Financial Structure Research Articles

The impact of diverging financing structures of real estate firms on debt risk under credit constraints

ABSTRACT Using quarterly data on China’s A-share listed real estate firms from 2017 to 2022, we examine the impact of credit constraint policies on real estate enterprise debt risk and further analyse why the debt risk became particularly prominent after the implementation of tight credit policies from the perspective of the financing structure. The findings show that the implementation of a tight credit policy significantly improves real estate enterprise debt risk by reducing their operating efficiency. The heterogeneity analysis indicates that a tight credit policy significantly increases only the debt risk and that the implementation of a tight credit policy reduces the debt and commercial credit financing and thus reduces their noncredit financing. However, the inhibitory effect on the noncredit financing of state-owned real estate enterprises is not significant and even improves the equity financing of these enterprises. Further research shows that real estate enterprise financing through noncredit channels can alleviate the negative impact of tight credit policies on debt risk. The research results provide reference for the Chinese government to prevent real estate market risk.

The impact of financial distress on capital structure following Egypt's currency flotation: the moderating role of board characteristics and ownership structure

PurposeThis study examines how financial distress affects the capital structure of Egyptian firms following the 2016 currency flotation, examining the moderating roles of board characteristics and ownership structure.Design/methodology/approachUtilizing data from non-financial companies listed on the Egyptian Stock Exchange from 2017 to 2022, we apply two-stage least squares (2SLS) and propensity score matching (PSM) to address endogeneity and selection bias.FindingsOur findings indicate that financially distressed firms tend to increase their debt burden, but robust governance mechanisms, such as higher board independence, larger boards and strong blockholder and institutional ownership, significantly mitigate this effect. Managerial ownership shows a stabilizing influence during distress, while chief executive officer duality does not significantly impact leverage decisions. These findings underscore how robust corporate governance promotes more conservative capital structure decisions during economic volatility.Research limitations/implicationsOur study focus, country and period could limit the generalizability of our findings to other regions or sectors.Practical implicationsInvestors and policymakers are advised to focus on firms with effective governance structures to mitigate distress-induced leverage increases. Governance reforms that enhance board effectiveness and ownership structure, e.g. increasing board independence requirements and promoting greater institutional investor participation, can further stabilize capital structure during downturns. Managers, in turn, should diversify financing and adopt prudent debt strategies to reduce overreliance on leverage.Originality/valueIn contrast to most studies, this research reverses the lens by exploring how financial distress shapes capital structure decisions in an emerging market context, specifically post-Egypt’s 2016 currency flotation. Employing both 2SLS and PSM to address endogeneity and selection bias, the study highlights the mitigating role of governance mechanisms, which can buffer firms against heightened debt reliance under economic volatility.

Co-creating research at The AI, media, and democracy lab: Reflections on the role of academia in collaborations with media partners

This commentary explores academia’s role in co-creating research with media partners, focusing on the distinct roles and challenges that each stakeholder brings to such partnerships. Starting from the perspective of the AI, Media, and Democracy Lab, and building on the Ethical, Legal, and Societal Aspects (ELSA) approach, we share key learnings from 3 years of collaborations with (media) partners. We conclude that navigating dual roles, expectations, output alignment, and a process of knowledge sharing are important requirements for academics and (media) partners to adequately co-create research and insights. We also argue that these key lessons do not always square with how academic research is organized and funded. We underscore that changes in funding structures and the way academic research is assessed can further facilitate the co-creation of research between academic research and projects in the media sector.

Tracking the Green Transition in the European Union Within the Framework of EU Cohesion Policy: Current Results and Future Paths

Green transition is one of the priority areas in the European Union (EU), and thus also the focus of EU cohesion policy implementation during the 2021–2027 programming period, through “green growth”. To establish adequate guidelines and achieve better outcomes, it is necessary to observe and evaluate current results connected with these aspects. In terms of the complexity of the green transition domains, measuring green transition is still developing. The aim of this paper is to give an overview of the approaches that can be used in tracking the green transition as a result of EU cohesion policy implementation and to analyse achievements associated with the green transition. This will be done using desk research, previous studies, documents, evaluation reports and secondary data on the financing under the European Structural and Investment Funds (ESIFs) in EU member states, with a special emphasis on themes such as the low-carbon economy, climate change adaptation and risk prevention, environment protection and resource efficiency, and network infrastructure in transport and energy. The paper discusses these results in the context of the current challenges faced by the EU in becoming a leader in the green transition and contributes to the evaluation of the EU cohesion policy.

