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Article
Publication date: 10 May 2024

Vardges Hovhannisyan and Serhat Asci

We seek to quantify the relationship between urbanization and economic growth in China using recent advances in econometric techniques.

Abstract

Purpose

We seek to quantify the relationship between urbanization and economic growth in China using recent advances in econometric techniques.

Design/methodology/approach

This study adopts a smoothed instrumental variables quantile regression (SIVQR) estimator to obtain consistent estimates of the effects of urbanization on economic growth in China. Our approach accounts for the differential impacts of urbanization across the conditional distribution of economic growth while allowing for an identification strategy that addresses the endogeneity of urbanization. Our main findings reveal that ignoring urbanization endogeneity leads to inconsistent estimates of urbanization effects. Further, we find a positive relationship between urbanization and growth resembling an inverted U-shape. This supports the hypothesis that the beneficial effects of urbanization intensify at initial stages while diminishing beyond a certain threshold, due perhaps to weakening scale economies.

Findings

Our main results indicate that the individual productivity gains brought by urbanization outweigh the negative effects thereof that impede productivity, thus contributing to the economic growth in China. Further, we find that ignoring differential impacts of urbanization underestimates the beneficial effects of urbanization for provinces whose quality of governance is in the vicinity of the center of quality distribution. Ignoring the endogeneity of urbanization generates inconsistent estimates of the elasticity of economic growth with respect to urbanization. Finally, we estimate an inverted U-shape resembling relationship between urbanization and growth.

Research limitations/implications

First, future studies would benefit from incorporating more data as provinces further east on the mainland become more urbanized and urbanization runs its course. Second, controlling the barriers to rural-urban mobility would contribute to the robustness of the estimated relationship between urbanization and growth once such data became available. Unveiling the impact of government-imposed barriers is key to designing optimal policies that help fuel economic growth in the country. Finally, future research could benefit from information on urbanization sources not considered here such as inter-provincial migration, as such data become publicly available.

Practical implications

Quantifying the beneficial effects of urbanization on economic growth can help guide the government in China to further fuel the growth through a set of relevant policy tools that promote urbanization.

Social implications

Rural-urban migration in China lays the groundwork for economic advancement in recipient cities and economies, as it may induce scale economies. This can benefit both the economy at large and the migrants.

Originality/value

The SIVQR estimator accounts for potential heterogeneous effects of urbanization across the entire conditional distribution of growth while allowing for an identification strategy that addresses the endogeneity of urbanization. An additional distinguishing feature of the current study is our use of the most recent novel, provincial-level data obtained from the National Bureau of Statistics of China. Our focus on a single country allows sidestepping issues arising from the inconsistency of the definition of urban across different countries while accounting for intra-country urbanization drivers intrinsic to China, such as natural features and geographic characteristics. Therefore, our approach has the potential to sidestep the bias resulting from the differences in mechanisms behind urbanization-growth relationships across different countries.

Details

China Agricultural Economic Review, vol. 16 no. 3
Type: Research Article
ISSN: 1756-137X

Keywords

Article
Publication date: 14 December 2023

SeyedSoroosh Azizi, Abed Aftabi, Mohsen Azizkhani and Kiana Yektansani

This study investigates the impact of international remittances on the economic growth of remittance-receiving countries, using data from 113 developing countries between 1990 and…

Abstract

Purpose

This study investigates the impact of international remittances on the economic growth of remittance-receiving countries, using data from 113 developing countries between 1990 and 2015.

Design/methodology/approach

The authors used a novel approach to address the potential endogeneity of remittances. The authors estimated bilateral remittances and use them to create weighted indicators of remittance-sending countries, which the authors then use as instruments for remittance inflows to remittance-receiving countries.

Findings

The results indicate that while remittances have a positive impact on economic growth in developing countries with high human capital, they do not contribute to growth in developing countries with low human capital. The authors also examined the channels through which remittances affect growth. The findings suggested that remittances do not impact labor supply in developing countries with high human capital, but they reduce labor supply in countries with low human capital. Additionally, remittances increase investment in physical capital in developing countries with high human capital, but they do not have an effect on investment in developing countries with low human capital.

Originality/value

The authors investigated the impact of remittances on economic growth using a novel approach to address the endogeneity of remittances. Additionally, the authors examined the different indirect channels through which remittances can impact economic growth, such as their effect on labor supply and investment.

