B.T MatemilolaUniversiti Putra Malaysia | UPM · Department of Accounting and Finance
B.T Matemilola
PhD (Fin Econs), MSc (Fin Econs), MA Fin & Invest., BSc. Fin
About
52
Publications
132,012
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513
Citations
Citations since 2017
Introduction
I am currently working on the influence of country-level governance quality on corporate financing decisions.
Additional affiliations
May 2017 - present
Publications
Publications (52)
The study investigates the impact of goodwill assets on firms' capital structure and examines the indirect impact of the legal system on the relationship between goodwill assets and firms' capital structure (debt ratio). The study uses 4912 firms from 23 developing countries covering the 2010 to 2018 periods. The findings show a robust positive rel...
Purpose
This study aims to examine the effect of liquidity risk on deposit money banks’ (DMBs) performance in Sub-Saharan Africa. This study also tests the interaction effect of liquidity risk and nonperforming loans on the performance of DMBs’ in Sub-Saharan Africa.
Design/methodology/approach
This study uses a two-step system generalized method...
This paper investigates the impact of goodwill on capital structure and how investors' education affects the relationship between goodwill and capital structure in developing and developed countries. This study covers both developing and developed countries using a sample of 4912 and 4303 non‐financial companies from 23 developing and 9 developed c...
This paper investigates the relationship between internal corporate social responsibility (ICSR) and firm efficiency. Our research employed a two-stage analysis of 33,413 firm-year observations from between 2008 and 2020. First, we measured the level of firm efficiency using data envelopment analysis (DEA). Second, we used panel regression to inves...
This article aims to investigate the relationship between stock liquidity and dividend across emerging market countries as well as examined the moderating role of financial market development on the relationship between stock liquidity and dividend. Data were obtained from the World Bank and DataStream databases. The study examined 3,258 listed fir...
This study extends the literature on the capital structure of corporate social responsibility (CSR) firms by examining the effect of CSR on the firm probability of default using a sample of 496 firms from 17 developing countries for the period 2010–2017. This paper employs the two‐step system generalized method of moments (GMM) technique that mitig...
This paper examines the impact of long-term debt maturity and corporate social responsibility on probability of default in 17 developing countries during 2010-2017. We find evidence that long-term debt maturity increases probability of default. Moreover, we establish that firms that invest more in corporate social responsibility activities decrease...
Purpose
Corporate governance (CG) is an ongoing interesting topic getting the attention of market participant, business regulators and researchers in today’s business environment. The purpose of this study is to analyze the moderating role of earnings management on CG-value and CG-risk relationship in the emerging economy of Pakistan.
Design/metho...
Risk governance practice is gaining prominence as a result of its active role in addressing risk related issues within the banking sector. The study investigate the effect of risk governance on the performance of listed commercial banks in Sub Saharan Africa region. A sample of 50 banks from six (6) SSA countries were drawn between the periods of 2...
Continuous failure of banks witnessed across the Sub Saharan African region is a great source of concern among practitioners and society. The study seeks to evaluate the association between bank regulatory capital and performance. A panel of 50 public listed banks was drawn across 6 Sub Saharan African countries for a period of 9 years (2010-2018)....
The paper examines the moderating effects of governance quality on stock liquidity and dividend relationship. Past empirical studies on the link between stock liquidity and dividend suggest there are mixed findings between them. A negative relationship suggests stock liquidity and dividend are a substitute which aligns with the liquidity hypothesis...
This article examines the moderating effects of top managers’ skills on the debt-stock return relationship. The two-step system generalized method of moments results show top managers skills positively moderate the book debt and stock return relationship. Moreover, top managers’ skills have direct positive effect on stock returns. The results are r...
This paper examines the influence of China’s cross-sectional dispersion of returns on local markets, as well as its major trading partners. With the cross-sectional average deviation method, we have reported some significant and insignificant results, as well as for tranquil and turbulent phases of the Chinese stock market. It seems that the cross-...
Purpose
The purpose of this paper is to investigate whether audit quality is associated with real earnings management in the UK.
Design/methodology/approach
The authors apply the panel fixed effects method that controls for heterogeneity across firms to investigate whether audit quality is related to real earnings management for a large sample of...
Purpose
The purpose of this paper is to analyse the impact of remittances on human development in developing countries using panel data from 1980 to 2014 and to address the critical question of whether the increasing trend of remittances has any impact on human development in a broad range of developing countries.
Design/methodology/approach
Usual...
This paper investigates the effects of institutional quality on firms' capital structure for a panel of 3891 firms from 23 developing countries. Our main findings for the full panel show institutional quality has a significantly positive effect on firms' capital structure. At the regional level, based on the panel data for 2187 firms from Asian cou...
The article investigates whether Malaysian initial public offering (IPO) firms engage in real and accrual earnings management (AEM) and examines the impact of leverage on the earnings management’s discretionary behaviour of the firms for the period of 2003–2013. The Dechow, Sloan, and Sweeney (1995, The Accounting Review, 70[2], 193–225) cross-sect...
