Debt Repayment Research Articles

A Financial Analysis and Valuation of Apple, Inc.

Abstract: This paper will take an in-depth look at Apple's financial performance and provide a detailed comparative analysis with its main competitors. Apple, as the world's leading technology giant, has always been known for its innovative products and strong market influence. However, in an increasingly competitive tech industry, continued financial health is key to its success. This paper first compares the performance of Apple and its competitors in key financial indicators such as liquidity, debt repayment ability and profitability. This comparison not only reveals Apple's financial position in the industry, but also helps us understand its robustness in responding to market movements. Next, this paper analyzes Apple's financial report of the latest year in detail, and deeply discusses the change trend of its revenue, expenditure, profit and other key financial data. This analysis is able to capture Apple's financial performance and strategy in the face of global economic fluctuations and changes in market demand. Finally, this paper will discuss Apple's business strategy and the business risks it faces. This includes its product innovation strategy, market expansion plans and potential risks due to factors such as technological change, market competition and global policy changes. Through a comprehensive analysis of Apple's business model and go-to-market strategy, this paper aims to provide a comprehensive perspective on how Apple can maintain its leadership position in a dynamic market.

Developing theoretical models for effective debt service management in high-volatility industries: a focus on risk mitigation and financial stability in the oil and gas sector

Effective debt service management is crucial for maintaining financial stability and mitigating risks in high-volatility industries, particularly in the oil and gas sector. This abstract explores the development of theoretical models aimed at enhancing debt service management practices in such industries. The oil and gas sector is inherently exposed to price volatility, geopolitical uncertainties, and regulatory challenges, necessitating robust strategies for managing debt obligations. This review emphasizes the importance of integrating risk mitigation techniques into debt service management frameworks to safeguard against financial distress and optimize capital structure efficiency. Key theoretical models examined include proactive debt restructuring, dynamic financial modeling, and scenario analysis tailored to the cyclical nature of the industry. These models emphasize adaptive strategies that enable companies to adjust debt repayment schedules based on market conditions and cash flow projections. Additionally, financial stability metrics such as debt-to-equity ratios, liquidity ratios, and debt coverage ratios are utilized to gauge the sector's resilience to external shocks. Incorporating risk management principles into debt service management frameworks enhances decision-making processes, facilitates early detection of financial vulnerabilities, and ensures alignment with long-term strategic goals. Case studies and empirical data illustrate the practical application of theoretical models in optimizing capital allocation and maintaining investor confidence amid industry fluctuations. The theoretical insights presented contribute to a comprehensive understanding of effective debt service management in high-volatility industries, highlighting the role of financial prudence and strategic foresight in sustaining operational resilience. Recommendations are provided for industry practitioners and policymakers to enhance regulatory frameworks, promote transparency, and foster sustainable growth in the oil and gas sector.. Keywords: Debt Service Management, Risk Mitigation, Financial Stability, Oil and Gas Sector, High-Volatility Industries, Theoretical Models, Debt Restructuring, Financial Modeling, Scenario Analysis, Capital Structure

Legal Protection for Creditors Due to Problem Credit with Collateral Rights Guarantee

Legal consequences of the implementation of the Power of Attorney to Charge Mortgage Rights in the implementation of the Sale and Purchase Agreement by a Notary based on the main agreement, namely the Credit Agreement in Banking which is not followed by the making of a Deed of Granting Mortgage Rights and analyzing legal protection for creditors in credit agreements with the execution of mortgage guarantees if the debtor is in default for settlement due to problematic credit. Based on Article 8 of Law No. 10 of 1998 concerning Amendments to Law No. 7 of 1992 concerning Banking in providing credit, banks apply the principle of "5C" which is mainly to see the customer's ability to accept the credit applied for. If the debtor defaults so that problematic credit occurs, then they can file for the execution of the Mortgage Guarantee if the collateral is in the form of land or buildings for the implementation of the SKMHT along with the APHT by a Notary. The purpose of this study was to determine the regulations for debtors who are in default in credit agreements with the imposition of Mortgage Rights and legal protection for creditors in the event that the debtor is in default. By using normative-empirical research methods, data collection techniques in the form of primary data by interviewing informants as informants and secondary data in the form of documents related to the problems studied to obtain conclusions if the debtor defaults in a credit agreement with the imposition of Mortgage Rights, based on the regulations of Law No. 4 of 1996 concerning Mortgage Rights, it states that the imposition is carried out by making a credit agreement first, then the imposition of mortgage rights and registration of the Deed of Granting Mortgage Rights with a predetermined time limit. So that there is legal protection for creditors so that the debtor's debt repayment can be carried out in accordance with the provisions of the Mortgage Law concerning the creditor's right to sell the object of the mortgage right

