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Open Access
Article
Publication date: 4 July 2022

Haydory Akbar Ahmed

This paper explores the evidence of a long-run co-movement between aggregate unemployment insurance spending and the labor force participation rate in the USA. The unemployment…

Abstract

Purpose

This paper explores the evidence of a long-run co-movement between aggregate unemployment insurance spending and the labor force participation rate in the USA. The unemployment insurance (UI) program tends to expand during an economic downturn and contract during an expansion. UI may incentivize unemployment and may also facilitate better matching in the labor market. Statistical evidence of the presence of a co-movement will thus shed new light on their dynamics.

Design/methodology/approach

This research applies time-series econometric approach using monthly data from 1959:1 to 2020:3 to test threshold cointegration and estimate a threshold vector error-correction (TVEC) model. The estimates from the TVEC model investigating the nature of short-run dynamics.

Findings

The Enders and Siklos (2001) test find evidence of threshold cointegration between the two indicating the presence of long-run co-movement. The estimates from the TVEC model investigating the nature of short-run dynamics find evidence that the growth in aggregate UI spending and the growth in labor force participation rate adjust simultaneously to maintain the long-run co-movement above the threshold in the short run. The author also observes the same short-run dynamics for the growth in aggregate UI spending and the growth in the labor force participation rate for females.

Research limitations/implications

This model is bi-variate by construction and does not address causality.

Practical implications

The author argues that the UI program positively impacts the female labor market outcomes, for example, better matching. This finding may explain the upward trend in the labor force participation rate for females in the USA.

Social implications

The research findings may justify the transfer programs for minority and immigrants.

Originality/value

This is first research that analyzes the UI programs impact on the labor force participation using a macroeconometric approach. To the best of the author's knowledge, this is the first study in this genre.

Open Access
Article
Publication date: 15 May 2023

Augustine Tarkom and Xinhui Huang

Recognizing the severity of COVID-19 on the US economy, the authors investigate the behavior of US-listed firms towards leverage speed of adjustment (SOA) during the pandemic…

Abstract

Purpose

Recognizing the severity of COVID-19 on the US economy, the authors investigate the behavior of US-listed firms towards leverage speed of adjustment (SOA) during the pandemic. While prior evidence (based on an international study) shows that firm leverage increased during the pandemic leading to a higher SOA toward leverage ratios, leverage for US firms during the same period reduced drastically. Yet there is a dearth of empirical studies on the behavior of US-listed firms' SOA during the pandemic. The authors fill this void.

Design/methodology/approach

The study includes US-listed non-financial and non-utility firms for the period 2015Q1-2021Q4, covering a total sample of 45,213 firm-quarter observations. The authors’ empirical strategy is based on the generalized method of moments (GMM) and firm-fixed effect methodology, controlling for firm- and quarter-fixed effects.

Findings

Three main findings are established: (1) while the SOA toward book target increased during the pandemic, SOA toward market target increased significantly only for less valued and cash-constrained firms; (2) firms in states most impacted by the pandemic adjusted faster towards target ratio; and (3) while the emergence of the pandemic and the overall firm-level risk increased (decreased) the deviation from book (market) target, firm-level risk partially mediated the effect of the pandemic on how far firms deviated from target ratio.

Practical implications

This study enhances our understanding of leverage adjustment during the crisis and shows that risk avoidance motive and the market value of firms are key determinants of convergence rate during the crisis and further demonstrates that market leverage is more sensitive to market dynamics. As such, caution must be taken when dealing with and interpreting market leverage SOA.

Originality/value

Although prior evidence based on international study provides insights into how firms behave toward their leverage ratios because of the pandemic, little is known about how US firms react to the pandemic in terms of the target ratios, particularly (1) since the USA is one of the severely affected countries and (2) firms in the USA reduced their leverage ratios as against what prior evidence shows. The authors provide evidence to explain how and why US firms reacted toward their SOA during the pandemic.

Details

China Accounting and Finance Review, vol. 25 no. 4
Type: Research Article
ISSN: 1029-807X

Keywords

Open Access
Article
Publication date: 19 May 2022

N.M. Ashikuzzaman

This paper addresses the question “Does the growth of nonperforming loan ratio (GNPL) have a temporal impact on private credit growth (PCG)?” for the Bangladesh banking industry…

Abstract

Purpose

This paper addresses the question “Does the growth of nonperforming loan ratio (GNPL) have a temporal impact on private credit growth (PCG)?” for the Bangladesh banking industry during and after the global financial crisis of 2008.

