European Scientific Journal, ESJ

Agency Theory and the Market Timing Theory: Distinction and Resemblance

Samer Hamad — 2025-04-08

This study examines the preference for debt over equity issuance among companies, finding both positive and negative implications, and examining the financial and structural implications of financing decisions. Equity is defined as the company’s book value or the amount owed to owners upon asset liquidation, while debt refers to funds borrowed from external parties, which can be short-term (operational expenses) or long-term (growth investments). Results show that companies tend to issue debt as it reduces tax liabilities and increases post-tax cash flow available for dividends. However, a negative relationship is observed between liquidity, measured by the current ratio (CR), and the debt ratio, suggesting that higher liquidity levels lead companies to limited debt, possibly to manage agency costs arising from conflicts between creditors and owners, and between management and owners. Additionally, the negative relationship between company size and debt ratio indicates that larger companies, with higher profitability, tend to maintain lower debt levels. The findings also emphasize the importance of aligning management incentives with shareholder interests through compensation tied to profitability and stock price performance. Nonetheless, agency costs associated with debt management persist. This approach ensures that management is incentivized to act in the owners' best interest while minimizing agency costs. These findings highlight the complex dynamics of capital structure decisions and suggest that management strategies should focus on optimizing liquidity levels and aligning incentives to balance growth opportunities with shareholder value maximization. The study provides a comprehensive evaluation of how equity and debt financing preferences impact corporate financial strategies and behaviors.

Mehmet Rauf's Novel September: One of the first novels written under the influence of Western literature and its critical analysis

Shorena Sultanishvili Gezgic — 2025-04-08

The scientific article aims to analyze the factors provoking betrayal and the origin of remorse and to present psychological portraits of the characters in Mehmed Rauf's acclaimed novel "September", which is considered the first psychological novel in Turkish literature of the Serveti-i-Funun period. The article applies the method of content analysis and critical study of the scientific literature related to the novel itself and the analysis of new tendencies in Turkish literature. Based directly on the novel's text, the article studies the reasons and the source of betrayal, its impact on the characters, and the tormenting feelings caused by remorse. New psychological motives that appear in the novel "September" could be considered as an original phenomenon in Turkish literature in the period around 1900; Though the end of the novel is tragic, the characters of “September” are forgiven for their “misdeeds” as the death of the main heroes purifies their sins.

Awareness of Climate Change and Climate Change Adaptation Strategies Among Secondary School Students in Ogbaru Local Government Area of Anambra State, Nigeria

Chidumebi Ngozi Oguejiofor — 2025-04-08

This study investigated the awareness of climate change and climate change adaptation strategies among secondary school students in Ogbaru Local Government Area of Anambra State, Nigeria. Two research questions guided the study, and two null hypotheses were formulated for the study and tested at a 0.05 level of significance. The study employed a descriptive survey research design. The population of the study consisted of 8,564 JSS and SS students (4,720 JSS and 3,844 SS) from the 9 public secondary schools in the area. The sample size consisted of 170 students (94 JSS and 76 SS students) from the four schools sampled for the study using a simple random sampling technique (balloting). Data was collected using the 40-item climate change awareness and adaptation strategies questionnaire (CCASSQ) developed by the researchers and validated by experts. An estimate of the stability of the instrument yielded a reliability coefficient of 0.88 using Cronbach’s Alpha statistic. Mean and Standard Deviation were used as descriptive statistics to answer the research questions while independent samples t-test was adopted as inferential statistic. The findings revealed high level of awareness of climate change by the JSS and SS students. It also indicated high level of awareness of climate change adaptation strategies by JSS and SS students in Ogbaru LGA of Anambra State. Based on the findings, it was recommended that the government should start working on the schools by providing infrastructural facilities like wind vans and rain gauges that could enable the teachers to meet the demands of this era of climate change.