficient money management is facilitated by the basic understanding of financial concepts which includes budgeting, saving, investing and managing debt. Financially literate students tend to make informed decisions in the allocation of their resources effectively to meet short-term and long-term goals. The study emphasises the importance of incorporating thorough financial literacy programmes into the university curriculum to equip students with vital skills necessary for prudent financial handling. Personal financial management is essential for students as it lays the foundation for their financial well-being both during their academic years and beyond. The need for financial literacy education among students is further underscored by broader economic benefits such as increased savings rates, lower debt levels and improved economic stability. The research explores obstacles in acquiring financial literacy such as socio-economic limitations, lack of practical financial experience and limited access to financial education resources. The data for the analysis was collected through a questionnaire from 100 respondents using a convenience sampling technique to evaluate how financial literacy helps students make better financial decisions.

Financial cycles and corporate financialization levels—Evidence from the cultural industry enterprises

This investigation explores the nexus between financial cycles and the corporate financialization levels, utilizing data on a quarterly basis from listed companies in the cultural industry, spanning 2012 to 2023. The empirical evidence indicates a robust positive correlation between financial cycles and the level of corporate financialization, with corporate profitability acting as a facilitative moderator in this association. Further analysis uncovers the heterogeneity in the impact of financial cycles on corporate financialization levels. Specifically, the influence of financial cycles is more pronounced for small-sized companies and those with low levels of debt.

Why companies have low debt? An empirical evidence in Korea

The aim of this study is to examine the reasons why companies have been borrowing less, which has become increasingly popular recently. The study uses the method developed by Agrawal and Nagarajan (1990) [13] to select unlevered and levered companies for comparison to identify the causes of low leverage. The results of empirical analysis indicate that first, companies with low debt levels are relatively profitable, have high internal reserves, and possess future growth opportunities. Second, unlevered companies exhibit higher economic value compared to levered companies. Debt does not improve company value through low cost of capital or higher cash flow via tax shield. Third, family ownership tends to prefer low debt levels. Finally, unlevered companies have higher cash holding compared to levered companies, and this trend is maintained over long period of time. The preference for higher cash among unlevered companies has a historical basis. The companies are maintaining low debt levels for future growth opportunities and their management preference for high level of cash has remained consistent over time.

Evaluating the Impact of Energy Price Shocks on Emerging Countries from the Non-Euro Area: A Macroeconomic Analysis

Abstract Exogenous shocks like the COVID-19 pandemic or the Russian conflict affected the global economy, but mostly emerging economies. Even though the critical moments have passed, the negative effects on the economy are still present in the current economic environment, characterized by high levels of uncertainty. Exogenous events, which have an uncertain likelihood of occurring, harm economies regardless of their development. In fact, a framework for unanticipated events is vital, as are steps to achieve low levels of national debt and increased authority stability. In this context, the objective of this paper is to examine the dynamic relationships between energy prices and certain macroeconomic variables, which were affected by the fact that the energy crisis triggered by the Russian-Ukrainian conflict overlapped with the accelerated transition to a green economy and the decarbonization process. The CEE countries are more vulnerable to the energy crisis, and their proximity to the front lines of military conflict can be an important fact to take into account. The research focuses on the Czech Republic, Hungary, Poland, and Romania. The empirical analysis was conducted on monthly frequency data and in order to present an effective method of modeling interactions between macroeconomic variables, the Bayesian technique was employed.

Financial stability of the federal budget and budgets of the Russian constituent entities subjects under Western sanctions

According to the definition of the European Commission, public finances financial stability is the ability of a state to maintain current expenditures, conduct tax and social policy in the long term without the threat of loss of the country’s solvency to fulfill its obligations and stipulated expenditures. The subject of the study is the state of revenues and expenditures of the federal budget and budgets of the Russian constituent entities under the Western sanctions. The choice of the Ural Federal District regions (hereinafter – UFD) as the objects of the study is due to the significant share of oil and gas revenues in the federal budget revenues, the export-oriented regions place and role in the oil and gas revenues formation in the federal budget. The purpose of the study is to assess the budget system financial stability on the example of the federal budget and budgets of the Russian constituent entities, in particular, the UFD regions. The article uses generally accepted research methods, such as analysis and synthesis, generalization, grouping, tabular, etc. It has been established that the imposed sanctions have a negative impact on oil and gas revenues. Under such conditions, the budget system stability is supported by a low level of debt, especially at the federal level. The UFD export-oriented regions budget stability indicators exceed similar indicators of the Russian constituent entities budget. The budget stability risks remain the highest at the regional and local levels.

