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Article
Publication date: 6 August 2018

Tianli Zhong and Tianyu Zhang

The purpose of this paper is to identify if peer firms’ capital structure decision plays a role in determining focal firms’ capital structure decision, despite the fact…

Abstract

Purpose

The purpose of this paper is to identify if peer firms’ capital structure decision plays a role in determining focal firms’ capital structure decision, despite the fact that correlated effects can also lead to co-movement of financing behavior among firms from the same industry (i.e. industry-specific capital structure).

Design/methodology/approach

Instead of using relative measurement (of individual outcome variable over industry variable) as in previous work, this paper borrows the linear-in-means model and, after controlling for potential endogeneity problems, directly identifies the existence of peer effects with coefficient estimation. To deal with correlated effects, additional empirical investigations such as test of heterogeneity in direction and scale, social multiplier identification test and instrumental regression test based on another instrumental variable (that is less influenced by correlated effects) are performed.

Findings

Using data from Chinese listed firms, this paper, for the first time, identifies the presence of peer effects in capital structure and debt maturity decision. Further investigations show that first, focal firms react asymmetrically to peer firms’ debt adjustment of different direction and scale. Second, social multiplier, a unique attribute of peer effects, is identified in the leverage choices. Third, the significant correlation of capital structure decision remains even if we use another “correlated effects-immune” instrument. All these results point to the fact that peer effects, rather than correlated effects, play a significant role in determining capital structure.

Practical implications

The empirical results of this paper provide strong evidence that firms, driven by motivations such as either learning or competition, will actively react to peers’ financial decisions. As the bridge between individual firms and the industry, social multiplier can be fully taken advantage of to induce positive spillover of good management practices and prohibit inefficient decisions from spreading.

Originality/value

This paper theoretically and empirically introduces peer effects – a well-acknowledged social concept – into capital structure decision of Chinese listed firms, thus both complementing the traditional capital structure theory and providing an empirical paradigm for peer effects research.

Details

Nankai Business Review International, vol. 9 no. 3
Type: Research Article
ISSN: 2040-8749

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Book part
Publication date: 30 August 2019

Bai Huang, Tae-Hwy Lee and Aman Ullah

This chapter examines the asymptotic properties of the Stein-type shrinkage combined (averaging) estimation of panel data models. We introduce a combined estimation when…

Abstract

This chapter examines the asymptotic properties of the Stein-type shrinkage combined (averaging) estimation of panel data models. We introduce a combined estimation when the fixed effects (FE) estimator is inconsistent due to endogeneity arising from the correlated common effects in the regression error and regressors. In this case, the FE estimator and the CCEP estimator of Pesaran (2006) are combined. This can be viewed as the panel data model version of the shrinkage to combine the OLS and 2SLS estimators as the CCEP estimator is a 2SLS or control function estimator that controls for the endogeneity arising from the correlated common effects. The asymptotic theory, Monte Carlo simulation, and empirical applications are presented. According to our calculation of the asymptotic risk, the Stein-like shrinkage estimator is more efficient estimation than the CCEP estimator.

Details

Topics in Identification, Limited Dependent Variables, Partial Observability, Experimentation, and Flexible Modeling: Part A
Type: Book
ISBN: 978-1-78973-241-2

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Book part
Publication date: 26 November 2020

Alessio Fusco and Nizamul Islam

This paper investigates the effect of household size, and in particular of the number of children of different age groups, on poverty, defined as being in a situation of…

Abstract

This paper investigates the effect of household size, and in particular of the number of children of different age groups, on poverty, defined as being in a situation of low income. We apply various static and dynamic probit models to control for the endogeneity of the variables of interest and to account for unobserved heterogeneity, state dependence, and serially correlated error components. Using Luxembourg longitudinal data, we show that the number of children of different age groups significantly affects the probability of being poor. However, the magnitude of the effect varies across different specifications. In addition, we find strong evidence of true poverty persistency due to past experience, spurious poverty persistency due to individual heterogeneity, and transitory random shocks.

Details

Inequality, Redistribution and Mobility
Type: Book
ISBN: 978-1-80043-040-2

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Book part
Publication date: 19 December 2012

Matthew Harding and Carlos Lamarche

This paper studies the estimation of quantile regression panel duration models. We allow for the possibility of endogenous covariates and correlated individual effects in…

Abstract

This paper studies the estimation of quantile regression panel duration models. We allow for the possibility of endogenous covariates and correlated individual effects in the quantile regression models. We propose a quantile regression approach for panel duration models under conditionally independent censoring. The procedure involves minimizing ℓ1 convex objective functions and is motivated by a martingale property associated with survival data in models with endogenous covariates. We carry out a series of Monte Carlo simulations to investigate the small sample performance of the proposed approach in comparison with other existing methods. An empirical application of the method to the analysis of the effect of unemployment insurance on unemployment duration illustrates the approach.

