Short-term Funding Research Articles

The Impact of Short-Term Debt on the Performance of Manufacturing Companies Listed on the Ghana Stock Exchange

Abstract: This study examines the impact of short-term debt on the financial performance of manufacturing companies listed on the Ghana Stock Exchange over an eight-year period (2015–2023). Using a combination of descriptive and causal research designs, the study utilizes secondary data from audited financial statements to investigate the relationship between short-term debt and firm performance, measured through Return on Assets (ROA). The findings reveal a significant but negative correlation between short-term debt and ROA, indicating that higher reliance on short-term financing may adversely affect profitability. Conversely, firm size demonstrates a positive but weak association with performance. Regression analysis confirms that short-term debt and firm size account for 9.9% of the variations in financial performance, highlighting the limited but impactful role of short-term debt in the capital structure. The study shows the need for manufacturing firms to optimize their financing strategies by prioritizing internal funds before resorting to external short-term debt. Recommendations include exploring alternative investment options, diversifying funding sources, and conducting similar studies across other sectors to validate these findings. This research contributes to the ongoing discourse on capital structure management in developing economies, providing insights for policymakers, investors, and corporate managers.

Selection and Timing Skill in Bond Mutual Fund Returns: Evidence from Bootstrap Simulations

We show that U.S. open-end actively managed domestic bond mutual fund managers possess selection and short-term timing skills based on monthly returns from 1999 to 2016. Parametric tests bias against finding evidence of manager skill, and correction for precision of alpha matters most when true alpha is uncertain. Our bootstrap simulations use precision-adjusted alpha (t(α)) controlling for luck without relying on parametric statistics. We find: the top 50 percent of bond mutual fund managers generate positive precision-adjusted alpha net of expense; selection skill contributes to long-term fund performance; and timing skill adds to short-term fund results, especially for government bond funds compared to corporate bond funds.

Financing Design of Working Capital, an Empirical Study

Working capital in organization is akin to that of heart in human body. Efficient working capital management requires well-balanced funds without which either scarcity of funds will obstruct smooth functioning of organization or excess funds will prevent organization from conducting its operation dexterously. Hence, special emphasis must be given to the management of current assets investment in organization. Management can exercise different sources astutely in financing working capital. With a powerful chronicle, India has become a reputed name within the world steel industry. Financing design of working capital for Tata Steel Ltd. cogitates a strategic metamorphosis apropos of internal and external financial considerations. During the preceding decade, Tata Steel has peregrinated a propulsive international steel market, economic phase, and legislative initiatives, impressing its working capital financing dexterity. In this paper, an attempt has been made using secondary data to unearth the size of short-term financing design used to finance current assets along with the contribution of various sources in the context of Tata Steel Company, the selected steel company for the period of 10 years from 2014-2015 to 2023-2024. The study shows that besides fully meeting full financial requirements of current assets, short-term financing is also used to finance fixed assets. Proportion of various short-term sources in financing working capital requirements also shows mixed design over the years in the selected unit under study.

Influence of short-term funding methods in the systematic risk of Latin American companies

This research aims at identifying the impact of short-term funding methods of organizations (bank funding or commercial funding) on the systematic risk of Latin American companies. The proposal is based on the ideas provided by Hamada (1972) and Modigliani and Miller’s theory (1958, 1963), evidencing the relationship between the funding structure of companies and the systematic risk. Multiple linear regression econometric models were estimated. The systematic risk was measured by levered beta (β) and the respective disaggregation of unlevered beta (βD) and residual beta (βR). The sample under study belonged to Latin American companies from 2009 to 2022. The main findings evidence a negative relationship between short-term commercial and bank debt and unlevered beta from Latin American companies, resulting in higher intensity and significance for commercial debt. The study includes evidences that contribute to the finance literature by making clear that short-term funding methods impact on the systematic risk of organizations. From the practical contribution perspective, this research explains to market actors and investors that the funding structure determined by operational activities, through operational liabilities, must be considered in the asset pricing process.

