The Interrelationship between Culture and Capital Structure:Evidence from International Retailers

The present study investigates the influence of cultural factors in 2022 on the capital structure of global retailers.There are sixteen retailers from eight countries in the sample.In recent times,numerous academicians have taken an interest in examining the capital structure and business model of retailers,owing to their swift and consistent growth.However,the fact that the majority of research originates from the retailers’host country gives rise to debate regarding the applicability of the capital structure of said retailers to countries with distinct cultural environments.Consequently,academics have begun to investigate whether the capital structure of multinational retailers is impacted by the diversity of national cultures.

EMPIRICAL STUDY ON CAPITAL STRUCTURE OF LISTED COMPANIES IN CHINESE STOCK MARKET

Capital structure decision is an important issue of corporate finance.Theories show that,the corporate debt ratio is determined by many factors.This study conducts empirical work on capital structure theories,focusing on the corporate data of Chinese listed companies,by considering the intrinsic characteristics,utilizing the principal factor analysis and the ridge regression method.Our results suggest that a firms debt ratio has a positive relationship with its size,profitability and operating risk and has a negative relationship with its growth and non debt tax shield,while the long term leverage has a positive relationship with its collateral value of assets.

Human Capital Structure and Economic Growth:From the Perspective of New Structural Economics

The Chinese economy has achieved remarkable development over the past 40 years of reform and opening-up.However,with the narrowing of potential for efficiency improvement from resources reallocation and changes in population age structure,the Chinese economy has moved from high-speed growth to high-quality development.In this setting,understanding factor endowment and comparative advantages of the economy from a perspective of human capital structure so as to enhance industrial structure adaptability by riding the trend is of significance for cultivating new driving force for economic development.This paper,following a theoretical paradigm of new structural economics,demonstrates how human capital structure matches industrial structure and the presence of optimal human capital structure using mathematical deduction.On this basis,national level panel data and instrumental variables are adopted for generalized method of moments,the results of which shows that there are varied impacts on economic growth in light of different human capital structure characteristics.The proportions of high-level human capital and medium-level human capital boost economic development,while that of low-level human capital has an inhibitory effect on economic growth.The policy implication of this study is that large economies should diversify efforts as per different human capital structure characteristics in terms of development need of tapping growth impetus from human capital structure improvement.It is of equal importance to raise the proportion of high and medium human capital in order to stimulate economic growth and to cut the proportion of low human capital that hinders economic development.

Research on the hierarchical structure of the metropolitan system and economic development of the provincial capital urban circle in Shandong

Regional development is the trend for future urbanization,and the urban circle is a highly efficient economic spatial pattern of regional development.This study selects statistical data of urban area population,GDP,and the output value of tertiary industry for seven cities in China- Jinan,Zibo,Tai'an,Laiwu,Dezhou,Liaocheng,and Binzhou- in the Shandong provincial capital urban circle from 2005 to 2009.It uses the principles and Zipf model,rank-size rule,and Lotka logarithmic model to analyze and study the hierarchical structure of the metropolitan system and economic development of the Shandong provincial capital urban circle.Based on the above research,this paper provides references for decisionmaking on enhancement of the metropolitan system structure,improvement in core city primacy index,the optimal adjustment of industrial structure and the optimal allocation of essential resources.

The analysis of capital structure of Chinese real estate listed companies

Capital structure is the basis for assessing the efficiency of enterprise financing activity. The rational capital structure could reduce the cost of capital and plays an important role in managing a company. Thus this paper, based on the real estate listed companies on Shenzhen and Shanghai stock markets, analyzes the factors which influence capital structure, such as profitability, size, collateral value of assets, growth, stockholder’s equity, concentration degree of control power, ownership attribute, and applied statistics tools used to help the real estate listed companies optimize the structure of capital.