Research–practice partnerships in education: Lessons from the United States

AbstractIn response to a proposal to reframe the ‘research into practice’ agenda in UK education using partnership working, this paper examines a type of collaborative research known as a research–practice partnership (RPP), drawing on models established in education in the United States. It examines their characteristics and what has been learnt from several decades of experience before reflecting on the relevance of this literature for the UK context. RPPs can allow researchers to gain a better understanding of practice problems and, by involving practitioners and local policymakers, the resulting research is likely to be more relevant to local users. The paper highlights the importance of relationship building, considerations around locus of power and issues related to boundary working. It considers aspects of the underlying research infrastructure in the United Kingdom relevant to partnership working, including the role of local authorities, research funding structures and the general research environment. Changes to the Research Excellence Framework and funders' requirements, as well as shifts in policy approaches to research, all suggest that support for more collaborative working in the United Kingdom may be growing.

Aboriginal and Torres Strait Islander community experiences and recommendations for health and medical research: a mixed methods study.

To describe Aboriginal and Torres Strait Islander communities' processes, positioning and experiences of health and medical research and their recommendations. A cross-sectional online and paper-based survey. Representatives from Aboriginal and Torres Strait Islander health services and community-controlled organisations in Australia. Responses to a 33-item mixed methods survey that explored communities' positioning and processes relating to health and medical research and their experiences of health and medical research in the previous 5 years. Recommendations for improving health and medical research were elicited via two open-ended questions. Fifty-one community representatives nationally responded to the survey. Most representatives reported feeling slightly or very positive about research (37, 73%). More than half (33, 65%) reported having formal governance processes, and two-thirds of those without governance processes were interested in establishing such processes (12, 67%). Almost half reported that research has sometimes or never had benefit (25, 49%). Ethical principles that were most often reported as essential included those relating to sharing results back with community (45, 88%), translating research into policy and practice (37, 73%), employing Aboriginal and Torres Strait Islander staff (37, 73%), Indigenous data sovereignty and governance (36, 71%) and research agreements (35, 69%). Community representatives reported being approached frequently and in the later stages of research, with little input during the development and design stages of research. Most representatives reported that their communities had participated in Indigenous-led research (39, 76%). Community representatives highlighted the need for appropriate resourcing and funding to drive and lead their own research agendas. Aboriginal and Torres Strait Islander communities continue to have negative experiences of research despite four decades of advocating for control, ownership and leadership of health and medical research. Researchers, funding bodies and institutions must examine current funding and research structures that reinforce current practices, to ensure transparency and accountability to communities by repositioning and giving power to communities to direct and lead their own health and medical research agendas.

A Study of Financial Performance of Listed Travel Tech Startups in India

The travel tech market in India is a budding space with robust growth on the back of digitally transformed industry, changing customer consumption and hitherto evolving financials. The purpose of this study is to evaluate the financial performance and capital structure of four key travel tech startups such as Easy Trip Planners Ltd, Le Travenues Technology Ltd, TBO Tek Ltd and Yatra and their financial parameters like the Debt to Asset and Debt to Equity ratio, Net Profit, Return on Capital Employed (ROCE) and Return on Equity (ROE). This paper explores the relationship between profitability and financial leverage in order to determine how debt affects the financial leverage of a firm and its stability and growth through a correlation and p value analysis. The analysis shows that the Easy Trip Planners Ltd has good financial health with high profitability, efficient capital utilization and low volatility, which is a sign of growth in the industry. Le Travenues Technology Ltd and Yatra whose profitability and financial efficiency are also not very robust. With modest debt profitability related correlations, TBO Tek Ltd had mixed financial performance. With what this research provides for insights about how financial strategies affect how growth and sustainability happen, these may be used by emerging startups and investors. The borrowed money is being spent on reducing debt management, operational efficiency and risk mitigation, which together form the key for achieving the long term success. Keywords : Financial Performance, Travel Tech Startups, Capital Structure, Startup Financing

Analisis Laporan Keuangan Perusahaan Sebagai Penilaian Kinerja Perusahaan (Studi Pustaka pada Perusahaan BUMN Sektor Konstruksi yang Terdaftar di Bursa Efek Indonesia 2020-2022)