An exploratory qualitative study of inter-agency health and social service partnerships focused on Aboriginal and Torres Strait Islander clients

BackgroundThe siloed nature of the health and social service system threatens access for clients engaging numerous organisations. Many Aboriginal and Torres Strait Islander people face adverse circumstances which contribute to multiple health and social needs. Effective relationships between health and social services are integral to coordinated service provision to meet the diverse needs of Aboriginal and Torres Strait Islander clients. Place-specific insights into inter-agency relationships are needed to inform targeted strategies that bolster service coordination to benefit Aboriginal and Torres Strait Islander people.MethodsThis study sought to understand experiences of inter-agency partnerships among health and social service providers on Kaurna Country in northern Adelaide using semi-structured interviews and yarning circles to explore partnership actions, outcomes, enablers, challenges, and identify strategies to strengthen partnerships. Fifty-nine service providers (78% female, 62% Aboriginal) participated including six from non-government organisations, 17 from Aboriginal community-controlled services and 36 from government organisations.ResultsA content analysis identified partnership actions such as client advocacy, referrals, sharing information, case management meetings and collaborative tender submissions which were seen to improve client access, navigation and outcomes and strengthen worker connectedness and job satisfaction. Motivated workers, listening to Aboriginal people, shared goals and values, and partnership agreements (e.g., memorandum of understanding, service contracts) were identified enablers of partnerships. Racism and ignorance, lack of networking events, communication breakdown, red tape and administrative barriers, competition between services, short-term funding, high turnover of staff and a focus on key performance indicators rather than community needs were among the challenges. Effective partnerships to benefit Aboriginal communities in northern Adelaide was reported to require aligned intersectoral strategic intentions, reforms to service commissioning processes, sustainable funding, regular network events for management and frontline workforce, Aboriginal practitioner-led service coordination approaches and a network of Aboriginal and Torres Strait Islander workers across organisations.ConclusionsThis study identified key leverage points for action on inter-agency partnerships to benefit Aboriginal and Torres Strait Islander communities on Kaurna Country. System drivers such as funded inter-agency networks and reforms to commissioning of services must support organisational- and practitioner-level enablers to strengthen partnerships between health and social services across northern Adelaide.

The Role of Private Funding and Collaborative Networks in Southern Italy's Socioeconomic Development: Insights from The Fondazione Con Il Sud

This study examines the impact of private funding and collaborative networks on socio-economic development in Southern Italy, with a specific focus on Fondazione Con il Sud’s (FCS) strategy. The Foundation strongly emphasizes social cohesion and social capital, moving beyond traditional economic indicators such as GDP to drive sustainable development in marginalized regions. The evaluative study examines the effectiveness of FCS's funded projects using a "positive thinking approach" as a framework. It aims to identify the key factors contributing to long-lasting positive changes in local communities, offering hope and optimism for socioeconomic development in Southern Italy. A mixed-methods approach applied to 205 projects funded by the Foundation, covering a wide range of sectors, including social, educational, environmental, and cultural domains. The results indicate that the type of network strategy used during project implementation significantly influences medium—to long-term outcomes. These strategies, including opportunistic collaborations, third-sector networks, and community-based relations, have significant implications for socioeconomic development. Projects that foster stable partnerships and active community involvement tend to create more sustainable and enduring impacts. In contrast, opportunistic collaborations, primarily driven by short-term funding goals, cannot often generate lasting structural change. The findings suggest that long-term success is more likely when projects emphasize inclusive, multi-stakeholder collaborations and prioritize the active engagement of local actors.

Investment Performance Analysis Of Debt Mutual Funds In India – A Quantitative Approach

Mutual funds are investments which allow the investor to have access to a wide range of securities. Among them the debt funds invest particularly in fixed income securities, which help the investor to balance the risk and return in his portfolio. Analysing any investment brings to light its current and future performance and its suitability to the investor. The study takes into consideration 15 schemes belonging to liquid funds, short term income funds and gilt funds. The performance is evaluated using Absolute Return, Standard deviation, beta, RSquared, Sharpe, Treynor and Jensen’s Alpha. The study concludes that the debt funds are more suitable for short term investments as the liquid and short-term funds are able to provide better risk adjusted returns. Moreover, the gilt funds are more prone to be affected by interest rate risk which will in turn lower the returns of the funds

