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1
Onar, Sezi Cevik, Basar Oztaysi, and Cengiz Kahraman. "A FUZZY RULE BASED INFERENCE SYSTEM FOR EARLY DEBT COLLECTION." Technological and Economic Development of Economy 24, no. 5 (October 1, 2018): 1845–65. http://dx.doi.org/10.3846/20294913.2016.1266409.
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Nowadays, unpaid invoices and unpaid credits are becoming more and more common. Large amounts of data regarding these debts are collected and stored by debt collection agencies. Early debt collection processes aim at collecting payments from creditors or debtors before the legal procedure starts. In order to be successful and be able to collect maximum debts, collection agencies need to use their human resources efficiently and communicate with the customers via the most convenient channel that leads to minimum costs. However, achieving these goals need processing, analyzing and evaluating customer data and inferring the right actions instantaneously. In this study, fuzzy inference based intelligent systems are used to empower early debt collection processes using the principles of data science. In the paper, an early debt collection system composed of three different Fuzzy Inference Systems (FIS), one for credit debts, one for credit card debts, and one for invoices, is developed. These systems use different inputs such as amount of loan, wealth of debtor, part history of debtor, amount of other debts, active customer since, credit limit, and criticality to determine the output possibility of repaying the debt. This output is later used to determine the most convenient communication channel and communication activity profile.
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M.A., Isiaka, Adeosun O.T., Talabi A.A., and Lamidi L.O. "Relationship between Public Debt and Exports in Nigeria: A Granger Causality and Threshold Analysis Approach." African Journal of Social Sciences and Humanities Research 5, no. 5 (December 28, 2022): 108–25. http://dx.doi.org/10.52589/ajsshr-axzif3kd.
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This paper examines the relationship between public debt and exports of Nigeria, ranging from the period 1981 to 2017. It analyses the trend of public debt and its measure of sustainability and how it relates to the export earnings of Nigeria. Granger causality was used to test the causality effect of public debts on Nigeria's exports (oil and non-oil exports). Also, threshold regression analysis was used to investigate the relationship between public debt and exports of Nigeria. Granger causality results show that the export of goods and services of Nigeria granger causes external debt while external debt does not granger cause the export of goods and services. Domestic debt has a statistically significant influence on exports of Nigeria, but a threshold exists for this to avoid the crowding-out effect and higher interest rate, which will influence exports negatively. Hence, for Nigeria as a nation to maintain the sustainability of its domestic debt in relation to exports, there is an existence of a maximum threshold limit of ₦6,538 billion, while external debt should be below ₦3,178 billion.
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de-Córdoba, Gonzalo F., Benedetto Molinari, and José L. Torres. "Public Debt Frontier: A Python Toolkit for Analyzing Public Debt Sustainability." Sustainability 13, no. 23 (November 30, 2021): 13260. http://dx.doi.org/10.3390/su132313260.
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This study proposes a synthetic visual indicator with which to perform debt sustainability analysis using dynamic general equilibrium models. In a single diagram, we summarized the general equilibrium relationships among economic activity, government budget, and the maximum amount of sustainable public debt. Then, we measured sustainability using the distance of actual debt from the model-consistent maximum debt. This indicator can be implemented with any DSGE model; as a backing theory, we used a neoclassical model augmented with endogenous tax revenues, disaggregated public spending, different production technologies for public and private goods, non-atomistic wage setters in public labor (unions), and a fully specified maturity curve for public bonds. We provided an example of its usage using the case of Greece during the last public debt crisis. To perform the numerical analysis, we developed original software, whose advantage is allowing an audience without expertise in DSGE models to perform general equilibrium debt sustainability analyses without requiring an understanding of the technicalities of DSGE models.
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Fitriyani, Yuli, Mufrida Zein, Radna Nurmalina, and Mega Putri Diyani. "Analysis of Financial Statements to Measure Performance at PT. Kino Indonesia, Tbk 2015-2019." International Journal of Research in Vocational Studies (IJRVOCAS) 2, no. 1 (April 13, 2022): 10–16. http://dx.doi.org/10.53893/ijrvocas.v2i1.95.
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This study aims to analyze the financial performance of PT. Kino Indonesia Tbk from 2015-2019 by calculating financial ratios. The type of data used is quantitative data. The data collection methods used were documentation and literature study which were analyzed using financial ratios, namely liquidity ratios, solvency ratios, and profitability ratios. The results show that the liquidity ratio, namely the current ratio, is not yet effective because the company has not been able to pay current debts using assets, while the quick ratio is declared effective because the company is able to pay short-term debt with current assets without taking inventory into account. The solvency ratio, namely the debt to asset ratio, is declared ineffective because the company has not been able to pay all of its debts using assets and the debt to equity ratio is effective because the company is able to pay all its debts using all equity. Profitability ratios, namely return on assets and return on equity, fluctuate every year because the company has not been able to obtain maximum profit.
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Rankin, Neil. "MAXIMUM SUSTAINABLE GOVERNMENT DEBT IN THE PERPETUAL YOUTH MODEL." Bulletin of Economic Research 66, no. 3 (January 22, 2013): 217–30. http://dx.doi.org/10.1111/j.1467-8586.2012.00475.x.
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Rankin, Neil, and Barbara Roffia. "Maximum Sustainable Government Debt in the Overlapping Generations Model." Manchester School 71, no. 3 (June 2003): 217–41. http://dx.doi.org/10.1111/1467-9957.00344.
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Southall, D. "Cancellation of debt must ensure maximum benefit to vulnerable." BMJ 319, no. 7213 (September 25, 1999): 849. http://dx.doi.org/10.1136/bmj.319.7213.849.
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Gubernat, Ewa, Hanna Kociemska, Bernadeta Dziedziak, and Leszek Patrzalek. "The Impact of Maximum Allowable Debt Level of Local Government Units on their Investment Potential." Lex localis - Journal of Local Self-Government 19, no. 4 (October 31, 2021): 991–1014. http://dx.doi.org/10.4335/19.3.991-1014(2021).
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Keeping local government units’ financial stability to run necessary projects is becoming a severe threat due to the remarkable increase of theirs’ debt level. A question arises whether the application of debt limits excessively restrict municipalities’ investment potential. Using the linear regression model, we proved that increasing the maximum allowable debt level decreases investment potential. We have challenged the relevance of using fiscal rules and presented liberalizing the fiscal rules’ principles to assess the investment potential as an indicator to guarantee optimum use of the local government units’ economic potential from different perspectives.
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Agustini, Sri, Sugeng Iscahyono, and Abdul Yogi Puadudin. "Profitabilitas, Likuiditas, Pertumbuhan Penjualan, dan Ukuran Perusahaan Terhadap Kebijakan Utang pada Perusahaan Sub Sektor Makanan dan Minuman." Journal of Academia Perspectives 2, no. 1 (March 31, 2022): 35–44. http://dx.doi.org/10.30998/jap.v2i1.901.
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This study aims to determine and analyze the effect of Profitability, Liquidity, Sales Growth, and Company Size on Debt Policy. For this reason, every company that has a goal to get maximum profit requires large capital, one of the sources is from external funds in the form of funds that obtained from other parties or debts. The research method used in this research is associative research method, namely research that aims to determine the influence or relationship between two or more variables. The results of the study show that for food and beverage companies listed on the Indonesia Stock Exchange in 2016-2018 that profitability has no effect on debt policy, as evidenced by the profitability significance value of 0.336 which is greater than the significance value of 0.05. Liquidity has an effect on debt policy, as evidenced by the significance value of 0.023 which is smaller than the value of 0.05. Then, sales growth has no effect on debt policy, as evidenced by a significance value of 0.283 greater than 0.05. And, firm size has no effect on debt policy, as evidenced by a significance value of 0.411 which is greater than 0.05. Partially shows that three variables, namely profitability, sales growth and firm size have no effect on debt policy, and one variable, namely liquidity, which affects debt policy. The results of the research simultaneously show that profitability, liquidity, sales growth and firm size together have no effect on debt policy. And the results simultaneously show that 0.039 is smaller than 0.05 simultaneously profitability, liquidity, sales growth and firm size affect debt policy.