The development of the business world in an increasingly open economic situation needs to be based on performance assessment facilities and systems that can encourage companies towards increasing efficiency and competitiveness which will strengthen capital and have an impact on the company's performance assessment. So that it is able and survives in the increasingly tight business competition today. Companies can analyze financial reports, especially in conducting performance assessments. In the research conducted by the author using descriptive qualitative methods and Literature Studies on the financial reports of 4 state-owned construction sector companies listed on the Stock Exchange: PT Wijaya Karya (Persero) TBK, PT Waskita Karya (Persero) Tbk, PT Adhi Karya Tbk (ADHI), and PT Pembangunan Perumahan (Persero) Tbk. The purpose of this research is to calculate and analyze the Liquidity, Solvency and Profitability of Financial Reports as an assessment of the Company's Performance. The results of the study show that the Liquidity Ratio (current ratio) of PT Waskita Karya (Persero) Tbk has a consistently high current ratio for three consecutive years, with the highest figure in 2020 at 168.89%. This shows the company's ability to meet its short-term obligations better than other companies such as PT Wijaya Karya (Persero) Tbk and PT Adhi Karya (Persero) Tbk which have lower ratios. The solvency ratio of PT Waskita Karya (Persero) Tbk also stands out with a very high debt to equity ratio, reaching 979.55% in 2022. This indicates that the company is highly dependent on debt in its funding structure. High dependence on debt can increase financial risk, Profitability Ratio, PT Wijaya Karya (Persero) TBK and PT Waskita Karya (Persero) Tbk showed an increase in Net Profit Margin, which indicates an improvement in operational efficiency and management. On the other hand, PT Adhi Karya (Persero) Tbk and PT Pembangunan Perumahan (Persero) Tbk experienced a decline in margin, although they maintained a positive margin. Different receivable turnover ratios also provide an overview of the efficiency of receivables management in these companies. PT Wijaya Karya (Persero) Tbk for example, in 2021 had a very high receivables turnover ratio of 790.28%, indicating that this company is able to manage receivables very efficiently, accelerating cash collection from credit sales.

Macroprudential policy spillovers in international banking groups.Beggar-thy-neighbour and the role of internal capital markets

Beggar-thy-neighbour in macroprudential policy? This paper studies the impact of macroprudential policies - specifically OSII buffers - on banking groups and their cross-border operations. Using granular data from three confidential databases, we present the first evidence on how banking groups respond to changes in capital requirements. Our findings reveal that: (i) consolidated parent banks constrained by OSII buffers cut back on debt and equity holdings in their foreign subsidiaries, altering global financial structures; (ii) subsidiaries with reduced funding and equity from their parent show a notable decline in lending to non-financial corporations; and (iii) overall, cross-border subsidiaries of OSII-constrained banks exhibit reduced lending and risk-taking towards non-financial corporations, hinting at a role of these subsidiaries in propping up the group’s consolidated capital buffers. While higher capital buffers enhance financial stability by curbing excessive risk-taking, they also constrain the funding and lending capacities of foreign subsidiaries, disrupting local credit markets and creating a “beggar-thy-neighbor” problem. Policymakers need to balance these impacts with the benefits of financial integration.

The impact of financing structures on the cost of carbon dioxide transport

The impact of financing structures on the cost of carbon dioxide transport

Analysis of the results of the regional innovation policies of the structural funds on business innovation indicators: does size and role matter in Andalusian business performance indicators?

As a Convergence Objective Autonomous Community of the European Union, Andalusia was a beneficiary of the significant volume of European resources for regional innovation mobilised by the 2007–2013 Technology Fund and the 2014–2020 Smart Growth programme. For this reason, we evaluate the results of these technology policies in Andalusia through the main business innovation indicators, differentiating companies’ size and role in the projects financed by the ERDF-Innterconecta calls for proposals. The proposed analysis (through the study of projects, funds received, etc.) applies the Propensity Score Matching technique and seeks to identify the positive effect—or not—of participating into the policy analysed, which financed big R & D projects in Andalusia. The study is conducted differentiating the results considering the different groups of companies studied. The conclusion shows uneven results depending on the characteristics of the companies.

Quantifying the shift of public export finance from fossil fuels to renewable energy

By providing guarantees and direct lending, public export credit agencies (ECAs) de-risk and thus enable energy projects worldwide. Despite their importance for global greenhouse gas emission pathways, a systematic assessment of ECAs’ role and financing patterns in the low-carbon energy transition is still needed. Using commercial transaction data, here we analyze 921 energy deals backed by ECAs from 31 OECD and non-OECD countries (excluding Canada) between 2013 and 2023. We find that while the share of renewables in global ECA energy commitments rose substantially between 2013 and 2023, ECAs remain heavily involved in the fossil fuel sector, with support varying substantially across technologies, value chain stages, and countries. Portfolio ‘greening’ is primarily driven by members of the E3F climate club, impacting deal financing structures and shifting finance flows towards high-income countries. Our results call for reconsidering ECA mandates and strengthening international climate-related cooperation in export finance.

