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Article
Publication date: 28 November 2023

Shubham Kumar Sehgal

Credit is an essential element in the production process in agriculture. There are two sources from which farm households can access credit: institutional sources and…

Abstract

Purpose

Credit is an essential element in the production process in agriculture. There are two sources from which farm households can access credit: institutional sources and non-institutional or informal sources of credit. The informal sources of credit, such as moneylenders, charge exorbitant rates of interest, which further puts a financial burden on the farmers. Hence, to increase the flow of credit from institutional sources, a policy known as the interest subvention scheme (ISS) was introduced in the year 2006. This paper aims to find the effect of the ISS on the behaviour of farm households.

Design/methodology/approach

The author has used difference-in-difference analysis for estimation. In the analysis, the author has taken Madhya Pradesh as the treatment state and Andhra Pradesh as the controlled state. The author has used the Village Dynamics in South Asia (VDSA) dataset of ICRISAT for analysis. The author has used data from 2009 to 2014 for the two states.

Findings

The author has found that the difference between the average interest rate of Andhra Pradesh and Madhya Pradesh is significant for both pre-treatment and post-treatment periods and this gap has increased after the intervention period. The results suggest that the share of informal sector borrowings has reduced in the treatment group (Madhya Pradesh) as compared to the control group (Andhra Pradesh) in the post-treatment period.

Originality/value

This paper is particularly important because of the dearth of literature on the impact of this scheme in India and may shed light on the much-needed policy implications of this particular policy.

Details

Agricultural Finance Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0002-1466

Keywords

Article
Publication date: 1 December 2023

Yu-Cheng Lai and Santanu Sarkar

The purpose of this paper is to understand the impending relationship between the impact of the US–China trade war on Taiwanese firms' spending on R&D and their offshore…

Abstract

Purpose

The purpose of this paper is to understand the impending relationship between the impact of the US–China trade war on Taiwanese firms' spending on R&D and their offshore investment in technologically advanced countries (TAC), the authors examined if changes in these firms' R&D ratios and the growing presence of skilled workers in Taiwan's labour market during the trade war have affected their offshore investments in TAC.

Design/methodology/approach

Using a model built on pooled cross-sectional time-series data from 2012–2019, the authors examined whether a change in R&D ratios of domestic firms in Taiwan and the growing presence of skilled workers in Taiwan's labour market have affected the offshore investment by these firms during the trade war. Using data from the Manpower Utilisation Survey, the authors applied differences–in–differences–in–differences and differences–in–differences–in–differences–in–differences estimation methods and found that the trade war indeed gave a boost to Taiwan's job market, particularly for skilled workers.

Findings

From the estimation results, the authors noticed a rise in employment opportunities alongside a decline in the earnings of skilled workers in industries where more firms have spent on R&D as well as invested in offshore operations. However, firms in Taiwan that had not heavily spent on R&D from industries where investment in foreign operations was otherwise high have also attracted skilled workers during the trade war.

Practical implications

An in-depth analysis of the impact of the trade war on domestic firms' spending on R&D and their investment in offshore operations in TAC should be helpful to policymakers interested in understanding the effects of the trade war and subsequent changes in firms' spending on R&D on labour market outcomes. If changes in the R&D ratios and a steady supply of skilled workers influenced the outflow of Foreign Direct Investment (FDI) to TAC, this insight could be helpful for those devising policies and measures to curb the impact of the trade war on domestic spending on R&D.

Originality/value

The study findings not only provide broad lessons to policymakers in Taiwan, but the country case study can guide growing economies that are equally careful while perceiving trade war as a significant deterrent to domestic R&D spending and the outflow of FDI.

Details

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

Keywords

Book part
Publication date: 7 December 2023

Heeyun Kim and Paula Clasing-Manquian

Education researchers have been urged to utilize causal inference methods to estimate the policy effect more rigorously. While randomized controlled trials (RCTs) are the gold…

Abstract

Education researchers have been urged to utilize causal inference methods to estimate the policy effect more rigorously. While randomized controlled trials (RCTs) are the gold standard for assessing causality, RCTs are infeasible in some educational settings, particularly when ethical concerns or high cost are involved. Quasi-experimental research designs are the best alternative approach to study educational topics not amenable to RCTs, as they mimic experimental conditions and use statistical techniques to reduce bias from variables omitted in the empirical models. In this chapter, we introduce and discuss the core concepts, applicability, and limitations of three quasi-experimental methods in higher education research (i.e., difference-in-differences, instrumental variables, and regression discontinuity). By introducing each of these techniques, we aim to expand the higher education researcher's toolbox and encourage the use of these quasi-experimental methods to evaluate educational interventions.