Details

Essays in Honor of Jerry Hausman
Type: Book
ISBN: 978-1-78190-308-7

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Article
Publication date: 8 May 2018

Lixin Cai

The purpose of this paper is to enhance the understanding of labour force participation behaviour of married Australian women, with a focus on identifying the sources of…

Abstract

Purpose

The purpose of this paper is to enhance the understanding of labour force participation behaviour of married Australian women, with a focus on identifying the sources of observed inter-temporal labour force participation persistence.

Design/methodology/approach

A dynamic Probit model is applied to the Household, Income and Labour Dynamics in Australia (HILDA) Survey, a national representative panel survey of Australian households. The model used accounts for observed and unobserved individual heterogeneity and serially correlated transitory shocks to labour supply.

Findings

The results show that both observed and unobserved individual heterogeneity contributes to observed inter-temporal persistence of labour force participation of married Australian women, but the persistence remains even after controlling for these factors. It is also found that failing to control for serially correlated unobserved transitory shocks would lead to underestimation of genuine state dependence of labour force participation; and that state dependence of labour force participation varies with age, education, health, immigration status and the number of children under the school age.

Originality/value

This study adds to the international literature on labour force dynamics of women by providing Australian empirical evidence and through a flexible modelling framework. The result that there exists genuine positive state dependence in married Australian women’s labour force participation suggests that policy intervention that increases married women’s labour supply would have a long-lasting effect.

Details

International Journal of Manpower, vol. 39 no. 2
Type: Research Article
ISSN: 0143-7720

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Book part
Publication date: 19 May 2009

David A. Kenny and Stefano Livi

The social relations model (SRM; Kenny, 1994) explicitly proposes that leadership simultaneously operates at three levels of analysis: group, dyad, and individual…

Abstract

The social relations model (SRM; Kenny, 1994) explicitly proposes that leadership simultaneously operates at three levels of analysis: group, dyad, and individual (perceiver and target). With this model, researchers can empirically determine the amount of variance at each level as well as those factors that explain variance at these different levels. This chapter shows how the SRM can be used to address many theoretically important questions in the study of leadership and can be used to advance both the theory of and research in leadership. First, based on analysis of leadership ratings from seven studies, we find that there is substantial agreement (i.e., target variance) about who in the group is the leader and little or no reciprocity in the perceptions of leadership. We then consider correlations of leadership perceptions. In one analysis, we examine the correlations between task-oriented and socioemotional leadership. In another analysis, we examine the effect of gender and gender composition on the perception of leadership. We also explore how self-ratings of leadership differ from member perceptions of leadership. Finally, we discuss how the model can be estimated using conventional software.

Details

Multi-Level Issues in Organizational Behavior and Leadership
Type: Book
ISBN: 978-1-84855-503-7

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Article
Publication date: 11 July 2016

Shuyun Ren and Tsan-Ming Choi

Panel data-based demand forecasting models have been widely adopted in various industrial settings over the past few decades. Despite being a highly versatile and…

Abstract

Purpose

Panel data-based demand forecasting models have been widely adopted in various industrial settings over the past few decades. Despite being a highly versatile and intuitive method, in the literature, there is a lack of comprehensive review examining the strengths, the weaknesses, and the industrial applications of panel data-based demand forecasting models. The purpose of this paper is to fill this gap by reviewing and exploring the features of various main stream panel data-based demand forecasting models. A novel process, in the form of a flowchart, which helps practitioners to select the right panel data models for real world industrial applications, is developed. Future research directions are proposed and discussed.

Design/methodology/approach

It is a review paper. A systematically searched and carefully selected number of panel data-based forecasting models are examined analytically. Their features are also explored and revealed.

Findings

This paper is the first one which reviews the analytical panel data models specifically for demand forecasting applications. A novel model selection process is developed to assist decision makers to select the right panel data models for their specific demand forecasting tasks. The strengths, weaknesses, and industrial applications of different panel data-based demand forecasting models are found. Future research agenda is proposed.

Research limitations/implications

This review covers most commonly used and important panel data-based models for demand forecasting. However, some hybrid models, which combine the panel data-based models with other models, are not covered.

Practical implications

The reviewed panel data-based demand forecasting models are applicable in the real world. The proposed model selection flowchart is implementable in practice and it helps practitioners to select the right panel data-based models for the respective industrial applications.