Local delivery of bus transportation services: a model of interdependency of provision and production choices

ABSTRACT The article employs a model of interdependency of institutional choices and seeks to investigate the determinants of the provision and production of bus transportation services. We find that municipal population size and low levels of debt are the main drivers of service provision. The decision to cooperate in the provision of bus services is associated with municipalities that have lower levels of financial autonomy. Lastly, we find that larger municipalities and those not run by center left-wing mayors are more likely to opt for the externalization of bus services, either to municipal corporations or to private providers.

Quantifying the impact of interest rate volatility on Asian energy companies: A comparative study of fossil and renewable sectors

This study examines the impact of government bond yield volatility on companies in the fossil and renewable energy sectors in five Asian countries from 2015 to 2023. The analysis uses quantile-based methods to explore the spillover effects of yield volatility on companies with high and low debt levels in these sectors. The findings show that yield volatility tends to transmit shocks at lower quantiles and over shorter periods. The network connectedness is more critical at extreme upper and lower quantiles in the short term. The results also reveal significant differences in how yield volatility affects companies with high and low leverage levels, and these effects vary across the sample countries. Overall, this research provides valuable insights into the influence of yield volatility on financial decision-making in different contexts and industries. The study's results underscore the imperative for policymakers and stakeholders in the energy industry to give precedence to improving risk management methods.

Evaluating Fiscal Performance: A Fixed-Effect Panel Threshold Approach to National and Supranational Rules *

Fiscal rules are designed to prevent budget deficits arising from frequent and abrupt changes in countries' fiscal policies. These changes can be attributed to shifts in regional and global economic conditions, as well as short-term decisions made by governments. Recently, the COVID-19 pandemic has led to increased government spending and borrowing, rendering governments more vulnerable. In this context, the implementation of fiscal rules has gained renewed attention. However, to construct a more resilient infrastructure against future crises, it is not only the national fiscal rules that are critical, but also the presence of supranational fiscal rules that can ensure coordination and discipline among countries has become increasingly important. This study, therefore, seeks to analyze the impact of national and supranational fiscal rules on fiscal performance in 31 advanced economies over the period 2000-2020, utilizing the fixed-effect panel threshold model approach. The results indicate that national fiscal rule implementations become effective after a certain threshold level, whereas supranational fiscal rules are effective both below and above a specific debt threshold. This implies that while both types of fiscal rules are effective, supranational rules stand out in terms of their magnitude and their effectiveness even at lower levels of debt. These findings are expected to guide policymakers in evaluating fiscal rule policies and balancing local needs with the achievement of regional objectives.

Debt Crises, Fast and Slow

Abstract We build a dynamic model where the economy is vulnerable to belief-driven slow-moving debt crises at intermediate debt levels, and rollover crises at both low and high debt levels. Vis-à-vis the threat of slow-moving crises, countercyclical deficits generally welfare-dominate debt reduction policies. In a recession, optimizing governments only deleverage if debt is close to the threshold below which belief-driven slow-moving crises can no longer occur. The welfare benefits from deleveraging instead dominate if governments are concerned with losing market access even at low debt levels. Long bond maturities may fully eliminate belief-driven rollover crises but not slow-moving ones.

Comparison of Three Different Companies in the US. Retail Industry Based on Beta (-risk) Analysis and Financial Statement Analysis: Costco vs. Walmart vs. Target

The purpose of this paper is to analyze the capital structure, business risk (levered vs. unlevered beta ), and financial statements in the U.S. grocery retailers to determine how their unique capital structure, risks, and financial characteristics explain the differences in their performance and investment returns. We chose three U.S. grocery stores: Costco, Walmart, and Target, each with a unique business structure. We conducted a detailed beta () analysis, both leveraged and unleveraged, as well as a dedicate financial statement analysis focused on ratio analysis. Liquidity, profitability, and solvency abilities were examined to determine if they depend on each retailers specific capital structure, risks, and characteristics, and how they would affect investors investment decisions. Our results reveal that the capital structure, or the level of financial leverage, and size of market capitalization play key roles in determining a companys levered and unlevered beta (). In addition, we found that Target has the highest investment return but exhibits substantially weaker sales and has a high liquidity risk. Costco exhibits significant low margins in both gross and operating, but has a lower level of debt and a greater ability to generate free cash flow. Walmart has the largest market capitalization, the lowest business risk () and return, but the large amount of debts it currently holds limits its free cash flow and ability to grow rapidly. Above all, it is advisable to invest in Costco rather than Target and Walmart under todays unprecedented (post) Covid-19 pandemic context.

