際際滷

際際滷Share a Scribd company logo

BRM STL

Download as PPTX, PDF
H
Haroon Adil

This document presents a comparison of capital structures between German and US firms. It discusses hypotheses around the relationship between short-term liabilities and profitability. The authors analyze secondary data from 125,000 German manufacturing firms between 1988-2000 and 15,000 US manufacturing firms between 1984-2004. They use multivariate linear regression models to examine how short-term debt ratios impact return on assets as the measure of profitability. The results provide insights into differences in capital structures between the bank-based German financial system and the market-based US system.

1 of 20
Download to read offline
A COMPARISON OF GERMAN AND US FIRMS
Presenters: M. Zubair (21) Shadab Mustafa (11) Haroon adil (24)
Scheme of Presentation: Part-I : The Article (introduction) (Presenter: Zubair) Part-II : Hypothesis (Presenter: Shadab) Part-III : Results (Presenter: Haroon) Part-IV : Question/ Answer Session (The Group)
PART 1: INTRODUCTION Authors: Christopher F Baum i. US citizen ii. Boston college and DIW Berlin iii. Specialty in STATA iv. 80 Articles and 02 books Dorothea Schafer i. German citizen ii. DIW Berlin iii. Research director financial market iv. 51 Articles and 02 books Oleksandr Talavera i. German citizen ii. DIW Berlin iii. Specialty in Econometrics iv. 80 Articles
INTRODUCTION The Topic Provides Information about: Capital structure Debt maturity structure Short term liabilities and profitability Liability maturity structure has an impact of firms performance.
INTRODUCTION The Topic Provides Information about: Firms rely more on short term debt are more profitable. Financial Systems : bank-based and market-based. Data used -- Manufacturing firms only.
Hypothesis and their relationship Hypothesis Presented By: Relationship Depend. In depend. Variable Variable Contracting-cost Myers (1977) NEGETIVE ROA STL Hypothesis Signalling Diamond(1991) NEGETIVE ROA STL hypothesis Tax hypothesis Brick and Ravid POSITIVE ROA STL (1985)
Data and Sample German data: Taken from BUNDESBANK.(State bank) 125000 manufacturing firms. From 1988 to 2000 US data: Taken from COMPUSTAT. (research firm) 15000 manufacturing firms. From 1984 to 2004.
VARIABLES Profitability (ROA)- Dependent variable. Liquidity (cash/TA)- Independent variable. Sales-to-assets ratio- Independent variable. ST/TL- key variable. Size of the firm- Log(labor)
OUTLIERS: Below 1% and above 99% SIZE OF FIRMS Small Below 25% Large Above 75% and 99%
Model Information Model Used: Multivariate Linear Regression DPD, PAM. Data Type: Secondary Data Source: External(Documentary)/Secondary Time Horizon: Longitudinal
Model
BRM STL
BRM STL
BRM STL
BRM STL
BRM STL
BRM STL
Reviewers Notes: An international research New concept introduced in the field No information is provided about data source in the article. Unbiased and convincing No information about sample period of data.
? Question/ Answer Session ( The Group)

More Related Content

BRM STL

  • 1. A COMPARISON OF GERMAN AND US FIRMS
  • 2. Presenters: M. Zubair (21) Shadab Mustafa (11) Haroon adil (24)
  • 3. Scheme of Presentation: Part-I : The Article (introduction) (Presenter: Zubair) Part-II : Hypothesis (Presenter: Shadab) Part-III : Results (Presenter: Haroon) Part-IV : Question/ Answer Session (The Group)
  • 4. PART 1: INTRODUCTION Authors: Christopher F Baum i. US citizen ii. Boston college and DIW Berlin iii. Specialty in STATA iv. 80 Articles and 02 books Dorothea Schafer i. German citizen ii. DIW Berlin iii. Research director financial market iv. 51 Articles and 02 books Oleksandr Talavera i. German citizen ii. DIW Berlin iii. Specialty in Econometrics iv. 80 Articles
  • 5. INTRODUCTION The Topic Provides Information about: Capital structure Debt maturity structure Short term liabilities and profitability Liability maturity structure has an impact of firms performance.
  • 6. INTRODUCTION The Topic Provides Information about: Firms rely more on short term debt are more profitable. Financial Systems : bank-based and market-based. Data used -- Manufacturing firms only.
  • 7. Hypothesis and their relationship Hypothesis Presented By: Relationship Depend. In depend. Variable Variable Contracting-cost Myers (1977) NEGETIVE ROA STL Hypothesis Signalling Diamond(1991) NEGETIVE ROA STL hypothesis Tax hypothesis Brick and Ravid POSITIVE ROA STL (1985)
  • 8. Data and Sample German data: Taken from BUNDESBANK.(State bank) 125000 manufacturing firms. From 1988 to 2000 US data: Taken from COMPUSTAT. (research firm) 15000 manufacturing firms. From 1984 to 2004.
  • 9. VARIABLES Profitability (ROA)- Dependent variable. Liquidity (cash/TA)- Independent variable. Sales-to-assets ratio- Independent variable. ST/TL- key variable. Size of the firm- Log(labor)
  • 10. OUTLIERS: Below 1% and above 99% SIZE OF FIRMS Small Below 25% Large Above 75% and 99%
  • 11. Model Information Model Used: Multivariate Linear Regression DPD, PAM. Data Type: Secondary Data Source: External(Documentary)/Secondary Time Horizon: Longitudinal
  • 12. Model
  • 19. Reviewers Notes: An international research New concept introduced in the field No information is provided about data source in the article. Unbiased and convincing No information about sample period of data.