Download or read book Financial Decisions and Investment Outcomes in Developing Countries written by Rima Turk and published by International Monetary Fund. This book was released on 2015-02-25 with total page 41 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper analyzes how differences in legal origin, judicial efficiency, and investor protection affect firm leverage and earnings volatility across developing countries. Using a large number of developing countries, four main findings are highlighted. First, firms in civil legal origin countries rely more on debt financing compared to firms in common law countries, and they exhibit lower earnings volatility. Second, under weak judicial enforcement, firms tend to borrow more but they take less risk. Third, stronger creditor rights increase debt financing and reduce earnings volatility. Fourth, firm listing on a developed stock exchange shifts the capital structure towards more equity financing, and it increases the firm’s ability to borrow more when the judicial system is inefficient. The results reinforce the importance of strengthening laws and institutions as well as deepening capital markets in developing countries to improve financing conditions and investment outcomes.

Download or read book Empirical Investment Equations in Developing Countries written by Rama Martín and published by . This book was released on 1990 with total page 58 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Global Investment Competitiveness Report 2019 2020 written by World Bank Group and published by World Bank Publications. This book was released on 2020-07-06 with total page 321 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Global Investment Competitiveness Report 2019-2020 provides novel analytical insights, empirical evidence, and actionable recommendations for governments seeking to enhance investor confidence in times of uncertainty. The report's findings and policy recommendations are organized around "3 ICs" - they provide guidance to governments on how to increase investments' contributions to their country's development, enhance investor confidence, and foster their economies' investment competitiveness. The report presents results of a new survey of more than 2,400 business executives representing FDI in 10 large developing countries: Brazil, China, India, Indonesia, Malaysia, Mexico, Nigeria, Thailand, Turkey, and Vietnam. The results show that over half of surveyed foreign businesses have already been adversely affected by policy uncertainty, experiencing a decrease in employment, firm productivity, or investment. Foreign investors report that supporting political environments, stable macroeconomic conditions, and conducive regulatory regimes are their top three investment decision factors. Moreover, the report's new global database of regulatory risk shows that predictability and transparency increase investor confidence and FDI flows. The report also assesses the impact of FD! on poverty, inequality, employment, and firm performance using evidence from various countries. It shows that FDI in developing countries yields benefits to their firms and citizens-including more and better-paid jobs-but governments need to be vigilant about possible adverse consequences on income distribution. The report is organized in S chapters: Chapter 1 presents the results of the foreign investor survey. Chapter 2 explores the differential performance and development impact of greenfield FDI, local firms acquired by multinational corporations {i.e. brownfield FDI), and domestically-owned firms using evidence from six countries. Chapter 3 assesses the impact of FDI on poverty, inequality, employment and wages, using case study evidence from Ethiopia, Turkey and Vietnam. Chapter 4 presents a new framework to measure FDI regulatory risk that is linked to specific legal and regulatory measures. Chapter S focuses on factors for increasing the effectiveness of investment promotion agencies.

Download or read book Financial Decisions and Investment Outcomes in Developing Countries written by Rima Turk and published by International Monetary Fund. This book was released on 2015-02-25 with total page 41 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper analyzes how differences in legal origin, judicial efficiency, and investor protection affect firm leverage and earnings volatility across developing countries. Using a large number of developing countries, four main findings are highlighted. First, firms in civil legal origin countries rely more on debt financing compared to firms in common law countries, and they exhibit lower earnings volatility. Second, under weak judicial enforcement, firms tend to borrow more but they take less risk. Third, stronger creditor rights increase debt financing and reduce earnings volatility. Fourth, firm listing on a developed stock exchange shifts the capital structure towards more equity financing, and it increases the firm’s ability to borrow more when the judicial system is inefficient. The results reinforce the importance of strengthening laws and institutions as well as deepening capital markets in developing countries to improve financing conditions and investment outcomes.

