Download or read book Financial Constraints the User Cost of Capital and Corporate Investment in Australia written by Gianni La Cava and published by . This book was released on 2005 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the factors that drive corporate investment in Australia using a panel of listed companies covering the period from 1990 to 2004. Real sales growth is found to be a significant determinant of corporate investment. The user cost of capital, which incorporates both debt and equity financing costs, also appears to be an important determinant.The paper also explores the effects of cash flow on investment, allowing for the possibility that the availability of internal funding could significantly affect the investment of financially constrained firms. Cash flow is found to affect investment, though the effects appear more complicated than previously reported in empirical research using Australian data. One innovation of this study is that it distinguishes financially distressed firms from financially constrained firms. The presence of financially distressed firms appears to bias downwards the sensitivity of investment to cash flow. Once separate account has been taken of firms experiencing financial distress, and in contrast to theory, cash flow is found to matter for the investment of both financially constrained and unconstrained firms. Interestingly, the estimated degree of sensitivity appears to be roughly the same for both groups.
Download or read book The Effects of Financial Constraints on Corporate Policies in Australia written by Xin (Simba) Chang and published by . This book was released on 2006 with total page 39 pages. Available in PDF, EPUB and Kindle. Book excerpt: We jointly study the impact of financial constraints on Australian companies' investment decisions and demand for liquidity. By examining a large sample of Australian firms over the period 1990 to 2003, we find that financial constraints not only reduce the sensitivity of investment to the availability of internal funds, but also increase the responsiveness of cash holdings to internally generated cash flows. Further analysis shows that the impact of financial constraints varies across different cash flow states, i.e., financial constraints have a small effect on corporate investment and cash policies when cash flows are positive. In contrast, the severity of constraints is high in negative cash flow years in which the cost disadvantage of external finance coincides with deteriorating operating performance.
Download or read book Australia written by International Monetary Fund. Asia and Pacific Dept and published by International Monetary Fund. This book was released on 2020-03-05 with total page 22 pages. Available in PDF, EPUB and Kindle. Book excerpt: This Selected Issues paper investigates the drivers of business investment in Australia, focusing on the non-mining sectors. The paper also identifies aggregate-level drivers for non-mining business investment by looking at long-term trends. It delves into firm-level investment behavior and assesses the role of credit availability and uncertainty in different types of firms. Long-term empirical and simulation-based analyses suggest that global factors such as rising policy uncertainty and weaker commodity prices have been key drivers of the slowdown, while in the short term, a renewed escalation in US–China trade tensions could spill over to investment and growth in Australia. Yet, domestic factors are also at play, including domestic policy uncertainty and financial constraints, especially for smaller and younger firms. The pace of product market reforms can also impact business investment. Australia can promote business investment by reducing domestic policy uncertainty, easing credit constraints for small- and medium-sized enterprises, incentivizing research and development, and continuing with product market and tax reforms.
Download or read book Indian Business Groups and Other Corporations written by Achin Chakraborty and published by Springer Nature. This book was released on with total page 272 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Australia written by International Monetary Fund. Asia and Pacific Dept and published by International Monetary Fund. This book was released on 2015-09-30 with total page 74 pages. Available in PDF, EPUB and Kindle. Book excerpt: This Selected Issues paper analyzes the housing prices in Australia. Housing prices in Australia have increased strongly over the past two decades, including by comparison internationally. Thus housing prices are often argued to be overvalued. Many counter-arguments have been put forward for why such measures are flawed. This paper argues that housing prices are moderately stronger than consistent with current economic fundamentals, but less than a comparison to historical or international averages would suggest. International comparisons of price-to-income ratios suggest that Australia is broadly in line with comparator countries, although significant data comparability issues make inference difficult.
