股权融资与企业价值;短期和长期动力学:一种广义矩法

IF 0.4 Q4 ECONOMICS
A. Oganda
{"title":"股权融资与企业价值;短期和长期动力学:一种广义矩法","authors":"A. Oganda","doi":"10.47604/ijecon.1942","DOIUrl":null,"url":null,"abstract":"The Kenyan manufacturing sector’s contribution to the economy has been declining. It has stagnated at 10% of the gross domestic product (GDP), contributing to an average of 10% from 1964-1973 and marginally increased to 13.6% from 1990-2007 and has been below 10% in recent years further dropping to 8.4% in 2017 and 7.1% in 2020 ultimately hitting its lowest in 2022 of 7.2%. The government has renewed its efforts to revive the sector to grow its contribution to GDP to 20% by 2030. Financing by equity is significant for listed firms. This study applied Dynamic Unbalanced Panel analysis techniques using Secondary data for 10-year period (2010 - 2019) with the study population comprising of 9 listed firms. A census of the firms was done and resulted to 86 observations. Focus was on equity financing moderated by economic growth and earnings volatility on firm value which was proxied by Tobin’s Q and EVA. Pecking order guided the study. Longitudinal research design was used as it is appropriate when dealing with panel data. STATA version 15 was used for analysis. Model estimation followed a two Step System GMM testing the study hypotheses at 5 % significance level. Pearson correlation coefficient was used to show the strength and direction of association among the study variables. Equity financing had a negative correlation with Tobin Q (r = -0.2682). The regression weight being (β= -0.1674526; p = 0.002 < 0.005). On the other hand, Equity to assets ratio (EAR) was found to have positive correlation with Ln EVA (r= 0.5218). The regression coefficient was positive but not significant (β = 0.2901601; p = 0.087 > 0.05) and hence concluding that it improved firm value marginally. The study therefore concluded that equity financing structure directly determines value of the firm by eroding Tobin Q and hence equity financing need to be limited. Future studies can consider static panel analysis models and other panel data econometric techniques. \nPurpose: The purpose of the study was to analyze the relationship between equity financing and the value of the firm. \nMethodology: The study adopted a longitudinal research design. The target population comprised the nine manufacturing firms which were listed on the Nairobi Securities exchange (NSE) for the period 2010 to 2019. The study used secondary data from the published financial statements of the firms. A census of the 9 manufacturing firms was done and this comprised a total of 86 observations due to missing data during the study period hence the Unbalanced Panel Analysis approach. Model Selection followed Arellano &Bond (1991) Panel data procedures. A two-step system GMM was used. STATA Version 15 software was used for data analysis. Unit root tests were conducted using the Im–Pesaran–Shin and Fisher-type tests which allow for unbalanced panels. \nFindings: It was found that equity financing as was proxied by equity to assets ratio (EAR) had a weak negative correlation with Tobin Q. The regression weight for EAR with Tobin Q was negative and significant. The null hypothesis was thus rejected.  On the other hand, EAR was found to have a moderate positive correlation with Ln EVA The regression coefficient was positive but not significant hence, the null hypothesis was not rejected.  