Article
Publication date: 16 February 2023

Viviana Huachizaca and Karen Yambay-Armijos

This quasi-experimental study examined the effectiveness of audio-visual and written feedback (AVF + WF) on undergraduate students versus only receiving WF in the context of an…

Abstract

Purpose

This quasi-experimental study examined the effectiveness of audio-visual and written feedback (AVF + WF) on undergraduate students versus only receiving WF in the context of an English as a Foreign Language (EFL) online classroom during the coronavirus disease 2019 (COVID-19) lockdown.

Design/methodology/approach

The study used the estimator Difference in Difference (DID) to compare a treated and control group in a pre-and post-test under the application of six treatment sessions, plus a student's perception survey at the end of the treatment. The treated group that received the multimodal feedback showed higher improvement rates in the paragraph content between the first and final drafts than students in the control group.

Findings

Results indicated that receiving a combination of AVF + WF had a statistically significant effect on mechanics (p < 0.001) and the use of transition words (p = 0.003).

Practical implications

These findings will benefit educational agents, professors and stakeholders for social and economic development.

Originality/value

While previous studies have only used student perceptions of the feedback, this study contributes with empirical data through quasi-experimental analysis and measures the effectiveness of feedback in online learning environments.

Details

Journal of Applied Research in Higher Education, vol. 15 no. 5
Type: Research Article
ISSN: 2050-7003

Keywords

Article
Publication date: 20 October 2023

Kuldeep Singh

Environmental, social and governance (ESG) issues have become the cornerstone of investment decisions in firms today. With that, publicly traded ESG indices (like the BSE ESG 100…

Abstract

Purpose

Environmental, social and governance (ESG) issues have become the cornerstone of investment decisions in firms today. With that, publicly traded ESG indices (like the BSE ESG 100 index in India) have come into existence. The existing literature signifies that ESG generates financial implications and induces stability. The current study aims to test whether the firms listed on the ESG index (ESG-sensitive firms) face less financial distress than those not listed on such an index.

Design/methodology/approach

The study applies panel data difference-in-differences (DID) regression by considering ESG as an unstaggered treatment to 74 non-financial firms listed on India's Bombay Stock Exchanges (BSE) 100 index. In total, 42 firms are ESG treated as they got listed on the BSE ESG 100 index, formed in 2017. The remaining 32 firms form the control group. The confidence intervals and standard errors are estimated using clustered robust errors and the Donald and Lang method.

Findings

Listing on the ESG index matters for financial stability; differences in financial distress are significant on financial distress. ESG-sensitive firms face less financial distress than non-ESG firms (or firms not perceived as ESG-sensitive). The results are consistent across two financial distress measures, Altman z-scores for emerged and emerging markets. Thus, the DID in distress status between ESG-sensitive and non-ESG firms matter.

Practical implications

The study creates vibrant implications for practitioners using ESG to reduce financial distress.

Originality/value

The study is one of its kind to test the treatment effects of ESG on firm value and quantify treatment effects on financial distress.

Details

Asian Review of Accounting, vol. 32 no. 2
Type: Research Article
ISSN: 1321-7348

Keywords

Article
Publication date: 22 February 2022

Serife Genc Ileri

This paper provides a quantitative assessment of the “asset ratio” rule defined in Turkey as part of measures taken to stimulate the economy amid the Covid-19 pandemic. The main…

Abstract

Purpose

This paper provides a quantitative assessment of the “asset ratio” rule defined in Turkey as part of measures taken to stimulate the economy amid the Covid-19 pandemic. The main objective of the new rule was to boost credit growth in the economy and provide lending for credit-constrained households and firms that are in need. A secondary aim was to shift the denomination structure of the deposits toward domestic currency. Hence, the paper focus particularly on how the policy affected the growth rate of loans and the share of domestic deposits relative to foreign ones among the commercial banks. The policy was also heavily criticized due to the possibility that it will subjugate the banking system to excessive risk. The paper explore this possible impact by measuring how much the policy affected the default risk allowances in the banking system.

Design/methodology/approach

The new policy required banks with deposits above a threshold level, i.e. large banks, to maintain a certain asset ratio. Banks with deposits below the threshold, i.e. small banks, were held exempt from it. The paper implement a difference-in difference methodology to assess the quantitative impacts of the asset ratio policy by taking large banks as the treatment group, and small banks as the control group.