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Karas, Michal, and Mária Režňáková. "A novel approach to estimating the debt capacity of European SMEs." Equilibrium 18, no. 2 (June 30, 2023): 551–81. http://dx.doi.org/10.24136/eq.2023.017.
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Research background: The concept of debt capacity assumes that a maximum value of debt ratio exists that when exceeded triggers unfavourable consequences, such as drop in market value, default or a change in the business' creditworthiness. With the current state of the art there is a priori no theoretical assurance that such a specific value exists, or rather it is represented by an interval of values. Beyond that, our understanding of debt capacity is often limited to a theoretical approximation by firm-specific factors, while the context of macroeconomic factors, especially those critical for SMEs, is neglected. Purpose of the article: The aim of this paper is to present a novel approach to estimating SMEs' debt capacity. Further, the aim is to answer the question of what firm-level and macroeconomy conditions lead to exhausting the SMEs' debt capacity and under what conditions a specific value of maximum debt capacity could be estimated. Methods: To estimate the debt capacity, we suggest a use of an information entropy minimising heuristic and the Minimal Description Length Principle. In this approach, the observed feature space is categorised into several regions. In this case, such a region represents a set of firm- and macroeconomy-specific conditions forming the debt capacity of the SMEs. To the best of our knowledge, such an approach has not yet been used in debt capacity applications. Findings & value added: We found out that the debt ratio itself provides little explanation of exhausted debt capacity, suggesting that high debt levels are compensated for by other factors. By using the suggested approach, a set of more than 100 different regions was analysed. It was found that in case of five regions (sets of conditions) the debt capacity is exhausted, as the high level of debt has significant distress consequences.
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Satria, Doni. "PERHITUNGAN TINGKAT UTANG MAKSIMAL PEMERINTAH SEBAGAI ACUAN BAGI KEBIJAKAN MONETER DI INDONESIA." Ecosains: Jurnal Ilmiah Ekonomi dan Pembangunan 2, no. 1 (May 1, 2013): 81. http://dx.doi.org/10.24036/ecosains.347457.00.
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The interaction of monetary and fiscal policy in an economy played an important role for macroeconomic stabilization policy. Blanchard (1990) has shown the fiscal domination condition in this policy interaction, fiscal dominance condition could be caused by the accumulation of government debt. This research analyzed the maximum debt that can be accumulated by the government, and still be sustained and could not drag the economy to the fiscal dominance condition. Using the Mendoza and Oviedo (2004) model, we find the maximum accumulated government debt is 45.2 percent of Indonesia GDP. This result is based on the 20 percent of expenditure adjustment of Indonesian government budget
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Mbah, Catherine Chidinma, Chizoba Linda Tevin-Anyali, Chike Okoli Kingsley, and Emilia Mukaosolu Mgbemena. "Impact of Public Debt on Poverty in Nigeria: A Vector Autoregressive Analysis." Asian Journal of Economics, Business and Accounting 24, no. 5 (April 6, 2024): 371–81. http://dx.doi.org/10.9734/ajeba/2024/v24i51316.
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This study examined the impact of public debt on poverty in Nigeria for the period 1985 to 2021. The study regressed poverty against public debt in a vector error correction model using the Johansen approach. The study found a long-run relationship between public debt and poverty in Nigeria. The effect of public debt on poverty in Nigeria was found to be positive and permanent, becoming more pronounced with time. The study recommends the government’s deliberate effort in restraining continuous unsustainable public borrowing while also determining the maximum threshold at which debt servicing becomes poverty-reinforcing.
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Wołowiec, Tomasz. "The Law Regulations of Individual Debt Ratio in the Time of the COVID-19 Pandemic." Teka Komisji Prawniczej PAN Oddział w Lublinie 14, no. 1 (July 21, 2022): 515–27. http://dx.doi.org/10.32084/tekapr.2021.14.1-42.
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The new rules governing debt limits were introduced in 2014 (Articles 242–244 of the Act on Public Finance) and immediately became a major difficulty in planning and managing local finances in territorial self-government units. The next four years proved many defects and inconveniences in implementing new norms, while “creativity” of the financial sector of local authority units demonstrated that they were quite easy to evade. The structure of the maximum ratio limiting obligations due to titles specified by the lawmaker, due in a particular year, is closely related to the provisions of the Act on Public Finance. For the first time it was used in evaluating the budgets passed for 2014. The essence of this legal regulation consists in comparing two ratios, presented in form of an equation (formula). In order to pass the budget local authorities need to obtain a relation in which the left side of the formula (annual debt repayment ratio) is lower than or equal to the right side (maximum debt repayment ratio). The ratio of the annual repayment ratio to the maximum repayment ratio (the debt repayment ratio) is presented in the debt forecast, which constitutes part of Long-Term Financial Forecast (LFF). This is justified by the requirement derived from APF that the board of a territorial self-government unit simultaneously present the draft of the budget and the draft of the resolution on LFF, and then both these documents are passed simultaneously.
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He, Zhiguo, and Wei Xiong. "Debt Financing in Asset Markets." American Economic Review 102, no. 3 (May 1, 2012): 88–94. http://dx.doi.org/10.1257/aer.102.3.88.
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We study rollover risk and collateral value in a dynamic asset pricing model with endogenous debt financing by extending the framework of Geanakoplos (2009) with a generic binomial tree and time-varying heterogeneous beliefs. Optimistic borrowers face rollover risk if the belief dispersion between the borrowers and the pessimistic lenders widens after interim bad news. We demonstrate the optimality of the maximum riskless short-term debt financing for optimistic borrowers even in the presence of the rollover risk. We also highlight the role of interim trading which, by allowing creditors to sell seized collateral to other optimists with saved cashes, boosts the asset's collateral value and equilibrium price.
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TAHARA, YASUAKI, NORIAKI TSUNAWAKE, SHO NISHIZAWA, KOICHI YUKAWA, SHUNSUKE MORI, and HIDEAKI SENJU. "BODY COMPOSITION, MAXIMUM OXYGEN UPTAKE, AND MAXIMUM OXYGEN DEBT IN ELITE SENIOR HIGH SCHOOL (KUNIMI) SOCCER PLAYERS." Japanese Journal of Physical Fitness and Sports Medicine 39, no. 3 (1990): 198–206. http://dx.doi.org/10.7600/jspfsm1949.39.198.
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Hall, George J., and Thomas J. Sargent. "Brief history of US debt limits before 1939." Proceedings of the National Academy of Sciences 115, no. 12 (March 5, 2018): 2942–45. http://dx.doi.org/10.1073/pnas.1719687115.
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Between 1776 and 1920, the US Congress designed more than 200 distinct securities and stated the maximum amount of each that the Treasury could sell. Between 1917 and 1939, Congress gradually delegated all decisions about designing US debt instruments to the Treasury. In 1939, Congress began imposing a limit on the par value of total federal debt outstanding. By summing Congressional borrowing authorizations outstanding each year for each bond, we construct a time series of implied federal debt limits before 1939.