Download or read book Australian Firms Investment Behaviour After the Global Financial Crisis written by Susan Thomson and published by . This book was released on 2010 with total page 184 pages. Available in PDF, EPUB and Kindle. Book excerpt: This thesis investigates investment behaviour when a firm is subject to financial constraint. We examine this by empirically analysing investment behaviour of a sample of 413 Australian firms during the Global Financial Crisis, hereafter the GFC. We may expect that the financial crisis would have more impact on the investment behaviour for firms that have relatively greater costs in raising external capital and for firms that relatively are more dependent on external finance. Recent research by Duchin, Ozbas, & Sensoy (2010), Campello, Graham, & Harvey (2009) and Almeida & Campello (2010) using primarily U.S. samples suggest that financial constraints may influence a firm's investment behaviour. In our first research question we establish that there was a significant decline in investment after the GFC across the full sample. In research question two we found an inverse relationship between firm internal reserves and decline in investment. In research question three the Resource sector was identified as less dependent on external financing and we found that the Resource sector experienced the smallest decline in investment. The Real Estate sector was identified as heavily reliant on external financing and we found that the Real Estate sector experienced the severest decline in investment. Research question four attributed the inverse relationship between internal reserves and investment, found in research question two, primarily to the Energy subsector which predominately consists of oil and gas companies. Finally in research question five we found that firm size had an explanatory role in mitigating or accentuating the decline in investment in Year 2 after the GFC. In summary, we observed a significant decline in firm level investment in Australia after the GFC. Firms in industries historically more reliant on external financing were more affected by the GFC. Our empirical results do not conclusively find a direct causal relationship between a firm's internal reserves and its investment levels. Anomalies between our study and other recent research may in part be explained by the reduced magnitude of the credit supply shock in Australia when compared to the U.S.
Download or read book Tax Reform and the Cost of Capital written by Dale Weldeau Jorgenson and published by Brookings Institution Press. This book was released on 1993 with total page 74 pages. Available in PDF, EPUB and Kindle. Book excerpt: The tax reform movement that swept the U.S., Great Britain, and most other industrialized nations during the last decade has focused attention on international comparisons of the cost of capital. More recently, international comparability has become a critical issue of tax harmonization. This is a vital concern in the European Community, as well as between Canada and the United States. This volume provides international comparisons of the cost of different types of capital for nine major industrialized countries -- Australia, Canada, France, Germany, Italy, Japan, Sweden, the United Kingdom, and the United States -- for the period 1980-1990. In the early 1980s the introduction of tax incentives for saving and investment gradually shifted the tax base from income toward consumption. By 1990 most of these special tax provisions had been reduced or repealed in order to lower tax rates and equalize the tax treatment of different forms of capital income. Income was firmly reestablished as the most appropriate basis for taxation. Separate chapters for each of the nine countries, written by leading experts in public economics, provide detailed accounts of tax policy changes over the decade. Each chapter contains a quantitative description of these tax policies and summarizes this information in the form of effective tax rates. The book thus serves as an indispensable reference for comparing capital income taxation in industrialized countries during a period of rapid policy change.
Download or read book Corporate Accounting in Australia written by Michael Gaffikin and published by UNSW Press. This book was released on 2004 with total page 596 pages. Available in PDF, EPUB and Kindle. Book excerpt: Corporate Accounting in Australia, Fourth Edition, is a textbook designed for one- or two-semester company accounting courses at both under- and postgraduate level.
Download or read book Essentials of Corporate Finance written by Stephen A. Ross and published by McGraw-Hill Education Australia. This book was released on 2013-07-30 with total page 829 pages. Available in PDF, EPUB and Kindle. Book excerpt: The third edition of Essentials of Corporate Finance adapted by Rowan Trayler and Ron Bird retains the accessible and popular Ross style by focusing on key concepts while providing regional real-world events. The integrated solutions for Ross's Essentials of Corporate Finance have been specifically designed to help improve student performance, meaning that students are prepared for and engaged in class, and they can successfully solve problems and analyse the results. In addition, resources within Connect help students solve financial problems and apply what they've learned. Ross Essentials's succinct coverage, managerial focus, and strong end-of-chapter content combine with a complete digital solution to help your students achieve higher outcomes in the course.