Download or read book Economics for Investment Decision Makers written by Christopher D. Piros and published by John Wiley & Sons. This book was released on 2013-03-05 with total page 16 pages. Available in PDF, EPUB and Kindle. Book excerpt: The economics background investors need to interpret global economic news distilled to the essential elements: A tool of choice for investment decision-makers. Written by a distinguished academics and practitioners selected and guided by CFA Institute, the world’s largest association of finance professionals, Economics for Investment Decision Makers is unique in presenting microeconomics and macroeconomics with relevance to investors and investment analysts constantly in mind. The selection of fundamental topics is comprehensive, while coverage of topics such as international trade, foreign exchange markets, and currency exchange rate forecasting reflects global perspectives of pressing investor importance. Concise, plain-English introduction useful to investors and investment analysts Relevant to security analysis, industry analysis, country analysis, portfolio management, and capital market strategy Understand economic news and what it means All concepts defined and simply explained, no prior background in economics assumed Abundant examples and illustrations Global markets perspective

Download or read book Fiscal Policy and Private Investment in Developing Countries written by Ajay Chhibber and published by World Bank Publications. This book was released on 1990 with total page 48 pages. Available in PDF, EPUB and Kindle. Book excerpt: The key to sustained recovery in developing countries is the revival of private investment. This revival requires a coordinated set of credible policies - fiscal, exchange rate, tax, and public expenditure restructuring. In several countries the debt overhang is also an obstacle to achieving that credibility.

Download or read book Reviving Private Investment in Developing Countries written by A. Chhibber and published by Elsevier. This book was released on 2013-10-22 with total page 256 pages. Available in PDF, EPUB and Kindle. Book excerpt: The aim of the research described in this volume is to examine the behavior of private domestic investment in a sample of seven developing economies: Chile, Colombia, Egypt, Indonesia, Morocco, Turkey, and Zimbabwe. The studies represent a first step toward understanding the investment process in developing countries and the scope for government policy to affect private capital formation. Such issues will become increasingly important in the future as more developing countries try to encourage private investment. Four key issues emerge in the analysis of the determinants of private investment and its role in adjustment programs in developing countries. The first is the impact of changes in the exchange rate; the second major concern is the existence of crowding out of private activity as a result of government borrowing in domestic financial markets through interest rates or quantity rationing. A third and related issue is whether government spending, particularly that on investment, "crowds in" or "crowds out" private capital formation. Fourth, the effects of uncertainty are important in determining the response of private agents to changes in the incentive structure.

Download or read book Financial Market Constraints and Private Investment in a Developing Country written by Mr.Omotunde E. G. Johnson and published by International Monetary Fund. This book was released on 1990-12-01 with total page 31 pages. Available in PDF, EPUB and Kindle. Book excerpt: Firms in developing countries that seek outside financing for investment must often choose their debt-equity combinations in the face of financial market constraints on debt service, on outside equity financing, and on internal finance (endowments). Inefficiencies in the allocation of available finance and in the equity-debt choices that can ensue can be prevented by appropriate policy measures to improve information on profitable investment opportunities and about firms; to directly strengthen financial intermediation; and to support appropriate credit guarantee schemes.

Download or read book Trends in Private Investment in Developing Countries 1992 Edition written by Guy Pierre Pfeffermann and published by . This book was released on 1992 with total page 48 pages. Available in PDF, EPUB and Kindle. Book excerpt: "For the 47 countries covered, 1997 was a record year for private investment, while public investment declined to its lowest level since 1975." This is the tenth annual edition of 'Trends in Private Investment in Developing Countries'. It pulls together information provided by national organizations, World Bank and IMF economists in order to estimate levels of private investment. For the first time, China has been included in this series. The first part of this volume documents trends in private and public fixed investment. The second part presents country-specific results of a 1996/97 worldwide survey of business executives. The discussion focuses on obstacles to doing business in each of the 74 countries covered (including industrial economies) and their relationship to levels of private investment. A few factors emerge as being of particular importance to private investment decisions: the real exchange rate, the rule of law, predictability of judiciary systems, and the extent to which financing is available to enterprises.