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Tsaregradskaya, Iu K. "Features of legal regulation of the state debt of the Russian Federation subject in the context of changes in budget legislation." Courier of Kutafin Moscow State Law University (MSAL)), no. 9 (November 7, 2020): 98–104. http://dx.doi.org/10.17803/2311-5998.2020.73.9.098-104.
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The main changes in the budget legislation related to digitalization and public debt managementof the Russian Federation, that are manifested in the functioning of the electronic budget of the state and the consolidation of the legal definition of "public debt management", are considered. The author concludes that currently the legislator pays special attention to the issues of setting the upper limit of public debt, the maximum amount of borrowing by the subjects of the Russian Federation, as well as determining the debt sustainability of regions. Foreign experience of regulating such issues is analyzed on the example of a number of countries-Germany, Spain and Italy. Subjects of the Russian Federation with different debt loads are considered, as well as trends related to its increase or change. Also the possibilities of assigning the region to one of the groups with a certain level of debt stability of the subject are analyzed.
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Widiastuti, Nur, Ardyanto Fitrady, and Tri Widodo. "Assessing Fiscal Sustainability in Indonesia." Jurnal Ekonomi dan Studi Pembangunan 15, no. 1 (April 15, 2023): 101. http://dx.doi.org/10.17977/um002v15i12023p101.
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Fiscal sustainability is a concern in many economies, especially with increasing government debt in many countries, including Indonesia. This study aims to analyze fiscal sustainability in Indonesia for the 1970-2018 period. There are two methods to measure fiscal sustainability: testing the stationarity of government debt using government budget constraints and estimating fiscal sustainability using the fiscal reaction function. Error Correction Model is used to estimate the fiscal reaction function. The fiscal sustainability test with the debt stationarity test and the fiscal reaction function had consistent results, indicating fiscal sustainability in Indonesia. The government responded well to the increase in debt by increasing the primary surplus. This study proves that the relationship between debt and primary balance is not linear or quadratic. It shows that initially, the government responds to an increase in debt by increasing its primary surplus. However, at a certain threshold, the government’s ability to respond will weaken, so the government needs to pay attention and maintain the size of the government debt ratio towards Gross Domestic Product with fiscal discipline and fiscal reform through strict regulations and prudent debt management. However, strict debt regulations can limit economic growth. Therefore, an accurate threshold calculation is needed to determine the maximum debt to encourage optimal economic growth.
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Künnemann, Hendrik, and Frank Phillipson. "Finding Debt Cycles: QUBO Formulations for the Maximum Weighted Cycle Problem Solved Using Quantum Annealing." Mathematics 11, no. 12 (June 16, 2023): 2741. http://dx.doi.org/10.3390/math11122741.
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The problem of finding the maximum weighted cycle in a directed graph map to solve optimization problems is NP-hard, implying that approaches in classical computing are inefficient. Here, Quantum computing might be a promising alternative. Many current approaches to the quantum computer are based on a Quadratic Unconstrained Binary Optimization (QUBO) problem formulation. This paper develops four different QUBO approaches to this problem. The first two take the starting vertex and the number of vertices used in the cycle as given, while the latter two loosen the second assumption of knowing the size of the cycle. A QUBO formulation is derived for each approach. Further, the number of binary variables required to encode the maximum weighted cycle problem with one or both assumptions for the respective approach is made explicit. The problem is motivated by finding the maximum weighted debt cycle in a debt graph. This paper compares classical computing versus currently available (hybrid) quantum computing approaches for various debt graphs. For the classical part, it investigated the Depth-First-Search (DFS) method and Simulated Annealing. For the (hybrid) quantum approaches, a direct embedding on the quantum annealer and two types of quantum hybrid solvers were utilized. Simulated Annealing and the usage of the hybrid CQM (Constrained Quadratic Model) had promising functionality. The DFS method, direct QPU, and hybrid BQM (Binary Quadratic Model), on the other hand, performed less due to memory issues, surpassing the limit of decision variables and finding the right penalty values, respectively.
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Rohma, Alfur, Sri Budi Cantika Yuli, and Novi Primita Sari. "ANALISIS KINERJA LAPORAN KEUANGAN PADA KOPERASI DI KECAMATAN BRONDONG KABUPATEN LAMONGAN PERIODE TAHUN 2017-2020." Journal of Financial Economics & Investment 2, no. 2 (June 1, 2022): 83–93. http://dx.doi.org/10.22219/jofei.v2i2.19899.
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The purpose of this study was to determine the performance of BMT BIM's financial statements. The analytical method used is the analysis of liquidity ratios, solvency ratios, and profitability ratios. Data collection techniques in this study used interviews and observation. The results of this study indicate that BMT BIM in 2017-2020 as a whole produces values that do not meet the standard ratio criteria. From the calculation of the liquidity ratio as measured by the cash ratio, it produces a bad ratio because BMT BIM cash is smaller so that when the obligation matures, it is difficult to pay debts. The current ratio produces quite good criteria because BMT BIM has assets that are quite liquid in paying its short-term obligations. The solvency ratio as measured by the total debt to total asset ratio is not good, because the total assets of BMT BIM are not able to contribute adequately to the total debt owned. While the profitability ratio as measured by ROI is not good because cooperatives are less able to use their assets productively so they are not able to produce maximum SHU. ROE produces good criteria because the capital owned by cooperatives is quite reliable in producing maximum residual business results.
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Dmowski, Artur. "LAW REGULATION OF CALCULATION OF THE INDIVIDUAL DEBT RATIO OF LOCAL GOVERNMENT UNIT." International Journal of Legal Studies ( IJOLS ) 8, no. 2 (December 31, 2020): 283–92. http://dx.doi.org/10.5604/01.3001.0014.6371.
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The aim of the considerations is focused on the analysis of the law regulation of calculation of the individual debt ratio of local government unit. The new rules governing debt limits were introduced in 2014 (Articles 242-244 of the Act on Public Finance, hereinafter referred to as APF) and immediately became a major difficulty in planning and managing local finances in territorial self-government units. The next four years proved many defects and inconveniences in implementing new norms, while “creativity” of the financial sector of local authority units demonstrated that they were quite easy to evade. The structure of the maximum ratio limiting obligations due to titles specified by the lawmaker, due in a particular year, is closely related to the provisions of APF. For the first time it was used in evaluating the budgets passed for 2014. The essence of this legal regulation consists in comparing two ratios, presented in form of an equation (formula). In order to pass the budget local authorities need to obtain a relation in which the left side of the formula (annual debt repayment ratio) is lower than or equal to the right side (maximum debt repayment ratio) (Act of Public Ginance).
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Kusuma, Agus Edi, Rahmat Agus Santosa, and Anita Handayani. "Effect of Current Assets on Profit Through Credit on Jakarta Islamic Index Company 2012-2014 In Indonesia Stock Exchange." Journal of Social Science Studies 5, no. 2 (May 29, 2018): 183. http://dx.doi.org/10.5296/jsss.v5i2.13025.
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Companies in essence is to obtain the maximum profit. In theory of financial statements, profitability is a measure of the company in generating profits (the bigger the better). The profits are used to measure company performance. This study aimed to test the current asset of the Debt on the Company's Profits at the Jakarta Stock Exchange Index.This study uses a sample of 14 financial statements and tested using the t-test, sobel test and path analysis. Result of testing by t-test shows that the significant effect of Current Assets to Debt, Current Assets had no significant effect on Profits, and Debt significant effect on Profits.The result of sobel test shows Current Assets of a significant effect on Profits through Debt.The result of path analysis on line 1 (p1) that the Current Assets of the Debt of -0.001 indicates that the current Assets of the Profits of 0.030 (p3) that the Debt of the Profits of 36.653 indicates that the higher the Debt, the Profits will be as high as well and in line 4 (p4 ) Current Assets of the Profits through Debt of -0.0006653 show that any improvement Current Assets and Debt, it will cause Profits to fall.
