Financial Structure

The financial performance of the textile industry in Tamil Nadu had been analyzed with the help of the financial ratios. The financial structure of a company can show its capacity to generate the funds needed to undertake the desired expansion. The financial performance assessment together with other efficiency criteria, will give an idea of the total efficiency and industry performance. The success of the company ultimately depends upon its future growth and development. The company " s future can never be predicted with accuracy without having precise information related to its present financial position and its past earnings. In addition, the present study analyzed the impact of the performance of liquidity, solvency and efficiency on the profitability of the textile industry using CMIE data. The study found the impact of financial ratios, such as return on capital employed and net profit ratio, on the profitability of textile industry in Tamil Nadu, was meticulously studied. From the Generalized Least Square method it was found that absolute liquidity ratio had the highest impact among the financial ratios on the return on net profit ratio as well as creditors " turnover ratio is highest impact on return on capital employed during the study period with statistical significance.It presents a detailed analysis of the determinants of financial performance of textile industry in Tamil Nadu using financial ratios. The financial structure of a company can show its capacity to generate the funds needed to undertake the desired expansion. The financial performance assessment together with other efficiency criteria, will give an idea of the total efficiency and industry performance. The success of the company ultimately depends upon its future growth and development. The company " s future can never be predicted with accuracy without having precise information related to its present financial position and its past earnings. Ratio Analysis is an age-old technique of financial analysis. The financial position of the textile industry in Tamil Nadu is analyzed with the help of the financial facts and ratios such as: liquidity, solvency, efficiency and profitability. In addition, the present study analyzed the impact of the performance of liquidity, solvency and efficiency on the profitability of the textile industry. Liquidity and profitability are the two desired goals of financial management and they are directly affected by the working capital management. With increase in working capital size beyond the adequacy level, liquidity improves and profitability declines, and vice versa. Ratio Analysis: This is an age-old technique of financial analysis. It provides the financial statements in an absolute, historical and static form. It is also designed to show

The objective of this paper is to estimate the manufacturing and product costs by using activity-based costing (ABC) method in an advanced manufacturing system that is run under either material requirements planning (MRP) or just in time (JIT) system. ABC is a method that can overcome many of the limitations of traditional costing systems. This paper reports and discusses the implementation of the ABC alongside a mathematical and simulation model to estimate the manufacturing and product cost in an automated manufacturing system. The potential effects of manufacturing planning and control strategies implemented on financial structure of the manufacturing system are initially analysed. ABC has been used to model the manufacturing and product costs. An extensive analysis has been carried out to calculate the product costs under the two strategies. The comparison of the two strategies in terms of effects on the manufacturing and product costs are carried out to highlight the difference between the two strategies.

The paper examines the relationship between international diversification, financial structure, and their individual and interactive implications for the combined debt and equity cost of capital for a sample of French corporation. We report that the degree of international ...

The paper examines the relationship between international diversification, financial structure, and their individual and interactive implications for the combined debt and equity cost of capital for a sample of French corporation. We report that the degree of international diversification positively associates with higher total and long-term debt ratios. Our evidence suggests a non-linear inverted U-shape relationship between the degree of international diversification and short term debt financing. We also find that internationally diversified firms support higher level of debt financing that directly results in reduction of overall cost of capital despite higher equity risk. More significantly, we find that even after controlling for the effects of the degree and composition of debt financing, equity risk, firm size, managerial agency costs, and asset structure, higher degree of international diversification results in lower overall—combined debt and equity—cost of capital.

In the challenging business scenario prevalent throughout the world it is utmost important that the firms have a firm grip on their financial attributes. Three factors can broadly be identified as true indicators of the financial well-being of the firm. In our research, we look at exploring the factors that influence these three factors of financial flexibility, financial performance and financial structure. Extensive literature survey was carried out to create a background and identify the factors. ISM was applied to determine the driving and driven factors. The factors were then validated by applying regression on 10 years historical financial data derived from the balance sheet and cash flow statements of five major FMCG firms in India.

The study tries to investigate the key determinants of capital structure of leading automobile companies and the Automobile Industry in India. The study also tracks the theory implications, i.e. trade off vs. pecking order in these firms and the industry in general. An attempt is to see, if individually each sample company and the whole industry are influenced by the same determinants of capital structure. Pooled ordinary least squares and panel data econometric techniques such as fixed effect models are used to investigate the most significant determinants that affect the capital structure choice of 10 leading companies categorized as BSE Auto Top 100 and the Automobile Industry as a whole for a period of 14 years from 2000-2001 to 2013-2014. The study reveals some interesting facts and results. Multiple regression analysis reveals that while profitability and size are significant determinants in most of the leading companies; NDTS, Growth, and Debt service coverage ratio are not significant for these companies. While the Panel data results of the Automobile Industry as a whole reveals that profitability is the only significant determinant having negative relationship with debt equity ratio; and the other variables are insignificant. Also individual companies coefficient results shows implications of mix of pecking order and trade off theories while the panel data results of the whole Industry strongly supports the Pecking order theory.

This paper presents the contribution of corporate governance to the risk management system of an enterprise from the perspective of the financial leverage. We assume that companies with a strong corporate governance framework are likely to enhance the optimality of their financial structure. We perform a literature overview on this topic, in parallel with an empirical approach that brings forth

In the first part of this paperer, we emphasize the adaptability and continuity of the lender-of-last-resort doctrine beyond the diversity of financial structures from the 19th century to the present day. The second part deals with the global credit crisis and the analysis of the central banks’ innovative practices during the 2007-2008 financial crisis. We highlight that the lender of

The productivity and financial performance of dairy farms in New Zealand and Japan (Hokkaido) were analyzed. By recomposing the official statistics on the dairy industry relative to Japan, New Zealand has low milk yield productivity per cow, but higher per hectare performance because of their seasonal breeding and pasture grazing systems. In the revenue and expenses analysis, New Zealand had a high cash surplus ratio compared with Hokkaido. In the cost analysis, for expenses on a “per kg of raw milk” basis, New Zealand milk production costs are 29% of those in Hokkaido. More than 60% of the production costs were attributable to feed, interest charges and wages in New Zealand. In Hokkaido, the feed cost alone accounted for 73% of the total cost. There is also a remarkably high interest expenditure in New Zealand caused by non-subsidized fund procurement from finance organizations. In the financial analysis, New Zealand dairy farms have only approximately 50% of the total assets per cow compared with farms in Hokkaido. But total liabilities per cow in Hokkaido are twofold to threefold greater than in New Zealand. The difference between total assets and total liabilities shows that Hokkaido dairy farmers have an equity that is 50–200% greater than New Zealand dairy farmers. In the management analysis, New Zealand has a low turnover ratio of gross assets caused by the seasonal breeding system. In conclusion, New Zealand has higher per hectare production performance than Hokkaido, but has a low utilization of gross assets caused by a seasonal breeding system based on pasture grazing.

During pandemic period, developed countries experienced dreary fall and thriving for the opening up exports in their region, there was transition through the trade channel, which was the fact on the Asian market keeping aside financials. The study involves economic and financial data spreads during pandemic and its behavioural perspective and the required samples is allocated into two major categories of Financial structure are grouped in to four sub-industry wise as Finance Size, financial Development, formalism and growth, in order find out differences of financial structure and its variables and promote the analysis with findings. The economic indicators are formalized into the study to ascertain the involvement of financial performance of various industries in India. The scope of this study is very restricted for the reasons that have been stated before. The preceding review indicates that the financial structure and economic indicators clearly have some kind of relationship. Both the cointegration study as well as the causality analyses support this. It can be stated overall that the financial and economic influences are the two sides of the same coin, it is to be anticipated that in the Covid situation there will be a to-and-fro causal relationship between results. The obvious implications of this are that events in one can be used to forecast events in the other.

This paper presents the contribution of corporate governance to the risk management system of an enterprise from the perspective of the financial leverage. We assume that companies with a strong corporate governance framework are likely to enhance the optimality of their financial structure. We perform a literature overview on this topic, in parallel with an empirical approach that brings forth

This paper takes the issue of the financialization of competitiveness as being concerned with the link between increased financialization and the reduced autonomy of company management. The paper understands financialization to mean the increased ability to trade risk, resulting from changes in the structure of financial markets and in the financial market actors active in those markets. The paper's starting point is the focus in comparative political economy on national financial structures (e.g, Zysman 1982), and the view in that literature of capital market-based financial systems as increasing the autonomy of companies from the providers of financing, when compared to bank-based systems. Such a view appears at odds with the rise of shareholder value. The study seeks to address this inconsistency through a clearer understanding of the nature of different equity investor and market types. The ability to trade risk is linked to loyalty (Hirschman 1970). The paper considers the ...

What are the relative advantages and disadvantages of bank-based financial systems (as in Germany and Japan) and market-based financial systems (as in England and the United States). Does financial structure matter? In bank-based systems banks play a leading role in mobilizing savings, allocating capital, overseeing the investment decisions of corporate managers, and providing risk management vehicles. In market-based systems securities

This empirical paper investigates the path to bankruptcy for a sample of French firms in default, in particular the decision to file a petition for bankruptcy, the arbitrage between rescuing and liquidation and the effective survival. The procedure is depicted as a sequence of three steps in which judges play a crucial role as they decide whether a company is insolvent or not and determine whether an insolvent company deserves to be rescued or, on the contrary, should be liquidated, the market having the last word since the effective success depends on the capability of the firm to recover from the judicial proceedings. We test different hypotheses about the variables influencing each possibility which include i) the role of the market in the firm's health, ii) the influence of financial structures, iii) the importance of corporate governance and iv) the inherent corporate factors of probable survival. Using three linked LOGIT models, our first finding is that the probability t...

The Clinton/Gore proposal for the creation of a network of 100 community development banks (CDBs) to revitalize communities is bold, and will contribute to the success of the U.S. economy. Banks are essential institutions in any community, and the establishment of a bank is often a prerequisite for the investment process. For this reason, the creation of banks in communities