Design/methodology/approach

It employs the autoregressive distributed lag (ARDL) model to examine the temporal equilibrium relationship and causality between PCG and GNPL.

Findings

The results of ARDL bound tests confirm the existence of a single cointegrating vector and temporal equilibrium relationship between variables of interest. According to the error correction mechanism (ECM), there is unidirectional causality from GNPL to PCG in the long run and short run. In the long run, higher GNPL curtails PCG since bankers use the nonperforming loan ratio as a signal and indicator of credit risk in their loan decision-making. In the short run, GNPL positively impacts PCG. It may be because banks go through a rigorous process before declaring a loan as nonperforming that takes time. At the same time, bankers' loan decisions may also be guided by the banks myopic concern of reputation in the short run.

Practical implications

The paper recommends policy prescriptions for the bank risk management, regulatory bodies and the legal authorities. The lending policy of banks should consider the legacy of bad assets. The efficiency of the legal system can also aid in effectively implementing the regulatory guidelines.

Originality/value

The paper inaugurates a bivariate cointegration analysis between PCG and GNPL in the literature. It has utilized quarterly aggregate data in the context of a developing economy like Bangladesh.

Details

Asian Journal of Economics and Banking, vol. 6 no. 3
Type: Research Article
ISSN: 2615-9821

Keywords

Content available
Article
Publication date: 18 April 2008

R. Fildes

2319

Abstract

Details

Strategic Direction, vol. 24 no. 5
Type: Research Article
ISSN: 0258-0543

Keywords

Content available
130

Abstract

Details

Aircraft Engineering and Aerospace Technology, vol. 71 no. 2
Type: Research Article
ISSN: 0002-2667

Keywords

Content available
Article
Publication date: 1 May 2009

64

Abstract

Details

Industrial Robot: An International Journal, vol. 36 no. 3
Type: Research Article
ISSN: 0143-991X

Content available
Article
Publication date: 1 April 1998

Adair Turner

118

Abstract

Details

European Business Review, vol. 98 no. 2
Type: Research Article
ISSN: 0955-534X

Open Access
Article
Publication date: 11 April 2023

Wenhao Yi, Mingnian Wang, Jianjun Tong, Siguang Zhao, Jiawang Li, Dengbin Gui and Xiao Zhang

The purpose of the study is to quickly identify significant heterogeneity of surrounding rock of tunnel face that generally occurs during the construction of large-section rock…

Abstract

Purpose

The purpose of the study is to quickly identify significant heterogeneity of surrounding rock of tunnel face that generally occurs during the construction of large-section rock tunnels of high-speed railways.

Design/methodology/approach

Relying on the support vector machine (SVM)-based classification model, the nominal classification of blastholes and nominal zoning and classification terms were used to demonstrate the heterogeneity identification method for the surrounding rock of tunnel face, and the identification calculation was carried out for the five test tunnels. Then, the suggestions for local optimization of the support structures of large-section rock tunnels were put forward.

Findings

The results show that compared with the two classification models based on neural networks, the SVM-based classification model has a higher classification accuracy when the sample size is small, and the average accuracy can reach 87.9%. After the samples are replaced, the SVM-based classification model can still reach the same accuracy, whose generalization ability is stronger.

Originality/value

By applying the identification method described in this paper, the significant heterogeneity characteristics of the surrounding rock in the process of two times of blasting were identified, and the identification results are basically consistent with the actual situation of the tunnel face at the end of blasting, and can provide a basis for local optimization of support parameters.

Details

Railway Sciences, vol. 2 no. 1
Type: Research Article
ISSN: 2755-0907

Keywords

Open Access
Article
Publication date: 25 May 2021

Francesco Nemore, Rocco Caferra and Andrea Morone

Our main purpose is to test the unemployment invariance hypothesis in Italy.

1671

Abstract

Purpose

Our main purpose is to test the unemployment invariance hypothesis in Italy.

Design/methodology/approach

This paper provides an empirical investigation of the unemployment and labor force participation in Italy.

Findings

Cointegration analysis results strongly suggest a clear long-run relationship between unemployment and labor force participation revealing a persistent and general added worker effect.

Originality/value

Our results seem to confute the unemployment invariance hypothesis.

Details

International Journal of Manpower, vol. 42 no. 8
Type: Research Article
ISSN: 0143-7720

Keywords

Open Access

Abstract

Details

Regional Success After Brexit: The Need for New Measures
Type: Book
ISBN: 978-1-78756-736-8

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