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Schnabel, Jacques A. "Hedging and debt overhang: a conceptual note." Journal of Risk Finance 16, no. 2 (March 16, 2015): 164–69. http://dx.doi.org/10.1108/jrf-10-2014-0140.
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Purpose – This paper aims to examine the nexus between hedging, which reduces the volatility of corporate assets, and the anomaly of debt overhang, whereby corporate management is motivated to reject positive net present value (NPV) projects. The question of whether hedging ameliorates or aggravates debt overhang is addressed. Design/methodology/approach – The Black–Scholes isomorphism between common shares and call options is exploited to determine the allocation of a project’s NPV between debt- and stock-holders. The effect of hedging on this NPV-partitioning is then gauged to determine the resulting likelihood of debt overhang. Findings – If the volatility of corporate assets is below a critical maximum, hedging ameliorates debt overhang consistent with extant theoretical research. However, above that critical value of volatility, hedging aggravates debt overhang. Originality/value – The novel result of this note, namely, hedging may exacerbate debt overhang, is demonstrated both analytically and intuitively. The latter is explained by allusion to a second agency-theoretic conflict between debt- versus stock-holders, namely, risk shifting. The disparate effects of hedging on debt overhang imply a non-monotonic relationship between metrics for these two variables, which is a phenomenon that extant empirical studies have failed to take into account.
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Et. al., Saad Obaid Jameel,. "The General Maximum Entropy Method by Shannon and Tsallis Measures for Estimating Parameters of a Kink Regression Model." Turkish Journal of Computer and Mathematics Education (TURCOMAT) 12, no. 4 (April 11, 2021): 1034–40. http://dx.doi.org/10.17762/turcomat.v12i4.595.
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In this paper, the parameters of the Kink regression model were estimated using the general maximum entropy method with the Shannon and Tsallis measures And its application for the analysis of economic exposure data and the Debt/GDP ratio in the Iraqi economy. The results of the analysis showed the preference of the Tsallis measure of the order (α = 3) compared with other estimation methods. The results show a decrease in the Debt/GDP ratio after seeing the cut, and this corresponds to the state of the economy in Iraq during the security conditions that Iraq went through for the period from 2014 to 2017.
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Kim, Donát. "Debt cap regulations in mortgage lending." Economy & finance 8, no. 2 (2021): 110–45. http://dx.doi.org/10.33908/ef.2021.2.1.
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In this paper I study debt cap regulations in retail mortgage lending in Hungary introduced by the National Bank of Hungary. I believe the introduction of debt cap regulations was justified, but the toolkit applied should be reviewed. After studying international examples and reviewing the literature, I have concluded that LTV (loan-to-value) regulation correspond to European practice and researchers’ findings. While the introduction of LTI (loan-to-income) ratio should be considered to replace PTI (payment-to-income) ratio, as it is more stable in time and there is no incentive to switch between the increase of risk factors and the increase of the maximum amount regulated by law by PTI regulation.
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Bi, Huixin, and Nora Traum. "Estimating Sovereign Default Risk." American Economic Review 102, no. 3 (May 1, 2012): 161–66. http://dx.doi.org/10.1257/aer.102.3.161.
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This paper uses Bayesian methods to estimate the sovereign default probability for Greece and Italy in the post-EMU period. We build a real business cycle model that allows for interactions among fiscal policy instruments, sovereign default risk, and a “fiscal limit,” which measures the maximum level of debt the government is willing to finance. We estimate the full nonlinear model using likelihood inference methods. Although we find that Greece historically had a lower default probability than Italy for a given debt level, our estimates suggest that the Italian government is more willing to service debt than the Greek government.
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Fidiantowi, Ridho, and Subiakto Sukarno. "Financing Strategy to Support Required Business Growth (Case Study: XYZ)." European Journal of Business and Management Research 8, no. 2 (March 13, 2023): 103–7. http://dx.doi.org/10.24018/ejbmr.2023.8.2.1820.
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Company XYZ targets an annual revenue of IDR 7.5 billion by 2025. The required growth rate at 70.17% annually is pretty high to achieve the target. However, the company’s actual growth in 2022 at 81.19% outperforms its sustainable growth rate at 29.28% and it seems achievable but requires aggressive expansion across operating systems, inventory, and marketing. A Company with zero debt has a positive leverage to decide the financing strategy. The company observes to other comparable companies to decide the metrics and the value to select the financing strategy. In this research, we compare three commonly used financing strategies: equity financing, debt financing, and mixed financing. The metrics and requirements are the debt-to-equity ratio at a maximum of 17%, the current ratio at a minimum of 2.25, and the maximal Return on Equity. The selected option is the mixed financing strategy due to being able to meet all of the requirements even though the option did not have the cheapest option or the highest return on equity. The mixed financing strategy consists of full debt financing in the year 2023 and 2024 with a low-interest rate, while in the year 2025, the financing strategy is a combination between equity and debt. XYZ shall sell a maximum of 5.72% of its shares that brings capital at least equal to IDR 329 million and the remaining capital of IDR 329 million shall be raised through a bank loan with low-interest rates.
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Rose, R. J., D. R. Hodgson, T. B. Kelso, L. J. McCutcheon, T. A. Reid, W. M. Bayly, and P. D. Gollnick. "Maximum O2 uptake, O2 debt and deficit, and muscle metabolites in Thoroughbred horses." Journal of Applied Physiology 64, no. 2 (February 1, 1988): 781–88. http://dx.doi.org/10.1152/jappl.1988.64.2.781.
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This study determined maximal O2 uptake (VO2max), maximal O2 deficit, and O2 debt in the Thoroughbred racehorse exercising on an inclined treadmill. In eight horses the O2 uptake (VO2) vs. speed relationship was linear until 10 m/s and VO2max values ranged from 131 to 153 ml.kg-1.min-1. Six of these horses then exercised at 120% of their VO2max until exhaustion. VO2, CO2 production (VCO2), and plasma lactate (La) were measured before and during exercise and through 60 min of recovery. Muscle biopsies were collected before and at 0.25, 0.5, 1, 1.5, 2, 5, 10, 15, 20, 40, and 60 min after exercise. Muscle concentrations of adenosine 5'-triphosphate (ATP), phosphocreatine (PC), La, glucose 6-phosphate (G-6-P), and creatine were determined, and pH was measured. The O2 deficit was 128 +/- 32 (SD) ml/kg (64 +/- 13 liters). The O2 debt was 324 +/- 62 ml/kg (159 +/- 37 liters), approximately two to three times comparative values for human beings. Muscle [ATP] was unchanged, but [PC] was lower (P less than 0.01) than preexercise values at less than or equal to 10 min of recovery. [PC] and VO2 were negatively correlated during both the fast and slow phases of VO2 during recovery. Muscle [La] and [G-6-P] were elevated for 10 min postexercise. Mean muscle pH decreased from 7.05 (preexercise) to 6.75 at 1.5 min recovery, and the mean peak plasma La value was 34.5 mmol/l.(ABSTRACT TRUNCATED AT 250 WORDS)
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Martyniuk, Vladimir, and Tomasz Wołowiec. "ECONOMIC RELATIONS OF INDEBTEDNESS OF TERRITORIAL SELF-GOVERNMENT UNITS IN POLAND IN THE CONTEXT OF THE CONSTRUCTION OF AN INDIVIDUAL DEBT RATIO." International Journal of Legal Studies ( IJOLS ) 9, no. 1 (June 30, 2021): 15–26. http://dx.doi.org/10.5604/01.3001.0015.2280.