Does Market Timing Affect Capital Structure？： Evidence for Chinese Firms

This paper investigates the market timing hypothesis of capital structure using a sample of 1,077 Chinese firms for the period 1992 to 2007. We find that market timing plays a significant role in capital structure decisions. However, market timing effects are not persistent and disappear within three years. The results suggest the prominent role played by the government in timing of security issues.

Determinants of Capital Structure in the Nigerian Listed Insurance Firms

The paper investigates the determinants of capital structure in Nigerian listed insurance firms using data obtained from annual report of the sampled firms for the period of 2001-2010. It used five explanatory variables to measure their effects on debt ratio. Multiple regression is employed as a tool of analysis. The result reveals that all the explanatory variables have statistically and significantly influenced the explained variable. The results approve the prediction of pecking order theory in the case of profitability and trade-off theory in case of tangibility variables. The growth variable supports the agency theory hypothesis whereas size variable confirms to the asymmetry of information theory. It is therefore recommended that the management of listed insurance firms in Nigeria should always consider their positions using these capital structure determinants as important inputs before embarking on debt financing decision.

Branch Standards as the Possible Way of Optimizing of Capital Structure of the Concrete Firm

This article is about the problem of optimizing of the capital structure of the concrete firm and about the possibility to use the passive way of optimizing of this capital structure on the basis of the so-called Branch standards. Branch standards are defined as some average indebtedness that the firms are trying to follow. There are a lot of theories available, but the final process of optimizing of the capital structure of the concrete firm is very complicated and it is necessary to cope with a lot of application problems. Besides Traditional theory, none of the further theories offer some concrete recommended optimal indebtedness. For that reason, the possibility to optimize the capital structure based on the passive way is represented besides other things by the so-called Branch standards. The aim of this article is to judge if it is possible to identify this average indebtedness in different branches and in different countries. The hypothesis was stated that it is possible only in selected branches in selected countries. The research is realized in the six selected branches： Railroads, Beverages, Steel, Paper Production, Tobacco, and Electrical Equipment in the Czech Republic and in USA. Data for the years 2008-2016 were obtained from the system Albertina Data at the University of Economics in Prague and from the web pages of Prof. Aswath Damodaran in USA. There were identified so-called Branch standards in the Czech Republic for the branches Railroads 45%, Beverages 50%, Tobacco 50%, and Electrical Equipment 40%. There are also identified so-called Branch standards in USA for the branches Railroads 40% and Paper Production 40%-50%. For the branch Paper Production in the Czech Republic and for the branch Beverages in USA were identified ranges of 40%-45% and 40%-50% respectively. The so-called Branch standards were not stated for the branch Steel in both countries and for the branches Tobacco and Electrical Equipment in USA. The values were verified by the data for the year 2016 and the so-called Branch standards were confirmed excluding the branch Steel in both countries and the branches Tobacco and Electrical Equipment in the US.

REGIONAL STRUCTURE OF CAPITAL MARKET OF FOREIGN DIRECT INVESTMENT IN CHINA’S MAINLAND

Since China's reform and open door, the countries and regions of direct investment in China's mainland have been increasing. In 1995, the amount of foreign direct investment (FDI) in China was US$ 37.81 billion that was from more than 170 countries and regions. The regional structure of capital market of FDI in China has three characteristics: (1) The most of FDI was from the near countries or regions, Hong Kong Macao, Taiwan, Japan, South Korea, Thailand and Malaysia provided 80.3% of the amount of FDI in 1995. (2) Only several countries and regions provided most of FDI in China. (3) According to the contributory rate, the main capital market of FDI in China could be divided into four classes, including the guiding market, subsidiary market, new and development market, opportunity market. Most of FDI in China was from the developing countries and regions, which had a negative effect on the size and technical level of foreign capital enterprises. The author puts forward the countermeasures to improve the regional structure of capital market: (1) to keep the guiding market stable, (2) to open up chiefly the subsidiary market, (3) to guide actively the new and developing market, (4) to try hard to start the opportunity market.

