Browsing by Author "Fiawoyife, E."
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Item Risk Exposure and Financial Policy: An Empirical Analysis of Emerging Markets(2009) Abor, J.; Sarpong-Kumankoma, E.; Fiawoyife, E.; Osei, K.A.Purpose – This paper aims to evaluate the effect of risk on the financial policy of emerging market firms. Design/methodology/approach – Using data from 34 emerging markets during a 17‐year period, 1990‐2006, a panel data model is employed for the analysis. Findings – The results of this study indicate that firms with high probability of survival are likely to employ more debt. The level of risk exposure, particularly business risk is important in influencing the financial decisions of firms in emerging market economies. It is argued that since the use of debt increases firms' exposure to financial risk, firms with high business risk would shy away from using more debt. Also, finance providers in the financial market may not be interested in lending to firms with high business risk. This study also identified profitability, dividend, asset tangibility, growth opportunities, and GDP per capita as important determinants of the financial policy of emerging market firms. Originality/value – This study contributes to the extant literature by providing empirical evidence regarding the effect of risk on the financial policy of emerging market firms.Item Risk exposure and financial policy: an empirical analysis of emerging markets(Journal of Economics Studies, 2009) Abor, J.; Sarpong-Kumankoma, E.; Fiawoyife, E.; Osei, K.A.Item Taxes and corporate borrowing: Empirical evidence from selected african countries.(2011) Abor, J.; Bokpin, G.A.; Fiawoyife, E.In this study the authors examine the effect of taxes on corporate borrowing in selected African countries. With use of a panel regression model, their results suggest that taxation is not important in explaining corporate borrowing decisions. However, they found significant relationships between the other firm-level characteristics and debt-equity ratio. Firm age, for instance, shows a negative effect on debt-equity ratio in Ghana and Kenya but registers a positive effect on debt-equity ratio in South Africa. Firm size signals a positive effect on debt-equity ratio in Kenya and South Africa. Also, debt-equity ratio is negatively affected by profitability in Kenya and growth potential in Nigeria.