Government debt and fiscal multipliers in the era of population aging

Abstract Over the past decade, the most salient changes in macroeconomic conditions in developed economies have included rising government debt and population aging, which are strongly correlated with each other. This paper investigates fiscal multipliers by disentangling the effects of population aging from those of government debt. Our analysis, which uses heterogeneous panel data from 24 OECD economies, shows that while fiscal policy is ineffective for economies with high-debt levels, it is effective for economies with low-debt levels. Furthermore, the estimation results reveal that fiscal policy is ineffective for aged economies, regardless of the level of government debt. However, for nonaged economies, while fiscal policy leads to negative effects on output in times of high debt, its positive effects are more pronounced in times of low debt. Our results suggest that, for the effective implementation of fiscal stimulus policies, policy-based stimulation of employment in the labor market is essential.

Influences of Financial and Workplace Factors on Physical Therapist Job Satisfaction.

The physical therapist labor market has recently noted higher rates of turnover and job vacancies. An understudied factor contributing to these trends in the profession is job satisfaction. The profession continues to experience relatively low wages compared with other health professions, and graduates of Doctor of Physical Therapy (DPT) programs face increasingly high student debt. This study used the labor-search model as a conceptual framework to understand associations between job satisfaction, income, and educational debt. The purpose of this study is to observe the financial and workplace factors that are associated with higher levels of physical therapist job satisfaction. Data from 4764 physical therapists in one state were captured retrospectively through the state's licensure renewal process from 2014-2020. A random-effects panel analysis, with job satisfaction as the dependent variable, was used to evaluate the relationships between job satisfaction and income, educational debt, and a variety of work-related factors. Job satisfaction was negatively correlated with educational debt, number of hours worked per week, and some practice settings. Conversely, job satisfaction was positively correlated with the expected age of retirement. The percentage of time spent in research and administration was also positively correlated with job satisfaction, though additional research in this area is needed to draw meaningful conclusions on this association. The results support the conceptual framework, which suggests that early career physical therapists, motivated by high amounts of educational debt, may choose more financially advantageous practice settings and increased working hours to the detriment of job satisfaction. High levels of job satisfaction among physical therapists are correlated with low levels of educational debt, working 45hours or less per week, a longer time horizon until retirement, and practice settings other than home health and skilled nursing facilities.

SOCIAL DILEMMAS OF THE SWEDISH ECONOMIC MODEL IN THE POST-WAR PERIOD

The article analyzes the stages development of the Swedish economic model from the mid-nineteenth century to the crisis in period 20082010. Sweden is the richest Scandinavian country and one of the most industrialized countries in the world. Sweden is an economically highly developed and efficiently organized country. For the last few years, the economy has been in a phase of economic growth. In the period 20182021, the gross domestic product (GDP) grew at a rate of almost 2.0% in the conditions of low inflation (approx. 3% annually) and a relatively high unemployment rate (7.0% in 2019 and 8.8% in 2021). The economic results achieved by Sweden are not accidental. This is the result of the harmonized economic policy pursued continuously by the Swedish government, which actively affects the material course of economic growth processes in this country. The development of economic policy in Sweden can be divided into two periods: the first (1970s and 1980s) was characterized by the decline of traditionally understood industrialization. The change in the political arena in the period 1976-1982, which resulted in the removal of the Social Democrats from power, did not stop the subsequent fiscalism and the increase in public and social spending. The rate of economic growth in the long-term horizon was declining. Between 1961 and 1970, the average annual growth of Swedish GDP was 8.9%, 5.6% in the 1970s and 6.9% in the 1980s, respectively.The process of internationalization of Swedish enterprises, liberal approaches to economic cooperation with foreign countries and the recovery of public finances, whose dynamic development took place in the 1990s, are the second characteristic period in Swedens economic policy. For more than two decades, Swedish governments have maintained strong fiscal discipline. After theeconomic reset in the early 1990s, the general downward trend in the share of public spending in Swedish GDP seems to have come to a halt. In the last 3 years (20192021), public spending did not exceed 50% of GDP. Moreover, Sweden has maintained a low level of public debt for years. The ratio of public debt to GDP decreased from 78% (1994) to 35.2% (2019), 39.6% in 2020 and in 2021 36.7%. One of the important factors enabling the rapid economic growth of Sweden was high expenditure on research and development (R&D). For several years, Sweden has been at the forefront of countries investing the most in the development of new technologies. An important factor in Swedens economic growth has also been the high level of foreign investment. According to UN statistics, Sweden is one of the most attractive places to invest foreign capital. The impulse of the Swedish economy over many years was the development of exports, which in 2021 reached the level of approx. PLN 176 billion. Euro, which puts Sweden at the forefront of the world. The share of exports in creating the Swedish GDP in 2021 was as much as 45.5%.The EU membership also had a positive impact on Swedens economic development.Swedens social and economic success has also been achieved on the basis of the lessons learned from the financial crisis of the early 1990s. The unchanging strategy and economic policy, together with competitiveness, innovation and a flexible approach to trade, have made Sweden today a highly competitive country with an economy that achieves measurable successes.