The effects of buy now, pay later (BNPL) on customers’ online purchase behavior

Recent innovations in financial technology (FinTech) have introduced short-term financing options for customer loans, allowing customers to make purchases and pay for them in future installments without incurring interest, a model commonly referred to as Buy Now, Pay Later (BNPL). Despite the increasing provision of BNPL by online retailers, there remains a limited understanding of its effects on customers’ online purchase behavior. To address this gap, we utilize a synthetic difference-in-differences research design to estimate the impact of customers’ BNPL adoption on their online purchase behavior, specifically measured by order size. Our empirical results indicate that customers who adopt BNPL provided by a focal retailer have a higher order size than those who use traditional payment services. Our empirical estimates indicate an increase of 6.42% in online spending by customers adopting BNPL. Additionally, we examine the moderating effects of various customer segments - including loyalty, category experience, and promotion sensitivity - as well as demographic factors such as age, income, household size, and product characteristics, particularly low-ticket items. The impact of BNPL adoption is found to be amplified among customers with high levels of category experience and promotion sensitivity. Conversely, the effect is attenuated among older and higher-income customers, indicating that younger and low-income customers are the primary drivers of this effect. Moreover, our analysis demonstrates that purchases of low-ticket items predominantly drive the observed effect. This study provides strategic insights for online retailers concerning the implementation and targeting of BNPL as an effective online payment option.

Avoid Year-End Operating Loan Pitfalls

As the year draws to a close, many producers rely on operating loans, or lines of credit, to finance essential expenses when cash flow is tight. These loans function like credit cards but usually come with lower interest rates. An operating loan is a short-term financing tool — often lasting less than a year — designed to help manage business cash flow. Borrowers are usually granted a pre-set limit they can draw from and repay multiple times throughout the year, primarily for purchasing inputs rather than long-term assets like land or equipment. However, as the year ends, it's crucial to navigate the potential pitfalls associated with these loans. Here are some key considerations to keep in mind.

The Determinants of Monetary Policy in Malaysia: Impact on Economic Activity

The overnight interbank rate is a key tool for central banks to influence economic activity and maintain financial stability. It represents the rate at which banks lend and borrow short-term funds from one another, often overnight, and plays a crucial role in monetary policy transmission. Changes in this rate can affect borrowing costs and credit availability, which in turn impacts consumption, investment, and economic activity. Bank Negara Malaysia (2021) highlights that overnight transactions in the interbank market operate alongside the Kuala Lumpur Interbank Offered Rate (KLIBOR). This study analyzes time series data from 1991 to 2021 to identify relationships between the overnight interbank rate and macroeconomic variables using the ordinary least square (OLS) method. The analysis focuses on unemployment (UR), domestic private credit (DGR), gross domestic product (GDP), foreign exchange reserves (FER), and inflation (I), with data sourced from the World Bank and the Federal Reserve Bank (FRED). The results show that unemployment and inflation significantly impact monetary policy. High unemployment suggests underused resources, often prompting lower interest rates to stimulate investment and economic growth. In contrast, rising inflation typically leads central banks to increase interest rates to slow spending, while falling inflation may result in rate cuts to spur economic activity.

Carbon risk and corporate maturity mismatch

This study investigates the impact of carbon risk on the corporate maturity mismatch of investment and debt. We find that carbon risk exacerbates maturity mismatches, primarily by increasing debt default risk, which in turn reduces both the availability and maturity of bank loans. At the same time, carbon risk drives firms to undertake riskier investments, compelling them to rely more heavily on short-term financing to support long-term projects. Heterogeneity analysis reveals that the impact of carbon risk on maturity mismatch is more pronounced in firms that are smaller in size, exhibit weaker financial performance, have higher leverage, hold less cash, or engage in less green innovation. Moreover, under heightened carbon risk, increased maturity mismatch appears to reduce agency costs and enhance firm performance, thereby improving resource allocation. This finding supports the monitoring role of maturity mismatch. Our results remain robust across multiple sensitivity tests.