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The new debt limitation rules in force since 2014 (Articles 242-244 of the Public Finance Act have been a significant impediment to local financial planning and management for most local government units (hereinafter: LGUs). During the four years of their implementation many defects and inconveniences in the application of the new standards have emerged and the "crea-tivity" of the local government financial sector has shown that they can be relatively easily cir-cumvented. The construction of the maximum indicator limiting the liabilities of the titles speci-fied by the legislator, falling due in a given year, is closely related to the provisions of the Law of the fiscal year. The essence of this legal regulation is the comparison of two indicators, in-cluded in the formula of equation (formula). A positive condition for the adoption of the budget is to obtain a relationship in which the left side of the formula (annual debt repayment ratio) is less than or equal to the right side (maximum debt repayment ratio).
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Fatmawati, Novita, and Nurjanti Takarini. "Analisis Faktor-Faktor yang Mempengaruhi Kebijakan Hutang Perusahaan Subsektor Batu Bara yang Terdaftar di Bursa Efek Indonesia." Ekonomis: Journal of Economics and Business 6, no. 2 (September 26, 2022): 518. http://dx.doi.org/10.33087/ekonomis.v6i2.611.
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A company has a goal that is to experience continuous growth by getting maximum income and profit so that survival in a company can run well. In achieving this goal, large funds and capital are needed to support all activities within a company. Funds are divided into two categories, namely internal funds and external funds. The debt to equity ratio indicator is used in this study with debt policy as the dependent variable. This study aims to analyze the effect of business risk, asset structure, firm size and profitability on the debt policy of coal companies. In this research, using multiple linear regression analysis method with SPSS 25 program to process the data. The data used is secondary data which is the annual financial report of coal subsector companies on the Indonesia Stock Exchange in 2018-2020. The observation data used are 66 data, and there are 5 data outliers, so the total data is 61. The results of this study indicate that business risk has a positive and significant influence on debt policy, asset structure and firm size have no significant effect on debt policy, and profitability have a negative and significant impact on debt policy. The conclusion from the discussion is that high business risk contributes to an increase in debt. Meanwhile, asset structure, firm size and high profitability contributed to the decrease in debt.
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Fitriani, Nurul, Gery Lusiano Firmansah, and Iman Harymawan. "Debt policy of military-connected firms in Indonesia." Investment Management and Financial Innovations 19, no. 3 (August 8, 2022): 105–18. http://dx.doi.org/10.21511/imfi.19(3).2022.10.
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Indonesia has a thin capitalization policy since 2015. It restricts the maximum interest expense that can be deductible from corporate tax payable. This paper discusses the association between boards with military background and the debt policy of firms, taking into account the thin capitalization policy. This study used a sample of 2,330 firm-year observations from companies listed on Indonesia Stock Exchange during 2010–2019. A moderated analysis regression was employed to analyze the association of each variable. The result reveals a significant positive correlation with a t-value of 2.14 at a confidence level of 95% between military-connected firms and debt policy. The same correlation also occurred between board of commissioners with the military background and debt policy with a t-value of 2.18 at a 95% confidence level. Meanwhile, the correlation between these variables became significantly negative after the implementation of thin capitalization policy. CEM and Heckman’s two-stage method were used to validate the findings. This study is for a listed company to consider the appointment of military background in a board of commissioner position after a period of thin capitalization policy.
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Rakhaev, Valery Alexandrovich. "Modern approaches to evaluating and selecting methods of servicing difficult loan debts." Vestnik of Astrakhan State Technical University. Series: Economics 2019, no. 4 (December 16, 2019): 104–11. http://dx.doi.org/10.24143/2073-5537-2019-4-104-111.
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The article suggests the significant proportion of bad debt to be one of the main problems of the modern bank lending system in Russia. In banking practice, the debt of borrowers is considered problematic if there is a delay in the principal debt and / or interest during 60 calendar days or more (the last 180 calendar days). The presence of bad debt requires creating reserves for possible losses on loans, which can reduce the financial result and the loan portfolio quality
of banks, so paying off bad loans is an urgent task for commercial banks. There is no single algo-rithm for choosing the best way for debt repayment. There has been analyzed the research of evaluating the value of claims and calculating the maximum amount of debt repayment. The factors determining the existing structure of problem debt repayment in banks have been investigated; factors
of assessing the effectiveness of debt repayment by concluding assignment contracts have been considered. The author's approach to calculating the financial result and cash flow under different ways
of fulfilling the obligations of borrowers has been proposed. The calculations and comparison of variants to pay off a debt of a specific borrower on the basis of a financial model have been made. Due to the divergence of cash flows, the assignment of claims to the bank is found the preferred method for debt repayment. It has been stated that the assignment of claims has several advantages over other methods of debt repayment: it helps to save the lender from the costs related to the repayment of bad loans; from the need to reserve additional funds provided for compensation of possible losses; replenishment of working capital, partial coverage of their losses, improvement of official statistical indicators by reducing the share of problem loans; concentration on their business.
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Dobrotă, Gabriela, and Alina Daniela Voda. "Stochastic Debt Sustainability Analysis in Romania in the Context of the War in Ukraine." Econometrics 12, no. 3 (July 5, 2024): 19. http://dx.doi.org/10.3390/econometrics12030019.
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Public debt is determined by borrowings undertaken by a government to finance its short- or long-term financial needs and to ensure that macroeconomic objectives are met within budgetary constraints. In Romania, public debt has been on an upward trajectory, a trend that has been further exacerbated in recent years by the COVID-19 pandemic. Additionally, a significant non-economic event influencing Romania’s public debt is the war in Ukraine. To analyze this, a stochastic debt sustainability analysis was conducted, incorporating the unique characteristics of Romania’s emerging market into the research methodology. The projections focused on achieving satisfactory results by following two lines of research. The first direction involved developing four scenarios to assess the risks presented by macroeconomic shocks. Particular emphasis was placed on an unusual negative shock, specifically the war in Ukraine, with forecasts indicating that the debt-to-GDP ratio could reach 102% by 2026. However, if policymakers implement discretionary measures, this level could be contained below 88%. The second direction of research aimed to establish the maximum safe limit of public debt for Romania, which was determined to be 70%. This threshold would allow the emerging economy to manage a reasonable level of risk without requiring excessive fiscal efforts to maintain long-term stability.
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Koblyk, Ihor. "Formation of principles of debt security of territorial communities in Ukraine." Economic Analysis, no. 33(2) (2023): 85–94. http://dx.doi.org/10.35774/econa2023.02.085.
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Introduction. The principles of debt security are an important component of the financial stability of territorial communities. Due to the fact that many territorial communities have significant debt obligations, their ability to be financially sustainable and provide quality social and economic services may be limited. Therefore, it is important to determine the principles that will ensure the debt security of territorial communities. The purpose of the scientific research. The goal is to substantiate the principles of debt security of territorial communities in Ukraine, as an important direction of the debt policy of local self-government bodies. Research methods. The following methods were used in the course of the research: analysis, synthesis and generalization. The main results of the study. The peculiarities of debt sustainability and debt security are considered, and their differences are determined. The approaches of financial and political organizations to the interpretation of debt security of territorial communities are highlighted, on the basis of which the own vision of the studied definition was formed, which is considered as the ability of a territorial community, or a local self-government body, which is its executive body, to ensure the optimal amount of debt by maintaining an appropriate level of credit rating and solvency in terms of servicing and repaying debt obligations with the subsequent ability to carry out economic activity. General theoretical approaches are highlighted that reveal the essence of debt security of territorial communities, among which it is worth highlighting: economic, financial, macroeconomic, social, business, political, managerial, legal, integrated, ecological, innovative, communication, socio-economic, geographical, cultural. Each of these approaches reflects different aspects of debt security of territorial communities and considers it from different positions. The main tasks that must be solved by the debt security of territorial communities are highlighted, which include: reducing the debt burden, ensuring the stability of the budget, developing the investment potential, maintaining the credit rating. The main methods of assessing the debt security of territorial communities are defined, which include: analysis of financial statements, assessment of economic potential, credit assessment, analysis of state policy in the field of regulation of debt policy of local self-government bodies, risk assessment. The world standards and methods for assessing the debt security of territorial communities are considered, based on which it is proposed to use a number of indicators that help determine the maximum debt burden on the budget of the territorial community.
