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The study empirically examines the factors affecting the financing decisions of non-financial listed companies in Gulf Cooperation Council (GCC) countries. Using static and dynamic two-step generalized method of moments techniques, it analyzes unbalanced panel data from 364 non-financial companies across six GCC countries from 2011 to 2021. The findings partially support optimal capital structure theories, highlighting significant internal factors such as profitability, market-to-book ratio, firm size, earnings volatility, and growth opportunities that influence financing decisions. While no single theory fully explains the financing choices, the association of internal factors with book and market leverage is consistent. The study provides robust and generalizable results, aiding financial institutions and policymakers in formulating pro-development policies and regulations. This research facilitates better coordination between corporate managers and financial institutions, supporting the region's economic transition. It is the first study to use extensive data from GCC non-financial firms to investigate financing decisions, offering valuable insights for investors and a basis for further analysis of capital structure choices in the region and beyond. [ABSTRACT FROM AUTHOR]

Abstract The study empirically examines the factors affecting the financing decisions of non-financial listed companies in Gulf Cooperation Council (GCC) countries. Using static and dynamic two-step generalized method of moments techniques, it analyzes unbalanced panel data from 364 non-financial companies across six GCC countries from 2011 to 2021. The findings partially support optimal capital structure theories, highlighting significant internal factors such as profitability, market-to-book ratio, firm size, earnings volatility, and growth opportunities that influence financing decisions. While no single theory fully explains the financing choices, the association of internal factors with book and market leverage is consistent. The study provides robust and generalizable results, aiding financial institutions and policymakers in formulating pro-development policies and regulations. This research facilitates better coordination between corporate managers and financial institutions, supporting the region’s economic transition. It is the first study to use extensive data from GCC non-financial firms to investigate financing decisions, offering valuable insights for investors and a basis for further analysis of capital structure choices in the region and beyond.

PurposeAimDesign/Methodology/ApproachMain findingsPractical implicationsNovelty/ContributionTo ascertain how JSE-listed companies use derivatives to hedge.Determine whether JSE-listed companies apply established rationales for corporate hedging practices.This empirical study uses data from the Johannesburg Stock Exchange (JSE), South Africa, as a proxy for emerging markets.Binomial logistic regression, applied to the 200 largest non-financial firms (by market capitalization) on the JSE from 2005 to 2017, indicates that larger firms, higher leveraged firms, ones with better growth prospects, and less information asymmetry between directors and management are more likely to use derivatives to hedge.The findings suggest that some traditional determinants for corporate hedging practices apply in an emerging market context, but local conditions still remain an important consideration.By confirming the applicability of traditional hedging theories in an emerging market context, the study extends the theoretical understanding of corporate risk management. It supports the notion that established hedging rationales, such as reducing financial distress costs and addressing information asymmetry, are relevant across different economic contexts. [ABSTRACT FROM AUTHOR]

This study seeks to investigate the potential effects of the recent pandemic (COVID-19) on capital structure dynamics. The Gulf Cooperation Council (GCC) is a fascinating topic for this study because of its distinct economic characteristics. The analysis draws upon a cross-country dataset covering 208 non-financial listed firms across five GCC countries, with data spanning the years 2010 to 2022. Capital structure is a dependent variable and is measured by total debt to equity, equity multiplier, and short-term debt ratios, while the COVID-19 pandemic, firm size growth, return on assets, tangibility, and growth were applied as independent variables. Using the generalized least squares (GLS) method, findings demonstrated that COVID-19 has a significant and positive influence on debt-to-equity and equity multiplier ratios but a negative one on short-term debt ratio. Thus, non-financial firms increased their debt financing and transferred debt from short-term to long-term funding. In addition, firm-specific factors, such as firm size, tangibility, and macroeconomic factors, such as GDP growth, positively and significantly impact capital financing. Conversely, profitability has a negative relationship with financial leverage. There is a lack of empirical research on how COVID-19 affects the financial structure of non-financial listed companies in GCC nations. Consequently, by filling the previously specified gaps, this study provides proof to support the idea of using debt financing to raise capital for economic recovery. GCC policymakers need to give priority to ensuring that firms have convenient access to inexpensive finance in light of the financial consequences caused by COVID-19. This will guarantee that companies have the resources necessary to bounce back and support economic growth. [ABSTRACT FROM AUTHOR]

