Suchergebnisse

Equity investment is an important component of domestic investment and for over two decades Nigeria has witnessed volatility in the value of equity investment. The objectives of the study are to examine the effects of interest rate and domestic debt on private equity investment growth in Nigeria covering the 1987-2010 period as well as to determine if government borrowing crowds out private investment and borrowing. We used the co-integration technique to test the long run relationship among the variables and went to use standard ordinary least squares technique and error correction analysis. The results show that domestic debt and GDP growth rate had a positive effect on equity investment as expected. On the other hand, monetary policy rate had a negative effect on equity investment. The results of this article have crucial implications on the desire by individuals, firms and governments to participate in the equity investment market and policy-makers' decisions. The Nigerian government should take cognisance of the 25 percent debt-to-GDP benchmark as adopted by the Federal Executive Council in 2010 and the revision to 30 percent in view of recent realities or the international norm of 60 percent target. Furthermore, funds from debt should be used productively and avoid misappropriation. The monetary policy rate should be allowed to exhibit the interplay of the market forces so as to encourage both internal and external capital investment in the Nigerian economy.

Debt and equity issuance are procyclical for most size-sorted firm categories of listed US firms and the procyclicality of equity issuance decreases monotonically with firm size. At the aggregate level, however, the results for equity issuance are not conclusive due to different behavior of the largest firms, especially those in the top one percent. During a deterioration in economic conditions, firms limit the impact of the reduction in external financing on investment by shedding financial assets. This is true for a worsening in aggregate as well as firm-specific conditions. (JEL E32, G32, L11, L25)

Debt Equity Swaps sind en vogue. Nach aufsehenerregenden Fällen der Unternehmensmigration nach England, wurde die Umsetzbarkeit von Debt Equity Swaps zu dem wesentlichen Indikator für die Wettbewerbsfähigkeit eines Sanierungsstandorts. Der Gesetzgeber des ESUG hat § 225a Abs. 2 InsO als pars pro toto für moderne Sanierungsinstrumente in die InsO eingeführt, wobei das englische Recht als leuchtendes Vorbild diente. Diese sehr spezielle und eher praktische Fragestellung eignet sich für eine induktive Untersuchung der übergeordneten Frage, welchen Einfluss die Insolvenz einer Gesellschaft auf die Rechtsposition ihrer Gläubiger und Anteilseigner hat. Anhand einer komparativen Analyse der Umsetzung von Debt Equity Swaps nach englischem und deutschem Recht soll mit der Arbeit herausgearbeitet werden ob und unter welchen Voraussetzungen es sich bei diesem Trend um eine bloße Modeerscheinung oder ein taugliches Sanierungsinstrument handelt

Several researchers have recently shown an interaction between macroeconomic variables and stock returns. Most of these studies have concentrated on interest rates and inflation. These and other variables, of course, have an influence on the debt markets as well. Other variables that can influence the debt and equity markets include employment information. On the first Friday of each month the government releases its employment report for the previous month. Strong growth in employment generally bodes well for economic output and growth in the economy. Any inflation and interest rate implications of a strong employment report will ultimately be reflected in bond and stock prices. It is generally observed that if payroll employment growth is moderately strong prices in the bond market drop while prices in the stock market rise. The empirical evidence presented supports these observations. This study documents the reaction of the bond and the stock markets in response to the employment reports. As the unemployment rate tends to rise so do the bond and the stock markets.

This paper examines the distributional and efficiency effects of different debt reduction schemes in Italy. To finance a given deficit reduction path, we introduce the so-called Eurotax and endogenously adjust either the consumption tax rate or lump-sum transfers in order to balance the budget. The analysis is based on a numerically specified overlapping generations model of the Auerbach-Kotlikoff type which distinguishes five different lifetime in-come classes within each age cohort. Our simulations suggest that the debt reduction in Italy will increase the welfare of future generations between 1 and 3 per cent of their lifetime resources. Mainly this is due to the implied reduction in future net tax burdens. However, factor price repercussions as well as efficiency gains might also be substantiaüy beneficial to future generations. Finally, while the Eurotax is clearly progressive, consumption taxation is revealed to be, at least in our model, regressive even in the long run.