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Kotey, Richard Angelous. "Does Capital Structure Affect Profitability of Listed Ghanaian Firms?" Journal of Developing Areas 58, no. 2 (March 2024): 161–77. http://dx.doi.org/10.1353/jda.2024.a924534.
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ABSTRACT: Capital structure is one of the crucial decisions managers must make that can affect a firm's short-term and long-term value maximization prospects. Though extant studies have shown capital structure significantly affects profits, researchers have struggled to find an optimal mix of capital structure ideal for value maximization due to the influence of macro and micro factors. There is therefore the need for this to be properly studied contextually. Building on the Pecking Order Theory, this study examines the capital structure effects on profitability from a short-term, long-term, and total debt financing perspective on listed Ghanaian firms between 2003 and 2013. An unbalanced panel data of 23 listed manufacturing and service firms that are listed on the Ghanaian Stock Exchange are subjected to robust maximum likelihood heteroskedastic linear estimation models. Three main regressions that are run explain the short-term debt, long-term debt and total debt effect on firm profitability. The results show that short-term debt exhibits a positive effect on return on equity (ROE), whilst the relationship reverses for long-term debt, indicating that short-term financing was beneficial to firms rather than long-term financing. Also, total debt exhibited a negative and non-significant effect on return on equity. The author also found that firm liquidity exhibited a more pronounced positive effect on profitability for firms with short-term debt than long-term debt. Financial risk negatively affected the returns of only firms with short-term debt. Market share had a pronounced positive effect on ROE across firms whilst firm age exhibited a less pronounced positive effect on firm profits. Firm size and growth had increasing profit effects but was not significant in the dataset. Financial risk also negatively affected profits, but this was only significant in firms with short-term debt structures. This study finds that managers need to adopt more short-term debt financing rather than long-term financing as the former leads to more profits. There is a need for policymakers to develop long-term debt financing structures to compete in the Ghanaian debt market. It is also recommended that managers exercise due care when supplementing equity capital with debt.
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OHDANSKA, Olha, and Viktoriia MAKARENKO. "Analysis of the state and dynamics of the public debt of Ukraine." Economics. Finances. Law, no. 12 (December 5, 2019): 23–25. http://dx.doi.org/10.37634/efp.2019.12.5.
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Introduction. It has been indicated that high level of debt burden in Ukraine in the conditions of insufficient budgetary funds and volatile economic and political situation exerts negative impact both upon the economy of the country and its every sector. This actualizes the research on the state and dynamics of the public debt within the context of achieving stabilization of economic processes, particularly Ukraine’s integration into global economic environment. The purpose of the paper is the analysis of the state and dynamics of the public debt of Ukraine in the context of solving the problems of its servicing. Results. It has been established that the major trend in Ukraine is a rapid increase in the total public debt which testifies to the instability and crisis events in the country’s economy. It has been defined that public and publicly guaranteed debt of Ukraine in Hryvnia equivalent is growing from year to year (increased by 106 times in 2018 as compared to 1996), while major periods of accelerated growth of public debt occurred during the periods of economic and financial crises (2008-2010 and 2014-2018). It has been determined that in 1999 and during 2014-2018 public and publicly guaranteed debt exceeded the critical limit of 60%, which asserts the presence of crisis events in the economy. It has been substantiated that there exists a close correlation between the public debt and change in currency exchange rate (correlation coefficient of 0,99 – very high bond strength on the Chaddock scale). It is revealed that the public debt-to-GDP ratio reaches maximum levels in the periods of economic crises and decreases in the periods of economic upturn. Conclusion. Hence, the issue of the debt-related security in Ukraine is topical and affects the economic situation. Prospects of further research in this area lie with solving the issues of managing public debt through changing the direction of the economic policy of the country as well as the scientific substantiation of managing public debt employing advanced economic instruments and progressive global practices.
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Moroz, Ivanna. "Debt strategies of European countries and vectors of implementation of best experience in the practice of external public debt management of Ukraine." EUREKA: Social and Humanities, no. 5 (September 30, 2021): 58–68. http://dx.doi.org/10.21303/2504-5571.2021.002023.
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The policy of external and domestic public debt management in different countries has its own specifics, and its results are not always unambiguous. Thus, the existing recommendations of the International Monetary Fund and the Maastricht criteria prove that the maximum value of public debt to GDP should be no more than 60 %. Exceeding this limit can lead to a deterioration in financial stability, debt sustainability, and ultimately to a technical default of the state. However, the practice of public debt management in many developed countries shows quite opposite trends, as a significant excess of the Maastricht criterion not only does not lead to default, but on the contrary allows countries to accumulate the necessary financial resources to ensure stable economic growth.
Therefore, the study of European debt strategies and their effectiveness is a very important issue, especially given the consequences of the COVID-19 pandemic for developing countries. Given the growing external debt dependence of Ukraine as a result of both the war with the Russian Federation and the COVID-19 pandemic, the search for a better experience of European debt policy and consideration of ways to adapt it to domestic realities are discussed in our article.
Based on the analysis of the debt policy of European countries, the expediency of using debt rules, aimed at regulating both the country's debt security and the effectiveness of the use of public borrowing to stimulate economic growth has been proved.
Cluster analysis of debt strategies of some European countries has shown that the high level of dependence on external public debt has a negative impact on economic security in general, because in the event of deteriorating macroeconomic situation, the likelihood of foreign investors selling government securities increases, and in the case of external loans from international financial and credit organizations – the risks of negative impact of burdensome non-financial obligations on the national economy grow.
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Teliti, Dorjan, and Adriatik Kotorri. "The Impact of Public Debt on GDP Growth – the Debt Multiplier in the Case of Albania." International Journal of Innovation and Economic Development 3, no. 4 (2017): 60–67. http://dx.doi.org/10.18775/ijied.1849-7551-7020.2015.34.2006.
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Debates about the level of public debt and their impact on the level of investment and the economy as a whole, are permanent due to the lack of an optimal level offered by economic literature. The recent banking financial crisis brought some EU countries with very high levels of public debt, beyond the maximum limits laid down in EU membership agreements. While in developing countries, public debt is part of the economic debates and has often caused political confrontation. Although with a lower public sensitivity compared to the level of investment, unemployment and the level of prices, public debt plays an important role in the proper performance of these parameters. Increasing or decreasing public spending and especially public investment directly affects the level of investments, employment, prices, production, etc. Public debt, for the most part, is used to finance these public investments. Put together, the level of public debt affects precisely these parameters. Specifically, the level of public debt directly influencing public investment (G) primarily affects the level of public and private investment (I), the level of employment, the level of consumption in an economy (C) and the level of production affecting the level of imports (I) and exports (X). All of the above parameters are part of the Gross Domestic Product or GDP. The public debt level impact analysis at the level of GDP is measured by the Keynesian public debt multipliers. It is precisely the simplified and practical calculation that this multiplier is the focus of this paper. The aim is to calculate the Keynesian public debt multipliers for Albania to analyze the efficiency of public debt utilization in recent years when it has been part of the debate because of its rise to high historical levels. The calculation of this Multiplier for the developed Western countries as well as the emerging countries of the region creates the possibility of a comparative analysis to have a more objective assessment of the efficiency of using public debt in function of the Albanian economy’s growth in the last 10 years.