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Abstract Distressed companies create panic among the investors, and the overall effect comes on the economy and leads to a degraded image and value of the companies. Transparency and disclosure involve disclosing the operational as well as the financial performance and corporate governance practices employed by the firms. A corporation or person is said to be in a financial distress (FD) if they are unable to keep their pledge to make payments on time. The current study seeks to shed light on the effects of Financial Distress (FD) and Transparency and Disclosure (T&D) on the value of non-financial firms operating in India. The study makes use of panel data analysis (PDA). The authors of the study used secondary data of non-financial companies included in the S&P BSE 100 index for five fiscal years, from 2015–2016 to 2019–2020. Altman Zscore for FD measure and Tobin's Q, MCAP, and MTB for the firm's valuation is considered. Our study established that Financial Distress (FD) negatively impacts a firm's valuation because a positive association between Zscore (financial soundness) and a firm's value is found. However, Transparency and Disclosure (T&D) have no significant impact on the firm’s valuation. We also find evidence that financial distress significantly impacts the value of firms under the influence of T&D. With the help of information about financial distress provided in our study, companies can analyze and take required steps to minimize the probability of being in a state of insolvency or being bankrupt. Investors can also gain knowledge of the business factors and their effect on a company's valuation so that they can cautiously choose and include healthy companies in their targeted list of companies to invest in. No such study has been conducted till now in any of the developing countries that include finding the impact that (FD) as well as (T&D) have on the value of the firms in the non-financial sector.

Abstract This paper analyzes the nonlinear relationship between corporate ownership structure and income manipulation through accrual-based earnings management in the Egyptian context. To do so, we develop a sample of 78 listed non-financial firms, covering the period 2008–2017. Using the dynamic panel threshold analysis approach (Seo and Shin in J Econom 195: 169–186, 2016), we found a nonlinear relationship between ownership structure and earnings manipulations. This proves the presence of an optimal ownership structure threshold below which the ownership structure generates an entrenchment effect on earnings management. However, above this threshold, the ownership structure has an alignment effect. Certainly, these results confirm the theoretical predictions in relation to managerial ownership, governmental ownership, and earnings management (agency, political and development theories, respectively). These results yield important policy implications. It is recommended to set an optimal threshold of ownership structure to control the firm`s managers. This is likely to avoid earnings management.

This paper quantifies the systemic importance of non-financial firms by assessing their contribution and vulnerability to systemic shocks. We apply two firm-specific measures, namely Delta CoVaR (ΔCoVaR) and Marginal Expected Shortfall (MES), to evaluate the systemic risk of 205 non-financial firms listed on the Pakistan Stock Exchange over the period from 2005-2021. We apply quantile regression methodology to quantify (ΔCoVaR). We confirm that a significant number of firms contribute to both system-wide shocks and are vulnerable to systemic risk of the whole system. We find that firms with a high-risk score in one area are not always high-risk in another. Measures of systemic risk vary significantly across time, between firms and industries. Energy and transport industries are top contributors to systemic risk however, tobacco and pharmaceuticals are among the top industries that are vulnerable to systemic risk of the whole system. We conclude that non-financial firms are systemically important and this risk should be mitigated. This research offers significant insights for policymakers and other relevant stakeholders both domestically and internationally. It aims to help policymakers examine their macro-prudential policy, which now solely takes into account financial firms, to limit the risk that can spread throughout the entire system. [ABSTRACT FROM AUTHOR]

Earnings management still become a phenomenon both in Indonesia and abroad. Many cases of earnings management practices have occurred and the company's amount of leverage is one of the drivers of earnings management practices. This research aims to examine and describe the relationship between various debt policy, profitability, and company size on earning management moderated by firm age. The selected samples were 102 companies listed on the Indonesia Stock Exchange (IDX) in 2010-2018. The independent variables in this study include DER, bank debt, short-term debt and long-term debt, age, and company size. Earnings management as the dependent variable in this study uses the Modified Jones Model. The results of the regression equation analysis show that all debt policy proxies consistently have a negative and significant effect on earnings management. Furthermore, the company's experience as a proxy for firm age strengthens the relationship between debt policy and earnings management practices. More interestingly, specifically among the three debt policies, bank debt is the policy that is most able to represent the influence on earnings management practices. This indicates that the most effective monitoring of earnings management practices comes from banking institutions. Overall, the profit information shown in financial statements is the product of earnings management, so the level of quality of financial reports is deserving of close inspection and prudence when making decisions based simply on profit information.