Debtors Responsibilities in Subsidized Home Loan Takeovers Based on Indonesian Ministerial Regulation Number 26/PRT/M/2016

The transfer of ownership for Subsidized Home Ownership Loans (KPR) is prohibited unless the property has been occupied for over 5 years. Despite this rule, violations frequently occur, highlighting gaps in enforcement and a lack of debtor responsibility in credit repayment. This study addresses two main questions: 1) What are the responsibilities of debtors in taking over subsidized KPR based on Regulation Number 26/PRT/M/2016 at Bela Berlian 3 Housing, Kampar Regency? 2) What are the legal consequences for debtors in such takeovers? Using empirical legal research with primary data, the study found that debtors often fail to meet their obligations, including the misuse of bank funds intended for housing debt repayment. This leads to defaults and breaches of contract. Unauthorized takeovers may result in the withdrawal of KPR subsidies, but enforcement remains inconsistent, causing legal uncertainty for new debtors. The research calls for stronger enforcement to prevent unauthorized KPR ownership transfers.

Debt Risk Analysis of Automotive Enterprises

In order to maintain their financial stability, businesses must recognize and manage the financial risks that are necessarily involved in their operations and output. Businesses may better comprehend their financial status and undertake efficient risk early warning by examining financial indicators. Academic research on the detection and mitigation of financial risks is extensive, and in an effort to increase the accuracy of assessments, an increasing number of academics are using multi-indicator systems for thorough analysis. Furthermore, non-statistical techniques including hierarchical analysis, B-S option pricing models, and artificial neural networks have shown extremely effective at handling complicated data and non-linear connections. As the economy transitions from high to medium-high growth, traditional and new energy vehicles in the automobile sector confront significant possibilities and problems. Traditional automakers aggressively converting to new energy cars include SAIC Motor, BAIC Group, and GAC Group. Companies that produce new energy vehicles, such XPeng, BYD, Tesla, Li Auto, and NIO, are becoming more competitive by developing new technologies and tapping into new markets. To enhance market competitiveness and sustainability, businesses must address issues like excessive inventory and price volatility that have been brought about by the new energy vehicle market’s explosive expansion through efficient financial risk management. The short- and long-term debt repayment capacities of traditional and new energy vehicle (NEV) enterprises are the main subjects of this study’s analysis of their financial statements. According to the findings, traditional automakers have more stable financial circumstances whereas NEV enterprises exhibit stronger short-term solvency and lower long-term financial risk in specific years with superior liquidity and lower debt ratios. The study attempts to offer resources for the automobile industry’s deleveraging, sustainable development, and inventory reduction.

The price of implicit guarantee: evidence from municipal bond markets in China

ABSTRACT In China, local government financing vehicles (LGFVs) have grown rapidly since the massive stimulus package in 2008. Due to the significant amount of funds allocated to public welfare infrastructure projects, an ‘implicit guarantee’ of debt repayment by local governments has emerged. This paper examines whether and how investors price this implicit guarantee, using a mixed cross-sectional fixed effects model, a generalized DID model, and placebo tests to investigate the hypotheses and identify the heterogeneity and robustness. The findings indicate that implicit guarantees do exist and are influenced by local fiscal capacity and previous guarantee behavior. Tightened regulations on hidden debt have increased the issuance spread of LGFV bonds, with the impact being more pronounced for regions with weaker fiscal and economic strength. Additionally, LGFVs with relatively lower administrative levels, stronger connections to public welfare-related business, higher explicit guarantees, and longer-term LGFV bonds are more influenced by the regulation.

30 Years of Macroeconomic Effects in Zambia-VECM, ARDL & IRF Approaches

Purpose: This study examines the impact of selected time series macroeconomic variables on Zambia’s economic progress for thirty (30) years (1992 to 2022) Methodology: The study employs the autoregressive distributed lag (ARDL), vector error correction models (VECMs) and the impulse response functions (IRFs) approaches. Findings: The VECM regression estimates indicate that in the long-run, ceteris paribus, a 1% increase in inflation and population growth rates cause a significant positive impact on economic progress of 0.36% and 0.68 % respectively whereas the total public debt stock causes decrease in economic growth of 0.45%. The ARDL long-run regression estimates indicate that ceteris paribus, a 1% increase in inflation and public debt significantly reduces real GDP by 0.2% and 0.03%, respectively, but a 1% increase in population growth rate increases real GDP by 23.11%. The IRF estimates show that a negative shock to the real GDP causes a mildly negative effect on the inflation rate, causes a significant positive increase in the population growth rate, which dissipates after 9.5 years and causes a significant positive increase in public debt, which dissipates after 10 years. Unique Contribution to Theory, Policy and Practice: Therefore, the study recommends that the Zambian government should prioritize repayment of the outstanding public debt by bringing down the debt-to-GDP ratio to sustainable levels, adhering to prudent public financial management and continuing to grow the domestic revenue base. The policies to promote population growth should be pursued cautiously because rapid population growth rates could erode the future economic growth prospects of Zambia.