Details

Journal of Economic Studies, vol. 51 no. 6
Type: Research Article
ISSN: 0144-3585

Keywords

Article
Publication date: 17 September 2024

Faraj Salman Alfawareh, Mahmoud Al-Kofahi, Edie Erman Che Johari and Ooi Chai-Aun

This paper aims to examine the connection between digital payments, ownership structure, and bank performance in Jordan, as well as investigate the moderating role of the…

Abstract

Purpose

This paper aims to examine the connection between digital payments, ownership structure, and bank performance in Jordan, as well as investigate the moderating role of the independent director in the said relationship.

Design/methodology/approach

The study uses data from 12 Amman stock exchange-listed commercial banks, covering the period from 2010 to 2023. This paper employs econometric analysis of panel data, including ordinary least squares (OLS) regression as the primary approach, as well as the generalised method of moments, the two-stage least square (2SLS), and the dynamic model to deal with causality and endogeneity issues in the proposed equations. This ensures that the results are valid.

Findings

The results indicate that digital payments and ownership structure have a significant positive connection with bank performance. Additionally, the independent director variable appears to play a substantial and positive moderating role in the link between ownership structure (e.g. institutional ownership) and bank performance. These results strengthen and support the claims of agency theory and the information systems success model.

Practical implications

Overall, this research helps stakeholders, bankers, managers, investors, customers, and policymakers, identify the influence of digital payment and ownership structure on bank performance in developing economies such as that of Jordan.

Originality/value

This investigation offers a unique understanding by illuminating how digital payment and ownership structure affect bank performance in a developing country such as Jordan. Additionally, it opens avenues for future research to delve into this literature domain in North African and Middle Eastern nations, with a particular focus on Jordan. This investigation is among the initial explorations in Jordan that aim to elucidate these relationships. On the theoretical level, it adds to the agency theory and IS model. It provides new insights into the dynamics of industry banking in developing nations (i.e. Jordan).

Details

International Journal of Bank Marketing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0265-2323

Keywords

Article
Publication date: 22 November 2023

Christian Friedrich and Reiner Quick

Whistleblowers are individuals who detect and report misconduct in an organization. They help to mitigate organizational misbehavior and resulting damages effectively and…

Abstract

Purpose

Whistleblowers are individuals who detect and report misconduct in an organization. They help to mitigate organizational misbehavior and resulting damages effectively and relatively quickly. Whistleblower protection has not been systematically required in the European Union (EU), leaving many large organizations unregulated. This study aims to get in-depth insights into how unregulated organizations design, handle and view whistleblowing with the advent of a novel EU Whistleblowing Directive.

Design/methodology/approach

The authors conducted 17 semistructured interviews with a diverse group of organizations headquartered in Germany and inductively analyzed them following Grounded Theory. Linking the Grounded Theory to the legal endogeneity model, they developed seven perspectives that help to explain how organizations view whistleblowing.

Findings

In trying to make sense of the role of whistleblowing in the organization’s governance, organizations and their managers assume different perspectives. These perspectives guide their approach to whistleblower protection in the context of evolving regulation with little regulatory guidance. Perspectives vary in the degree of supporting whistleblowing regulation, from viewing whistleblowing as a natural, everyday governance tool to denying it and fearing denunciation. Most organizations exhibit several perspectives.

Originality/value

Little is known about day-to-day whistleblowing practices from the perspective of organizations. The authors fill this research gap by providing initial evidence on how organizations approach whistleblowing and the EU Whistleblowing Directive. Identifying organizations’ perspectives may help us understand how ineffective or noncompliant whistleblowing systems emerge and how organizations can improve.

Details

Journal of Accounting & Organizational Change, vol. 20 no. 4
Type: Research Article
ISSN: 1832-5912

Keywords

Article
Publication date: 19 September 2024

Nigar Sultana, Pallab Kumar Biswas, Harjinder Singh and Larelle Chapple

Countries globally have implemented policies or regulations promoting greater gender diversity in boardrooms. We investigate whether gender diversity on corporate boards leads to…

Abstract

Purpose

Countries globally have implemented policies or regulations promoting greater gender diversity in boardrooms. We investigate whether gender diversity on corporate boards leads to higher Sustainable Development Goals (SDG) commitment through these disclosures.

Design/methodology/approach

Using 16,659 firm-year observations across 42 countries for the years 2019 and 2020, we use disclosure data from the Refinitiv database to measure the sample firms’ stated commitment to sustainable development.

