Financial shock and the United States multinational and domestic corporations leverage

Alnori, Faisal

doi:10.1080/23322039.2023.2210364

Cited by 3 publications

(9 citation statements)

References 67 publications

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“…The corporate capital structure measured by the leverage ratio indicates the amount of assets funded by debt financing including short-term and long-term debt (Alnori, 2023). The relationship between a firm's leverage and debt maturity structure is mixed.…”

Section: Hypotheses 311 Leveragementioning

confidence: 99%

“…Firm risk (i.e., earnings volatility) is viewed to be one of the reliable determinants of corporate debt maturity structure (Cai et al, 2008;Mitchell, 1993). Corporate lenders and creditors consider firms suffering from higher business risk to be associated with a higher risk of expected bankruptcy (Alnori, 2023). Kane et al (1985) postulated that firms with higher volatile earnings are more likely to issue short-term debt to avoid the risk of financial distress.…”

Section: Firm Riskmentioning

confidence: 99%

“…Besides the above-mentioned firm-specific determinants, macroeconomic-related factors are shown to be relevant to debt maturity choice (Nguyen, 2022). During times of economic drop, corporate lenders become more risk-averse and prefer short-term debt to reduce the risk of firms' default (Alnori, 2023). In contrast, during times of good economic conditions, the availability of cheaper funds increases, and lenders provide longer-term debt financing to corporations.…”

Section: Economic Growthmentioning

confidence: 99%

“…The sample used in this study includes all listed non-financial corporations operating in the Saudi Main Stock Exchange (TASI), over the years 2010-2021. The study began the analysis in 2010 because the data suffered from missing observations before the year 2008 and to isolate the study analysis from the global financial crisis that occurred during the years 2008 and 2009 (Alnori, 2023). The data applied in this are annual and the source of firm-specific related data is obtained from Thomson Reuters DataStream.…”

Section: Data and Samplementioning

confidence: 99%

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What do we Know about Corporate Debt Maturity Structure in Saudi Arabia?

Alnori

2023

Journal of Applied Finance &Amp; Banking

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This study examines the firm-specific and macroeconomic factors that influence corporate debt maturity structure in Saudi Arabia and explores whether existing theories can predict corporate debt maturity structure. The sample includes 121 listed non-financial firms operating in Saudi Arabia over the years 2010-2021 and employs a static ordinary least square (OLS) model before and after incorporating industry fixed effects. Approximately 52% of Saudi firms’ total debt consists of long-term debt, which is higher than other firms' long-term debt usage, operating in emerging markets. Furthermore, the study finds that both firm-specific and macroeconomic factors are important determinants of Saudi firms’ debt maturity structure decisions. The firm-specific determinants including leverage, profitability, size, liquidity, and asset maturity are positively related to corporate debt maturity choice. However, firms’ risk is negatively associated with debt maturity structure. Economic growth (GDP) has a positive linkage with corporate debt maturity, while the interest rate negatively impacts long-term debt maturity. The results support the matching theory, while it does not support the agency and the signaling theories. At best, this is one of the earliest studies that investigate the influence of firm-specific and macroeconomic factors on Saudi firms’ debt maturity structure decisions. JEL classification numbers: G3, G32. Keywords: Debt maturity, Firm-related factors, Macroeconomic factors, Saudi Arabia.

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Section: Hypotheses 311 Leveragementioning

confidence: 99%

Section: Firm Riskmentioning

confidence: 99%

Section: Economic Growthmentioning

confidence: 99%

Section: Data and Samplementioning

confidence: 99%

See 2 more Smart Citations

What do we Know about Corporate Debt Maturity Structure in Saudi Arabia?

Alnori

2023

Journal of Applied Finance &Amp; Banking

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“…To safeguard our societies, economies and the planet, transformative economic strategies are imperative. 10 , 11 Labour markets, integral to the economy, significantly impact individuals, businesses and society. 12 – 14 Investigating labour markets informs us about how these elements interconnect and how different policies and conditions can influence employment, wages and overall economic outcomes.…”

Section: Introductionmentioning

confidence: 99%

Multi-generational labour markets: Data-driven discovery of multi-perspective system parameters using machine learning

Alaql,

Alqurashi,

Mehmood

2023

Science Progress

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The impact of aggressive capitalist approaches on social, economic and planet sustainability is significant. Economic issues such as inflation, energy costs, taxes and interest rates persist and are further exacerbated by global events such as wars, pandemics and environmental disasters. A sustained history of financial crises exposes weaknesses in modern economies. The Great Attrition, with many quitting jobs, adds to concerns. The diversity of the workforce poses new challenges. Transformative approaches are essential to safeguard societies, economies and the planet. In this work, we use big data and machine learning methods to discover multi-perspective parameters for multi-generational labour markets. The parameters for the academic perspective are discovered using 35,000 article abstracts from the Web of Science for the period 1958–2022 and for the professionals’ perspective using 57,000 LinkedIn posts from 2022. We discover a total of 28 parameters and categorized them into five macro-parameters, Learning & Skills, Employment Sectors, Consumer Industries, Learning & Employment Issues and Generations-specific Issues. A complete machine learning software tool is developed for data-driven parameter discovery. A variety of quantitative and visualization methods are applied and multiple taxonomies are extracted to explore multi-generational labour markets. A knowledge structure and literature review of multi-generational labour markets using over 100 research articles is provided. It is expected that this work will enhance the theory and practice of artificial intelligence-based methods for knowledge discovery and system parameter discovery to develop autonomous capabilities and systems and promote novel approaches to labour economics and markets, leading to the development of sustainable societies and economies.

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How Corporate Liquidity Reacts to COVID-19 Outbreak? Evidence from Listed Corporations in Saudi Arabia

Alnori

2024

IJEF

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The outbreak of the COVID-19 pandemic remarkably influenced the global economy and hence corporate decisions. This study investigates corporate liquidity policy reaction to the COVID-19 pandemic by comparing corporate cash holdings levels before and after the COVID-19 crisis. Using quarterly data of listed non-financial firms in Saudi Arabia over the years 2018-2021 and employing a paired-sample univariate analysis, this study found that the COVID-19 outbreak significantly influenced corporate liquidity decisions. In particular, the results show a significant difference in the cash holdings levels between the periods before and after the COVID-19 crisis. Firms’ cash holdings are significantly higher after COVID-19 in comparison to cash holdings before the pandemic. These findings support the trade-off theory’s precautionary and transaction cost motives for holding liquid assets. The outcomes of this study provide important implications for policymakers, corporate managers, and lenders.

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Financial shock and the United States multinational and domestic corporations leverage

Cited by 3 publications

References 67 publications

What do we Know about Corporate Debt Maturity Structure in Saudi Arabia?

What do we Know about Corporate Debt Maturity Structure in Saudi Arabia?

Multi-generational labour markets: Data-driven discovery of multi-perspective system parameters using machine learning

How Corporate Liquidity Reacts to COVID-19 Outbreak? Evidence from Listed Corporations in Saudi Arabia

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