انعكاس فهم الهيكلية المالية في تحديد وتقييم المخاطر الجوهرية وتعزيز جودة التدقيق الخارجي

Understanding the financial structure is one of the most important matters of interest to users of financial statements because it affects the financial performance of companies, due to the availability of many financing alternatives that the company wants to compose appropriately, and the company may be exposed to financial risks affecting the structure, which requires the external auditor to take action by determining the extent of its exposure to risks and evaluating the effectiveness of its strategies to manage those risks. The measurement process depends on different tools and methods that provide accurate insights into potential risks and their financial impact, in order to enhance the quality of the audit, which is measured by knowing the extent of compliance with auditing standards and performance standards in the audit process. And the extent of the auditor's ability to diagnose errors and material violations in the financial statements. The link between more than one variable in this research is an important step as previous studies did not address it, and the research aims to identify audit procedures when analyzing the financial structure in the financial statements by studying the financial ratios with a statement of the effects of some economic variables, such as interest rates and inflation rates on the result of the analysis, while comparing the availability of audit quality indicators. The research relied on the applied aspect on analyzing the financial statements for three years for the research sample, which includes Ashur International Investment Bank and Al-Nokhba Company, calculating financial ratios, applying the proposed audit risk identification and assessment model, and measuring the quality of the audit as a result of the results of the analysis of the reality of external audit reports. The research reached many conclusions, namely the existence of interconnected relationships between the research variables that contribute to planning the audit in a way that enhances its quality on the other hand, and giving a true picture of the fairness of the financial statements that serve the users of those statements to make appropriate decisions. These conclusions are important in the banking and contracting sectors.

Extra-institutional science: DIY biologists’ democratization of scientific practices and spaces

Abstract DIY biology, or Do-It-Yourself biology, refers to a movement where individuals and communities establish laboratories outside traditional academic and industrial settings—such as in garages, kitchens, or community spaces. DIY biologists experiment with gene-editing technologies like CRISPR, cultivate glow-in-the-dark plants, and engineering colorful fungi. This practice challenges established norms in research, advocating for decentralized and community-driven approaches to scientific inquiry and innovation. DIY biologists are often trained scientists who choose to conduct their research in community or home laboratories. The DIY biology movement highlights that science’s boundaries are flexible and sometimes ambiguous (Gieryn in Am Sociol Rev 48:781–795, 1983). By operating outside traditional research institutions, DIY biologists challenge established authority, hierarchies, funding structures, and proprietary regimes. They create a distinct identity beyond the increasingly neoliberalized institutional spheres of modern knowledge production, showcasing alternative ways to pursue science. I theorize DIY biology as ‘extra-institutional science’ due to its emergence outside conventional laboratories of industry and academia. This research draws on empirical data from interviews with DIY biologists and the 2021 DIY Biology Community Survey.

Financial performance and capital structure of select hydropower companies in India: An Empirical Analysis

This research paper attempts to analyse the relationship between the capital structure and financial performance of two hydropower generation public sector undertakings in India. Secondary data sourced from the financial statements of the corresponding generating companies for the period from 2010-11 to 2016 is analysed using multi-correlation analysis. Results indicate that the capital structure negatively impacts profitability, consistent with the extant research on the subject matter as well as the underlying financial principle - more debt, more interest expenses, and hence lesser profitability. Moreover, in consonance with the MM hypothesis, the present research has revealed that the interaction of tax and capital structure results in the negative impact of tax on the capital structure.

Is there an impact of the Structural Funds in innovation on business performance? Analysis through the ERDF-Innterconecta programme in Andalusia

Abstract Andalusia, a Spanish Autonomous Community with a Convergence objective under the European Union, has had to manage a relevant volume of European resources for regional innovation throughout the last two European Programming periods, namely 2007–2013 and 2014–2020. For this reason, studying the impact on business results of European Funds for innovation is key to understanding the policy effects. This is why the ERDF-Innterconecta programme (the largest programme financed to support business innovation in Spain), belonging to the Technology Fund and the Smart Growth Programme, is analyzed. The proposed analysis seeks to identify whether there has been an impact of the subsidies on Andalusian companies. In this sense, two indicators have been studied: annual results and profitability. To this end, the beneficiary companies have been studied according to their size, participation in innovation and role in the financed projects, which constitutes an original research approach. The study shows poor results for the participating companies, which would indicate a wide margin for improvement in the planning and execution of these policies.