Originality/value

This paper is the first one which reviews the analytical panel data models specifically for demand forecasting applications. It is original.

Details

Industrial Management & Data Systems, vol. 116 no. 6
Type: Research Article
ISSN: 0263-5577

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Article
Publication date: 8 July 2020

Lixin Cai

The purpose of this study is to enhance understanding labour supply dynamics of the UK workers by examining whether and to what extent there is state dependence in the…

Abstract

Purpose

The purpose of this study is to enhance understanding labour supply dynamics of the UK workers by examining whether and to what extent there is state dependence in the labour supply at both the extensive and intensive margins.

Design/methodology/approach

A dynamic two-tiered Tobit model is applied to the first seven waves of Understanding Society: the UK Household Longitudinal Study. The model used accounts for observed and unobserved individual heterogeneity and serially correlated transitory shocks to labour supply to draw inferences on state dependence.

Findings

The results show that both observed and unobserved individual heterogeneity contributes to observed inter-temporal persistence of the labour supply of the UK workers, and the persistence remains after these factors are controlled for, suggesting true state dependence at both the extensive and intensive margins of the labour supply. The study also finds that at both the margins, the state dependence of labour supply is larger for females than for males and that for both genders the state dependence is larger for people with low education, mature aged workers and people with long-standing illness or impairment. The results also show that estimates from a conventional Tobit model may produce misleading inferences regarding labour supply at the extensive and intensive margins.

Originality/value

This study adds to the international literature on labour supply dynamics by providing empirical evidence for both the extensive and intensive margins of labour supply, while previous studies tend to focus on the extensive margin of labour force participation only. Also, unlike earlier studies that often focus on females, this study compares labour supply dynamics between males and females. The study also compares the estimates from the more flexible two-tiered Tobit model with that from the conventional Tobit model.

Details

International Journal of Manpower, vol. 42 no. 3
Type: Research Article
ISSN: 0143-7720

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Book part
Publication date: 1 January 2012

Dan Mahoney and Wesley W. Wilson

Over the past 50 years, air travel in the United States has increased from approximately 33 million passengers in 1960 to over 607 million passengers in 2007 (National

Abstract

Over the past 50 years, air travel in the United States has increased from approximately 33 million passengers in 1960 to over 607 million passengers in 2007 (National Transportation Statistics, 2011, Table 1–40). This is over an 18-fold increase in air travel in the past five decades. Over that same time period, the number of airports increased modestly, from 15,161 in 1980 to 19,750 in 2009. The number of those airports serving public commercial traffic is even smaller, and has declined from 730 airports in 1980 to 559 in 2009 (National Transportation Statistics, 2011, Table 1–3). Together, these two facts point to phenomenal growth among airports (measured by the number of passenger trips).

Details

Pricing Behavior and Non-Price Characteristics in the Airline Industry
Type: Book
ISBN: 978-1-78052-469-6

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Article
Publication date: 1 September 2005

Faisal Manzoor Arain and Low Sui Pheng

To provide an in‐depth analysis of the potential effects of variations in institutional building projects, which would be helpful for building professionals in assessing…

Abstract

Purpose

To provide an in‐depth analysis of the potential effects of variations in institutional building projects, which would be helpful for building professionals in assessing and taking proactive measures for reducing the adverse impact of variations.

Design/methodology/approach

To achieve the study objectives, a questionnaire survey was carried out to collect information on potential effects of variations. Responses from 28 professionals working for a developer organization (a government agency) were analyzed. Furthermore, 26 face‐to‐face interviews using the questionnaires were also analyzed.

Findings

The results suggest that the most frequent effects of variations were increase in project costs, additional payments for contractor, progress affected but without any delay, completion schedule delay, increase in overhead expenses and rework and demolition. Recommendations were suggested based on the findings of the research and literature review.

Research limitations/implications

This paper presented only the developers' view of the effects of variation orders on institutional building projects in Singapore. Further works can be extended to survey the consultants and the contractors who have carried out these projects.

Practical implications

The study will benefit the professionals involved with institutional building projects. The professionals would learn about the downstream effects that may assist in the valuable evaluation of variation orders.

Originality/value

This is a timely study as the program of rebuilding and improving existing institutional buildings is currently underway in Singapore. A clearer view of the effects of variations on the projects will enable the project team to take advantage of beneficial variations. Furthermore, the findings can be used by future researchers to carry out studies on the management of variation orders in various other types of projects.

Details

Facilities, vol. 23 no. 11/12
Type: Research Article
ISSN: 0263-2772

Keywords

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