This objective showed mixed results possibly due to the different performance proxies. \nUnique Contribution to Theory, Practice and Policy: The finding supports the Myers & Majluf model (1984) which posits that outside investors rationally discount the firm's stock price when managers issue equity instead of riskless debt. To avoid this discount, managers should avoid equity whenever possible. It also supports the Pecking Order theory that equity financing should be used as the last option. To the practice, corporate finance managers need to minimize use of equity financing due to its negative effect on firm value. For policy, The National Treasury needs to formulate an incentive driven policy targeting the manufacturing sector due to its critical role in Economic development as can be seen from the industrialized economies.","PeriodicalId":42721,"journal":{"name":"International Journal of Economics Management and Accounting","volume":null,"pages":null},"PeriodicalIF":0.4000,"publicationDate":"2023-04-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":"{\"title\":\"Equity Financing and Firm Value; Short Run and Long Run Dynamics: A Generalized Method of Moments Approach\",\"authors\":\"A. Oganda\",\"doi\":\"10.47604/ijecon.1942\",\"DOIUrl\":null,\"url\":null,\"abstract\":\"The Kenyan manufacturing sector’s contribution to the economy has been declining. It has stagnated at 10% of the gross domestic product (GDP), contributing to an average of 10% from 1964-1973 and marginally increased to 13.6% from 1990-2007 and has been below 10% in recent years further dropping to 8.4% in 2017 and 7.1% in 2020 ultimately hitting its lowest in 2022 of 7.2%. The government has renewed its efforts to revive the sector to grow its contribution to GDP to 20% by 2030. Financing by equity is significant for listed firms. This study applied Dynamic Unbalanced Panel analysis techniques using Secondary data for 10-year period (2010 - 2019) with the study population comprising of 9 listed firms. A census of the firms was done and resulted to 86 observations. Focus was on equity financing moderated by economic growth and earnings volatility on firm value which was proxied by Tobin’s Q and EVA. Pecking order guided the study. Longitudinal research design was used as it is appropriate when dealing with panel data. STATA version 15 was used for analysis. Model estimation followed a two Step System GMM testing the study hypotheses at 5 % significance level. Pearson correlation coefficient was used to show the strength and direction of association among the study variables. Equity financing had a negative correlation with Tobin Q (r = -0.2682). The regression weight being (β= -0.1674526; p = 0.002 < 0.005). On the other hand, Equity to assets ratio (EAR) was found to have positive correlation with Ln EVA (r= 0.5218). The regression coefficient was positive but not significant (β = 0.2901601; p = 0.087 > 0.05) and hence concluding that it improved firm value marginally. The study therefore concluded that equity financing structure directly determines value of the firm by eroding Tobin Q and hence equity financing need to be limited. Future studies can consider static panel analysis models and other panel data econometric techniques. \\nPurpose: The purpose of the study was to analyze the relationship between equity financing and the value of the firm. \\nMethodology: The study adopted a longitudinal research design. The target population comprised the nine manufacturing firms which were listed on the Nairobi Securities exchange (NSE) for the period 2010 to 2019. The study used secondary data from the published financial statements of the firms. A census of the 9 manufacturing firms was done and this comprised a total of 86 observations due to missing data during the study period hence the Unbalanced Panel Analysis approach. Model Selection followed Arellano &Bond (1991) Panel data procedures. A two-step system GMM was used. STATA Version 15 software was used for data analysis. Unit root tests were conducted using the Im–Pesaran–Shin and Fisher-type tests which allow for unbalanced panels. \\nFindings: It was found that equity financing as was proxied by equity to assets ratio (EAR) had a weak negative correlation with Tobin Q. The regression weight for EAR with Tobin Q was negative and significant. The null hypothesis was thus rejected.  On the other hand, EAR was found to have a moderate positive correlation with Ln EVA The regression coefficient was positive but not significant hence, the null hypothesis was not rejected.  