Towards a sustained and fit-for-purpose European ocean observing and forecasting system

The EU funded project EuroSea brought together key actors of the European ocean observing and forecasting communities with key users of the ocean observing products and services in order to better integrate existing ocean observation systems and tools, and to improve the delivery of ocean information to users. EuroSea was constructed around the ocean observing value chain that connects observations to users of ocean information, and, just as intended, the value chain concept was a useful prism to improve the system. In this article, we summarize some of the main take-home messages from EuroSea on the needs for developing the European Ocean Observing System and its links with modeling and forecasting systems. During the project, the challenges and gaps in the design and coordination of the European ocean observing and forecasting system were identified and mapped. Many gaps and challenges related to the observations of physical, chemical and biological Essential Ocean Variables were identified. Some of these gaps are related to technological developments, while others are caused by insufficient and short-term funding leading to a not sustainable system, management, and cooperation between different entities, as well as limitations in foresight activities, policies and decisions. This article represents a compilation of the broader needs for advancing the observing and forecasting system, and is meant as a guide for the community, and to funders and investors to advance ocean observing and the delivery of ocean information in Europe. To enhance the sustainability of ocean observations, which is paramount for a reliable provision of quality oceanographic data and services, several recommendations were compiled for ocean observing networks, frameworks, initiatives, as well as the ocean observing funders within the European nations, and the European Commission.

Current Liabilities and Financial Performance of Healthcare Firms in Nigeria

The study evaluated the relationship between current liabilities and financial performance of healthcare firms in Nigeria. The specific objectives of the study are to assess the effect of Trade Payables, Current Tax Liabilities and Short-Term Borrowings on Return on Assets of Healthcare firms in Nigeria. Ex post facto research design was adopted. Data were collected from annual reports and accounts of sampled firms within the industry to test the null hypotheses that selected current liabilities do not affect return on assets significantly. Correlational analysis was the tool of analysis using panel data set covering Fifty (50) observations from Five (5) firms in the Healthcare sector. The findings revealed that Trade Payables (TP) have weak but significant positive relationship with Return on Assets of Healthcare firms in Nigeria with a correlation coefficient of 0.524514 and a p-value of 0.0001. Current Tax Liabilities have weak but significant positive relationship with Return on Assets of Healthcare firms in Nigeria with a correlation coefficient of 0.539686 and a p-value of 0.0001. Short-Term Borrowings have weak but significant positive association with Return on Assets of Healthcare firms in Nigeria with a correlation coefficient of 0.538232 and a p-value of 0.0001. The implication of the findings is that current liabilities such as trade payables, current tax liabilities and short-term borrowings are significant positive determinants of financial performance of healthcare firms in Nigeria. The study therefore concluded that while the observed relationships were statistically significant, the weak correlations suggest that other factors not examined in this study may have stronger association with return on assets of healthcare firms. The study recommends that effective management of trade payables and current tax liabilities is essential for healthcare firms to successfully navigate the tedious regulatory requirements and enhance financial performance. Furthermore, strategic utilization of short-term borrowings would provide healthcare firms with the necessary financial flexibility to support growth initiatives and address short-term funding needs.

Navigating the Legislative Interventions, Challenges, and Opportunities in Revolutionizing Textile Upcycling/Recycling Processes for a Circular Economy.

Embracing a circular economy in the textile industry represents a crucial step toward sustainability, where fashion and textile sectors contribute significantly to CO2 emissions. However, transitioning from a linear "take-make-waste" model to circularity, poses multifaceted challenges, that highlight the staggering volume of annual textile waste surpassing industry predictions, thus emphasizing the urgent need for comprehensive strategies. Despite advancements in recycling technologies, challenges persist in collecting and sorting textile waste, where fragmentation in waste management and recycling processes hinders effective management of post-consumer waste. Addressing these challenges demands elevated efforts in collection, sorting, and pre-processing, alongside regulatory interventions to drive enhanced waste collection and circular business models. Efforts are underway to promote sustainable textile recycling, with initiatives like the EU's Sustainable and Circular Textiles Strategy aiming to reduce reliance on virgin resources. However, achieving a circular textile market in the near future requires collaborative action and innovative solutions. Though challenges in scaling and technological limitations still remain, recent breakthroughs in textile-recycling technologies offer promise, signaling a shift toward scalable and sustainable alternatives to virgin fibers, where bio-based chemical processes, and thermochemical recycling processes present transformative opportunities. Where, bold scaling targets, collaborative efforts, and short-term funding support narrated in this perspective article are imperative to accelerate the transition to a circular textile economy, thus delving into the pivotal role of textile recycling, tracing the evolution of recycling technologies, and addressing critical challenges hindering widespread adoption.