Initiatives to Enhance Research-Practice Integration in the Swiss Sport System

The integration of research and practice remains a challenge in elite sport. While scientific insights are increasingly valued, their implementation lags behind. Bridging this gap requires targeted funding programs, well-defined roles, and innovative projects that connect research and practice. This symposium highlights three distinct approaches aimed at fostering this integration. The first presentation by Swiss Olympic provides an overview of funding structures designed to strengthen the connection between science and practice. It outlines the objectives and criteria of these initiatives and discusses the challenges encountered in their implementation. The second presentation focuses on the concept of "embedded scientists," professionals embedded within sport organizations who address scientific questions closely aligned with the organizations' needs. This offers insights into practical challenges and success factors for achieving effective research-practice integration. The third presentation introduces the "power to win" project, a collaborative initiative between Swiss Olympic and multiple federations. The project leader reflects on the outcomes and evaluates the project in terms of its contribution to bridging the gap between research and practice. This symposium provides insights into strategies and models that enhance collaboration between research and practice in sport. It invites discussion on how such initiatives can be further developed and implemented.

A Study on Exploring the Nexus between Economic Value Added (EVA) and Equity Capital

This paper investigates the intricate relationship between Economic Value Added and equity capital, aimed to determine their synergies in evaluating a company's financial performance. It is a metric designed to measure the company’s economic profit by considering the cost of capital, serves as a pivotal indicator of its wealth creation capabilities. Conversely, equity capital constitutes the primary funding source from shareholders, representing a fundamental aspect of a firm's financial structure and ownership. The primary objective of this study is to analyse the relationship between Economic Value Added and equity capital in select companies listed in BSE Sensex, observing the underlying dynamics that govern a company's efficacy in utilizing shareholder funds to generate sustainable profits. The present study also focused on the impact of equity capital on Economic Value Added and to forecast the Economic Value-Added trajectory for these entities in forthcoming years. The findings of the study reveals that there is relation between equity capital and economic value added for various companies in both positive and negative ways, as well as the significance of autocorrelation in decision-making. Additionally, the impact of equity capital on economic value added was established in Reliance, ICICI, ITC, HCL, Dr Reddy's, and Axis Bank. Lastly, the ARIMA model provided insights into the significant growth in from 2023 to 2031 in ITC, L&T, SBI, Mauritius, Nestle, and Wipro including a notable turnaround for HDFC Bank in the later years.

Motivating user engagement in online health Q&A communities: do contingent financial incentives matter?

PurposeUser engagement is critical for online health Q&A communities. Financial incentives, which vary across different communities and reward schemes, are expected to motivate such contribution behaviors. Even though financial incentives have been extensively examined in prior studies, the impact of newly designed contingent financial incentives of a new pay-for-answer reward scheme has not been empirically examined in any online health Q&A community. Given this research gap, our study aims to perform an exploratory investigation of the effects of contingent financial incentives on user engagement in terms of knowledge contribution and social interactions.Design/methodology/approachBased on expectancy-value theory and equity theory, a research model was developed to reflect the influences of contingent financial incentives on user engagement. A unique dataset was gathered from a large online health Q&A community utilizing this contingent financial incentive reward structure, and the Heckman selection model was applied using a two-step procedure to test these hypotheses. Possible endogeneity issues were also addressed in the robustness check.FindingsOur results demonstrate that the effect of contingent financial incentives on answer quantity and quality is quadratic. Additionally, our study reveals that this contingent financial incentive enhances both comment and emotional interactions among users.Originality/valueOur study enriches the literature on financial incentives, knowledge contribution and user engagement by revealing the nuanced effects of financial incentives within a novel pay-for-answer scheme. This study also offers significant implications for practitioners involved in online community incentive design.

A review of the applicability of the main theories of financial structure to Spanish worker cooperatives

ABSTRACT The dominant financial theories have been developed, mainly, under the schemes of large capitalist corporations, overlooking the special configuration of personalist corporations or societies such as worker cooperatives. As a consequence, the possibility of extrapolating to cooperative enterprises the findings of research focusing on understanding the financial dynamics of commercial companies is limited. For this reason, it is necessary to carry out specific studies that delve into their singularities, given that these may affect the applicability of the most relevant theories in the field of financial structure decisions, such as the ‘trade-off’ or ‘pecking order’ theories. Thus, this study concludes, based on a deductive analysis, that the behaviour of Spanish worker cooperative corporations requires certain relevant nuances to be understood with respect to the assumptions of these theories and that any financial research on worker cooperatives should consider these carefully.