Understanding the functional form of the relationship between childhood cognitive ability and adult financial well-being.

The increasing complexity of the modern financial landscape presents significant challenges for individuals' financial well-being. In this study, we aim to investigate the relationship between cognitive ability and financial well-being by utilizing data from the British Cohort Study, which follows a sample of 13,000 individuals from birth in 1970 to the present day. Our objective is to examine the functional form of this relationship while controlling for factors such as childhood socio-economic status and adult income. Previous research has established a correlation between cognitive ability and financial well-being, but has implicitly assumed a linear relationship. Our analyses indicate that the majority of the relationships between cognitive ability and financial variables are monotonic. However, we also observe non-monotonic relationships, particularly for credit usage, suggesting a curvilinear relationship where both lower and higher levels of cognitive ability are associated with lower levels of debt. These findings have important implications for understanding the role of cognitive ability in financial well-being and for financial education and policy, as the complexity of the modern financial landscape poses significant challenges for individuals' financial well-being. As financial complexity is increasing and cognitive ability is a key predictor of knowledge acquisition, misspecifying the true relationship between cognitive ability and financial outcomes leads to an undervaluation of the role of cognitive ability for financial well-being.

The Effect Of Good Corporate Governance, Company Size, And Leverage On The Integrity Of Financial Statements

The Integrity of financial reports is defined as the extent to which the financial statements presented show true and honest information. Two things become the primary qualities in financial reports, namely relevance, and reliability. This study aims to empirically determine the role of good corporate governance and financial performance on the Integrity of financial statements. The variables used in corporate governance are institutional ownership, managerial ownership, and independent commissioners. Financial performance using company size and leverage. The population in this study are property and real estate companies listed on the Indonesia Stock Exchange in 2018-2021. The samples in this study were 16 property and real estate companies determined based on the purposive sampling method. The analytical tool used to test the hypothesis is multiple linear regression. The results of this study indicate that institutional ownership, managerial ownership, and firm size harm the Integrity of financial statements. The amount of institutional and managerial ownership does not make financial reports more relevant and reliable. The presence of an independent commissioner positively affects the Integrity of financial reports, and it can be considered as overseeing the process of making financial reports. While leverage does not affect the Integrity of financial statements, the low level of corporate debt cannot guarantee that financial statements are presented with high Integrity. Future research can develop this research by observing the effectiveness of the company's internal audit team. The internal audit team has an important role in the Integrity of the entity's financial statements.

The Incarceration Penalty and Black-White Economic Inequality: The Case of Baltimore

This paper investigates income and wealth gaps by household incarceration history within and across racial groups using the Blinder-Oaxaca decomposition. We study this in the context of 2017 Baltimore. We find that households exposed to incarceration have lower levels of income and wealth and that these differences are largest for White households. Additionally, we find that Black households without incarceration exposure fare no better in household income than White households with exposure but have higher levels of wealth (driven by lower debt levels). These results highlight the importance of studying the relationship between the criminal legal system and economic inequality.