Trade credit policies in the construction industry: A comparative study of Central-Eastern and Western EU countries

Abstract This article aims to investigate the trade credit policies in construction firms across Central-Eastern Europe (CEE) and Western Europe (WE). Utilizing financial data from construction companies in 12 European Union (EU) countries (2000–2020), sourced from the BACH-ESD database, panel data models are applied separately to each region. The analysis compares trade credit granted and obtained, as well as the impact of determinants in WE and CEE countries. The results show limited cross-regional diversity in trade credit policies and determinants, suggesting alignment with common trends and industry standards. This indicates adaptation by construction companies to minimize the impact of regional economic disparities. The study addresses a gap in the corporate short-term finance literature by offering a comprehensive comparative analysis of trade credit practices among construction firms across CEE and WE countries, revealing regional variations that have not been comprehensively explored in previous analyses.

The impact of reverse mixed reform on long-term investment with short-term financing of non-state-owned enterprises

本文探讨了反向混合所有制改革对2007—2022年沪深A股上市非国有企业长期投资和短期融资的影响，重点探讨了股权结构调整策略。研究结果表明，反向混合所有制改革对非国有企业长期短期融资投资水平具有显著的负向影响，PSM 和工具变量法等稳健性检验证明了这一点。此外，进一步的探索表明，这种关系可能会受到放宽财务资源限制和降低代理成本的影响。异质性分析表明，反向混合改革对短期融资长期投资的影响在小企业和监管薄弱的金融区域更为显著。这些见解为理解投融资活动中的行为提供了新的视角，同时加强了公司风险管理和战略决策的理论基础。

Analysis of Short Term Funding with Mudharabah Agreements in Bank Syariah Indonesia (Study on Indonesian Sharia Bank KC Jambi Gatot Subroto)

This research discusses the Analysis of Short-Term Funding with Mudharabah Agreements at Indonesian Sharia Banks (Study at the Jambi Gatot Subroto Branch Office Sharia Bank). The aim of this research is to describe the causes of the decline in the level of mudharabah financing in 2020 and the reasons why short-term funding in mudharbah contracts is less banking friendly due to the complexity and many requirements for MSMEs. This research is field research using descriptive qualitative methods. Data collection involves observation, interviews and documentation. Test the validity of this research using triangulation techniques. The subjects in this research were Bank Syariah Indonesia Jambi Gatot Subroto Branch Office. The results of this research show that there are two factors causing the decline in mudharabah financing in 2020, namely internal and external factors, internal factors include ineffective risk management, inefficient operational management, and declining service quality. External factors include the COVID-19 pandemic and the unreliability of customers in mudhrabah financing. The factors that cause short-term funding at Bank Syariah Indonesia Jambi Gatot Subroto Branch Office to be less banking friendly towards MSMEs are internal factors including fairly strict risk policies, complicated requirements, and a lack of understanding about MSMEs. External factors include a lack of support infrastructure such as providing business training with short-term funding.

