Financial Situation of Listed Companies in Pharmaceutical Industry

Yan, Haokun; Xu, Ting

doi:10.2991/wrarm-17.2017.20

Cited by 3 publications

(3 citation statements)

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“…Due to the strict vetting procedures of banks and other financial institutions for loans to start-ups, coupled with the high threshold for firms to issue bonds in the market, start-ups may face higher interest rates for loans than larger firms or firms with superior credit when using bank financing, resulting in a situation where bank financing reduce the profitability of start-ups (Yin, Jianzhong, and Jundan Pi, 2017). But the use of mercantile credit instead increases the profitability of startups because mercantile credit usually occurs in commodity transactions and has a low financing threshold and no interest payment compared to other financing methods, making financing costs lower (Yan, 2017).…”

Section: Discussionmentioning

confidence: 99%

The Impact of Debt Financing on Startup Profitability

Zhang

Azman

2023

BMS

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If a start-up company is unable to grow due to a lack of capital, it is prudent to investigate the possibility of using debt as a source of funding. This study examines the impact of debt financing on the profitability of start-ups using trade-off theory and pecking order theory and uses regression analysis to select factors that are correlated with debt financing structure and profitability for listed companies on the National Equities Exchange and Quotation System (NEEQ) from 2012 to 2021. At the end of the theoretical and empirical analyses, the impact of debt financing on the profitability of start-ups is analyzed and corresponding countermeasures are proposed. Finally, the findings of the study are summarized and the shortcomings of the study and the prospects for future research are outlined. The findings of this study are that debt level structure is negatively related to profitability, indicating that gearing has a negative impact on the profitability of start-ups. In terms of debt type structure, mercantile credit has a positive effect on the profitability of start-ups and bank financing have a detrimental effect on profitability. Overall, debt financing has a negative impact on the profitability of start-ups, but business credit has a positive impact on profitability.

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Section: Discussionmentioning

confidence: 99%

The Impact of Debt Financing on Startup Profitability

Zhang

Azman

2023

BMS

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“…Chen and Zou (2019) used a regression analysis with agricultural companies as a research sample and obtained the conclusion that the long-term debt ratio of public agricultural companies is positively related to corporate financial performance, while the short-term debt ratio is negatively related to corporate financial performance. Yan (2017) analyzed five different modes of transport in the transport industry and found that, except for the significant relationship between mercantile credit ratio and financial performance, the total debt financing ratio, long-term debt ratio, short-term debt ratio, bank financing ratio and financial performance of public companies in the transport industry were negatively related. Xu (2019) found that during the maturity period of the development of listed companies in the wholesale and retail sector, long-term debt ratio has a positive effect on financial performance improvement, while short-term debt ratio has a negative effect.…”

Section: Empirical Reviewmentioning

confidence: 99%

The Impact of Debt Maturity Structure on Startup Profitability

Chengzhuo¹,

Azman²

2023

IJARAFMS

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Companies that are just starting out have a better chance of success by taking advantage of the various financial resources available to them. In terms of economic impact, the study of start-ups is considered a positive viewpoint in terms of the positive changes they generate in terms of cash flow as they enable the expansion of economic operations in the Asian region. Debt financing is one form of financing and research on debt financing for start-ups can help them to grow. When a start-up is allowed to take on debt, it is generally assumed that the company will have a reasonable chance of achieving its operational goals and repaying its debts. This chapter presents the results and discussion of the empirical analysis, selecting the FEM as the best model for this study through the p-value and Hausman tests, using the FEM to derive regression results and finally using stability tests to ensure robustness of the results by swapping both dependent and control variables. The study delves into the structure of debt maturities, the findings are that the debt maturity structure has a negative impact on the profitability of start-ups.

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“…Although the relevant regulatory authorities have issued a lot of laws and regulations, in real life, such problems occur from time to time, and it is difficult to stop them. According to the statistical results, in 2020 and 2021, 22 listed companies were imposed administrative punishment by the China Securities Regulatory Commission (hereinafter referred to as the CSRC) for financial fraud, which had a negative impact on investors, the capital market, and society [3].…”

Section: Introductionmentioning

confidence: 99%

Research on the Identification and Countermeasures of Corporate Financial Fraud Risk: a Case Study of Gansu Huangtai Wine-Marketing Industry Co., Ltd

2023

acccm

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With the rapid development of China's economy and the improvement of the capital market, the competition among enterprises has intensified. In the context of achieving the goal of maximizing benefits, in order to develop steadily in the market, enterprises have begun to use various means to conduct financial fraud and "whitewash" financial statements. Financial fraud has gradually developed into a common phenomenon of listed companies. This study mainly uses the case analysis method, and mainly conducts research and analysis on the facts of the financial fraud case of Gansu Huangtai Wine-Marketing Industry Co.,Ltd (hereinafter referred to as "HT company"). First of all, the article sorts out the research status of financial fraud in China, and explains its triangular theory, which provides a theoretical basis for future research. Secondly, this study explores the risk identification of financial fraud in general listed companies and discover some clues of HT company's financial fraud behavior from the perspective of financial indicators, more clearly grasp the financial fraud means, and use the financial fraud triangle theory to analyze the fraud motivation. Finally, based on the vertical perspective of the "triangle", this study summarizes and puts forward measures and suggestions to prevent financial fraud from the perspectives of internal corporate governance and external governance, so as to guide the development of enterprises, reduce the occurrence of financial fraud incidents, and promote the continued stability of the capital market.

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Financial Situation of Listed Companies in Pharmaceutical Industry

Cited by 3 publications

References 0 publications

The Impact of Debt Financing on Startup Profitability

The Impact of Debt Financing on Startup Profitability

The Impact of Debt Maturity Structure on Startup Profitability

Research on the Identification and Countermeasures of Corporate Financial Fraud Risk: a Case Study of Gansu Huangtai Wine-Marketing Industry Co., Ltd

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