Study of Venture Capitalist Compensation Structure Based on Reputation Model

The development of venture capital has drawn much attention, and many qualitative analysis and discussions have been proposed. A quantitative model is proposed based upon Reputation Model. The present compensation structure of U. S. venture capital limited partnerships is analyzed and a kind of new compensation structure is proposed. The relations between the venture capitalist’ s effort level and the two compensation structures are given . The comparison of analytical results proves that the present compensation structure in U.S. may not be the best choice, and that the proposed one can give a better motivation for venture capitalist’s management action.

Co-alignment between Environment Risk,Capital Structure,Growth and High-tech Firm Performance

To examine whether there is a co-alignment relationship between environment risk, capital structure, growth and high-tech firm performance, the environment risk was measured from the viewpoint of environment change, the long-term debt ratio was adopted as the measure of the capital structure, and the total asset growth and sales growth were chosen to measure the growth of high-tech firms. Regression analysis shows that there is a significant relationship between environment risk, growth and performance of hightech firms measured by the return on equity and cash flow, respectively.

The effects of managerial ability on firm performance and the mediating role of capital structure:evidence from Taiwan

This study utilizes mediation analysis and bootstrapping to analyze the mediating effect of capital structure on the association between managerial ability and firm performance.The dataset consists of 6384 firm-year observations from the Taiwan Residents electronics industry during 2005–2018.Our results indicate that(1)low(high)levels of debt are likely observed in firms with CEOs with high(low)ability,(2)managerial ability positively affects firm performance,and(3)capital structure mediates the positive relationship between managerial ability and firm performance.Overall,the findings may have limited generalizability due to the specific sample characteristics and provide convincing support for the importance of capital structure as a mediator in the managerial ability-firm performance nexus.Specifically,this study highlights the need for examining the effect of managerial ability on firm performance through a mediator.

Branch Standards as the Method of Optimizing of Capital Structure

This article is about the problem of optimizing of the capital structure of the concrete firm and about the possibility to use the passive way of optimizing of this capital structure on the basis of the so-called branch standards.Branch standards are defined as some average indebtedness that the firms are trying to follow.There are a lot of theories available,but the final process of optimizing of the capital structure of the concrete firm is very complicated and it is necessary to cope with a lot of application problems.Besides traditional theory,none of the further theories offer some concrete recommended optimal indebtedness.For that reason,the possibility to optimize the capital structure based on the passive way is represented besides other things by the so-called branch standards.The aim of this article is to judge if it is possible to identify this average indebtedness in different branches and in different countries and continue in the previous researches of the author.The hypothesis was stated that it is possible only in selected branches in selected countries as it was stated also in previous researches of the author.The research is realized in the five selected branches,Pharmacy,Furniture Production,Wood(Forest)Production,Water Supply,and Air Transport in the Czech Republic and in the USA.Data for the years 2008-2016 were obtained from the system Albertina Data at the University of Economics in Prague and from web pages of Prof.Aswath Damodaran in the USA.There were identified so-called branch standards in the Czech Republic for the branch Pharmacy with the indebtedness(45%),Furniture Production with the indebtedness(54%),Water Supply with the indebtedness(30-35%),Wood(Forest)Products with the indebtedness(40%),and Air Transport with the indebtedness(70-75%).There are also identified so-called branch standards in the USA for the branches Pharmacy 34%,Furniture Production 40%and Water Supply 50%–55%.The values were verified by the data for the year 2016 and the so-called branch standards were confirmed excluding the branch Air Transport in the Czech Republic and for the branch Water Supply in the USA.The branches Pharmacy and Furniture Production show small differences.

