The Empirical Study of Association of Capital Structure and Profitability of Telecommunication Firms

Raval, Avani

doi:10.21786/bbrc/14.5/34

Cited by 3 publications

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“…Some researchers put forward the priority financing theory based on the higher capital cost of equity financing than debt financing, but the large increase in debt scale is due to the internal capital of the company, and we think this is because we cannot meet the demand [ 11 – 15 ]. Therefore, debt levels and profitability are negatively correlated [ 16 – 18 ]. A researcher surveyed a data sample of listed companies in Malaysia and concluded the following.…”

Section: Introductionmentioning

confidence: 99%

The Impact of Corporate Capital Structure on Financial Performance Based on Convolutional Neural Network

Luo

Jiang

2022

Computational Intelligence and Neuroscience

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Capital structure is an important indicator to measure the source, composition, and proportion of a company’s equity and debit capital. It is not only related to the internal operating environment of listed companies but also related to the rights and obligations of shareholders and is closely related to the company’s future development direction, decision-making bodies, and changes in governance structure. This study aims to study the impact of corporate capital structure on financial performance based on convolutional neural network. Based on the relevant theories of capital structure, by constructing a convolutional neural network model, taking a listed company as the research object, this study analyzes the company’s capital structure, liabilities, and other financial conditions. Finally, it is concluded that short-term liabilities can meet the company’s sustainable development and enhance the competitiveness of the industry, thereby increasing the company’s operating income. However, a poor capital structure can negatively impact a company’s finances. By improving the corporate governance structure of listed companies, strengthening the adjustment of the financing structure of listed companies, and strengthening the management of listed company’s operating risks, the company’s capital structure can be improved so that the company’s financial situation can be sustainable and healthy.

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Section: Introductionmentioning

confidence: 99%

The Impact of Corporate Capital Structure on Financial Performance Based on Convolutional Neural Network

Luo

Jiang

2022

Computational Intelligence and Neuroscience

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How Particular Firm-Specific Features Influence Corporate Debt Level: A Case Study of Slovak Enterprises

Gajdosikova

Lăzăroiu

Valášková

2023

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Debt financing is related to borrowing funds from enterprises and investors through bonds, banks, or financial institutions. Interest in debt financing has been rapidly growing in recent years and is now considered one of the most common ways an enterprise can increase its capital to run its business. However, the use of a large amount of debt is associated with the management of corporate indebtedness, requiring the tracking of the entire financial performance of the company. The chief objective of this study was to determine and assess the indebtedness level of enterprises operating in the Slovak Republic using 12 crucial debt ratios and then to clarify whether there are statistically relevant dissimilarities in corporate debt as a result of the firm size and its legal form, representing relevant company-specific features having an impact on corporate indebtedness. Subsequently, a more elaborate analysis addressing statistically relevant dissimilarities between separate indebtedness ratios in relation to the size of the company and its legal form was carried out by deploying the nonparametric Kruskal–Wallis test. We leveraged the Bonferroni correction to specify where stochastic ascendancy occurs. The Kruskal–Wallis test result revealed statistically significant dissimilarities in the values of debt ratios as a result of the firm size and the legal form of the company, which confirmed previous results indicating the most relevant determinants shaping corporate debt. Recognizing the repercussions of firm size and legal form on the corporate debt policy plays an important role, as these company-specific features may be perceived as proxies for the default likelihood or for the volatility of corporate assets, making the regulatory process of creditors and stakeholders straightforward. The findings confirmed the theories of numerous researchers who claimed that firm size and legal form are critical aspects of corporate debt.

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Research on Corporate Indebtedness Determinants: A Case Study of Visegrad Group Countries

et al. 2023

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Debt financing is arguably the most important source of external financing for enterprises and has become popular in recent years. Corporate debt is related to the monitoring of corporate indebtedness, which is a necessary part of evaluating the overall financial performance of an enterprise and will occur if an enterprise does not have enough equity. However, rising indebtedness can be a difficult financial situation for enterprises in the form of default and an inability to meet their emerging liabilities. The main aim of this paper is to perform a debt analysis of enterprises operating in the Visegrad Group countries and subsequently examine whether firm size and legal form have a statistically significant impact on selected indebtedness indicators. Firstly, it was necessary to perform a debt analysis using 10 debt ratios. Subsequently, the nonparametric Kruskal–Wallis test was used to perform a more detailed analysis focused on examining statistically significant differences in individual indebtedness ratios based on firm size and legal form. Bonferroni corrections were applied to detect where stochastic dominance occurred. The Kruskal–Wallis test results reveal statistically significant differences in debt ratios in Visegrad Group countries, confirming the impact of firm size and legal form on calculated debt ratios. Recognizing the impact of several determinants on corporate debt is critical because these firm-specific features may be interpreted as proxies for default probability or the volatility of corporate assets, which may simplify the decision-making processes of creditors and stakeholders.

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The Empirical Study of Association of Capital Structure and Profitability of Telecommunication Firms

Cited by 3 publications

References 0 publications

The Impact of Corporate Capital Structure on Financial Performance Based on Convolutional Neural Network

The Impact of Corporate Capital Structure on Financial Performance Based on Convolutional Neural Network

How Particular Firm-Specific Features Influence Corporate Debt Level: A Case Study of Slovak Enterprises

Research on Corporate Indebtedness Determinants: A Case Study of Visegrad Group Countries

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