Previous research shows that accounting conservatism facilitates debt contracting. Extending this line of literature, we examine whether the role of accounting conservatism in accessing external debt to attain firm growth varies with its maturity. We find evidence of a positive relationship between conservatism and debt maturity. We also observe a positive relationship between conservative accounting and future growth funded by all classes of debt, but this relation is due to long-term rather than short-term debt, which is less prone to agency risk. Further, the associations between conservatism and debt maturity and conservatism and growth financed by long-term debt are mostly observed for firms with fewer anti-takeover provisions in place. These findings suggest that the demand for accounting conservatism is not uniform across different debt maturity horizons.

Accounting Conservatism and Firm Growth Financed by External Debt: The Role of Debt Maturity

The Global Compact: Corporate Sustainability in the Post 2015 World. About the Authors. Copyright page. Beyond the UN Global Compact: Institutions and Regulations. Advances in Sustainability and Environmental Justice. Beyond the UN Global Compact: Institutions and Regulations. International Business Risk Management and the Emerging Market Crises as Challenges for the UN Global Compact. The Institutionalization of CSR: At the Crossroads of Home and Host Countries Institutional Settings, Multinational Corporations, and Multinational Institutions. Incorporating Voluntary Standards into National Law: An Overview of the Scandinavian Experience. List of Contributors. Corporate Impact on the Environment and the Judicial Development of the Norm of Corporate Sustainability: Implications for the Implementation of the UN Global Compact. Sustainable Processes and Production Methods (PPMs) in Private Standards: A Proxy for Trade Barriers or Decentralised Mechanisms for Environmental Governance?. Environmental Sustainability in the CAFTA-DR Region: Impact of the Treaty's Environmental Provisions on Country and Multinational Firm Level Sustainability. IFRS Adoption and the Environment: Is Africa Closing Her Eyes to Something?. Innovation-Driven Economic Development Model: A Way to Enable Competitiveness in Nigeria. Governments as Owners: Nationalization of International Business and Social Responsibility. Public Management and Smart Mobs despite the 2014 FIFA World Cup in Brazil: Reflections on the Contemporary Organizational Model in Comparison with the UN Global Compact Initiative. Trade Openness, Financial Liberalization, Economic Growth, and Environment Effects in the North-South: New Static and Dynamic Panel Data Evidence. Labour Relations and International Business: The Doctrine of Constructive Dismissal and Labour Relations in Malaysia. List of Figures. List of Tables.

Beyond the UN Global Compact: Institutions and Regulations

Currently, the sustainable growth has become essential for any firm to survive and expand without running into financial problems. This research empirically examines the effect of the Firm Performance accounting indicators as leverage, liquidity, profitability, asset efficiency, and size on the Sustainable Growth Rate (SGR). Moreover, this research also examines the effect of the Sustainable Growth Rate on the value of firms listed in the Egyptian Stock Market. The research use a sample of Egyptian listed firms for 5 year’s period starting from 2015 till 2019. The empirical results have found statistically significant positive relationships between the SGR and the firm leverage, profitability, and firm asset efficiency. However, there is a statistically significant negative relationship between the SGR and the size of the firm. Meanwhile, the relationship between the SGR and the firm’s liquidity is insignificant. In addition, the empirical results have found a statistically significant positive effect of the SGR on the Firm Value for firms listed in the Egyptian Stock Market. This research recommends that the financial regulatory authority to establish a database for listed Egyptian firms according to their sustainable growth rate to attract potential investors as well as to attract and enhance foreign investments. Moreover, the research recommends that Accounting Departments in the Egyptian Universities should focus on the sustainable growth rate issue in their conferences to enhance the awareness of the Egyptian firms by this topic; thus firms will be able to compete, expand and perform well in the long run without running into financial problems.