Capital Structure Determinants and Their Impact on Firm Value： Evidence From Indonesia

This study has two main purposes, i.e., the first is to discover and analyze capital structure determinants, and the second is to discover and analyze the influence of capital structure determinants on firm value in which capital structure treated as a moderating variable. Factors suspected to be determinants of capital structure consist of company growth, profitability, asset structure, leverage, and company size. The population in this study were manufacturing companies listed in Indonesian Stock Exchange. Using purposive sampling method, 125 companies with four years＇ （2008-2011） observation period were collected. The analysis tool used was multiple regression. The results showed that factors which significantly determined capital structure were fixed asset structure, leverage, profitability, and size, while company growth did not influence capital structure. Meanwhile, with capital structure as a moderating variable, asset structure, leverage, and profitability significantly influence the finn value, while company growth and company size did not influence the firm value.

Performance and capital structure of IPOs in Pakistan from 2000 to 2015

Background:When a privately owned firm or privatized government entity raises capital by selling its stocks for the first time to general public,is known as initial public offering(IPO).The underpricing phenomenon and ownership structure are important characteristics of IPO process that significantly affect the short-run and long-run performance of private firm and privitized entity.This study compares the short-and long-run performance,and factors affecting these performances for both private IPOs and privatized IPOs in Pakistan.It further investigates the relationship between capital structor and initial underpricing for both group of IPOs.Methods:Event study methodology is used to compares short-and long-run performance spanning from March 2000 to June 2015 of two categories of IPOs issued in the Karachi Stock Exchange(KSE).Multivariate regression analysis is applied to examine the factors that affect the short-run and long-run performance as well as for investigating the relationship betwen underpricing and ownership structure for both group of IPOs.Results:We find that both categories outperform in IPOs at which they are offered to investors on first day of trading,although differences in mean are insignificant.Over a five-year buy-and hold strategy,privatizing IPOs outperform and private IPOs underperform returns on the benchmark KSE 100 Stock Index.The results reveal that the size of the private firm or government entity,aftermarket risk of IPOs,and subscription ratio are significantly associated with the underpricing of IPO shares brought to market.First-day returns,market volatility and retained ownership are associated with higher five-year performance.We find that the concentration of ownership is similar,for both categories of IPOs;and significantly positive related to underpricing.The size of the firm/entity,aftermarket risk,return on assets and subscription ratio also affect ownership concentration.Conclusions:Same level of underpricing in both private and privatized IPOs reveals that Pakistan’s government is committed to its privatization policies as they developed capital markets by underpricing of IPOs.To make dispersion in ownership structure and to involve more small investors,the regulatory authorities such as Securities and Exchange Commission of Pakistan(SECP are required to take some steps to minimize concentration in ownership structure).There is a need of some specific range of underpricing by issuers and SECP.

Capital and Labor Allocation Structure and China's Economic Growth

Using sector-specific growth accounting method, this paper investigates the growth effect of inter-industry allocation of capital and labor in China. This paper has found that existing investment data are classified according to investment entities rather than user entities and directly using such data for the measurement of capital inventory of various sectors will seriously overestimate the capital inventory of tertiary industry and lead to distorted conclusions of "structural burden" of capital allocation and its serious violation of the principle of efficiency. By excluding real estate sector, this paper has found that after the 1990 s, inter-industry capital allocation had been generally consistent with the principle of efficiency and the effect of capital allocation structure is not significant. Our estimates also found that the growth effect arising from the inter-industry allocation of labor since reform and opening up averages 0.63 percentage points, which is significantly positively correlated with residual economic growth rate and residual TFP and demonstrates a decade-long "reform cycle." According to the comparative study on the effect of labor allocation structure of 37 other countries and regions, by 2017, the effect of China's labor allocation structure will continue to remain in a relatively high stage; between 2017 and 2023, structural effect will significantly diminish and deceleration pressure will rise swiftly; after 2030, the effect of labor allocation structure will linger in a low level stage, when economy is likely to enter into a stage of low growth rate. These findings will help us better assess future economic growth tendencies.

