Corporate debt maturity in the MENA region: Does institutional quality matter?

Awartani, Basel; Belkhir, Mohamed; Boubaker, Sabri; Maghyereh, Aktham

doi:10.1016/j.irfa.2015.10.002

Cited by 83 publications

(124 citation statements)

References 80 publications

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“…This study thus aims to bridge the gap in the literature and provides this evidence using a large sample of non-financial firms across MENA countries. More recently, Awartani (2015) reported that the better regulatory effectiveness, creditors' legal protection and enforcement of the rule of law are related to the usage of long-term debt by firms in the MENA region.…”

Section: The Importance Of Mena Contextmentioning

confidence: 99%

Corporate governance and cash holdings in MENA: Evidence from internal and external governance practices

Al‐Najjar

Clark²

2017

Research in International Business and Finance

120

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This paper explores the impact of internal and external corporate governance practices on the decision to hold cash in MENA countries. Using 430 non-financial firms in the MENA region for the period from 2000 to 2009, we find that both types of governance practices are important. We report a negative relationship between board size and cash holdings, evidence that firms hold less cash to reduce agency conflicts. Also, we detect that external governance activities are important in cash holding decisions, since we report that firms belonging to countries with international standards of securities law and bank supervision hold less cash. For our sub-sample of 85 firms, we report evidence that institutional owners are seen to be self-opportunistic and that they aim to maximize their own private benefits.

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Section: The Importance Of Mena Contextmentioning

confidence: 99%

Corporate governance and cash holdings in MENA: Evidence from internal and external governance practices

Al‐Najjar

Clark²

2017

Research in International Business and Finance

120

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“…The MENA region is predominantly bank based, with limited development of equities and corporate bonds with some exception for the GCC countries. For firms in the MENA region, the level of long-term debt as a percentage of total debt is extremely low, reportedly to be around 3.41% (Awartani et al, 2016). This feature of the financial systems in the countries from the MENA region could be related to the nature of corporate borrowers in the region who often have higher level of opaqueness, and where controlling shareholders influence the disclosure of information.…”

Section: Literature Review and Empirical Hypotheses 21 Conventional mentioning

confidence: 99%

Regulation and Ownership Effect on Banks Performance: New Evidence From the Mena Region

Mateev¹

2019

Proceedings of the 11th Economics &Amp; Finance Conference, Rome

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This paper investigates the impact of regulation and ownership on the performance of banks in 19 countries in the Middle East and North Africa (MENA) region, over a period of 11 years (2005-2015). We test the hypothesis that the effect of regulation on efficiency and profitability depends on the type of bank ownership. We find that only capital regulations have a strong impact on bank efficiency, but this effect does not depend on the level of ownership concentration of the bank. In line with previous empirical studies, we find that the impact of regulatory measures on bank profitability does not depend on bank ownership type. We also investigate whether the impact of regulation and ownership is different between conventional and Islamic banks, and find that the interaction effect of bank regulations and different types of ownership on a bank's profitability is strongly significant only in the sample of Islamic banks. The analysis of bank performance before and after the recent global financial crisis reveals that bank regulations have no influence on cost efficiency of a conventional bank either before or after the crisis; however, the impact on an Islamic bank's efficiency is strongly significant in the full sample period and the post-crisis period.

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“…Based on data for the MENA region, Awartani et al [2016] found a positive influence of leverage, firm's size and assets tangibility on debt maturity structure. Contrary to the tenets of the signaling hypothesis, companies experiencing financial difficulties are found to be more reliant on short-term debt.…”

Section: Literature Reviewmentioning

confidence: 99%

Determinants of the Liability Maturity of Polish Companies

Mielcarz¹,

Osiichuk²

2016

Financial Sciences

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Summary:Using the firm-level panel data for Polish companies, we analyze the determinants of liability maturity with particular attention paid to the factors of financing constraints and information asymmetry. Consistent with prior research, we find that asset tangibility, liquidity, leverage and profitability significantly influence liability maturity choices. Additionally, we evidence that financing constraints may alter the impact of these factors. Companies identified as being financially constrained appear to have lower maturity of liabilities. Firms quoted on the main market of the Warsaw Stock Exchange are shown to hold a higher proportion of long-term liabilities compared to those quoted on New Connect, a stock exchange dedicated to young small cap companies. We also find that constrained status may determine firm's financing decisions under crisis settings. Our empirical results show that companies experiencing financing constraints are likely to reduce liability maturity during a crisis, while their unconstrained counterparts may recur to additional long-term external financing in order to accommodate the repercussions of a trough. These findings contribute to the discussion of the financing constraints theory and shed light on some of the firms' tactical financing decisions in an emerging economy.Keywords: liability maturity, financing constraints, emerging economy.Streszczenie: Artykuł prezentuje wyniki badań panelowych w zakresie czynników kształ-tujących termin zapadalności zobowiązań polskich przedsiębiorstw. W analizie szczególną uwagę poświęcono zagadnieniu wpływu na badane zjawisko takich czynników, jak ograniczenia kapitałowe oraz asymetria informacji. Uzyskane wyniki potwierdziły ustalenia pły-nące z wcześniejszych prac badawczych prezentowanych w literaturze przedmiotu: termin zapadalności zobowiązań w przedsiębiorstwach jest w istotny sposób zależny od wartości aktywów trwałych, stopnia płynności i rentowności oraz poziomu zadłużenia. Ponadto ustalono, że ograniczenia kapitałowe mogą zmieniać wpływ wymienionych wcześniej czynników na termin zapadalności zobowiązań. Podmioty zidentyfikowane jako te, które mogą doświad-czać ograniczeń kapitałowych, mają bliższy termin zapadalności zobowiązań. Co więcej, spółki notowane na warszawskiej Giełdzie Papierów Wartościowych utrzymują wyższy poziom zobowiązań długoterminowych niż podmioty notowane na New Connect, czyli na rynku przeznaczonym dla młodych przedsiębiorstw o niższej kapitalizacji. Przeprowadzone bada- 50Paweł Mielcarz, Dmytro Osiichuk nia dowiodły również, że fakt doświadczania ograniczeń kapitałowych determinuje decyzje spółek w okresie kryzysu. W tym czasie podmioty doświadczające ograniczeń kapitałowych zmniejszają, podczas gdy pozostałe spółki powiększają zobowiązania długoterminowe. Prezentowane wyniki badań wpisują się w dyskusję na temat wpływu ograniczeń kapitałowych na zachowania przedsiębiorstw i rzucają nowe światło na zagadnienie finansowych decyzji przedsiębiorstw na rynkach wschodzących.Słowa kluczowe: termin zapadalności zo...

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Corporate debt maturity in the MENA region: Does institutional quality matter?

Cited by 83 publications

References 80 publications

Corporate governance and cash holdings in MENA: Evidence from internal and external governance practices

Corporate governance and cash holdings in MENA: Evidence from internal and external governance practices

Regulation and Ownership Effect on Banks Performance: New Evidence From the Mena Region

Determinants of the Liability Maturity of Polish Companies

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