... the discretionary part of provision for loan impairment. In the second step, we examine the effect of debt and donated equity on discretionary provision for loan impairment. Findings We found robust evidence that MFIs manage their earnings for external finance purposes. Debt exhibits a negative effect...

... decomposition methodology to estimate the smoothness of corporate payout in a common empirical framework that includes net income, and debt and investment policies. Findings Overall, the empirical findings support recently proposed theories of joint determination of corporate payout behavior with debt...

... cost of debt is high. Managers inverse its exacerbation of earnings when the firms’ prior cost of equity is high. This effect remains the same in all regression techniques applied in this paper. Originality/value The authors contribute to the literature primarily in three areas. First...

..., such as investment and debt policies. Findings The findings support recent corporate governance theory, which asserts that payout policy is influenced by investment and debt policies, and cannot be determined independently. Furthermore, the authors find that geographic/cultural/institutional variation influence...