Download or read book The Investment Decision A Re Examination of Competing Theories Using Panel Data written by Cherian Samuel and published by . This book was released on 1999 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: September 1996 For firms, the single most important determinant of capital spending appears to be cash flow. Firm managers care more about cash flow and cost of capital than about stock market signals and level of output. In the United States, gross business investments in plant and equipment (fixed investments) constitute only about 10 percent of GNP, but such investments may represent GNP's most important component because (1) plant and equipment have a long-term effect on the economy's productive capacity, (2) changes in investment spending directly affect levels of employment and workers' incomes in durable goods industries, and (3) supply and demand are sensitive to changes in investment, which is the most volatile component of GNP. Economists have long been concerned about what - in the economy, the industry, and the firm - determines investments in capital spending. Using a panel of data for U.S. manufacturing firms for 1972-90, Samuel compares five theories of investment: accelerator theory, cash flow theory (liquidity model, managerial model, and information-theoretic model), neoclassical theory, modified neoclassical (Bischoff) theory, and Q theory. If the results from cross-section regressions can be viewed as representing the long-term equilibrium, the single most important determinant of capital spending appears to be cash flow. Apparently, managers care more about cash flow and cost of capital than about stock market signals and the level of output. And at the firm level, managerial perceptions about fundamentals are more important than market perceptions. For managers, the stock market may be a side show to capital spending decisions. To generalize in a way that might be useful for developing countries: Financial decisions at the firm level are closely linked to real decisions in the economy. Internal finance is the most important source of funds, and capital spending is the most important use of funds, so there is a close relationship betwen real and financial decisions. This paper - a product of the Operations Policy Group, Operations Policy Department - is part of a larger effort in the department to disseminate results of policy analysis. The author may be contacted at [email protected].

Download or read book Private Finance for Development written by Hilary Devine and published by International Monetary Fund. This book was released on 2021-05-14 with total page 161 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Covid-19 pandemic has aggravated the tension between large development needs in infrastructure and scarce public resources. To alleviate this tension and promote a strong and job-rich recovery from the crisis, Africa needs to mobilize more financing from and to the private sector.

Download or read book Saving Investment and Growth in Developing Countries written by Klaus Schmidt-Hebbel and published by World Bank Publications. This book was released on 1994 with total page 56 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Investing for Sustainable Development written by Just Economics (Firm) and published by IIED. This book was released on 2011 with total page 76 pages. Available in PDF, EPUB and Kindle. Book excerpt: "How can investors be encouraged to consider more than purely commercial and short-term gains? Various sets of investment principles have emerged in recent years. These principles aim to incorporate social, environmental and governance criteria into investment decisions in order to enhance the benefits and reduce the damaging effects of investment for development. Increasing numbers of organisations are signing up to these principles for reasons that range from improving their reputation to minimising risks and improving long-term investment prospects. Yet their impact on sustainable development remains unproven. Focusing on four major sets of investment principles - the UN Principles for Responsible Investment (PRI), the Equator Principles, the Environmental and Social Principles of the European Investment Bank (EIB), and the OECD Declaration on International Investment and Multinational Enterprises - Investing for sustainable development? takes a first step in assessing the content, take-up, implementation and impact of investment principles. The study finds that the main impact of investment principles on sustainable development so far is mitigation of the worst effects of investments rather than a shift in the underlying basis of decision-making. Investors are generally unwilling to compromise high returns for improved sustainable development outcomes. The authors call for better monitoring and measurement of the impact of investment principles, as well as a better understanding of the broader institutional changes required to support them so the next generation of investment principles can be more ambitious and bring about investment that supports, rather than undermines, sustainable development."--Publisher description.