EXPLORING THE RELATIONSHIP BETWEEN FINANCIAL LITERACY AND SUCCESSFUL LOAN REPAYMENT UNDER THE MUDRA YOJANA SCHEME IN INDIA

Financial literacy enhances the ability of the borrower to manage their finances such as budgeting and monitoring cash flow, thus leading to successful repayment of debts. This research employs a detailed review of secondary data, which includes qualitative insights. By focussing articles, reports, journals and websites, the study aims at providing insights on Mudra scheme and the role financial literacy in successful loan repayment and the importance of financial literacy to address the challenges faced by borrowers under the Mudra Yojana Scheme. Research reveal that higher financial literacy leads to better finance management, which leads to informed decisions and adherence to repayment schedules. Financial literacy enables individuals to mitigate financial challenges, make informed decisions, financial management, which in turn leads to timely loan repayments. It also highlights the importance of enhancing financial education through training programs conducted by policy makers, as it contributes to the strategic decision making and business growth. Thus contributing to the broader goals of financial inclusion and economic development. KEY WORDS: Sishu, Kishore, Tharun and Financial literacy.

The Use of IPO Fund, Underpricing, and Survival: ESG-Driven Insights from Indonesian Firms

The IPO prospectus should disclose information on the use of IPO proceeds, which can be a reference for investors in making investment decisions. Companies conduct IPOs for investment, working capital, and debt repayment purposes. The use of IPO fund for investment and working capital gives a positive signal, while debt repayment gives a negative signal. Some companies also implement ESG (Environmental, Social, and Governance) policies after conducting an IPO. This research aims to test whether companies with ESG scores have different underpricing and survival phenomena compared to companies in general. This research was conducted on 148 Indonesian companies that conducted IPOs in the period 2008-2021. The results suggest that the use of IPO proceeds for investment and working capital has a positive effect on underpricing and survival. However, the use of IPO proceeds for debt repayment has no effect on underpricing. Moreover, the use of IPO proceeds for debt repayment in companies that obtain ESG scores has a positive effect on underpricing. Underpricing strengthens the effect of the use of IPO fund for investment on survival occurs in the sample of companies in general as well as companies that obtain ESG scores. The implication of this research suggests that investors do not consider IPOs as a return on debt in companies that obtain ESG scores as a negative signal to invest.

Debt Repayment Between the Parity Standard and the Value Standard: A Critical Reading in Light of the Resolutions of the International Islamic Fiqh Academy

Debt Repayment Between the Parity Standard and the Value Standard: A Critical Reading in Light of the Resolutions of the International Islamic Fiqh Academy

Exploring the Impact of Private Equity Investment on Corporate Performance: A Case Study Pharmablock

Reasonable use of private equity investment not only effectively solves the problem of corporate funds, but also rapidly enhances the expansion of enterprises; Equity participation in enterprise management and decision-making can also make the development of enterprises more scientific and efficient. However, private equity investment also has the attribute of a "double-edged sword", such as excessive participation in internal business operations and the timing of exiting equity, which greatly affect the decision-making direction and debt stability of enterprises. This article takes Nanjing Pharmablock Co., Ltd., hereinafter referred to as "Pharmablock", as an example. By interpreting the process of private equity investment and investment, it studies the changes in the company's financial indicators such as profitability, debt repayment ability, and development ability, interprets the impact of private equity investment on enterprises, and ultimately identifies relevant issues and proposes corresponding suggestions.

Case Study of Reverse Merger - A Case Study on the Performance of SF Holding's Acquisition of Dingtai New Materials

SF Express continues to lead the Courier industry in China with its standardization, high quality and high effectiveness advantages. However, as customers' requirements for service quality continue to increase, the cost of express delivery industry continues to increase, and in the case of numerous express delivery industries and fierce competition, SF Holding's traditional business model and existing capital are difficult to stabilize its leading position in the express delivery industry. In order to ensure the expansion of its own capital and seize a favorable position in the market, SF Holding chose to go public in 2016 through the backdoor of Dingtai New Materials. This paper will explain in detail the principle, practical operation, strategy and practice behind the success of SF Express backdoor listing, and study the financial performance of SF Holding by analyzing four indicators of debt repayment, operation, development and profitability according to the financial index method, sum up the strategic experience of the enterprise, and provide effective reference for the development and transformation of similar enterprises.

Mortgage Design, Repayment Schedules, and Household Borrowing

How does the design of debt repayment schedules affect household borrowing? To answer this question, we exploit a Swedish policy reform that eliminated interest-only mortgages for loan-to-value ratios above 50%. We document substantial bunching at the threshold, leading to 5% less borrowing. Wealthy borrowers drive the results, challenging credit constraints as the primary explanation. We develop a model to evaluate the mechanisms driving household behavior and find that much of the effect comes from households experiencing ongoing flow disutility to amortization payments. Our results indicate that new mortgage contracts with low initial payments substantially increase household borrowing and lifetime interest costs.

ESG performance and cost of debt

We analyze China Securities Index Co., Ltd. (CSI) environmental, social and governance (ESG) scoring data, which incorporate Chinese characteristics, to assess the impact of ESG performance on corporate debt financing costs. Our findings indicate that better CSI ESG scores are correlated with lower debt financing costs. Additionally, improvements in local environmental execution enhance the effect of CSI ESG scores on debt financing costs. However, this effect diminishes with increased internal control quality and marketization. Governance has the greatest impact on reducing debt financing costs, followed by social and environmental factors. Superior CSI ESG scores reduce corporate debt financing costs by enhancing debt repayment capacity and reducing information asymmetry. Economic consequence analysis confirms that lower financing costs, driven by improved ESG performance, significantly enhance total factor productivity and firm value. CSI ESG scores also significantly impact bank loans but not corporate bond financing.

Investigation and Analysis of McDonald's Market Development

As a large restaurant chain, McDonald's is affected by different external and internal factors, which makes investors begin to question its sustainable operation ability. This study takes McDonald's as an example to explore the development issues of the catering industry through its business situation. This article studies the sustainability of McDonald's stock price in the future and evaluates its continued investment potential. Therefore, based on the financial data of McDonald's and its competitors during the period from 2020 to 2023, the expected value is estimated by combining quantitative research methods and relative value evaluation methods. The results of the study show that McDonald's financial performance in the past few years has been good, including good capital structure, short-term debt repayment ability and profitability. Investors can make a long-term investment in McDonald's stock based on a sound financial position and good market expectations. This study has important practical significance for the healthy development of catering.

How Is Financial Knowledge Related to Spending Behavior? Evidence From U.S. Stimulus Payments During the COVID-19 Pandemic

This study utilizes data from the 2021 National Financial Capability Study to explore the roles of both subjective and objective financial knowledge in shaping individuals’ financial decisions regarding the utilization of stimulus payments during the COVID-19 pandemic. Employing the probit model, the study explores how financial knowledge is related to stimulus fund utilization. Specifically, the findings reveal that individuals with higher levels of subjective and objective financial knowledge are less likely to use stimulus payments for immediate spending, such as purchases and bill payments, while being more likely to use these payments toward debt repayment, saving, stock market investment, and donation. Notably, subjective financial knowledge is found to play a greater role in decisions related to the utilization of stimulus funds compared with objective financial knowledge. Additionally, this study indicates that the potential influence of financial knowledge on stimulus fund utilization varies across gender, employment, and marital status. These insights provide implications for practitioners in family financial counseling and planning practices, enabling them to better comprehend and support their clients during periods of economic disruptions and stimulus initiatives.

Inability to face unexpected expenses and monetary poverty in Poland: Are these two faces on the same coin?

Research background: The economic literature often states that monetary poverty does not coincide with other types of poverty. The paper examines monetary poverty and financial distress, which refer to distinct aspects of poverty. It addresses the issue by explaining how the same household characteristics affect these different types of poverty. Purpose of the article: The paper aims to identify socioeconomic variables influencing financial distress and monetary poverty in Poland. In addition, the relative contribution of household-level variables in explaining McFadden’s R2 for the financial dimensions under consideration is assessed. Methods: The study relies on data from the EU Statistics on Income and Living Conditions (EU-SILC) survey in 2022. Logistic regression analysis empirically tests the impact of socioeconomic variables on financial distress and income poverty. Moreover, the relative importance of regressors is determined using the Shapley-Owen decomposition analysis. Findings & value added: The results have revealed that the smallest group consisted of only monetary poor households, followed by both monetary poor and financially distressed. The largest group was made up of households that experienced only financial distress. Such an incomplete overlap in experiencing the examined types of poverty implies the importance of studying financial distress alongside traditional income indicator. The study indicated a statistically significant role for characteristics such as disability, unemployment, education, the burden of the repayment of debts, household type, and tenure status in experiencing all the types of poverty considered. Furthermore, it was observed that the explanatory power of the models varied depending on the types of poverty under consideration. The results also revealed a substantial relative contribution of education to McFadden’s R2 in all models, indicating that education level substantially explains vulnerability to financial fragility. The contribution of other regressors varied among the models describing the types of poverty analyzed. These findings should stimulate policymakers, as effective policies are needed to alleviate different types of poverty.