This objective showed mixed results possibly due to the different performance proxies. \\nUnique Contribution to Theory, Practice and Policy: The finding supports the Myers & Majluf model (1984) which posits that outside investors rationally discount the firm's stock price when managers issue equity instead of riskless debt. To avoid this discount, managers should avoid equity whenever possible. It also supports the Pecking Order theory that equity financing should be used as the last option. To the practice, corporate finance managers need to minimize use of equity financing due to its negative effect on firm value. For policy, The National Treasury needs to formulate an incentive driven policy targeting the manufacturing sector due to its critical role in Economic development as can be seen from the industrialized economies.\",\"PeriodicalId\":42721,\"journal\":{\"name\":\"International Journal of Economics Management and Accounting\",\"volume\":null,\"pages\":null},\"PeriodicalIF\":0.4000,\"publicationDate\":\"2023-04-19\",\"publicationTypes\":\"Journal Article\",\"fieldsOfStudy\":null,\"isOpenAccess\":false,\"openAccessPdf\":\"\",\"citationCount\":\"0\",\"resultStr\":null,\"platform\":\"Semanticscholar\",\"paperid\":null,\"PeriodicalName\":\"International Journal of Economics Management and Accounting\",\"FirstCategoryId\":\"1085\",\"ListUrlMain\":\"https://doi.org/10.47604/ijecon.1942\",\"RegionNum\":0,\"RegionCategory\":null,\"ArticlePicture\":[],\"TitleCN\":null,\"AbstractTextCN\":null,\"PMCID\":null,\"EPubDate\":\"\",\"PubModel\":\"\",\"JCR\":\"Q4\",\"JCRName\":\"ECONOMICS\",\"Score\":null,\"Total\":0}","platform":"Semanticscholar","paperid":null,"PeriodicalName":"International Journal of Economics Management and Accounting","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.47604/ijecon.1942","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q4","JCRName":"ECONOMICS","Score":null,"Total":0}
引用次数: 0

摘要

肯尼亚制造业对经济的贡献一直在下降。它一直停滞在国内生产总值(GDP)的10%,从1964年到1973年平均贡献10%,从1990年到2007年略微上升到13.6%,近年来一直低于10%,2017年进一步下降到8.4%,2020年下降到7.1%,最终在2022年达到最低点7.2%。政府已经重新努力振兴该行业,到2030年将其对GDP的贡献提高到20%。股权融资对上市公司具有重要意义。本研究采用动态不平衡面板分析技术,使用10年期间(2010 - 2019)的二手数据,研究对象包括9家上市公司。对这些公司进行了一次普查,得出86项观察结果。重点是股权融资,经济增长和盈余波动对公司价值的影响由托宾Q和EVA代表。啄食顺序指导了这项研究。采用纵向研究设计,因为它适合处理面板数据。使用STATA version 15进行分析。模型估计采用两步系统GMM在5%显著性水平上检验研究假设。使用Pearson相关系数来显示研究变量之间的关联强度和方向。股权融资与托宾Q呈负相关(r = -0.2682)。回归权值为(β= -0.1674526;P = 0.002 < 0.005)。另一方面,权益资产比(EAR)与Ln EVA呈正相关(r= 0.5218)。回归系数为正但不显著(β = 0.2901601;P = 0.087 > 0.05),因此得出结论,它略微提高了企业价值。因此,研究得出股权融资结构通过侵蚀Tobin Q直接决定企业价值的结论,因此需要限制股权融资。未来的研究可以考虑静态面板分析模型和其他面板数据计量技术。目的:本研究的目的是分析股权融资与公司价值之间的关系。方法:本研究采用纵向研究设计。目标人群包括2010年至2019年期间在内罗毕证券交易所(NSE)上市的九家制造公司。这项研究使用了来自这些公司公布的财务报表的二手数据。对9家制造企业进行了人口普查,由于研究期间数据缺失,因此采用了不平衡面板分析方法,共包括86项观察结果。模型选择遵循Arellano &Bond(1991)面板数据程序。采用两步制GMM。采用STATA Version 15软件进行数据分析。使用允许不平衡面板的Im-Pesaran-Shin和fisher型测试进行单位根测试。研究发现:以权益资产比(EAR)为代表的股权融资与托宾Q呈弱负相关,EAR与托宾Q的回归权值为负且显著。因此,零假设被拒绝了。另一方面,发现EAR与Ln EVA有中度正相关,回归系数为正但不显著,因此不拒绝原假设。这个目标显示了不同的结果,可能是由于不同的性能代理。对理论、实践和政策的独特贡献:该发现支持Myers & Majluf模型(1984),该模型假设当管理者发行股票而不是无风险债券时,外部投资者会理性地贴现公司股价。为了避免这种折扣,经理人应该尽可能避免股票。这也支持了Pecking Order理论,即股权融资应该作为最后的选择。在实践中,由于股权融资对企业价值的负面影响,企业财务管理者需要尽量减少股权融资的使用。在政策方面,国家财政部需要制定一项针对制造业的激励驱动政策,因为制造业在经济发展中的关键作用可以从工业化经济体中看出。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
Equity Financing and Firm Value; Short Run and Long Run Dynamics: A Generalized Method of Moments Approach
