Do firm characteristics affect debt capacity? Evidence in CEO succession

Wang, Chih Wei; Yin, Chi; Choo, Min Rui

doi:10.1080/00036846.2021.1925626

Cited by 5 publications

(1 citation statement)

References 52 publications

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“…For instance, the financial crises of 2007-08 in the USA occasioned a series of debt crises in the European countries and emerged as a Global Financial crisis of the last decade. In a report published in 2013, IMF identified that the loose and weak regulatory control of governmental bodies and their lethargic attitude toward the revision of financial policies, and inconsistency in monetary and fiscal policies of the developed economies caused an economic decline all over the world (C.-C. Lee et al, 2021Lee et al, , 2022Tam, 2018). These uncertainties in the economic policies of the developed nations also caused a decline of 10% in stock exchanges across different countries (Chen et al, 2017).…”

Section: Introductionmentioning

confidence: 99%

Effect of Economic Policy Uncertainty on China’s Stock Price Index: A Comprehensive Analysis Using Wavelet Coherence Approach

Bagh,

Waheed,

Khan

et al. 2023

Sage Open

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Amid China’s dynamic economic backdrop, Economic Policy Uncertainty (EPU) and stock market indices hold pivotal roles, this research delves into EPU and its connection with the stock price index (SPI). By uncovering patterns linking these variables, the study aims to provide a nuanced understanding of their relationship. We employ wavelet coherence analysis and a phase difference approach to investigate EPU impact on China’s SPI from 2010 to 2020. Through this lens, the interactions between these economic variables are illuminated. Using wavelet coherence analysis, the temporal dynamics of EPU and SPI are explored. The phase difference approach further highlights the temporal alignment of fluctuations, capturing the intricate relationship. The analysis reveals compelling findings. A robust correlation between EPU and the SPI emerges, particularly at low frequencies, underscoring a substantive connection. The phase difference analysis indicates a positive influence of EPU on stock prices, highlighting its impact on SPI. Besides, implications imply EPU shapes stock market behavior, moving beyond mere correlation. A causal link is established, emphasizing EPU’s proactive role in influencing stock prices. Bidirectional causation underscores the interdependence of EPU and stock price movements. This research enhances understanding of EPU’s effects on stock prices in China. Finally, this study provides important implications for investors, policymakers, and businesses, guiding strategic decisions amid a dynamic economic landscape.

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Section: Introductionmentioning

confidence: 99%

Effect of Economic Policy Uncertainty on China’s Stock Price Index: A Comprehensive Analysis Using Wavelet Coherence Approach

Bagh,

Waheed,

Khan

et al. 2023

Sage Open

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Firm-specific attributes and capital gains overhang

Helmi,

Ahmed

2024

Eurasian Econ Rev

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This paper investigates the key factors driving the capital gains overhang (hereafter CGO) in the US stock market. We used a sample of 3865 non-financial US companies with 331,023 observations from January 2001 through December 2020. The data is analyzed using a panel regression model. It contributes to the literature by using a new set of firm characteristics, namely, liquidity proxied by turnover, company beta, leverage, EPS, cash flow to price, market to book ratio, and size. This research is interesting as it provides an alternative to the behavioral finance point of view that serves only limited stylized facts. We find that CGO is increasing in some firm attributes, namely earnings per share, leverage, growth, and size, and decreasing in others, namely turnover, beta, and cash flow to price. Our results are robust to cross-sectional regression that checks the stability of estimates over time and to subsample analyses. Finally, our results remain the same even after accounting for endogeneity.

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Does CFO serving as board secretary matter for information disclosure? Evidence from China’s listed companies

Lee

2022

Applied Economics

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Do firm characteristics affect debt capacity? Evidence in CEO succession

Cited by 5 publications

References 52 publications

Effect of Economic Policy Uncertainty on China’s Stock Price Index: A Comprehensive Analysis Using Wavelet Coherence Approach

Effect of Economic Policy Uncertainty on China’s Stock Price Index: A Comprehensive Analysis Using Wavelet Coherence Approach

Firm-specific attributes and capital gains overhang

Does CFO serving as board secretary matter for information disclosure? Evidence from China’s listed companies

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