Purpose - Using data on Indian banks for 1997-2007, the purpose of this paper is to develop an index of banking fragility and subsequently examine the factors affecting the index.Design methodology approach - The author employs basic distributional assumptions to develop the index and subsequently, employs panel data techniques to examine the factors which affect the index.Findings - Based on the statistical properties of the index, banks are classified as exhibiting high, moderate, and low stability. The multivariate regressions indicate an important role for banking industry variables in influencing the index.Practical implications - The paper complements the strand of literature which has been focusing on developing indicators of banking stability and examining the factors affecting them.Originality value - To the author's knowledge, this is perhaps the first study for an emerging economy and more certainly for India, to examine this issue.
Purpose - This paper seeks to explore the potential drivers of corporate capital structure.Design methodology approach - The paper applies both fixed effects panel models and random effects tobit models to examine this issue. A sample of 379 firms is used across the period from 1991 to 2002.Findings - It is found that corporate characteristics (firm size, firm risk, firm growth rate, firm profitability and asset tangibility) and corporate governance characteristics (board size and outside directorships) are the main drivers of capital structure of UK firms. In addition, the results show that changing the definition of capital structure may result in changing the sign and the significance of these potential drivers.Originality value - The paper argues that another dimension of the capital structure puzzle can be introduced which is related to the definition of capital structure used in prior studies. It is worth noting that the aim of this paper is not to provide an optimal set of factors that may affect the decision of capital structure, but to highlight the effect of the different definitions of capital structure that can be used by different studies, which makes the comparison between such studies difficult or even erroneous.
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Even though there is long-held belief that urban populations are better off, or even favoured than rural populations, the recent food and financial crises have highlighted the problem of urban food insecurity in developing countries. Hence, the overall objective of this study was to examine the determinants of food insecurity among urban households in Addis Ababa city. To do so, both descriptive statistics and econometric analysis were employed. Descriptive statistics used Foster, Greer and Thorbeck distributional measure of food insecurity while econometric analysis used binary logistic regression model to analyze the data of a set of socio-economic variables as explanatory variables and food insecurity as independent variable. The head count index shows that 58,16 % of the total households are below the food insecurity line. The food insecurity gap and severity were 20 % and 9,4 %, respectively. The result of the logistic regression model estimate indicates that out of the 10 factors included, 6 were found to have a significant influence on the probability of being food insecure at less than 10 % significance level. The variables considered were household size, age of household head, household head education, and access to credit, household asset possession, and access to employment. Efforts should be made to improve income earning capacity of households, their education level with particular focus on vocational training, reduce household size with a view to reducing their dependency ratio and access of credit to the needy and trained people needs to be provided with proper targeting criterion.