This study seeks to investigate the potential effects of the recent pandemic (COVID-19) on capital structure dynamics. The Gulf Cooperation Council (GCC) is a fascinating topic for this study because of its distinct economic characteristics. The analysis draws upon a cross-country dataset covering 208 non-financial listed firms across five GCC countries, with data spanning the years 2010 to 2022. Capital structure is a dependent variable and is measured by total debt to equity, equity multiplier, and short-term debt ratios, while the COVID-19 pandemic, firm size growth, return on assets, tangibility, and growth were applied as independent variables. Using the generalized least squares (GLS) method, findings demonstrated that COVID-19 has a significant and positive influence on debt-to-equity and equity multiplier ratios but a negative one on short-term debt ratio. Thus, non-financial firms increased their debt financing and transferred debt from short-term to long-term funding. In addition, firm-specific factors, such as firm size, tangibility, and macroeconomic factors, such as GDP growth, positively and significantly impact capital financing. Conversely, profitability has a negative relationship with financial leverage. There is a lack of empirical research on how COVID-19 affects the financial structure of non-financial listed companies in GCC nations. Consequently, by filling the previously specified gaps, this study provides proof to support the idea of using debt financing to raise capital for economic recovery. GCC policymakers need to give priority to ensuring that firms have convenient access to inexpensive finance in light of the financial consequences caused by COVID-19. This will guarantee that companies have the resources necessary to bounce back and support economic growth.

This paper quantifies the systemic importance of non-financial firms by assessing their contribution and vulnerability to systemic shocks. We apply two firm-specific measures, namely Delta CoVaR (ΔCoVaR) and Marginal Expected Shortfall (MES), to evaluate the systemic risk of 205 non-financial firms listed on the Pakistan Stock Exchange over the period from 2005-2021. We apply quantile regression methodology to quantify (ΔCoVaR). We confirm that a significant number of firms contribute to both system-wide shocks and are vulnerable to systemic risk of the whole system. We find that firms with a high-risk score in one area are not always high-risk in another. Measures of systemic risk vary significantly across time, between firms and industries. Energy and transport industries are top contributors to systemic risk however, tobacco and pharmaceuticals are among the top industries that are vulnerable to systemic risk of the whole system. We conclude that non-financial firms are systemically important and this risk should be mitigated. This research offers significant insights for policymakers and other relevant stakeholders both domestically and internationally. It aims to help policymakers examine their macro-prudential policy, which now solely takes into account financial firms, to limit the risk that can spread throughout the entire system.

AbstractThe current study aims at examining the impact of earnings management on equity liquidity in the Vietnam stock market when considering the direction of earnings management. We used two proxies of equity liquidity, namely quoted spread and effective spread, and analyzed the data using ordinary least squares (OLS), fixed and random effect models (FEM, REM), and regression with generalized least squares (GLS) to determine the most suitable model. The findings of the study indicate that when downward earnings management increases, the quoted spread also decreases, thus the bid-ask spread is low, meaning that the liquidity is high. This can be explained by the fact that when firms conduct downward earnings management to reduce taxes, investors may expect to buy stocks from these firms at a better price, leading to an increase in trading demand on the market. Whereas upward earnings management has no impact on quoted spread. Our results also showed that there is no evidence to suggest that earnings management has an impact on the effective spread. This means that, in the absence of other factors, an increase in earnings management in either upward or downward directions does not affect the difference between buying and selling prices.

