Home > Financial Signaling and Information Asymmetries in Debt Vs. Equity The Theory and Empirics Among Emerging and Transitional Market: Perspective from Pakistan
Financial Signaling and Information Asymmetries in Debt Vs. Equity The Theory and Empirics Among Emerging and Transitional Market: Perspective from Pakistan
This study examines the relative effect of capital structure theories and the determinants to establish best understanding of the most appropriate theory to explain debt vs. equity hypothesis and the behavior of firms. The theories provide theoretical basis to compare with empirical findings of quantitative analysis. This study covers the period from the period 2001 to 2010 of listed companies of Karachi Stock Exchange, Pakistan. It is obvious that determinants of capital structure affect the choice of debt vs. equity in emerging and transitional economies. A number of econometric models from OLS to EBA are being used to identify the empirical evidences for this perspective. The results reveal that seven variables: investment growth opportunity (IGO), agency cost (AC), liquidity (CR), financial flexibility (FF), free cash flows (FCF), tax effect (DP) and interest rate (IR) have robust - signaling relationship and highly sensitive to debt vs. equity. This study explains the financial signaling and asymmetry of information risk due to debt vs. equity decisions. For the whole sample period, the study found evidence of financial signaling and information asymmetries of risk due to Debt vs. Equity decisions. There is a significant effect of the systematic risk (β), should also report about the persistence of negative effect during the sample period. There is a significant effect of the interest rate (IR). The empirical results report about the persistence of interest rate (IR) negative effect during the sample period. It is observed and resulted that increase in debt vs. equity negatively associated with the value of the firm. This proved inverse relationship among debt vs. equity and firm value variables. This showed inconsistency of prior findings as Modigliani and Miller (1958) theory that the market value is irrelevant to financial policy. The results presented that corporate corporate governance (CG) has significant effect on firm performance (FP) under transaction cost economics theory and good management theory. It is obvious from the results that corporate governance (CG) has significant effect on the firm value. In addition, it is also shown that corporate governance (CG) does have mediating and moderating effect in between the corporate financial structure (CFS) and firm value. The negative relationship shows an agency problem. Therefore, the investors do not have the equal information of the particular firm as the manager holds. Furthermore, the financial signaling and asymmetries of information hypothesis reflected that choice of debt or equity must have influence the behavior of the investor due to information asymmetries, it is seen negative and increase threaten of bankruptcy and financial distress. It is found that product and asset specificity diversification have a significant relationship with capital structure for best alignment of cost with trade off signaling and asymmetric risk. However, Extreme Bound Analysis (EBA) an econometric technique is used to analyze the variables and investigates the significant empirical findings. The empirical findings of the study have implications for risk management appropriately to reflect the effect on financial decisions in emerging and transitional economies.
This study aims to (1) examine the learning outcomes of students' reading comprehension in class III SD Inpres Parang Makassar using power point media; (2) assessing the learning outcomes of students' reading comprehension in grade III SD Inpres Parang Makassar without using power point media; (3) examining the effectiveness of power point media to improve learning outcomes for reading comprehension of third grade students of SD Inpres Parang Makassar. This study used an experimental research design with a posttest only control design. The population of this research is the third grade students of SD Inpres Parang Makassar. The data that had been collected were analyzed using descriptive statistical techniques and parametric inferential statistics type T Test that were processed using the SPSS version 20 windows computer program. The results of hypothesis testing show that (1) the value of t-count shows the number -9.708 with sig. (2 tailed) = 0.000. At the 95% significance level with 46 degrees of freedom. Because the significance value or p-value <0.005, then the null hypothesis (H0) is rejected or in other words the alternative hypothesis (H1) is accepted. Thus, it can be concluded that there is a significant difference between the pretest and posttest scores in the experimental class in the learning outcomes of students in class IIIB SD Inpres Parang Makassar. The use of power point media to improve students' reading comprehension learning outcomes of SD Inpres Parang Makassar is more effective using power point media. This can be seen from the t-test calculation of -9.708 with db = 46 at the 5% significance level. These results indicate that the price p = 0.000. The p value is less than 0.05.
Drought stress is a major limiting factor in crop production. Genetic improvement is possible in cotton and other crops against drought stress by using new tools of breeding. Thirty upland cotton (Gossypium hirsutum L.) cultivars/genotypes were screened for the traits related to drought tolerance (relative water content, excised leaf water loss, cell membrane stability and biomass reduction). Two drought tolerant (B-557 and MNH-554) and two drought susceptible (FH-1000 and N-313/12) cultivars were identified and crossed to develop F1, F2 and backcross generations. Genetic analysis was conducted for relative water content, excised leaf water loss, cell membrane stability, developmental/yield and fibre quality traits (plant height, number of monopdial branches, number of sympodial branches, bolls/plant, boll weight, ginning out-turn, fibre length, fibre strength and fibre fineness). Additive, dominance as well as genetic interaction was found in the inheritance of the traits under drought stress condition. Medium to high narrow sense heritability was observed for the traits. The analysis of parental and F2 population of the cross B-557 × FH-1000 studied under osmotic stress in hydroponic culture showed that the traits, relative water content, excised leaf water loss and cell membrane stability had correlation with biomass production. Positive correlation of relative water content with cell membrane stability reveals that the genes which help plant maintain relative water content are also indirectly involved for cell membrane stability. Correlation analysis of F2 population under field drought revealed positive correlation of relative water content and cell membrane stability with plant developmental/yield and fibre quality related traits. The correlation results from hydroponic culture and field studies showed that relative water content, excised leaf water loss and cell membrane stability may be used as indicator of drought tolerance in cotton. A survey of 524 SSR and EST-SSR primers revealed a lot of DNA polymorphism between drought resistant (B-557) and drought susceptible (FH-1000) cultivar. The polymorphism was used to construct genetic linkage map using F2 population. In linkage analysis, 22 primers were mapped on chromosomes. Two QTLs for relative water content were identified on chromosome 23 and 12. One QTL for excised leaf water loss was found on chromosome 23. These QTLs may be used in molecular breeding programs to develop drought tolerant cotton varieties.