Findings

Our data provide useful comparative information on the countries, legal jurisdictions and types of SGDs currently being disclosed. Our analyses reveal that gender diverse boards are associated with greater levels of SDG disclosures, with such commitment being more significant when there is more than one woman on the board. We also find that women board members are associated most with the PEOPLE and PLANET groups within the SDGs, and our results are robust to additional analyses and endogeneity concerns.

Originality/value

Although gender diversity has been examined within a corporate social responsibility and ethical, social and governance lens, this examination needs to be extended to the SDGs, given the latter’s multi-year horizon and involvement from governments, the private sector and a very broad cross-section of the global community. Our results reinforce global calls for increasing gender representation at the highest levels of organisations to meet the expectations of a greater range of stakeholders in terms of SDG commitment.

Details

Journal of Accounting Literature, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0737-4607

Keywords

Content available
Article
Publication date: 16 April 2024

Simplice Asongu

The purpose of the study is to assess if a policy of female inclusive education should be complemented with a policy of female ownership of bank accounts to fight female…

Abstract

Purpose

The purpose of the study is to assess if a policy of female inclusive education should be complemented with a policy of female ownership of bank accounts to fight female unemployment. The study therefore examines how female ownership of bank accounts moderates the incidence of female education on female unemployment.

Design/methodology/approach

The focus is on 44 sub-Saharan African (SSA) countries for the period 2004–2018 and the empirical evidence is based on interactive quantile regressions. The interactions are tailored such that female ownership of bank accounts influences the effect of female inclusive education on female unemployment.

Findings

From the empirical findings it is evident that female ownership of bank accounts does not effectively moderate female education in order to reduce female unemployment unless complementary policies are considered. The complementary policies should be in view of boosting the interaction between female education and female bank account ownership in increasing employment opportunities for the female gender and by extension, reducing female unemployment. The invalidity of the moderating effect is robust to the inclusion of more elements in the conditioning information set as well as accounting for other dimensions of endogeneity such as simultaneity and the unobserved heterogeneity. Policy implications are discussed.

Originality/value

This study contributes to the extant literature by assessing how female ownership of bank accounts complements female inclusive education to reduce female unemployment.

Details

Journal of Entrepreneurship and Public Policy, vol. 13 no. 3
Type: Research Article
ISSN: 2045-2101

Keywords

Article
Publication date: 12 September 2023

Gopal Subedi, Laxman Pokhrel and Dinesh Basnet

Drawing on social identity, signalling and stakeholder theories, this paper aims to examine corporate reputation’s (CR) mediating role concerning corporate social responsibility…

Abstract

Purpose

Drawing on social identity, signalling and stakeholder theories, this paper aims to examine corporate reputation’s (CR) mediating role concerning corporate social responsibility (CSR) and customer loyalty (CL) among Generation Z customers of Nepali commercial banks.

Design/methodology/approach

The research applied a cross-sectional survey research design to collect data from 281 customers of Nepali commercial banks. The study used a purposive sampling method to reach the respondents and partial least squares structural equation model was used to test the hypotheses.

Findings

The results reveal that CSR significantly influences CR and CL. Likewise, CR positively influences CL. Moreover, CR partially mediates the relationship between CSR and CL. It implies that CSR and CR are critical variables for CL among Generation Z customers of Nepali commercial banks.

Practical implications

This study focuses on understanding the importance of CSR to Nepalese commercial bank managers to create a better customer base by focusing on the CSR dimensions, i.e. economic, environmental and social. It adds to the literature on the theoretical aspect of the study of CSR, particularly in the banking industry.

Originality/value

It has initially investigated CSR as a higher-order construct to explain the meditational mechanism of CR concerning CSR and CL. Moreover, the study examined the issue of endogeneity.

Details

International Journal of Organizational Analysis, vol. 32 no. 8
Type: Research Article
ISSN: 1934-8835

Keywords

Article
Publication date: 23 September 2024

Bilal Caliskan, Hatice Aysun Özkan Yazar and Abdulkadir Keskin

In metropolitan areas experiencing rapid urbanization and housing production, the size of housing units emerges as a crucial factor to consider in housing policy formulation. This…

Abstract

Purpose

In metropolitan areas experiencing rapid urbanization and housing production, the size of housing units emerges as a crucial factor to consider in housing policy formulation. This study aims to focus on Turkey, a developing country undergoing rapid urbanization and a construction boom in recent years, to examine households’ housing size preferences. Through a detailed analysis, this research delves into the causal relationships between income, education and housing size preferences.