Distressed companies create panic among the investors, and the overall effect comes on the economy and leads to a degraded image and value of the companies. Transparency and disclosure involve disclosing the operational as well as the financial performance and corporate governance practices employed by the firms. A corporation or person is said to be in a financial distress (FD) if they are unable to keep their pledge to make payments on time. The current study seeks to shed light on the effects of Financial Distress (FD) and Transparency and Disclosure (T&D) on the value of non-financial firms operating in India. The study makes use of panel data analysis (PDA). The authors of the study used secondary data of non-financial companies included in the S&P BSE 100 index for five fiscal years, from 2015–2016 to 2019–2020. Altman Zscore for FD measure and Tobin's Q, MCAP, and MTB for the firm's valuation is considered. Our study established that Financial Distress (FD) negatively impacts a firm's valuation because a positive association between Zscore (financial soundness) and a firm's value is found. However, Transparency and Disclosure (T&D) have no significant impact on the firm's valuation. We also find evidence that financial distress significantly impacts the value of firms under the influence of T&D. With the help of information about financial distress provided in our study, companies can analyze and take required steps to minimize the probability of being in a state of insolvency or being bankrupt. Investors can also gain knowledge of the business factors and their effect on a company's valuation so that they can cautiously choose and include healthy companies in their targeted list of companies to invest in. No such study has been conducted till now in any of the developing countries that include finding the impact that (FD) as well as (T&D) have on the value of the firms in the non-financial sector. [ABSTRACT FROM AUTHOR]

This paper analyzes the nonlinear relationship between corporate ownership structure and income manipulation through accrual-based earnings management in the Egyptian context. To do so, we develop a sample of 78 listed non-financial firms, covering the period 2008–2017. Using the dynamic panel threshold analysis approach (Seo and Shin in J Econom 195: 169–186, 2016), we found a nonlinear relationship between ownership structure and earnings manipulations. This proves the presence of an optimal ownership structure threshold below which the ownership structure generates an entrenchment effect on earnings management. However, above this threshold, the ownership structure has an alignment effect. Certainly, these results confirm the theoretical predictions in relation to managerial ownership, governmental ownership, and earnings management (agency, political and development theories, respectively). These results yield important policy implications. It is recommended to set an optimal threshold of ownership structure to control the firm's managers. This is likely to avoid earnings management. [ABSTRACT FROM AUTHOR]

This study aims to investigate the impact of corporate governance on working capital management, which has been relatively overlooked despite its significance on corporate performance. Using the Ordinary Least Square regression model, a model was developed to assess the relationship between dependent and independent variables. Secondary data from the annual reports of 42 non-financial firms listed on the Frankfort and Oslo stock exchanges from 2017 to 2021 were collected. The dependent variable, working capital management, is indicated by cash holding, while the independent variable, corporate governance, is measured through five proxies: board meeting, board remuneration, the board size, CEO remuneration, and CEO tenure. Leverage and firm size are involved as control variables. The findings revealed that board meetings, board remuneration, CEO remuneration, and CEO tenure exhibit a positive and significant relationship with working capital management. However, board size demonstrated a negative but insignificant relationship. Additionally, the study showed that leverage has a negative relationship, while firm size has a positive relationship with working capital management. In conclusion, the study suggests that future research should focus on the financial sector to conduct comparative analyses with other sectors. [ABSTRACT FROM AUTHOR]

This study has examined the effect of liquidity risk on performance of non-financial firms listed on the Nigerian Stock Exchange. The main objective was to assess the degree of influence liquidity risk measured by (standard deviation of quick ratio and current ratio) have on performance (return on assets) of the non-financial firms in Nigeria. Data from all the 87 non-financial firms listed on NSE were extracted through financial reports and analyzed using descriptive statistics, correlation and regression through STATA version 16. The findings revealed that current ratio have negative and significant effect on performance, while the quick ratio was not significant in influencing performance. The result implies that an increase in liquidity risk (difficulty in running the operations and offsetting short term maturing obligations), leads to a significant decrease in performance of the firms. The result also confirms that the standard deviation of current ratio provides better measurement of liquidity risk. It was however concluded that, liquidity risk has negative and significant effect on performance of firms in Nigeria. The study recommends that more attention should be given to liquidity management to minimize the risk of insolvency or bankruptcy of firms in Nigeria as such will help in reducing liquidity risk issues and improve performance of the non[1]financial firms in Nigeria.