Factors affecting the Sustainable Growth Rate and its impact on Firm Value: Empirical Evidence from the Egyptian Stock Exchange

This research examines how the banking industry maintains its sustainable growth rate. The sample consists of 328 commercial banks in the ASEAN area. A fixed effect model is employed to analyze the data. The study reveals several findings: (1) The countries with the most risk in the banking industry are Indonesia, Thailand, Philippines, Malaysia, and Singapore. (2) Operational risk has a negative effect on sustainable growth and a positive effect on actual growth. Asset utilization positively affects sustainable growth and positively affects actual growth. (3) Business risk has a positive effect on sustainable growth but a negative on actual growth. (4) Liquidity risk positively affects both sustainable growth and actual growth. (5) Financial risk has a negative effect on sustainable growth but not on actual growth. These findings contribute to the body of knowledge of financial management specifically in terms of determining dividend and financing policy, operational activities and bridging conflicting objectives of managers and shareholders. Furthermore, these findings have implications for the practice, especially for shareholders, in how to maintain and set sustainable growth targets in conditions of various risks in banking. For banks within the framework of ASEAN integration, it is important to place SGR as a measure of sustainable finance.

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Banking Industry Sustainable Growth Rate under Risk: Empirical Study of the Banking Industry in ASEAN Countries

This study aims to determine the effect of Profit Margin, Assets Turnover and Leverage on Sustainable Growth Rate. The variables used are profit margin, asset turnover and leverage as independent variable and sustainable growth rate as dependent variable. This study also aims to describe the state of profit margin projected by Net Profit Margin (NPM), asset turnover proxied by Total Assets Turnover (TATO), leverage which is proxied by Debt to Equity Ratio (DER) and Sustainable Growth Rate (SGR) Service sector. This research was conducted on service sector companies listed in Indonesia Stock Exchange 2010-2012.Data obtained from website Bursa Efek Indonesia.Teknik data analysis used is multiple linear regression and use t-statistics to test the influence of each independent variable to variable Dependent partially.Previously done classical assumption test that includes data normality test, multicolinierity test, heteroskedastisitas test and autocorrelation test.Based on data normality test, multicolinierity test, heteroscedasticity test and autocorrelation test did not found any variables that deviate from the classical assumption.From the results of research Shows that profit margin positively affect sustainable growth rate, asset turnover have positive effect to sustainable growth rate, and leverage have positive effect to sustainable growth rate.

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Pengaruh profit margin, assets turnover dan leverage terhadap sustainable growth rate pada perusahaan sektor jasa yang terdaftar di bursa efek indonesia periode 2010-2012

Sales growth is one of the indicators of firm’s performance. However, high sales growth does not guarantee high stakeholder value. This is shown by the relationship of sales growth (AGR) and sustainable growth (SGR), as well as balance growth (BGR). This study is conducted using a 466 sample of manufacturing companies listed on the Indonesia Stock Exchange from 2012 to 2016. Paired sample test and compared mean one-way ANOVA are used to see the difference in Net Profit Margin, Assets Turnover, Dividend Payout Ratio, Price Earnings Ratio, and Debt to Equity Ratio of AGR, BGR, and SGR sample group are classified based on low, medium, and high rank. The results show that (1) high sales growth cannot be used to explain high Net Profit Margin and Assets Turnover; (2) companies with high BGR also have high DPR and PER. However, it is believed that high BGR should lead to lower DER. Nonetheless, this study found that companies with high SGR have higher debt in their financing, indicating ‘Growth and Broke’ has occurred.
 
 
Keywords: actual growth, balance growth, sustainable growth, ‘Grow and Broke’

Sustainable Growth: Grow and Broke Empirical Study on Manufacturing Sector Companies Listed on the Indonesia Stock Exchange

The relationship between enterprise risk management (ERM) and corporate value is one of the priority topics of corporate governance and attention in academia. The role of ERM is not only focused on minimizing risk to the company but also on determining the company's management strategy. The number of researchers discussing ERM from various countries with different empirical results is why this research was conducted. The purpose of this study is to determine whether enterprise risk management affects firm value in non-financial companies in a developing country such as Indonesia. This study uses hedging activities as a proxy for ERM and various company characteristics variables as control variables in the relationship to firm value. The results of this study provide three contributions to the ERM literature. First, the increasing number of companies adopting hedging as corporate risk management, including in developing countries. Second, there is a positive relationship between ERM and the value of non-financial firms in Indonesia. This study's third result implies that the higher the company's literacy about ERM, the fewer conflicting goals between managerial and shareholder objectives because ERM helps companies maintain and determine strategies for company sustainability.

D Utami

Papers

Sustainable Growth: Grow and Broke Empirical Study on Manufacturing Sector Companies Listed on the Indonesia Stock Exchange

Does Enterprise Risk Management Affecting Firm Value? The Indonesian Non Financial Firm Case