Using micro-level data from the mortgage market, we examine yield spreads as a funnction of both credit risk and prepayment risk using a two-stage instrumental variable approach. Our results are consistent with findings in the finance literature that leverageinduced financial risk reflected in capital structure results in higher yield spreads on debt. In particular, borrowers with loan-to-value...

In 2011, the publicly held debt-to-GDP ratio in the United States reached 68% and is expected to continue rising. Many proposals to curb the government de…cit and the resulting debt are being discussed. In this paper, we use the standard neoclassical growth model to examine the future path of output, budget de…cits, and debt in the U.S. economy under di¤erent tax policies. While this framework ...

Purpose - The purpose of this study is to determine the profitability ratios, liquidity activity cash flow solvency ratios and market for 2019 period. Financial ratio analysis very important because it can provide an overview internal external parties about good bad financial condition a company management will obtain information company’s strength weakness.
 Research Method – This researc...

Prior research has documented evidence that entrenched managers tend to avoid debt. Contrary to this evidence, I find that firms with weak shareholder rights, as measured by the Gompers et al. (2003) governance index, actually use more debt finance and have higher leverage ratios. I provide an explanation by showing that entrenched managers choose conservative (safe) investment policies and the...

were of significant help at various stages of this study.

The design of a credit risk measurement model in the monetary and banking system will play an important role in increasing the profitability of banking resources. This article attempts to use two models of Logit and Z Altman to determine and predict the credit risk of facilities provided to legal entities at a private bank in Iran. The variables studied in this research include qualitative vari...

I propose a theoretical and empirical framework to decompose the price-to-book ratio into a fundamental component and a discount-rate component. Firms with good accounting fundamentals have high price-to-book ratios and high subsequent stock returns, while firms with low discount rates have high price-to-book ratios and low subsequent stock returns. Since the price-to-book ratio is the sum of t...

one of the economic problems in the developing countries is the debt problem. external debt occurs in the developing countries due to the elimination of the restrictions on the savings gap, the foreign exchange gap, and the fiscal gap in order to form the capital to accelerate the economic growth (karakoy et al., 2012, p. 491). in contrast, borrowing and rising the external debt could be little...

The results show that (1) the average value of current ratio (CR) is 80.64% (2) debt to equity (DER) 1.08% (3) total assets turnover (TATO) 88.75% (4) Average Return On Asset (ROA) 10.12% (5) Sales Growth (SG) (6) Price Book Value (PBV) 2.24% (7) Dividend Payout Ratio (DPR) 41.50% (8) Current (CR), Debt Equity (DER), Total Turnover (TATO), on Assets (ROA), and together (simultaneously) have an ...

An increase in the ability to timely meet commitments which will be due in the near future is a prerequisite for the survival of banks. Hence, the correct and optimal management of liquidity is an important affair that banks should perform. The present study aimed mainly to test the management of asset-liability and liquidity trap in the Credit Institute for Development. The research is applied...