Determinants of Capital Structure:Evidence from the UK

This study investigates the determinants of capital structure of UK firms by using the ordinary least squares(OLS)estimation with six independent variables including company size,profitability,tangibility,growth opportunities,tax,and volatility,as well as four industry classification dummy variables and with financial leverage as the dependent variable.The data set for the research includes all FTSE 100 companies in 2016.The findings reveal(i)a positive but insignificant relationship between company size and leverage;(ii)a negative but insignificant association between profitability and leverage;(iii)level of tangible assets and leverage are negatively related but such negative relationship is not significant;(iv)growth opportunities and leverage are negatively correlated and the negative relationship is highly statistically significant;(v)tax and leverage are positively related but the relationship is not statistically significant;and(vi)volatility and leverage are negatively related but the relationship is not statistically significant.The significant negative relationship between industry dummies and leverage is related to companies in the mining industry that did not use much debt to finance their business compared to those in other industries.Among five different capital structures,the pecking order theory indicates that companies prefer employing internal fund such as retained earnings or excess liquid assets to external finance investment opportunities,which seems to be suitable for UK companies.Static trade off theory which addresses the existence of optimal capital structures of firms affected by the trade-off between costs and benefits when using debt and equity is only applicable in particular cases in the UK.Dynamic trade off theory that argues that the appropriate financing choice typically relies on the financing margin that is estimated in the coming period,and market timing theory which demonstrates that stock price fluctuations in the market influence companies’capital structure,are not supported by the findings of this study.

Capital Structure of Start-ups： Evidence on Non-accounting Characteristics

Research is scarce on non-financial characteristics, including owner characteristics and their influences on capital structure in the establishment phase. The objective of this study is to examine the factors affecting firms＇ availability of external finance, utilizing a sample of Finnish start-up micro firms. The overall purpose is not to produce a comprehensive model for capital structure, but to illustrate the importance of non-accounting characteristics in explaining the attractiveness of the new venture from the lender＇s point of view. The results show that a founder who has prior work experience from the same sector and has little or no personal financial property seems to have higher leverage. After splitting the data into survived and failed firms, lenders viewed work experience positively only in the sample of failed firms. In addition, limited liability companies, firms located in bigger cities, and firms with good demand evaluated by the lender have a lower level of leverage.

The Analysis of the Governance Effect of Chinese Public Corporation Based on Capital Structure

Under the existed system, the capital structure is the basis of the corporate governance, the structure of the corporate governance is the reflection of the capital structure. The choice of the capital structure decides the level of the corporate governance to a great degree. This paper discusses the governance effect of Chinese public corporation in the view of capital structure. At last, the author suggests that the government should change the state of state-owned stock which takes a great proportion, make the state-owned stocks and corporation stocks enter and circulate in the market, develop investment banks, promote the stockholder＇s rights to circulate and recombine, enhance the supervision and the management of the stock markets, perfect the mechanism of the market＇s operation, set up the mechanism of the way to protect to pay back the debt, perfect the system of bankruptcy and develop the way of bond-financing, offset the drawbacks of the indirect-financing among banks and so on. All of the advice was given to perfect the public company＇s capital structure and improve the efficiency of the corporate governance.

Analysis on Capital Structure Theory and Enterprise Capital Structure Optimization

Enterprise capital structure means the various resources, combination and relationships of enterprise raising capital as well as means the short or long debts, shareholders＇ rights and interest, and the proportional relationships among constituting items. Capitals raised by enterprise from different ways constitute the capital sum. Because of changing enterprise operation, the capital structure is also various and it cannot be in a fixed proportion. Therefore, we need to optimize the capital structure of state-owned enterprises so as to reach the rational resources allocation and make the national economy develop soundly and rapidly. How to optimize it？ This is a big problem that we have to face. Debt-to-equity swap at the moment is only the transition for correcting capital structure of state-owned enterprises. Decreasing stocks owned by state is the inevitable choice for optimizing enterprise stock right.