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Iba, Zainuddin, Chairul Bariah, Musrizal Musrizal, and Dina Hendiyan. "DYNAMIC RELATIONSHIP BETWEEN ENERGY SUBSIDY AND FISCAL DEFICIT IN INDONESIA." International Journal of Social Science, Educational, Economics, Agriculture Research and Technology (IJSET) 1, no. 7 (June 30, 2022): 363–76. http://dx.doi.org/10.54443/ijset.v1i7.40.
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Problem the fiscal deficit still has a bad influence on the increase in government debt every year. So far, the government has tended to withdraw new debt to cover the fiscal deficit.In conditions of negative primary balance, debt withdrawals tend to increase deficits and fiscal failures in the long run. This condition is also exacerbated by the Covid-19 that hit Indonesia. The deficit has exceeded 3 percent of GDP. even though the state finance law is a maximum of 3 percent of GDP. This condition has had a bad influence on people's purchasing power. caused by a decrease in purchasing power of goods and services. In dealing with this condition, the government needs to increase people's purchasing power through price regulation. Energy subsidiesclosely related to fiscal policy and a number of macroeconomic variables such as: inflation, exchange rates and BIR.This study aims to determine the relationship between energy subsidy control and fiscal deficit, in order to obtain an optimal fiscal deficit. Through the control of energy subsidies, the optimal value of the fiscal deficit can be obtained. Subsidy controls also affect the amount of government debt, so that optimal debt is obtained.
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Hasibuan, Ahmad Nurdin, Harisman Harisman, and Abdul Wahab Samad. "PENGARUH PAJAK, TINGKAT KEPEMILIKAN ASING, RENCANA BONUS, DAN PERJANJIAN TERHADAP KEPUTUSAN HARGA TRANSFER." Jurnal Akuntansi, Keuangan, Pajak dan Informasi (JAKPI) 2, no. 1 (July 4, 2023): 76–88. http://dx.doi.org/10.32509/jakpi.v2i1.2103.
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This study aims to determine the effect of Taxes, Foreign Ownership, Bonus Plans and Debt Covenants on the company's decision to transfer pricing to manufacturing companies listed on the Indonesia Stock Exchange in 2016 - 2019. The results show that taxes do not have a positive effect on companies to make transfers. Pricing because this is due to the number of companies to pay taxes every year. Foreign ownership has a positive effect, this is due to the large number of foreign institutions that have shares of more than 5% and 20% more. Bonus Plans have a positive effect, if their rewards or wages depend on reported bonuses on net income then it is possible to increase bonuses during the period by reporting net income as high as possible. Debt Covenant has a positive effect, this is because the calculation of the debt ratio shows that the maximum value is 1.06 and the average is 0.4356, indicating that almost half of the company's investment is in the form of debt. Simultaneously, taxes, foreign ownership, bonus plans and debt covenants have a significant effect on the company's decision to transfer pricing.
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Passadore, Juan, and Juan Pablo Xandri. "Robust predictions in dynamic policy games." Theoretical Economics 19, no. 4 (2024): 1659–700. http://dx.doi.org/10.3982/te4489.
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Dynamic policy games feature a wide range of equilibria. This paper provides a methodology for obtaining robust predictions. We focus on a model of sovereign debt, although our methodology applies to other settings, such as models of monetary policy or capital taxation. Our main result is a characterization of distributions over outcomes that are consistent with a subgame perfect equilibrium conditional on the observed history. We illustrate our main result by computing—conditional on an observed history—bounds across all equilibria on the maximum probability of a crisis: means, variances, and covariances over debt prices.
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Horáková, Šárka, and Robert Jahoda. "The SGP – Faulty by Design or Made Faulty by Politicians? An Assessment Based on a Simulation Model." Review of Economic Perspectives 14, no. 3 (September 1, 2014): 249–65. http://dx.doi.org/10.2478/revecp-2014-0013.
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Abstract By joining the European Monetary Union (the “EMU”), member countries lost the ability to use monetary policy as a tool for macroeconomic regulation. The attention was then focused on regulation of fiscal policy and Stability and Growth Pact (the “SGP”) was the instrument agreed upon. The states of the EMU have agreed to meet the 3% of GDP requirement for the maximum annual public budget deficit. Based on evolution of public debt in member countries, we can say that the SGP has failed as a tool for fiscal discipline. In this paper, we answer the question of whether the failure was due to the incorrect concept of the SGP or whether the development of the debt was affected more by arbitrary disrespect of the agreed rules. The two reasons mentioned above are interdependent. To separate them, we construct a dynamic model of EU countries’ public debt. By using real data, we simulate the potential values of public debt in a situation where the SGP rules have been respected in recent years. Comparing the results for the potential debt given by simulation of the model with the current real values, we are able to quantify the impact of non-compliance for each country. The initial results indicate that there are both EU states where non-compliance led to a negligible increase in public debt - up to 7% of GDP - and other states where this factor caused the growth of public debt by more than 30% of GDP.
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Postles, Dave Fogg. "Fidei laesio and debt revisited: the Lichfield consistory court, 1464–1478." Continuity and Change 39, no. 1 (May 2024): 1–20. https://doi.org/10.1017/s0268416024000079.
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AbstractAlthough the contours of fidei laesio (pleas for debt in ecclesiastical courts) were established by Helmholz and suggestions about the wider impact on credit relationships were offered by Briggs, there still remains scope for a detailed examination of the causes in an ecclesiastical court to establish precisely the extent of the litigation in those fora, the composition of the litigants, the character of the debts, and the incentives and impediments to actions (although Helmholz broadly indicated these issues). Accordingly, an examination has been undertaken of two extant registers of the Lichfield consistory court (1464–1478) which survive for the period of maximum referral to these courts by lay (and clerical) creditors and debtors. The information allows a new perspective on the character of the credit relationships prosecuted in the consistory court.
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Stoiko, O. Y., and I. A. Shubenko. "Assessment of the State of Ukraine’s National Debt and Directions of its Optimizatio." PROBLEMS OF ECONOMY 1, no. 47 (2021): 123–33. http://dx.doi.org/10.32983/2222-0712-2021-1-123-133.