Findings

Difference-in-difference estimation results suggest that the asset ratio policy resulted in a 9.6% rise in loans and an 8.4% rise in government securities. Deposits also increased, with no significant change in their composition. The policy initially generated a 7% increase in the credit risk allowances of banks in the treatment group, which vanished in the following periods. Based on all these, the paper argue that the policy was successful in providing liquidity to the economy without jeopardizing the financial stability.

Research limitations/implications

The findings of this study show that asset ratio policy is effective in increasing credit growth in countries with limited policy space such as Turkey. While saying this, the importance of the robust and prudent structure of the banking system in the economy should be underlined. Otherwise, the policy may have an unintended consequence of raising systemic risk. The policy suggestions also apply to advanced countries where the monetary policy has reached a natural limit due to the zero lower bound (ZLB). The ZLB problem encouraged these countries to use quantitative easing schemes in the aftermath of the Covid-19 crisis, just like the global financial crisis. However, it may take a long time to undo the effects of this policy on the balance sheets of central banks. In such cases, asset ratio policy can also be considered as an alternative tool for advanced economies notwithstanding the fact that the banking system should be prudent, well-capitalized and the country should have enough fiscal space. The main objective of the asset ratio policy was to help SMEs that were in urgent need of liquidity at the beginning of the crisis. The bank balance sheet data used in this paper does not contain information about the borrowers of the loans extended during the implementation of the policy. Analysis of this dimension using matched bank-firm level data will better demonstrate the success of the policy in achieving this goal. The paper address this as the main limitation of the paper and leave that analysis for future research.

Originality/value

This paper provides an important contribution to the literature by assessing a new unique policy whose objective is to stimulate loans and mitigate the impact of the Covid-19 crisis on the economy. The policy in question is predicted to have effects on the asset and liability structure and risk exposure of the banking system in Turkey. The quantitative analysis in this study estimates these impacts and discusses the effectiveness of the new policy in providing a relief for firms and households in need. Whether or not the policy caused a disruption in the sound structure of the banking system in Turkey is another question addressed in the paper.

Details

International Journal of Emerging Markets, vol. 18 no. 11
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 3 April 2023

Efrosini Siougle, Sophia Dimelis and Nikolaos Malevris

This study explores the link between ISO 9001 certification, personal data protection and firm performance using financial balance sheet and survey data. The security aspect of…

Abstract

Purpose

This study explores the link between ISO 9001 certification, personal data protection and firm performance using financial balance sheet and survey data. The security aspect of data protection is analyzed based on the major requirements of the General Data Protection Regulation and mapped to the relevant controls of the ISO/IEC 27001/27002 standards.

Design/methodology/approach

The research analysis is based on 96 ISO 9001–certified and non-certified publicly traded manufacturing and service firms that responded to a structured questionnaire. The authors develop and empirically test their theoretical model using the structural equation modeling technique and follow a difference-in-differences econometric modeling approach to estimate financial performance differences between certified and non-certified firms accounting for the level of data protection.

Findings

The estimates indicate three core dimensions in the areas of “policies, procedures and responsibilities,” “access control management” and “risk-reduction techniques” as desirable components in establishing the concept of data security. The estimates also suggest that the data protection level has significantly impacted the performance of certified firms relative to the non-certified. Controlling for the effect of industry-level factors reveals a positive relationship between data security and high-technological intensity.

Practical implications

The results imply that improving the level of compliance to data protection enhances the link between certification and firm performance.

Originality/value

This study fills a gap in the literature by empirically testing the influence of data protection on the relationship between quality certification and firm performance.

Details

International Journal of Productivity and Performance Management, vol. 73 no. 3
Type: Research Article
ISSN: 1741-0401

Keywords

Open Access
Article
Publication date: 31 August 2023

Tamanna Dalwai

This study examines the influence of economic policy uncertainty on financial flexibility before and during the coronavirus disease 2019 (COVID-19) pandemic. Few prior studies…

1417

Abstract

Purpose

This study examines the influence of economic policy uncertainty on financial flexibility before and during the coronavirus disease 2019 (COVID-19) pandemic. Few prior studies have examined this association specifically for debt and cash flexibility.

