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The behavior of short-term debt for long-term investment (SFLI) will probably worsen the business status of the enterprise and increase the financial risk of the enterprise. Will the credit term structure of heavily polluting enterprises improve or worsen as the environmental regulatory pressure increases? This study takes the implementation of China’s new Environmental Protection Law (NEPL) as a quasi-natural experiment to evaluate the impact of environmental regulatory pressure on the short-term debt for long-term investment behavior of heavy-polluting enterprises by the approach of Difference-in-Differences (DID). The results reveals that the NEPL significantly helps heavy-polluting enterprises achieve a more sustainable development mode by alleviating their maturity mismatch problem between investment and financing of heavy-polluting enterprises, which is conducive to reducing business risks. The impact mechanisms test shows that environmental regulatory pressure is likely to inhibit their investment and financing behavior, and might generate a crowding-out effect of innovation. When considering the heterogeneity of enterprise, the impact of the NEPL is not significant in state-owned enterprises, key-monitoring enterprises, and large-scale enterprises. However, the non-consistent effect as well as the innovation crowding-out effect, need more collaborative governance countermeasures. This paper reveals the consequences of environmental regulation policies from the view of corporate’s credit term structure and provides new evidence for supporting the Porter hypothesis through addressing the dilemma of SFLI in heavily polluting enterprises.

The choice of capital structure (capst) has significant implications for a firm's financial performance and value. It is always a challenge for the firms to make the right decision on the capst proportion. The study identifies the firm variables that sway the capst decisions of the US automotive industry. In this study, we utilize unbalanced panel data from 86 firms for the period 2011-2022 making up a total of 670 firm/year observations. The dependent variable is the firm's capital structure proxied by total debt ratio, long-term debt ratio, and short-term debt ratio, while the independent variables are sales growth, firm size, profitability of firm, and tangibility ratio. Through a quantitative approach and panel regression, the study concluded that profitability of firm has a negative and significant impact on both total debt ratio and short-term debt, while sales growth, firm size, and tangibility ratio have no significant impact on any of the debt variables representing capital structure. These findings provide insights into the financial practices of the US automotive industry sample and can support future decision-making in the industry. These insights can inform decision-making related to capst choices, financial risk management, and strategic planning for automotive industry firms.

We investigate the role of firms' country of origin in financial leverage decisions. Foreign joint ventures in China face a common set of country-level formal institutional constraints, but vary in the cultural values they bring from their countries of origin. We hypothesize that national culture enters the joint optimization process, leading to foreign joint ventures' leverage decisions, and that it affects leverage decisions both directly and indirectly. Employing a hierarchical linear model distinguishing firm-level from country-level variables, and a data set covering over 8000 foreign joint ventures in China from 32 different countries and regions in the year 2002, we find that mastery has negative and significant direct effects on foreign joint ventures' leverage and short-term debt decisions, and a positive and significant direct effect on the likelihood of foreign joint ventures having long-term debt. The indirect effects of mastery on leverage decisions sometimes reinforce and sometimes offset the direct effects. Embeddedness has no significant direct effect on foreign joint ventures' leverage decisions, but exerts its influence entirely through indirect effects. Finally, the economic significance analysis of the total effects suggests that national culture has significant explanatory power in the leverage decisions of foreign joint ventures in China.

We use the recent financial crisis to investigate financing constraints of private small and medium-sized enterprises (SMEs) in Belgium. We hypothesize that SMEs with a large proportion of long-term debt maturing at the start of the crisis had difficulties to renew their loans due to the negative credit supply shock, and hence could invest less. We find a substantial variation in the maturity structure of long-term debt. Firms which at the start of the crisis had a larger part of their long-term debt maturing within the next year experienced a significantly larger drop in investments in 2009. This effect is driven by firms which are ex ante more likely to be financially constrained. Consistent with a causal effect of a credit supply shock to corporate investments, we find no effect in \"placebo\" periods without a negative credit supply shock.

Debt financing is important for financing major investments in the biopharmaceutical industry. Debt financing allows companies to raise funds without giving up ownership or control through indenture and covenants of the company. In this study, I analyze the effects of debt financing decisions on profitability in the biopharmaceutical industry. I find that short-term debt, long-term debt, and total debt negatively impact the return on assets (ROA) as a firm’s profitability measure. A comparison is made between American and European biopharmaceutical firms, and the result shows the negative effects of short-term and long-term debt on profitability persist more for US biopharmaceutical firms than European firms. Short-term and long-term debt both impact profitability negatively with 10-year lagged R&D intensity and financial distress. Short-term debt’s negative impact is stronger post-COVID-19, indicating increased financial strain. Long-term debt consistently affects profitability negatively, with relatively stable effects during the pre- and post-COVID-19 pandemic.