Plant extinction in the Anthropocene

Abstract Species go extinct each day, most without notice. The current human-induced extinction rate is up to 700 times higher than the background rate. Extinctions are not different for plants, animals, or fungi, although botanical and invertebrate extinctions are much more poorly documented than those of charismatic vertebrates. In a recent book on extinct plants (Christenhusz & Govaerts, 2023), an overview of botanical extinctions since 1753 was presented, listing which species became extinct and the probable reason for their extinction. As most have a date when they were last documented, a timeline of extinction can also be compiled based on these data. This timeline shows an increase from 1890 to 1940, but a decline in new recorded extinctions after the 1980s, which is likely a result of taxonomic impediment. Extinction rates before 1800 are impacted by the lack of data (here named Berkeley extinction). It can be concluded that extinction is highest in biodiversity-rich areas with high human influence (extinction hotspots). Two new combinations and a new name are proposed here, showing the importance of taxonomy to conservation. Although anthropogenic plant extinction is a global phenomenon, areas of particular concern are the Hawaiian Islands, southern Africa, Australia, the Indian Subcontinent, Southeast Asia, and Brazil. Extinctions have been mainly caused by land clearing for agriculture and urbanization, invasive feral animals, mining, river dams, diseases, and poaching. We predict that the unusual weather patterns associated with rapid climate change may result in more plant extinctions. Reintroduction, even if a species persists in cultivation, is not always possible due to lack of suitable remaining habitat where threats are decreased or removed. Successful reintroduction cannot be guaranteed. It is costly and usually dependent on short-term funding, after which these efforts may be in vain. Protection of species in their natural habitat is much more cost-effective in the long term. Sometimes, rescued plants should be introduced in similar habitats outside their natural range where the threats are absent. This follows the programmes of assisted migration for climate change mitigation, but this can also be assisted introduction to prevent extinction. Protection of critically endangered species that have naturalized outside their native range should also be considered.

Engineering Features From Advanced Medical Technology Initiative Submissions to Enable Predictive Modeling for Proposal Success.

The U.S. Army Telemedicine and Advanced Technology Research Center Advanced Medical Technology Initiative (AMTI) demonstrate key emerging technologies related to military medicine. AMTI invites researchers to submit proposals for short-term funding opportunities that support this goal. AMTI proposal selection is guided by a time-intensive peer review process, where proposals are rated on innovation, military relevance, metrics for success, and return on investment. Utilizing machine learning (ML) could assist in proposal evaluations by learning relationships between proposal performance and proposal features. This research explores the viability of artificial intelligence/ML for predicting proposal ratings given content-based proposal features. Although not meant to replace experts, a model-based approach to evaluating proposal quality could work alongside experts to provide a fast, minimally biased estimate of proposal performance. This article presents initial stages of a project aiming to use ML to prioritize research proposals. The initial steps included a literature review to identify potential features. Then, these features were extracted from a dataset consisting of past proposals submissions. The dataset includes 824 proposals submitted to the AMTI program from 2010 to 2022. The analysis will inform a discussion of anticipated next steps toward developing a ML model. The following features were created for future modeling: requested funds; word count by section; readability by section; citations and partners identified; and term frequency-inverse document frequency word vectors. This initial process identified the top ranked words (data, health, injury, device, treatment, technology, etc.) among the abstract, problem to be solved, military relevance, and metrics/outcomes text proposal fields. The analysis also evaluated the text fields for readability using the Flesch readability scale. Most proposals text fields were categorized as "college graduate," indicating a challenging readability level. Finally, citations and partners were reviewed as an indicator of proposal successfulness. This research was the first stage of a larger project to explore the use of ML to predict proposal ratings for the purpose of providing automated support to proposal reviewers and to reveal the preferences and values of AMTI proposal reviewers and other decision-makers. The result of this work will provide practical insights regarding the review process for the AMTI program. This will facilitate reduction in bias for AMTI innovators and a streamlined and subjective process for AMTI administrators, which benefits the military health system overall.

Loan-Level Disclosure and the Convenience Yield of Asset-Backed Securities

ABSTRACT We examine the impact of transparency on the convenience yield of AAA-rated asset-backed security (ABS) tranches. AAA tranches of ABS are commonly held by investors to manage financial liquidity and therefore enjoy a price premium beyond what is determined solely by the expected monetary payoff (i.e., convenience yield). The Securities and Exchange Commission (SEC) requires ABS issuers to provide monthly disclosures about the performance of the underlying individual loans for ABS issued after November 23, 2016 to improve transparency. We document that AAA tranches of ABS experience a significant increase in price volatility after the loan-level disclosure mandate. As a result, the use of these tranches as collateral for short-term funding and their convenience yield decrease significantly after the increased disclosure. Our collective evidence highlights an important unintended consequence of increased transparency in the ABS market; it diminishes the pledgeability of long-term safe assets. Data Availability: Data are available from the public sources cited in the text. JEL Classifications: G14; G23; M48.