Household net saving positions and unconventional monetary policy transmission: Evidence from Japan

This paper investigates the heterogeneous effect of unconventional monetary policy (UMP) on household consumption across different household net saving positions. Using Japanese household survey data on household balance sheet positions, income, and expenditures, we enhance the role of the cash-flow channel in the UMP transmission. Households in a lower net saving position (with a higher level of debt) exhibit significantly positive expenditure responses to expansionary UMP shocks. In contrast, households in an upper net saving position (with a lower level of debt) respond little. We also find that households in lower net saving positions primarily drive the aggregate effects of UMP on household consumption.

Quarterly investment spikes, stock returns, and the investment factor

We find that abnormal fourth-quarter capital expenditures are negatively correlated with future stock returns. While this evidence is linked to the asset growth factor, it cannot be entirely attributed to it. The fact that the relationship reverts with contemporaneous returns suggests that ad hoc investments may reflect changing discount rates. However, additional tests indicate that the reported effect is amplified by high payouts, low debt levels, and high idiosyncratic volatility, which is suggestive of over-investment issues. Our analysis supports the notion that firms’ investment decisions contain intricate but valuable information about stock returns.

MP66-09 ASSESSING FINANCIAL LITERACY AND WELLBEING OF UROLOGY RESIDENTS

You have accessJournal of UrologyCME1 Apr 2023MP66-09 ASSESSING FINANCIAL LITERACY AND WELLBEING OF UROLOGY RESIDENTS Katherine Sinchek, Kyle Dymanus, Morgan Salkowski, Christopher Coogan, and Alexander Chow Katherine SinchekKatherine Sinchek More articles by this author , Kyle DymanusKyle Dymanus More articles by this author , Morgan SalkowskiMorgan Salkowski More articles by this author , Christopher CooganChristopher Coogan More articles by this author , and Alexander ChowAlexander Chow More articles by this author View All Author Informationhttps://doi.org/10.1097/JU.0000000000003329.09AboutPDF ToolsAdd to favoritesDownload CitationsTrack CitationsPermissionsReprints ShareFacebookLinked InTwitterEmail Abstract INTRODUCTION AND OBJECTIVE: Physicians accrue significant debt throughout their medical education yet report less experience with and instruction in personal finance management than their age-matched peers. Our study aims to evaluate financial status, literacy, and attitudes in urology residents across the United States. METHODS: A web-based survey was sent to 146 ACGME-accredited urology residency programs in the United States. Respondents were asked to answer 50 questions covering personal debt, financial status, and willingness to participate in formal education on personal finance during residency. The survey included a validated questionnaire authored by the Financial Industry Regulatory Authority (FINRA) to provide objective data regarding financial literacy. RESULTS: 99 total responses were received from urology residents located in 23 states. Financial and debt status are reported in Table 1. 88 respondents answered the financial literacy portion of the survey, with an average correct score of 53% (+/-22.5%). Residents that reported their knowledge of personal finance and investing as high (7%) or above average (26%) were more likely to have higher scores than those reporting their knowledge as limited (38%) or having no knowledge (11%) (p=0.01). Lower debt level (<$100,000) was associated with a higher literacy score (p=0.01). Residents cited lack of time (75%), lack of resources (51%), and challenging subject matter (47%) as reasons for their limited financial knowledge. CONCLUSIONS: Responses indicate a high debt burden yet limited literacy in personal finance based on quantitative measures provided by the FINRA assessment. Although most residents reported confidence in ability to meet monthly costs of living, a survey of savings versus debt depicts residents in a precarious position. Formal education in personal finance was also assessed, highlighting a disparity in resident interest and what programs currently offer. While most residents reported having access to personal finance educational programming at their programs, almost all respondents indicated they did not feel it was adequate for their needs. These results suggest that the addition of a formal course on personal finances would be well-received and lead to improved financial wellbeing in this group. Source of Funding: None © 2023 by American Urological Association Education and Research, Inc.FiguresReferencesRelatedDetails Volume 209Issue Supplement 4April 2023Page: e935 Advertisement Copyright & Permissions© 2023 by American Urological Association Education and Research, Inc.MetricsAuthor Information Katherine Sinchek More articles by this author Kyle Dymanus More articles by this author Morgan Salkowski More articles by this author Christopher Coogan More articles by this author Alexander Chow More articles by this author Expand All Advertisement PDF downloadLoading ...