Faulty board configurations associated with risk management practices are alleged to be the primary sources of most corporate failures. Therefore, experts have suggested that firms should adopt holistic risk management practices. This study investigates the interactive effect of board characteristics with risk management activities on the performance of listed Nigerian non-financial firms. The study is anchored on the agency theory perspective. It is designed as ex post facto inquiry with a population of 113 companies, from which a sample of 96 firms was drawn from firms with a complete set of data. Secondary data were extracted from the NSE Factbook and Thomson Reuter’s DataStream for 2010–2019. The static panel regression technique was utilized to analyze and estimate the interaction between the variables. The findings show that all the independent variables positively impacted ROA of the listed firms. Nevertheless, concerning market evaluation (Tobin-Q), except for board financial experts and audit committee meetings, risk management committee meetings and the presence of chief risk officer showed an insignificant impact. The combined implication is that although firms have complied with the provision of the CG codes on risk governance structure, the improvements associated with risk management aimed at enhancing market evaluation are nonetheless not deeply embedded in these firms. Firms are suggested to implement effective risk management practices to achieve competitive advantages and substantiality. More studies are advocated to extend the literature by expanding the scope.

This study sought to evaluate the association between the attributes of the Chief Executive Officer (CEO) and tax avoidance in Nigeria based on the framework of the upper echelon theory on managerial effects. The quantitative research design was employed in this study and data was gathered from the financial statements of sixty-six (66) non-financial firms listed on the NGX for 10 years (2009–2018). The model for the study was estimated using the generalised method of moments regression technique that helps address the issue of endogeneity. The results showed that the gender of the CEO, as well as the years spent, are significantly associated with tax avoidance within the Nigerian business environment. Consequently, the study concludes that the attributes of the CEO influence tax avoidance practices. This study contributes to the debate on the determinants of tax avoidance and reveals that the factors that influence tax avoidance are beyond firm-level attributes to include the physical attributes of management teams. [ABSTRACT FROM AUTHOR]

Corporate governance and finance are heavily influenced by capital structure, which greatly affects equity returns and the risks associated with the owner. Since CEOs are an important asset of a company and have a considerable role in decision-making and other functions, investigating the issue from their stance is decisive to yield valuable outcomes. Therefore, this study examines the impact of CEOs' personal, functional, and educational characteristics on the capital structure behavior of Jordanian non-financial firms listed on the Amman Stock Exchange (ASE) between 2010 and 2014. [ABSTRACT FROM AUTHOR]

• The property rights-intangible investment nexus is examined in the African context. • The study uses the local projections methodology. • The sample covers non-financial firms for twelve countries between 1996 and 2020. • We find that propery rights protection increases the intangible investment. This empirical study examines the impact of property rights on intangible investments in sub-Saharan African (SSA) non-financial firms using firm-level data. The study employs a local projections methodology for twelve SSA countries over the period 1996–2020. Our empirical results show that property rights protection increases intangible investment in non-financial firms in the SSA region. This effect is significant for the SSA region in the long run. [ABSTRACT FROM AUTHOR]

Sociologists have been investigating financialization over the past two decades. Shareholder value orientation has been named as one of the central driving forces for financialization in the US. However, financialization also takes place in countries that do not have a strong shareholder value orientation. What drives financialization in these countries? In this article the authors analyze data for Korea, where the power of shareholders is particularly subdued, and present two findings. First, financialization is an unintended consequence of the state's pressure on family-owned conglomerates to comply with the Western standard imposed by the IMF during the economic crisis. In the absence of strong shareholders, it was the interplay between the state's demand to modernize corporate funding practices and the conglomerates' apparent compliance while minimizing their financial liability. Second, the authors investigate the role powerful unions have in financialization. Previous studies have theorized that unions would have negative effects on financialization, only to come up with mixed results. Using Korean data, this article reveals that in a setting where the political and organizational power of unions is strong, unions have clear negative effects on financialization. The authors suggest that the standard story of financialization, according to which the mighty shareholders push firms to pursue short-term profit, is only one of many possible paths toward it. [ABSTRACT FROM AUTHOR]