Download or read book Real Exchange Rate Uncertainty and Private Investment in Developing Countries written by Luis Servén and published by World Bank Publications. This book was released on 2002 with total page 24 pages. Available in PDF, EPUB and Kindle. Book excerpt: Serven examines empirically the link between real exchange rate uncertainty and private investment in developing countries using a large cross country-time series data set. He builds a GARCH-based measure of real exchange rate volatility and finds that it has a strong negative impact on investment, after controlling for other standard investment determinants and taking into account their potential endogeneity. The impact of uncertainty is not uniform, however. There is some evidence of threshold effects, so that uncertainty only matters when it exceeds some critical level. In addition, the negative impact of real exchange rate uncertainty on investment is significantly larger in economies that are highly open and in those with less developed financial systems.

Download or read book The Investment Decision written by Cherian Samuel and published by . This book was released on 2016 with total page 60 pages. Available in PDF, EPUB and Kindle. Book excerpt: For firms, the single most important determinant of capital spending appears to be cash flow. Firm managers care more about cash flow and cost of capital than about stock market signals and level of output. In the United States, gross business investments in plant and equipment (fixed investments) constitute only about 10 percent of GNP, but such investments may represent GNP's most important component because (1) plant and equipment have a long-term effect on the economy's productive capacity, (2) changes in investment spending directly affect levels of employment and workers' incomes in durable goods industries, and (3) supply and demand are sensitive to changes in investment, which is the most volatile component of GNP.Economists have long been concerned about what - in the economy, the industry, and the firm - determines investments in capital spending. Using a panel of data for U.S. manufacturing firms for 1972shy;90, Samuel compares five theories of investment: accelerator theory, cash flow theory (liquidity model, managerial model, and information-theoretic model), neoclassical theory, modified neoclassical (Bischoff) theory, and Q theory.If the results from cross-section regressions can be viewed as representing the long-term equilibrium, the single most important determinant of capital spending appears to be cash flow. Apparently, managers care more about cash flow and cost of capital than about stock market signals and the level of output. And at the firm level, managerial perceptions about fundamentals are more important than market perceptions. For managers, the stock market may be a side show to capital spending decisions.To generalize in a way that might be useful for developing countries: Financial decisions at the firm level are closely linked to real decisions in the economy. Internal finance is the most important source of funds, and capital spending is the most important use of funds, so there is a close relationship betwen real and financial decisions.This paper - a product of the Operations Policy Group, Operations Policy Department - is part of a larger effort in the department to disseminate results of policy analysis. The author may be contacted at [email protected].

Download or read book Finance and Development written by Christopher J. Green and published by Edward Elgar Publishing. This book was released on 2006-01-01 with total page 465 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this new book a group of 18 distinguished authors presents comprehensive surveys of current issues in the field of finance and development. . . This book nicely bridges the gap between general research on the role of finance for economic growth and the role finance plays for developing economies and poverty reduction. . . Moreover, the authors identify a great number of promising ideas for future research. . . Ryszard Kokoszczynski, SUERF Newsletter The European Money & Finance Forum In the last two decades, the role of finance in the development process has become a major topic of research and debate. Although it is widely agreed that there is an important link between the two, there is much less consensus on the exact nature of the relationship. Is financial development a prerequisite for general economic development, or is it a more passive by-product of the development process? In this valuable new book, a distinguished group of authors takes stock of the existing state of knowledge in the field of finance and the development process. Each chapter offers a comprehensive survey and synthesis of current issues. These include such critical subjects as savings, financial markets and the macroeconomy, stock market development, financial regulation, foreign investment and aid, financing livelihoods, microfinance, rural financial markets, small and medium enterprises, corporate finance and banking. This book will be accessible to postgraduate and advanced undergraduate students of finance and development. It will also be an essential reference source for all professionals and academics working in this area who want to learn how finance can contribute to the development process and poverty reduction.

Download or read book Private Investment and Macroeconomic Adjustment written by Luis Serven and published by . This book was released on 1989 with total page 54 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper reviews current investment theories, recent models linking macroeconomic policies and private investment, and the effect of uncertainty and credibility on irreversible investment decisions. Empirical studies on the subject are also reviewed, and the general implications of this literature for the design of growth- oriented adjustment programs are discussed.