The Kenyan manufacturing sector’s contribution to the economy has been declining. It has stagnated at 10% of the gross domestic product (GDP), contributing to an average of 10% from 1964-1973 and marginally increased to 13.6% from 1990-2007 and has been below 10% in recent years further dropping to 8.4% in 2017 and 7.1% in 2020 ultimately hitting its lowest in 2022 of 7.2%. The government has renewed its efforts to revive the sector to grow its contribution to GDP to 20% by 2030. Financing by equity is significant for listed firms. This study applied Dynamic Unbalanced Panel analysis techniques using Secondary data for 10-year period (2010 - 2019) with the study population comprising of 9 listed firms. A census of the firms was done and resulted to 86 observations. Focus was on equity financing moderated by economic growth and earnings volatility on firm value which was proxied by Tobin’s Q and EVA. Pecking order guided the study. Longitudinal research design was used as it is appropriate when dealing with panel data. STATA version 15 was used for analysis. Model estimation followed a two Step System GMM testing the study hypotheses at 5 % significance level. Pearson correlation coefficient was used to show the strength and direction of association among the study variables. Equity financing had a negative correlation with Tobin Q (r = -0.2682). The regression weight being (β= -0.1674526; p = 0.002 < 0.005). On the other hand, Equity to assets ratio (EAR) was found to have positive correlation with Ln EVA (r= 0.5218). The regression coefficient was positive but not significant (β = 0.2901601; p = 0.087 > 0.05) and hence concluding that it improved firm value marginally. The study therefore concluded that equity financing structure directly determines value of the firm by eroding Tobin Q and hence equity financing need to be limited. Future studies can consider static panel analysis models and other panel data econometric techniques. Purpose: The purpose of the study was to analyze the relationship between equity financing and the value of the firm. Methodology: The study adopted a longitudinal research design. The target population comprised the nine manufacturing firms which were listed on the Nairobi Securities exchange (NSE) for the period 2010 to 2019. The study used secondary data from the published financial statements of the firms. A census of the 9 manufacturing firms was done and this comprised a total of 86 observations due to missing data during the study period hence the Unbalanced Panel Analysis approach. Model Selection followed Arellano &Bond (1991) Panel data procedures. A two-step system GMM was used. STATA Version 15 software was used for data analysis. Unit root tests were conducted using the Im–Pesaran–Shin and Fisher-type tests which allow for unbalanced panels. Findings: It was found that equity financing as was proxied by equity to assets ratio (EAR) had a weak negative correlation with Tobin Q. The regression weight for EAR with Tobin Q was negative and significant. The null hypothesis was thus rejected.  On the other hand, EAR was found to have a moderate positive correlation with Ln EVA The regression coefficient was positive but not significant hence, the null hypothesis was not rejected.  This objective showed mixed results possibly due to the different performance proxies. Unique Contribution to Theory, Practice and Policy: The finding supports the Myers & Majluf model (1984) which posits that outside investors rationally discount the firm's stock price when managers issue equity instead of riskless debt. To avoid this discount, managers should avoid equity whenever possible. It also supports the Pecking Order theory that equity financing should be used as the last option. To the practice, corporate finance managers need to minimize use of equity financing due to its negative effect on firm value. For policy, The National Treasury needs to formulate an incentive driven policy targeting the manufacturing sector due to its critical role in Economic development as can be seen from the industrialized economies.
求助全文
通过发布文献求助,成功后即可免费获取论文全文。 去求助
来源期刊
自引率
0.00%
发文量
10
×
引用
GB/T 7714-2015
复制
MLA
复制
APA
复制
导出至
BibTeX EndNote RefMan NoteFirst NoteExpress
×
提示
您的信息不完整,为了账户安全,请先补充。
现在去补充
×
提示
您因"违规操作"
具体请查看互助需知
我知道了
×
提示
确定
请完成安全验证×
copy
已复制链接
快去分享给好友吧!
我知道了
右上角分享
点击右上角分享
0
联系我们:info@booksci.cn Book学术提供免费学术资源搜索服务,方便国内外学者检索中英文文献。致力于提供最便捷和优质的服务体验。 Copyright © 2023 布克学术 All rights reserved.
京ICP备2023020795号-1
ghs 京公网安备 11010802042870号
Book学术文献互助
Book学术文献互助群
群 号:481959085
Book学术官方微信