Design/methodology/approach

This study uses the Family Structure Survey in Turkey 2016 data set collected nationwide by the Turkish Statistical Institute (TurkStat). To address potential endogeneity issues related to income and education levels in households’ choice of house size, an extended regression model is used. In addition, survey weights are applied to the statistical model to generalize the results of the study.

Findings

The study demonstrates that household income correlates with an increase in house size, while household education is associated with a decrease in house size. Variables such as household age, composition and vehicle ownership are found to impact the choice of house size. Particularly, one-person and couple-only households tend to prefer smaller dwellings compared to others. Lastly, the results reveal that the influence of household composition on dwelling size varies according to household age.

Originality/value

This study presents a comprehensive analysis of the determinants influencing households’ housing size preferences within the framework of a developing country context, focusing on Turkey. It specifically offers insights into the causal impact of education and income levels on housing size preferences, as well as the intricate interplay between household characteristics in shaping these preferences.

Details

International Journal of Housing Markets and Analysis, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1753-8270

Keywords

Article
Publication date: 6 September 2024

Yuqi Zhu

The study explores the relationship between self-control and various online promotional methods faced by consumers simultaneously, simulating how consumers with distinct levels of…

Abstract

Purpose

The study explores the relationship between self-control and various online promotional methods faced by consumers simultaneously, simulating how consumers with distinct levels of self-control act in the current Chinese Internet market.

Design/methodology/approach

The sample was collected from response of participants to the survey containing a self-control test and attitudes towards different promotional methods. This is a quantitative study using regression and analysis of variance (ANOVA).

Findings

Initially, the empirical study focuses on discount margin for both price-discounts and full-discounts, which implies that high discount margin has a negative impact on the quality perception of consumers. However, this impact is weakened under full-discounts. Subsequently, the study identifies that the negative influence of high discounts on quality perception is insignificant for the high self-control group facing various promotional activities simultaneously. Furthermore, it is found that consumers with a high level of self-control rely more on their quality perception rather than the discount margin of products.

Originality/value

The study covers self-control of consumers, a variety of promotional methods and simulation of the present Chinese online market, enriching the research topic of consumer behavior as well as Internet marketing.

Details

Asia Pacific Journal of Marketing and Logistics, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1355-5855

Keywords

Article
Publication date: 19 September 2024

Radwan Alkebsee, Ghassan H. Mardini, Jamel Azibi, Andreas G. Koutoupis and Leonidas G. Davidopoulos

The objective of this study is to determine the impact of GHG assurance on firms’ carbon emissions performance (CEP) regarding curbing carbon emissions and the effect on such by…

Abstract

Purpose

The objective of this study is to determine the impact of GHG assurance on firms’ carbon emissions performance (CEP) regarding curbing carbon emissions and the effect on such by the GHG assurance provider’s affiliation and reputation. It also explores whether the affiliation and reputation of GHG assurance providers imply the relationship between GHG assurance and the firm’s CEP. Further, this study examines the moderating effect of the country’s development level on the relationship.

Design/methodology/approach

Based on a sample of international firms from 56 countries spanning the period from 2012 to 2020, this study utilizes the ordinary least squares (OLS) regression. We also run the OLS regression at times t+1 and t+2 to verify the baseline results. To address the endogeneity concerns arising from self-selection bias and the causality effect, this study applies the generalized method of moment (GMM) and the Heckman test.

Findings

This study finds that GHG assurance leads to better CEP by firms. We also find that engaging with accounting assurance providers leads firms to a better CEP than non-accounting assurance providers. Our results show that Big Four auditors can help firms decrease carbon emissions. We also find that the positive effect of GHG assurance is prevalent in firms operating in developed countries.

Research limitations/implications

Our study only considers the influence of the assuror’s reputation and affiliation on CEP without examining other factors that may influence the quality of assurance services provided.

Practical implications

Our study provides a practical implication related to the influence of a GHG assurance provider’s affiliation and reputation globally by providing evidence that accounting and Big Four assurance providers do play a significant role in a firm’s carbon emission performance. This study offers great insights into the GHG assurance impact on CEP with the interplay between the assuror’s affiliation and reputation and the country’s development.

Originality/value

This paper enriches the limit evidence on GHG assurance and CEP by providing novel evidence on the relationship between GHG assurance and a firm’s CEP. Moreover, this study provides insights into the implication of a country’s development level on the role of GHG assurance in CEP.

Details

Journal of Applied Accounting Research, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0967-5426

Keywords

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