Vietnam has faced the long-lasting COVID-19 outbreak, which has imposed a negative impact on corporate activities, since 2020. This study aims to examine how the COVID-19 outbreak has influenced the risk-taking behavior of companies in Vietnam, investigating this relationship with the moderating role of cash holdings. We used the research data of non-financial listed firms in Vietnam during the period from quarter 1 2018 to quarter 2 2021. According to the Generalized Method of Moments approach, the study concludes that the COVID-19 pandemic period is negatively associated with corporate risk-taking behavior. In addition, there is a significant increase in the level of risk-taking behavior during the COVID-19 pandemic period by enterprises that have more cash holdings. [ABSTRACT FROM AUTHOR]

AbstractThis research assesses the effect of capital adequacy on the corporate performance of quoted non-financial firms operating in Nigeria. Several studies on the influence of capital adequacy on corporate performance have been conducted without specific focus on non-financial entities despite their growing contribution to the country’s gross domestic product (GDP). The study utilized the ex-post facto research design using secondary data obtained for the period 2011–2020. A sample of thirty-eight (38) out of sixty-three (63) listed non-financial firms were purposively selected while data obtained were analyzed using multivariate regression. The study found that while capital adequacy ratio, equity capital/total assets ratio and cost income ratio negatively affected corporate performance, debt equity ratio and firm size positively influenced corporate performance of quoted non-financial firms operating in Nigeria. It therefore concluded that firm size and profitable use of debt capital in the capital mix of non-financial firms are key factors that can positively drive their corporate performance. Consequently, it recommended that the management of non-financial firms should explore opportunities inherent in profitable use of debt capital to further improve their performance and hence returns to their respective stakeholders. Additionally, regulators of non-financial firms operating in Nigeria should strengthen the risk management monitoring framework to ensure market discipline and balanced growth and development of the firms.

The global economic crisis in 1997 significantly impacted all corporate firms. Measuring valuation is becoming increasingly important in corporate firm analysis. Transparency in disclosures enables a company to meet market expectations while also adhering to regulatory requirements. The study's primary purpose is to measure the impact of transparency and disclosures on the valuation of non-financial firms in India and explore the role of Environmental, social and Governance (ESG) as a moderator variable in determining the firm's value. Panel data regression is the methodology adopted for the data analysis in the study. Panel Data of seventy-six non-financial firms was collected for ten years (2011–2020). Market capitalization is considered as a proxy variable for the valuation. The study results indicate that transparency and disclosures (TD) have a negative and significant influence on the value of the firms. Inferring that a higher degree of TD reduces the firm value. At the same time, the interaction term of TD and ESG show a positive significant association. This finding implies that high ESG reduces the negative impact of high TD on the valuation. [ABSTRACT FROM AUTHOR]

The study examined effect of break-even analysis on decision making of listed non-financial firms in Nigeria, between 2010 and 2020. Specifically, the study examined the effect of selling price, production cost and sale volume on profit after tax of listed non-financial firms in Nigeria. The study adopted an ex-post-facto research design and secondary data was gathered to analyze the relationship between the variables. The population of the study consisted fifteen (15) industrial companies listed on Nigeria Exchange Group; however, only five (5) samples were selected from the population. The data was collected from annual reports of 5 sampled listed non-financial firms covering a period of ten (10) years (2010-2020). The collected data were analyzed using correlation analysis, panel regression and other post estimation techniques. The decision making was measured with profit after tax. From the results of the findings, it was revealed that profit after tax is positively impacted by the break-even analysis of the listed non-financial firm in term of selling price and sale volume. Thus, cost of production reported negative effect on profit after tax. The study concluded that breakeven analysis has positive effect on decision making of non-financial firms in Nigeria, especially when measured in term of profit after tax. Based on the findings, it was recommended that management of nonfinancial firms in Nigeria needs to put all possible strategies in order to lower the production cost to maximizing profit. [ABSTRACT FROM AUTHOR]