An empirical investigation of capital flight and economic growth nexus in Africa

ABSTRACT This paper investigates the impact of capital flight on economic growth in Africa using 54 African countries from 2000 to 2021. The study employed the GMM and the dynamic panel threshold regression estimation techniques. GMM results revealed that capital flight negatively and significantly affects economic growth in Africa. The study also revealed that external debt repayment and outward foreign direct investment, proxies of capital flight, have a negative and significant effect on economic growth in Africa, except foreign portfolio investment outflow, which positively and insignificantly influences economic growth. Again, the dynamic panel threshold estimation results also revealed that capital flight negatively affects economic growth at all levels of capital flight in Africa. The study also revealed that all the proxies of capital flight, external debt repayments, foreign portfolio investment outflows, and outward foreign direct investment negatively and significantly affect economic growth above a certain threshold. However, external debt repayment has an insignificant negative effect on economic growth below the threshold in Africa. Based on the findings, African countries should implement stringent policies to curb capital flight and regulate external debt repayments and outward foreign direct investment to enhance economic growth.

A Financial Analysis and Valuation of Monster Beverage Corp.

In the global beverage market, companies such as The Coca-Cola Co.(KO), PepsiCo, Inc.(PEP), Monster Beverage Corp.(MNST), and Keurig Dr Pepper, Inc.(KDP) are highly competitive with their own unique characteristics. The capital market is a platform for investors to engage in investment activities. Investors investing their funds anticipate returns either through dividends or capital gains. The profitability and liquidity ratio of dividend policy have significant effects. Financial performance has had a pivotal role in fulfilling the objective of maximizing the company's overall worth. The escalating worth of the company serves as a testament to the escalating welfare of shareholders, reflected in the profits garnered by investors, apart from dividends, through capital gains accruing from the ownership of shares. This article will analyze the characteristics, financial performance and strategic risks of these companies to provide investors with comprehensive information. MNST is the best performer in terms of short-term debt repayment capacity and liquidity, with strong solvency, low debt ratios and no long-term debt and interest expense. MNST has performed well in terms of profitability, with high profitability ratios and operating margins, showing strong earning potential. In addition, MNST has also performed well in terms of profitability of shareholders' equity. MNST has the highest market ratio, and the market has a certain optimistic attitude towards it. Overall, MNST is an attractive choice due to its high profitability, strong solvency and good market prospects.

Opening of bankruptcy proceedings at the initiative of the creditor

In cases where a debtor in an obligation becomes unable to pay “on account” any more, the only way left to the creditor or creditors of such debtor to protect their financial interests is to open bankruptcy proceedings against such debtor. However, in practice, not everything is so simple, which makes it necessary to study this issue. The purpose of the article is to reveal relevant issues that arise during the opening of bankruptcy proceedings at the initiative of the creditor, to study the problems that arise in this area and to formulate proposals for improving Ukrainian bankruptcy legislation. The creditor’s appeal to the court with an application to open bankruptcy proceedings against his debtor is one of the manifestations of the right of the initiating creditor to judicial protection. It is emphasized that the possibility of the creditor to apply to the debt repayment mechanisms of his insolvent debtor through bankruptcy procedures is provided only for those creditors who have monetary claims against legal entities. If the debtor of the creditor is a natural person, then such a creditor is limited in the ability to protect his rights through bankruptcy procedures, and can use all the tools offered by the legislation in this area, only in the event that the debtor himself – a natural person shows a desire to initiate proceedings in an insolvency case against himself. It is proposed to provide in the legislation of Ukraine the right of a creditor to initiate bankruptcy proceedings against a debtor who is an individual entrepreneur. The conditions for opening bankruptcy proceedings at the creditor’s request have been studied. The presence of a legal dispute as a reason for refusing to open bankruptcy proceedings was analyzed, and judicial practice in this area was studied. The provisions of the bankruptcy legislation regarding the ability of the initiating creditor to submit a proposal for the nomination of an arbitration manager to perform the powers of a property manager or a restructuring manager before the day of the start of operation of the Unified Judicial Information and Telecommunication System in the application for opening proceedings in the bankruptcy case have been analyzed.