Revisiting diversification theory, this article examined the impact of investment locations on the relationship between multinational firms' diversification exercise and risk using data on foreign investment activities from 107 listed companies on the Malaysia stock exchange. The study found that diversification exercise is negatively related to ri...
The paper investigates whether unobservable firm-specific effects such as managerial ability is a major component of the target capital structure. We apply the system generalized method of moments that accounts for unobservable firm-specific effects. Our results reveal that unobservable firm-specific effects such as managerial ability are a major c...
Carbon dioxide (CO2) emissions have been rising globally and have raised public concern regarding their detrimental effects to human life. This article investigates the validity of the Environmental Kuznets Curve (EKC) hypothesis in developing countries in a nonlinear framework. The article applies the dynamic panel threshold method, which is able...
Recently, the importance of traditional firm-specific determinants of capital structure has been challenged. The paper uses the trade-off theory to investigate the managerial experience of top managers as a determinant of capital structure. The paper applies system-generalized method of moments (GMM) which corrects endogeneity problem. Our results...
An appropriate debt maturity structure is essential for firms to enable them align asset structure to liabilities to prevent a mismatch. This study investigates the role of firm-level and institutional variables on debt maturity structure in selected African countries. Using panel generalised method of moment that addresses endogeneity problem; our...
Available empirical evidences reveal that macroeconomic information influences investor’s herding decision, but very limited studies focus on the influence of firm’s ownership types on investor’s herding decision. This study challenges the importance of information dissemination at firm’s level on investor’s herding decision. By categorizing firms...
This article investigates the moderating effects of firm age on the relationship between debt and stock returns. The system generalized method of moment’s results indicate that firm age has a positive moderating effect on the relationship between book debt and stock returns. The results are robust, as firm age positively moderates the relationship...
Emerging and frontier markets in Africa have witnessed various economic and financial reforms aimed at integrating the domestic markets into the global financial market to attract investment. Whether these reforms promote high economic growth remains inconclusive. The paper applies the pooled mean group estimation technique to empirically re-invest...
Abstract: Background and Objective: Moderate debt usage increases returns during economic boom, but high debt could decreases returns during economic recession. This study examines if there is a threshold debt level in the debt-returns relationship. Methodology: This study applies dynamic panel-threshold method to determine optimal debt level beyon...
Purpose
The paper evaluates the impact of international diversification, through the investment abroad activities of the Malaysian multinational corporations, on their financial performance.
Design/methodology/approach
The paper applies the panel generalized method of moments (GMM) estimation technique that gives better results.
Findings
Findings...
The increases in soybean commodity prices are attributed to increase in oil prices which have affected the prices of agricultural grains commodity products such as soybean oil price. The study investigates asymmetric relationship between soybeans commodity price and crude oil price using most recent data. In order to account for possible asymmetric...
The recent global financial crisis has led to an increase in public debt across developing countries, and concerns are arising about its economic impact. This paper investigates the effects of public debt on the long-term economic growth of common law versus civil law countries in developing economies. The paper applies the Pooled Mean Group estima...
This article analyses the effect of fixed assets and goodwill assets on South
African firms’ debt ratios. The difference and system generalized method of moment estimation results reveal that fixed assets and goodwill assets have significant and positive relationship with firms’ debt ratios. To secure long-term debt, fixed assets and goodwill asse...
The paper investigates whether unobservable firm-specific effects such as managerial ability is a major component of the target capital structure. We apply the system generalized method of moments that accounts for unobservable firm-specific effects. Our results reveal that unobservable firm-specific effects such as managerial ability are a major c...
Recent trend shows that foreign investment has increased rapidly, and raises a question as to whether managerial characteristics impact international diversification, as claimed by the Uppsala internationalisation process theory. This paper investigates the relationship between top management team's characteristics and firm's Outward Foreign Direct...
The pass-through of the policy rates to bank lending rate is an important subject matter because it measures the effectiveness of monetary policy to control inflation or stabilize the economy. This study investigates the long-run interest rate pass-through of the money market rate to the bank lending rate and asymmetric adjustment of the bank lendi...
This paper analyses the inflationary effects of world oil prices on the US food price levels using symmetric and asymmetric cointegration as well as error-correction modelling approaches. The results from momentum threshold autoregressive (MTAR) specification of Enders and Siklos (2001) indicate that cointegration adjustment between food prices and...
The paper investigates relationship between cash flow and debt. The panel generalized method of moment results reveal that cash flow is negatively related to both long term debt and total debt ratios. Our results support the pecking order theory of corporate financing and imply that there is a need for further development of the capital market to m...
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The recent financial crisis that saw an increase in the risk premium and shareholders’ return around the world is partly caused by the management use of excessive leverage. This paper investigates the effect of leverage and managerial skills on shareholders’ return. Our regression analysis that accounts for managerial skill factors reveals that lev...