Design/methodology/approach

Using quarterly data from 2016 to 2022, 1014 observations were collected from the S&P Capital IQ database for listed tourism companies in India. The pre-pandemic period is defined as 2016 Q1 to 2020 Q1, whereas the pandemic period is from 2020 Q2 to 2022 Q3. The data are analysed using ordinary least squares, probit, logit and difference-in-difference (DID) estimation.

Findings

The evidence of this study suggests a negative association of economic policy uncertainty with debt flexibility during the COVID-19 pandemic. The findings also suggest that COVID-19 induced economic policy uncertainty results in high cash flexibility. This meets the expectations for the crisis period, as firms are likely to hold more cash and less debt capacity to manage their operations. The results are robust for various estimation techniques.

Research limitations/implications

This study is limited to one emerging country and is specific to one non-financial sector. Future research could extend to more emerging countries and include other non-financial sector companies.

Practical implications

The findings of this research are useful for tourism sector managers as they can effectively manage their cash and debt flexibility during crisis periods. They will need to prioritise cash flexibility over debt flexibility to manage operations effectively. Policymakers need to provide clear and stable economic policies to help firms manage their debt levels during a crisis.

Originality/value

To the best of the author's knowledge, no existing studies have investigated the influence of economic policy uncertainty on the financial flexibility of tourism companies before and during the COVID-19 pandemic. Furthermore, this study establishes a novel set of critical determinants, such as economic policy uncertainty.

Details

Journal of Asian Business and Economic Studies, vol. 30 no. 4
Type: Research Article
ISSN: 2515-964X

Keywords

Article
Publication date: 30 May 2023

Marcellin Makpotche, Kais Bouslah and Bouchra M'Zali

This paper aims to investigate the long-run financial and environmental performance of corporate green bond issuers, worldwide.

Abstract

Purpose

This paper aims to investigate the long-run financial and environmental performance of corporate green bond issuers, worldwide.

Design/methodology/approach

The data includes 259 corporate green bond issuers from 2013 to 2020. The authors adopt the matching approach, using the nearest neighbor method to select the control firms. The event-time approach is used to examine corporate green bond issuers’ long-run stock market performance, and robustness tests are conducted using the calendar-time method. The authors examine green bond issuers’ long-run environmental performance and carbon dioxide (CO2) emissions using difference-in-differences estimations.

Findings

In contrast with the earlier long-run event studies, our results reveal that multiple-time issuers, and issuers operating in industries where the natural environment is financially material, perform financially in the long term relative to the control firms. The authors also document that corporate green bond issuers reduce their CO2 emissions, and improve their resource use efficiency and environmental performance, in the long run.

Originality/value

To the authors’ knowledge, this is the first study that looks at the long-run effect of corporate green bond issuance on firms’ stock market performance. It has the particularity to document that corporate green bond issuance is beneficial for investors and positively affects the environment. Our findings help us understand that firms do not issue green bonds for greenwashing.

Details

Managerial Finance, vol. 50 no. 1
Type: Research Article
ISSN: 0307-4358

Keywords

Article
Publication date: 26 March 2024

Yingjie Ju, Jianliang Yang, Jingping Ma and Yuehang Hou

The objective of this study is to explore the impact of a government-supported initiative for operational security, specifically the establishment of the national security…

Abstract

Purpose

The objective of this study is to explore the impact of a government-supported initiative for operational security, specifically the establishment of the national security emergency industry demonstration base, on the profitability of local publicly traded companies. Additionally, the study investigates the significance of firms' blockchain strategies and technologies within this framework.

Design/methodology/approach

Using the differences-in-differences (DID) approach, this study evaluates the impact of China's national security emergency industry demonstration bases (2015–2022) on the profitability of local firms. Data from the China Research Data Service (CNRDS) platform and investor Q&As informed our analysis of firms' blockchain strategy and technology, underpinned by detailed data collection and a robust DID model.

Findings

Emergency industry demonstration bases have notably boosted enterprise profitability in both return on assets (ROA) and return on equity (ROE). Companies adopting blockchain strategies and operational technology see a clear rise in profitability over non-blockchain peers. Additionally, the technical operation of blockchain presents a more pronounced advantage than at the strategic level.

Originality/value

We introduced a new perspective, emphasizing the enhancement of corporate operational safety and financial performance through the pathway of emergency industry policies, driven by the collaboration between government and businesses. Furthermore, we delved into the potential application value of blockchain strategies and technologies in enhancing operational security and the emergency industry.

Details

Industrial Management & Data Systems, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0263-5577

Keywords

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