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The article aims at studying the current state of Ukraine's national debt and developing directions for its optimization. It is established that the currency component in the structure of Ukraine's national debt is slightly lower than the threshold level for the currency component in the debt structure set by the IMF for developing countries. This structure of Ukraine’s national debt indicates the dependence of the domestic financial system on currency exchange rate fluctuations and the need to increase foreign exchange costs for servicing debt obligations. The amount of debt on loans from international financial organizations and government agencies of foreign countries comprises about a third of the total amount of national and guaranteed debt, indicating significant support Ukraine receives from its international partners, especially from the International Monetary Fund. The currency component in Ukraine’s national and state-guaranteed debt indicates high vulnerability of its financial system to currency shocks. It is established that the structure of Ukraine’s national and state-guaranteed debt by types of interest rates is quite optimistic and indicates a low vulnerability of public finances to interest rate risks. The size of Ukraine’s national and state-guaranteed debt in hryvnia equivalent increased during 2013–2020 by more than 4.4 times, and its growth in USD was quite moderate. It is determined that during 2020 the size of Ukraine’s national and state-guaranteed debt increased by 27.7% in hryvnia equivalent, due to the following situations: financing the state budget deficit; the allocation of funds to combat COVID-19; national currency devaluation, etc. The ratio of national and state-guaranteed debt to GDP, reaching a maximum of 81.0% at the end of 2016, gradually decreased to 50.3% at the end of 2019, which corresponds to the norm established by the national legislation. However, the values of this index for the period under review exceed the threshold level of national debt set by international standards for countries with emerging markets (30-50% of GDP). It is shown that the 2013 2019 period saw a tendency to increase the total cost of repayment and servicing of Ukraine’s national debt, which creates the risk of refinancing national debt, causes additional pressure on the state budget and GDP, and limits Ukraine’s ability to finance its social and economic goals of social development. The main risks for Ukraine’s debt obligations are highlighted, and ways to optimize them are outlined. The need to establish a National Debt Management Agency, the activity of which would help reduce both the debt burden and the cost of public debt servicing, is substantiated.
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Ekaprastyana, Devy, and Saiful Anwar. "The Effect of Earning Per Share and Debt to Asset Ratio on Firm’s Value : Case Study on Food and Beverage Corporation Listed in Indonesia Stock Exchange." Jurnal Keuangan dan Perbankan 13, no. 2 (October 9, 2017): 120. http://dx.doi.org/10.35384/jkp.v13i2.51.
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This study aimed to analyze the effect of earnings per share and the debt to asset ratio on the firm’s value. The population in this research is all companies sub-sectors of food and beverages listed in Indonesia Stock Exchange. Based on purposive sampling technique from the population selected six companies as a sample for six years (2009-2014). The result showed that: (1) earnings per share have a positive and significant effect on firm’s value. This is consistent with the signaling theory, where the company’s decision gives high dividend is a positive signal to investors that the company’s revenue growth in the future is also high. Therefore, the maximum potential dividend can be measured by earnings per share, the higher the earnings per share higher the bargaining power of the company’s shares so that the value of the company will also increase. (2) Debt to asset ratio has the negative and significant effect on firm’s value. The increase in the amount of debt is regarded as a negative signal by investors so that their effect is negative. Each side is competing to be the winner. The company seeks to attract investors through good financial performance and investors are competing to invest in companies that provide maximum benefit.
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Ahn, Seryoong, Kyoung Jin Choi, and Byung Hwa Lim. "Optimal Consumption and Investment under Time-Varying Liquidity Constraints." Journal of Financial and Quantitative Analysis 54, no. 4 (September 14, 2018): 1643–81. http://dx.doi.org/10.1017/s0022109018001047.
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We study consumption and investment decisions given realistic time-varying constraints on borrowing. We first consider the case where borrowing is constrained by a maximum debt-to-income ratio. We then consider collateral borrowing with a maximum loan-to-value ratio. The resulting implications for optimal policies differ considerably from those obtained in the existing literature based on fixed borrowing limits but are consistent with those documented in the empirical literature.
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Shvets`, Serhiy. "Modeling the impact of public debt on economic growth in Ukraine." Economy and forecasting 2020, no. 3 (December 29, 2020): 126–36. http://dx.doi.org/10.15407/econforecast2020.03.126.
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The study considers modeling approaches to determine the relationship between the level of public debt and economic growth. Empirical evidence for the positive, neutral, and negative correlation between the indicators arrive in a nonlinear function in the form of inverted U-curve, whose theoretical argumentation is associated with the implementation of the golden rule of public finance. To verify the empirical evidence on the example of Ukraine's economy, the author provides a scenario assessment based on the constructed econometric model of fiscal-monetary interaction. The results of modeling confirm the existence of a relationship that corresponds to a second-order polynomial trend. The maximum level of public debt, above which the GDP rate declines, is 63.8%, and the critical level of public debt, at which the rate of economic growth changes to negative, is 87.4%. As the development of Ukraine's economy is approaching the upper limit of the determined functional entry, to accelerate growth, it is necessary to focus the limited resource of public debt to finance large-scale infrastructure projects with a high capital return.
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Shvets`, Serhiy. "Modeling the impact of public debt on economic growth in Ukraine." Ekonomìka ì prognozuvannâ 2020, no. 3 (September 29, 2020): 146–56. http://dx.doi.org/10.15407/eip2020.03.146.
Full textAbstract:
The study considers modeling approaches to determine the relationship between the level of public debt and economic growth. Empirical evidence for the positive, neutral, and negative correlation between the indicators arrive in a nonlinear function in the form of inverted U-curve, whose theoretical argumentation is associated with the implementation of the golden rule of public finance. To verify the empirical evidence on the example of Ukraine’s economy, the author provides a scenario assessment based on the constructed econometric model of fiscal-monetary interaction. The results of modeling confirm the existence of a relationship that corresponds to a second-order polynomial trend. The maximum level of public debt, above which the GDP rate declines, is 63.8%, and the critical level of public debt, at which the rate of economic growth changes to negative, is 87.4%. As the development of Ukraine’s economy is approaching the upper limit of the determined functional entry, to accelerate growth, it is necessary to focus the limited resource of public debt to finance large-scale infrastructure projects with a high capital return.
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Chang, Chun, and Xiaoyun Yu. "Informational Efficiency and Liquidity Premium as the Determinants of Capital Structure." Journal of Financial and Quantitative Analysis 45, no. 2 (February 19, 2010): 401–40. http://dx.doi.org/10.1017/s0022109010000098.
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AbstractThis paper investigates how a firm’s capital structure choice affects the informational efficiency of its security prices in the secondary markets. We identify two new determinants of a firm’s capital structure policy: the liquidity (adverse selection) premium due to investors’ anticipated losses to informed trading, and operating efficiency improvement due to information revelation from the firm’s security prices. We show that the capital structure decision affects traders’ incentives to acquire information and subsequently, the distribution of informed traders across debt and equity claims. When information is less imperative for improving its operating decisions, a firm issues zero or negative debt (i.e., holding excess cash reserves) in order to reduce socially wasteful information acquisition and the liquidity premium associated with it. When information is crucial for a firm’s operating decisions, the optimal debt level is one that achieves maximum information revelation at the lowest possible liquidity cost. Our model can explain why many firms consistently hold no debt. It also provides new implications for financial system design and for the relationship among leverage, liquidity premium, profitability, and the cost of information acquisition.
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Marsellou, Emilia G., and Stylianos Kotsios. "Consumer and Corporate Debt in a 3D Macroeconomic Model." Mathematics 13, no. 7 (March 24, 2025): 1052. https://doi.org/10.3390/math13071052.
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We build on the literature of consumer debt–income inequality nexus, by developing a post-Keynesian model of growth and income distribution that incorporates both consumer and corporate borrowing. Specifically, we examine a non-linear dynamic system of three differential equations of workers’ debt-to-capital ratio, corporate debt-to-capital ratio, and the accumulation rate. We conduct simulations to solve the system for the long-run equilibrium points and examine local stability using the Routh–Hurwitz conditions. Additionally, we conduct a comparative statics analysis and investigate the stability of the model using a measure of the maximum distance among the three equilibrium points. Our key findings suggest that although our model shares several quantitative and qualitative aspects with the 2 × 2 models, the inclusion of corporate debt alters the impact of parameter changes on macroeconomic stability. This incorporation increases the number of parameters that have differing effects on stability across various scenarios. The ratio of external-to-internal borrowing, along with the interest rate, is among the few parameters that consistently undermines macroeconomic stability across all scenarios.