Dividend policy decision is a puzzling phenomenon in finance literature. This study intends to examine the considerable factors of dividend policy among the non-financial listed companies in Pakistan. The research study intends to explore the influence of firm and country level determinants on the dividend in Pakistan. To achieve the objective, this study collected 134 Pakistani non-financial firms' data from 2000 to 2017 using POLS and FE approach. The results found that profitability and corporate tax have influencing and positive effect, while size of the firm and investment opportunities shows significantly adverse influence on dividend policy at firm level factors. Under country level factors, inflation, stock market development, and debt market development have negative impact, however political risk has positive influence on dividend policy. This study is beneficial for the board of directors and management of organizations to establish adequate dividend policy for the organization. It will also be useful for stakeholders of the organization regarding investment decision. [ABSTRACT FROM AUTHOR]

Earnings per share and dividend payout ratio are amongst the most prominent ratios in financial world. This research aims to find out the impact they have on the share prices. The scope of research is limited to 50 non-financial companies listed on Pakistan Stock Exchange (PSX). Panel regression model is used and the time length of the 5 years is set. The results show that 60 times out of 100 Earnings Per Share (EPS) explains the share price. Whereas dividend payout ratio has detrimental to no effect on the dependent variable. This being said the model developed through the financial data analysis is also not strong enough. One of the reasons for such results can be the inefficient ecosystem of PSX. The investors usually make decisions based on sentimental factors and not taking in account the company specific factors. [ABSTRACT FROM AUTHOR]

Examining Chinese non‐financial firms between 2016 and 2019, this study documents that the new accounting standard for financial instruments imposes severe implementation costs on affected firms, as evidenced by a significant rise in the selling of available‐for‐sale (AFS) equity investments and increased audit fee premiums. We also find that the disposal of AFS is more prominent in state‐owned enterprises (SOE) and firms issuing corporate bonds. The increase in audit fees is more severe for non‐SOEs, bigger audit firms and firms with a higher total account balance affected by the new standard. [ABSTRACT FROM AUTHOR]

Japanese and Korean financial systems are distinct from those in the western economies. Considering this, we examine how the dividend policy of the firms in two of the largest economies of East Asia is determined by the internal attributes of firms. Firm-level data from 1,773 Japanese and 1,035 Korean firms were evaluated using panel data techniques, and some interesting similarities and differences in the dividend policies of both countries were unearthed. For example, in both countries, larger firms pay higher dividends, whereas those firms with volatile earnings pay low dividends. It was also determined that Korean firms pay more dividends when their profitability surges. On the other hand, cash dividends in Japanese firms decline when there is an increase in their profitability level. Overall, the dividend policy of Korean firms resembles more to those in Anglo-Saxon countries, while the dividend policy of Japanese firms bears little resemblance to other established financial systems. This study is the first to compare and contrast the internal dynamics of dividend policy for both the Japanese Keiretsus and Korean Chaebols while evaluating a huge universe of firms from both countries. Transnational studies are important to draw parallels and differences. The findings of this study offer important implications for various stakeholders, including managers, investors, and policymakers. Also, the results pave the way for a theoretically enriched understanding of dividend policy by comparing and contrasting diverse financial systems. [ABSTRACT FROM AUTHOR]

This study explores financialization's effects on corporate innovation using data on 711 firms taken from the KIS-Value database (1994–2019) and the generalized method of moments (GMM) model. Scholars warn that aiming solely to maximize shareholders' interests and short-term financial investments places non-financial firms' entrepreneurship at risk. Long-term R&D and real investments decline as a result, leading to stagnant growth. This study investigates whether empirical findings from the US and the UK, where financialization negatively affects corporations' real and R&D investments, apply to the South Korean market. We find that the financialization of South Korean non-financial firms has damaged both real and R&D investments. The first channel of financialization, increased financial investments, reduces real investments and R&D spending. Furthermore, the second channel of financialization, profit-sharing, reduces corporate innovation. The more that South Korean non-financial firms adhere to dividend payments and stock buybacks, the greater the negative impacts on real and R&D investments are. [ABSTRACT FROM AUTHOR]