Purpose
– This paper aims to test the significance of unobservable firm-specific effects on a capital structure model.
Design/methodology/approach
– The paper employs the restricted least squares method to test the significance of unobservable firm-specific effects in a fixed effects model that includes unobservable effects against a pooled ordina...
The increase in the number of bank crises coupled with the important roles of the banking sector in the economy have stimulated extensive research focusing on banks. A systemic banking crisis would make costs to the economy rise as high as 55 per cent of GDP (Caprio & Klingebile, 2003). Consequently, the study on determinants of bank performance ha...
In the presence of capital market imperfection, investment and financing decisions are interrelated and endogenous. The paper investigates the presence of financial constraints among medium-size listed firms via investment-cash flow relationship. Our Generalized Method of Moment (GMM) results show that cash flow is significantly and positively rela...
Recent financial crisis which saw an increase in risk premium and shareholder’s required return around the world has been in part attributed to firms excessive debt leverage. This paper tests the impact of debt leverage on shareholder’s required return in South Africa. The paper specifies dynamic panel models and uses difference generalized method...
The paper analyses trade-off theory against pecking order theory in a nested model using panel Generalized Method of Moment (GMM) estimation technique. The cash flow coefficient is statistically significant and negatively related to both long term debt and total debt which supports the pecking order theory. Furthermore, the results show that the la...
The main objective of this paper is to test the trade-off theory of capital structure in South Africa. Using dynamic panel model and Generalized Method of Moments (GMM) estimation technique, the results show that fixed asset has a significant positive relation with total debt. Moreover, the study reveals that South African firms have long-run targe...
Questions
Questions (31)
Kaufmann (2004) provides data on Judicial/ Legal Effectiveness for 104 countries but the data is for one year only. Where can I get 'time series data' on Judicial/ Legal Effectiveness. Your suggestions will be appreciated.
Apart from the conventional ‘dummy variable’ approach for measuring financial crisis, what are the alternative proxies for measuring financial crisis when conducting research in areas of financial economics?
Corporate Finance course is a practical course but it is sometimes presented to students as a theoretical course. Could that explain why some undergraduate students struggle to understand this course?
It appears that students with practical knowledge of the Corporate Finance course understand the theoretical aspect of the course better. If that is the case, the MBA and Master’s students (with relevant industry experience) may better understand the theoretical aspects of the Corporate Finance course than other students.
Probably, there are alternative method(s) to teach this course ( especially to undergraduate students) which is unknown to instructors. Your contribution is welcome.
Missing data reduce the representativeness of the sample and it distorts inferences about the population. Moreover, some researchers act as if the analyses of variables with missing data will still be correct on average, but this may be untrue. Although, there are several methods of dealing with missing data problem but the best method appears unknown. What is the best method to solve missing data problem when conducting empirical research in finance and economics (using either time series data or panel data)? Your contributions are welcome.
Stock options as a risk management tool come with benefits and risk. On the benefits side, investors can profit on changes in stock price without actually buying stock. However, on the risk side, the buyers of options may lose their entire investment even with a correct prediction about the direction of a particular price change; if the price change does not occur in the relevant time period.
Despite the tax-shield benefits of debt, some firms use zero level of debt in their capital structure. It appears that existing capital structure theories are unable to explain this zero debt puzzle, well. What theory explains why some firms use zero debt in their capital structure? Your contributions are welcome.
Some researchers suggest that it is necessary to conduct a panel unit root tests on a firm-level studies (e.g. capital structure study) that uses 9 years observation. For more than 10 years observation, it appears necessary to conduct panel unit root tests. However, the reasons for conducting panel unit root tests with 9 years or lesser observation are not very clear. Panel unit root tests are usually conducted on macro-level studies that use panel data method with longer time periods. Is it necessary to conduct a panel unit root tests on a firm-level study with 9 years or lesser observation? Your contribution are welcome.
Cash per share is bigger than stock price in some firms, and this is not a good sign. One of the goals of cash management is to keep investment in cash as low as possible. Moreover, there are opportunity costs of holding excess cash. So, why do some firms hoard or hold 'excess cash'? Your response is welcome.
Confusion arises in discussions among people who use different definitions of financial leverage. The term has multiple definitions, especially in the field of corporate finance. Moreover, it appears that practitioners and researchers have different preference for the 'exact definition of leverage'. What is the best definition of financial leverage? Ratio of total debt to market equity, ratio of total debt to book equity, ratio of total debt to firm market value, ratio of long-term debt to market equity, ratio of long-term debt to book equity, etc. Your contribution is welcome.
Most researchers expect to receive a reviewer’s comments that give a balance view of a paper and suggestions for improvements where necessary. However, sometimes, you receive a reviewer’s comments that have little or no contents in the report. What make a reviewer’s comments outstanding? Please, your response are welcome.
Projects
Projects (4)
To find the impact of financial inclusion on capital structure, and to moderate the effect of financial development on the relationship between financial inclusion and capital structure.