Download or read book Introduction to Corporate Finance Asia Pacific Edition with Online Stud Y Tools 12 Months written by John R. Graham and published by Cengage AU. This book was released on 2016-08-09 with total page 888 pages. Available in PDF, EPUB and Kindle. Book excerpt: Introduction to Corporate Finance offers a dynamic, modern and practical approach that illustrates how financial management really works. It features up-to-date content including the impact of the Global Financial Crisis and capital budgeting. Introduction to Corporate Finance is distinguished by the cash-flow 'arc' of the narrative, which gives a practical learning path, and the use of real options, which is a practical analysis tool that is used in corporate finance. Students are thus provided with the most engaging and contemporary learning path of any Australian text, giving them realistic preparation for a career in finance. The strong five part framework of the book is supported by integrated online elements and easy-to-read text.
Download or read book Fundamentals of Corporate Finance written by Jonathon Berk and published by Pearson Higher Education AU. This book was released on 2013-12-02 with total page 769 pages. Available in PDF, EPUB and Kindle. Book excerpt: Core concepts. Contemporary ideas. Outstanding, innovative resources. To succeed in your business studies, you will need to master core finance concepts and learn to identify and solve many business problems. Learning to apply financial metrics and value creation as inputs to decision making is a critical skill in any kind of organisation. Fundamentals of Corporate Finance shows you how to do just that. Berk presents the fundamentals of business finance using the Valuation Principle as a clear, unifying framework. Throughout the text, its many applications use familiar Australian examples and makes consistent use of real-world data. This Australian adaptation of the highly successful US text Fundamentals of Corporate Finance features a high-calibre author team of respected academics. The second edition builds on the strengths of the first edition, and incorporates updated figures, tables and facts to reflect key developments in the field of finance. For corporate finance or financial management students, at undergraduate or post-graduate level.
Download or read book Firm Investment and Balance Sheet Problems in Japan written by Mr. Toshitaka Sekine and published by International Monetary Fund. This book was released on 1999-08-01 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper investigates whether balance-sheet conditions of firms and their main banks matter for firm investment behavior using dynamic corporate panel data in Japan for the period 1985-95. It finds that smaller non-bond issuing firms were facing liquidity constraints; these firms’ balance-sheet conditions (the debt asset ratios) affected their investment from the midst of the bubble era by influencing main banks’ lending to them; and the deterioration of their main banks’ balance-sheet conditions constrained these firms’ investment from about 1993. These findings highlight the potential macroeconomic impact and importance of the credit channel of monetary policy, and support the case of a credit crunch facing small Japanese firms during this period.
Download or read book OECD Journal written by and published by . This book was released on 2008 with total page 324 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Australian National Bibliography 1992 written by National Library of Australia and published by National Library Australia. This book was released on 1988 with total page 1976 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Financial Management Principles and Applications written by J William Petty and published by Pearson Higher Education AU. This book was released on 2015-05-20 with total page 809 pages. Available in PDF, EPUB and Kindle. Book excerpt: The sixth edition of Financial Management provides students with an overview of financial management suited to the first course in finance. The focus of the text is on the big picture, providing an introduction to financial decision making grounded in current financial theory and the current state of world economic conditions. Attention is paid to both valuation and capital markets, as well as their influence on corporate financial decisions. The 10 basic principles of finance are introduced in the first chapter and woven throughout the text, to give students a solid foundation from which to build their knowledge of finance. The goal of this text is to go beyond teaching the tools of a discipline or a trade and help students gain a complete understanding of the subject. This will give them the ability to apply what they have learnt to new and as yet unforeseen problems—in short, to educate students in finance.
Download or read book Financial Issues in Emerging Economies written by Rita Biswas and published by Emerald Group Publishing. This book was released on 2020-11-10 with total page 370 pages. Available in PDF, EPUB and Kindle. Book excerpt: This special issue focuses on a gamut of topics ranging from monetary policy to corporate governance in emerging economies. Of the eleven papers it includes, five were selected from the II International Conference on Economics and Finance (ICEF-II) in Bengaluru, India.
Download or read book Australian Financial System written by Committee of Inquiry into the Australian Financial System and published by . This book was released on 1981 with total page 886 pages. Available in PDF, EPUB and Kindle. Book excerpt:
