The process firms use to choose their capital structures is explained by different corporate finance theories in which trade-off and pecking order are the two most popular hypotheses. Testing these two models will help to determine whether a target debt ratio exists, and if so, how rapidly firms adjust their current leverage levels to match this target level. The findings in this paper determined that the pecking order theory might not be applied in Vietnam when internal funds and new equity issuance...

The study seeks to establish the underlying factors responsible for performance of domestic and foreign commercial banks in Uganda. The factors are analyzed in light of structure–conduct performance (SCP) and Efficiency hypothesizes (ES). This is supplemented by Global advantage theory together with Home field theory. The study analyses performance of all licensed domestic commercial banks, represented by the average performance. Using Linear multiple regression analysis over the period 2000-2011,...

This paper analyses the impact of foreign bank presence on domestic bank accounting performance taking into account the role of bank ownership. The data covers the period from 1992 to 2012; this period reflects almost all significant restructuring programs and achievements. The results indicate that the entry of foreign banks has generated strong competitive pressure, such that domestic banks have to forego their excess profits, and instead, share the non-interest-bearing income with foreign banks....

Determining financial crises is a hard procedure to do. Financial crises are still exanimate an essential phenomenon known for its international influence and scope and its propagation indistinctively across developed and developing countries. There is no apparent consensus among researchers as to the adequate approach to adopt in order to test out contagion. In this paper, we develop a contagion-assessment model. We analyse the extreme dependence structure, stemming from the characteristics of the...

Prior research has documented both positive (John and Litov, 2009) and negative (Berger, Ofek, and Yermack, 1997) relationships between managerial entrenchment and the use of debt. This paper further investigates the impact of corporate governance on firm’s leverage by taking into account the substitution effect of different governance mechanisms. Consistent with John and Litov (2009), we find that antitakeover provisions have a positive effect on firm’s leverage. However, this effect disappears...

This paper employs the non-parametric Data Envelopment Approach (DEA) and Dynamic Malmquist Productivity Index (MPI) to examine the efficiency and productivity of Cambodian microfinance institutions during the period 2008-2011. We found that the microfinance institutions in Cambodia have exhibited an overall efficiency of 92% during 2008-2011 suggesting an input waste of 8%. The overall efficiency has improved slightly from 91% in 2008 to 92% in 2009 and remained stable in 2010 and 2011. In addition,...

Integration of European Capital markets has coincided with the development and exponential growth of credit derivative markets. As credit derivatives have matured as an asset class, we can regard them as return generating assets and not simply as risk transfer vehicles. The Capital Asset Pricing Model (CAPM) suggests that the return of holding such assets should be commensurate with their risk. This paper examines the risk-return characteristics of European Credit Default Swaps (CDSs). We empirically...

In this paper a potential buyer (valuation subject) is interested in purchasing a company (valuation object). Thereby, he strives for maximum income and acts in a real imperfect market. In order to sustain his economic interest, he must conduct a business valuation. To help him determine what maximum price he may afford to pay without the transaction proving disadvantageous, we implement an investment theory-based method. The purpose of our paper is to show how formulas derived from the state marginal...

This paper presents the determinants of liquidity risk and performance in conventional and Islamic bank. The data have collected from 2008 to 2014 and panel data analysis was used. The results revealed that the most significant factor is the capitalization. Capitalization also has a strong relationship with performance using parsimonious model. The best model from the result is Bahrain conventional bank. Based on finding, problem of liquidity risk related to regulatory requirement will decrease and...

We have examined the right offers made between January 2010 to October 2012 by companies listed on the Dhaka Stock Exchange and tested the speed of adjustment of market price of the issuers to the right issues. The analysis leads to the conclusion that the adjustment is not immediate, the market price is about 10-11 percent higher than the right adjusted price on the average and the difference is statistically significant. It takes about 15 days for the market price to reach a stage where the difference...