Print ISSN: 2204-1990

Online ISSN: 1323-6903

Keywords : capital structure

Corporate Hedging Models: A Review


Journal of Contemporary Issues in Business and Government, 2021, Volume 27, Issue 3, Pages 651-657
DOI: 10.47750/cibg.2021.27.03.088

This study completes an analysis of the literature reviewed of frameworks that include a sensible hedging of corporations and also discusses the issues of corporate finance, including funding and acquisition. Hedging is either a related insurance policy or an associated operation to reduce the association between the cost and the random variable associated with the selling of by-products. It has been inferred that the hedge company lowers several costs such as trouble value, organization valuation and the cost of leverage while considering the fashionable financial theories once calmly developed by Miller and Modigliani (M-M). In addition, the area unit of hedging designs clarified the detrimental option reduction. The mostly focused models of the related integrative manner are also gifts in the review process. Organizational risk management is one of the most important questions for managers and clients. The risks management of the firm mostly relies on hedging by retaining futures or making policies to reduce unnecessary damage as a result of negative movements of the underlying properties. Throughout this study the analysis concentrates on risk-neutral non-financial companies only. It summarizes diverse theoretical and analytical studies which have economic basis for non-financial companies' hedger operation in the financial system.

The determinants of capital structure in insurance companies Evidence from Saudi Arabia

Faiza Omer Elmahgop

Journal of Contemporary Issues in Business and Government, 2021, Volume 27, Issue 2, Pages 1303-1315
DOI: 10.47750/cibg.2021.27.02.143

The study examines the significant determinants of the insurance companies' capital structure
listed on the Saudi Stock Exchange (Tadawul) from 2010 to 2018. In this study, one dependent
variable capital structure is represented by leverage and six independent variables, firm
characteristics variables (profitability, growth rate, risk, size, age) and macroeconomic variable
(GDP). A random effect on a panel data regression model is employed as a tool of analysis. This
study attempts to fill the lack of research in Saudi insurance companies to arrive at constructive
suggestions that could contribute to financial structure decisions. The results show that
profitability, age and risk have a statistically significant negative effect on the capital structure.
Growth rate and firm size significantly positively influence the capital structure, while gross
domestic product is insignificant.

Stock Price Determinant Through Capital Structure As Intervening Variables In Construction Companies Listed In Indonesian Stock Exchange

Florida Aryani; Riska Yustisiana; Bintang Andhyka; Murti Widyaningsih

Journal of Contemporary Issues in Business and Government, 2021, Volume 27, Issue 1, Pages 3814-3828

Changes in macroeconomic conditions affect various things such as changes in interest rates that have an impact on companies with debt on their capital structure. Likewise, the company's profitability and profit growth can affect the company's capital structure which then affects the stock price, especially in construction companies.This study aims to describe and analyze the influence of interest rate, profit growth and profitability of stock price through capital structure. The sample is construction companies listed in Indonesian Stock Exchange in the 2014-2019 period and the observation is through purposive sampling method. Analytical techniques used are multiple linear analysis and path analysis. The results show that interest rate, profit growth, and profitability affect capital structure. Interest rate and capital structure affect stock price while profit growth and profitability has no effect on stock price. Capital structure mediates the influence of interest rate, profit growth and profitability on stock price.

Determinants Of Capital Structure - Evidence From Oil And Gas Tradable Sector Index (Ogti) Of Pakistan Stock Exchange


Journal of Contemporary Issues in Business and Government, 2021, Volume 27, Issue 1, Pages 129-142

financing decisions are one of the most vital decisions for companies. the given study investigates the influence of capital structure on the stock return in the context of oil and gas segment of pakistan. analysis have been conducted on 10 oil and gas companies operating in pakistan stock exchange on the basis of market capitalization over the period of 2013 to 2018.ordinary least square, fixed effect and random effect estimation methods used in the study. this study identifies the factors size, growth, non-debt tax shields, profitability, and tangibility which are important in choosing optimum capital structure. these factors are independent variables, while financial leverage is the dependent variable. results found that non-debt tax shields and profitability have the negative relationship and size, tangibility and growth have the positive relationship with the financial leverage. however, the results for size and tangibility are not statistically significant. profitability shows the negative sign and statistically significant so it may be concluded that the profitability and financial leverage are negatively related. growth is positively related with financial leverage and it is also statistically significant so hypothesis regarding growth is accepted and concludes that there is positive relationship between growth and financial leverage of the listed oil and gas firms of pakistan and follows the pecking order hypothesis. this research study is based on the data taken from the state bank of pakistan publication balance sheet of oil and gas sector companies listed on the pakistan stock exchange.