Increasing market discipline has emerged as a major policy issue for banking regulators. The most prominent proposals for increasing market discipline would require banks to issue subordinated debt to the public. This paper explores the fundamental rationale behind mandatory subordinated debt proposals and their advantages and disadvantages. Our analysis indicates that a subordinated debt requi...

In this paper, cointegration relationships among 26 global stock market indices over the periods of sub-prime and European debt crisis and their influence rank are investigated by constructing and analyzing directed and weighted cointegration networks. The obtained results are shown as follows: the crises have changed cointegration relationships among stock market indices, their cointegration r...

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...

The paper develops a model in which both long–run growth rates and credit market development are endogenous. Agents facing idiosyncratic productivity shocks cannot perfectly commit to repay their loans, but the threat of credit market exclusion specifies endogenous debt limits preventing default in equilibrium. A growth push makes credit market participation more valuable and relaxes debt limit...

This is the second of two articles that provide an overview of the money and bond markets in New Zealand. The first article was published in the September 1995 Bulletin and focused on the Crown debt market. This second article describes the non-Crown debt market, covering in some detail debt issued by financial intermediaries, large corporations, State Owned Enterprises (SOEs) and local authori...

Article history: Received 6 March 2012 Received in revised form 30 May 2013 Accepted 4 June 2013 Available online 11 June 2013 We suggest that the limited access to the public debt market is a reason for the violations of pecking order behavior documented in literature. We show that as information asymmetry increases, two effects take place. On the one hand, firms do desire to increase the debt...

Following Burger (2012)'s approach of calculating stabilized debt to GDP ratios this paper computes these levels for ve selected Eurozone economies. Such a debt ratio indicates to which level the economy would converge to, based on its past country-speci c behavior in combination with the scal response mechanism. The outcome shows that for most of the selected economies the current (to some ext...

We analyze the determinants of government debt under the twin assumptions that governments have limited horizons and default only when government income falls short of debt service requirements. We derive a government’s maximum sustainable debt ratio, that is, the debt ratio chosen by a myopic government whose horizon does not extend beyond its current term in office. Maximum sustainable debt v...

stock return is usually considered to be affected by firm’s financial ratios as well as economic variables. fundamental method assume that stock returns is not solely related to the stock market. most result come from the company condition , industry situation and whole economy. in this paper, this relationship between stock return and fundamentals is studied using the data for 22 pharmaceutica...

This paper explains the relationship between the debt financing and market value from about 272 Chinese real estate companies, which are all from Shanghai Stock Exchange and Shenzhen Stock Exchange between 2002 and 2007.We conduct an empirical study, the empirical results show that our country’s real estate listing of corporate debt financing relatively large proportion of total assets, average...