The data set of this article is related to the paper “Do Board of Directors’ Characteristics Matter in Restraining Earnings Manipulation? Empirical Evidence from Pakistan Stock Exchange” Khan and Kamal, (2021) [1]. This data article presents the raw data of 315 non-financial listed firms of the Pakistan Stock Exchange (hereafter, PSX). The data relating to the Board of Directors has been manually extracted from 1890 annual reports of the concerned companies and the financial data were extracted from State Bank of Pakistan sources, business-recorder1 and PSX Data portal2. The dataset is an unbalanced panel data consisting of 1882 firms’ year's observations from 2014 to 2019 based on 315 non-financial listed firms consists of 20 variables. This paper's dataset is valid and useful for researchers/scholars in many ways such as linking the board of directors to corporate governance, internal governance vs external governance, audit quality, financial reporting quality, firm performance, industry performance, corporate social responsibility and government regulation.

The interdependency between capital structure (financing decision), profitability, and ultimately the going concern of firms either financial and non-financial has ripple effect on the overall economy and this has made it imperative for finance experts and academic researchers to continue to dig deep into its influencing factors to scientifically contribute to this ever topical and germane issue. This study examined the firm-specific and macro-economic determinants of capital structure of financial and non-financial firms listed on the exchange. The study obtained data from eighteen (18) financial firms and forty-four (44) non-financial firms for the period 2010 and 2017. The study employed the panel fully modified ordinary least square method after carrying out the stationarity test and test of cointegration. Findings from the study revealed that earnings per share, liquidity, firm size, and revenue growth are the key firm-specific determinants of capital structure for both financial and non-financial firms are. The paper also found that macroeconomic determinants of capital structure for non-financial firms include real effective exchange rate and banking sector development while that of financial firms are GDP growth rate, inflation, and real effective exchange rate and banking sector development. [ABSTRACT FROM AUTHOR]

The importance of debt financing to firms as a basis for decision-making cannot be over-emphasised. This implies that the maturity structure of debts becomes important for understanding the outcomes of firms’ decisions. There is a dearth of evidence from the Nigerian context in the current body of literature on factors that determine debt maturity structure of listed firms. We observed a persistent and steady decline in the average ratio of length of maturity period among non-financial firms among listed non-financial firms in Nigeria. This study examined the extent to which non-debt tax-shield, liquidity, assets intensity, diversification, investors’ confidence, growth opportunity, firm size, profitability and dividend policy determines the debt maturity structure of non-financial firms in Nigeria. The secondary data collected from the annual reports of a sample of 92 listed non-financial firms were analysed using the Two-stage Generalised Method of Moments (GMM) regression model for the period between 2010 and 2015. The results indicate that the non-debt tax-shield, liquidity, assets intensity, diversification, growth opportunity, firm size and the dividend policy significantly determine the debt maturity structure among the listed non-financial firms in Nigeria. However, the evidence is not enough to conclude that profitability and investors’ confidence determine the debt maturity structure among the non-financial firms in Nigeria. Firm diversification and liquidity appeared to have the most profound negative effect on the debt maturity structure in line with predictions of special use of debt hypothesis and the pecking order theory. Overall, it is concluded that the firm-specific factors determine the choice of debt maturity structure among Nigerian listed non-financial firms. Although the findings of the study are robust, future studies in the areas can extend the literature by identifying and investigating institutional and macroeconomic factors that drive debt maturity structure in Nigeria.

This study analyzes the effect of intellectual capital and firm performance in non-financial firms. The firm performance comprises of market performance and financial performance of the firm. This study also breakdown the non-financial firms between three sectors that are the primary sector, manufacturing sector, and service sector. The three sectors are the three main sectors in the economy. This study measures intellectual capital in different ways using the intellectual capital index. The data were analyzed with unbalanced panel data regression and multiple regression. This study found that intellectual capital positively affects market performance and financial performance in non-financial firms. This study also found that intellectual capital positively affects market performance and financial performance in manufacturing and service firms, but in primary sectors, this study found inconclusive results when analyzed and used two different measurements. This study contributes to the firms in non-financial firms about the development of intellectual capital in the knowledge-based economy because intellectual capital is an asset that can create market performance and financial performance.

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