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Introduction: Turkish cement industry, which sustains growth trend between the years 2015 and 2018, is the biggest cement producer of Europe besides the growth success. Production trend in cement industry reversed after the decrease in the value of Turkish Lira and increased inflation in 2018. The data of this industry, which contributes to Turkish economy directly and indirectly, have become one of the leading indicators.

Aim: From this point of view, 17 cement industry firms which are traded in Borsa İstanbul equity market continuously are examined in terms of their Earnings Before Interest, Taxes, Depreciation, and Amortization, Cash Conversion Cycle (CCC), Export Rate Ratio and Gross Sales. These variables are analyzed between the period 2013:Q1 and 2019:Q2.

Method: Independent variables in the models are Industry Production Index (IPI), CBRT Dollar/TL selling rate of exchange, Tangible Asset Ratio, Growth Rate, Financial Leverage Ratio, Current Ratio, Market-to-Book Ratio (MB), Price-to-Earnings Ratio (PE), and Return on Equity (ROE).

Findings: According to panel regression results, Dollar/TL exchange rate is the unique independent variable that affects four dependent variables. While Dollar/TL exchange rate negatively affects Earnings Before Interest and Taxes and Gross Sales, it positively affects CCC and Export Rate. MB ratio positively affects CCC. In contrast, IPI, Tangible Asset Ratio, and Financial Leverage Ratio negatively affect CCC. Export ratio is negatively affected both by IPI and PE ratio. While MB ratio negatively affects Gross Sales ratio, IPI, Tangible Asset Ratio and Growth Rate positively affect it.

Before the September–October 2008 Financial Crisis, investment banks were hooked on debt. In 2007, a year before its failure, Lehman Brothers held equity just 3.3% of its balance sheet (that is, its debt/equity ratio well exceeded 29); virtually all the rest was financed by borrowing. Leverage is an elixir that makes profits soar when times are good but magnifies losses when the economy sours. Currently in India, several companies have seen their balance sheet out of shape because of overleverage, but banks continue to be benevolent, often forced by political interventions (see Cases 6.1 and 6.2). Most of these business groups are nearly dead, with their equity almost wiped out. There is little chance they will survive but for their banker’s largesse. Ever-greening of loans is keeping them alive, but what could be the end game? For instance, just a year before economic liberalization in India, few enterprising men invested in the steel business. They borrowed monies from the banks and banks continued to finance their operations, and now they are realizing that the promoters cannot meet with their debt obligations. The banks, however, did not want to accept financial loss and hence commonly agreed to ease the payment obligations so that the loans remained good and not degenerate to NPAs. This is tantamount to refinancing to service your loans. But now the banks overwhelmed with accumulated NPAs are trying to sell debt. How do you legally, ethically, morally, and spiritually (LEMS) justify share-market concentration in the hands of very few promoter investors? What are their long-run unintended economic, legal, ethical, and moral consequences, and why? This chapter studies this market turbulence and the role of bankruptcy laws and court systems in bringing about some change in the debt-overleveraged corporations.

This chapter focuses on the IFRS 15 Revenue from Contracts with Customers and IFRS 16 Leases in the airline industry considering the case of Air France – KLM (AF-KLM). This airline timely adopted IFRS 15 and early adopted IFRS 16 for the year 2018 and restated its 2017 financial statements using the full retrospective method so that the 2018 financial statements of the airline provide comparative financial information during the transition phase from IAS 18 to IFRS 15 as well as from IAS 17 to IFRS 16. In the first part of the chapter, liquidity, solvency, and profitability ratios along with cash flow ratios were used to analyze the cumulative effect of IFRS 15 and IFRS 16 using 2017 and restated 2017 financial statements. In this context, results indicate that the liquidity ratios decreased, and the solvency ratios increased in general. In addition, the cumulative effect of IFRS 15 and IFRS 16 created an upward change in general on profitability ratios based on the several performance parameters that should be considered during the transition from IAS 18 to IFRS 15 and from IAS 17 to IFRS 16. Overall, IFRS 15 has minor effect and IFRS 16 has major effect on the financial statements of AF-KLM. In the second part of the chapter, the compliance level of the mandatory disclosures requirements of the airline was examined from the lessee standpoint and the research pointed out that the airline fully complied with these disclosures at its first adoption of IFRS 16 and provided some voluntary disclosures as well.

This paper investigates the capital structure of a large sample of U.S. private firms from 2004 to 2013. There is a considerable heterogeneity in private firm capital structure not only in terms of the level of leverage but also with regard to the issuance of specific debt instruments. Leverage, debt type usage, and debt specialization are dynamic and strongly related to observable firm characteristics largely in support of contract theory. Unobservable firm and industry characteristics are strong determinants of leverage levels and debt specialization. Macro credit conditions are not related to private firm leverage but are strong determinants of the degree to which firms diversify their debt capital structures.

Skincare, hair care, make-up, perfumes, toiletries and deodorants, and oral cosmetics are the main product categories of the cosmetic market. Since the early twentieth century, the production of cosmetics and beauty products has been controlled by a handful of multi-national corporations. COVID-19 impacted the cosmetics industry in several different and sometimes conflicting ways. This study benchmarks the performance of 20 largest cosmetics companies against their competition as well as against their previous years to analyze the impact of COVID-19. We find that only one company has consistently performed than its peers over the period of 2015–2020. We also find that average efficiency score of cosmetics companies declines in 2020 relative to 2019.

As cable and satellite industry undergoes transformation in the 21st century with the onslaught of innovation-driven changes, it is important to know which company is doing better and which company is falling behind. This study compares the relative performance of eight cable companies using three factors: operating expense for every dollar of operating revenue, earnings before interest, taxes, depreciation, and amortization, and return on assets. We also evaluate the performance of each firm against itself for the period 2010–2013 to see if they show improvement or deterioration in operating efficiency.

According to the market timing theory, firms try to take advantage of windows of opportunity to raise capital by exploiting temporary cost fluctuations of alternative financing sources. In this context, the main objective of this paper is to examine the influence and persistence of market timing in the financing decisions of Brazilian firms that launched IPOs in the period from 2001 to 2011.

We analyze the influence of past market values on the capital structure of these firms, based on the main models proposed by Baker and Wurgler (2002), adapted to reflect the characteristics of Brazilian firms’ financial statements.

We find evidence of market timing, but this behavior is not sufficiently persistent in the period studied to the point of determining these firms’ capital structure. We believe the fact that Brazilian companies rarely carried out follow-on primary equity issues after floating their capital in the period analyzed, due to the presence of more advantageous financing sources (particularly from the national development bank, BNDES), explains the results. Therefore, Brazilian firms appear to be pay heed to different funding sources, in search of windows of opportunity, to guide their financing decisions and determine their capital structures.

The Brazilian capital market has been developing intensely in recent years, making it increasingly relevant to analyze the financing and investment decisions of the country’s listed companies. The Brazilian literature on capital structure is extensive, but few works have addressed the issue of market timing.