This study analyzes how the trade-off theory, capital financing priority theory, and market timing hypothesis impact corporate capital structure for sustainable growth. Using a panel regression and system generalized method for moment analyses with balanced panel data for 1636 listed firms in the Korean stock market and KOSDAQ from 2011 to 2021, we discovered that the level of and change in capital structure are determined through a complex mechanism in which the target debt ratio adjustment speed, previous year’s debt ratio, target debt ratio divergence, funding shortage situation, and market timing hypothesis interact complementarily. This indicates that the capital structure decisions of Korean listed firms are characterized by a complex mechanism that is difficult to explain with a single theory. The findings of this study have practical implications for understanding the capital structure decisions of Korean firms and for designing efficient capital-raising strategies. Additionally, by revealing the complementary relationship between the two theories, this study provides directions for future research on corporate capital structure.

The aim of the study was to investigate the effect of capital structure as measured by total debt ratio (TOD) and long term debt ratio (LTD), on operating performance and financial performance as measured by Net Operating Profitability (NOP) and Return on Assets (ROA), respectively. Four hundred and twenty-five panel observations were obtained using the financial statements of a sample of 85 manufacturing enterprises for the years 2017 to 2021. In addition to descriptive statistics of mean, standard deviation, minimum, and maximum value, Pearson's correlation analysis, robusted random effect, and two step system Generalized Moment Method (GMM) model were employed to analyse the data. The result revealed that each of TOD and LTD have negative and significant effects on NOP and ROA which supports the pecking order theory, whereas control variables of FATR and FS have positive and significant effect on NOP and ROA at conventional significance level. To improve performance and maintain profitability, financial managers are advised to implement sound capital structure policies and lower the level of debt. The purpose of the study was to establish relationship and examine the effect of capital structure on the performance of Ethiopian Manufacturing Companies. This study is relevant and has contributed to four stakeholders. First, policymakers can use as an intervention mechanism for financing requirement. Second, financial managers of manufacturing companies can consider the debt equity mix while setting financing policy that enhances performance. Third, researchers can consider as special point of reference for further research. Finally, to the academia, the study has obtained evidence supporting the pecking order theory of capital structure that explains the arena of manufacturing companies in Ethiopia.

Globally, SMEs contribute immensely to economic growth and development in both developed and developing countries. This necessitate the need for funding for SMEs for them to contribute meaningfully and sustainably to economic growth and development. Nevertheless, SMEs funding remain a challenge in most countries especially developing ones. Therefore, this study aimed to establish the effect of debt financing (short-term debt, long-term debt, and trade credit) on the financial performance of SMEs in Zimbabwe. Financing SMEs has been a challenge for many SMEs worldwide. Notwithstanding that SMEs contribute immensely to the growth of an economy, SMEs remain underfunded especially in developing economies. Their contributions include poverty reduction, increased job opportunities, competitiveness, and productivity in the industrial sector. This study adopted a positivism philosophy and a cross sectional survey design. Quantitative data were gathered from 210 SMEs using a structured questionnaire with Likert-type responses. The findings show that debt financing (short-term debt, long-term debt, and trade credit) positively influences the financial performance in emerging markets. This study contributes to studies that prove a significant relationship between debt financing and financial performance in sectors other than SMEs. Thus, SMEs are advised to use debt financing to improve their financial performance.

Formal dynamic analyses of household portfolio choice in the literature focus on holdings of equity and a risk-free asset or bonds of different maturities, neglecting the interdependence of the decisions to invest in equity, short-term and longterm bonds made by households. Data from the Survey of Consumer Finances is used to derive stylized facts about participation in the long-term governmentdebt market and conditional portfolio shares. To explain the mechanisms underlying these facts, I draw on a life-cycle model in which investors have access to three financial assets-equity, long-term debt, and a riskless short-term bond- and are exposed to uninsurable idiosyncratic risk through nonfinancial income as well as aggregate risk through the asset returns. An application shows that the low Treasury returns observed in the US between 2009 and 2013 have quantitatively significant yet transitory effects on the composition of household portfolios. In combination with the observed rise in stock returns, they lead to persistent changes in the participation rate, the conditional portfolio shares, and the distribution of wealth.