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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.

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.

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.

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.

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.

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

This paper aims to test the significance of unobservable firm-specific effects on a capital structure model.

The paper employs the restricted least squares method to test the significance of unobservable firm-specific effects in a fixed effects model that includes unobservable effects against a pooled ordinary least squares model that excludes unobservable effects.

The empirical findings indicate that models that include unobservable firm-specific effects are correctly specified.

The limitation of this study comes from lack of data to measure unobservable effects such as managerial ability or managerial skills. Future research can develop index measures of managerial ability or managerial skills and borrow from management theory to explain the connection between managerial ability or managerial skills and firms' capital structure.

The findings imply that a capital structure model that excludes firm-specific effects could be mis-specified because such a model does not control for unobservable firm-specific factors such as managerial ability or managerial skills which have significant effects on firms' capital structure decisions.

The findings are important because the paper applies the restricted least squares method to test the significance of unobservable firm-specific effects. This technique has not been applied previously. The paper contributes to capital structure research in the fast growing South Africa.

This paper aims to analyse factors that influence child schooling outcomes in India, specifically the role of gender.

This paper uses data from the nationally representative Indian National Family Health Surveys 1995-1996 and 2005-2006 and estimates Heckman sample selection, cluster fixed-effects and household fixed-effects econometric models. The dependent variables are the child’s enrolment status and conditional on enrolment child’s years of schooling.

This analysis finds statistically significant evidence of male advantage both in schooling enrolment as well as years of schooling. However, using a cluster fixed-effects model, our analysis finds that within a village, conditional on being enrolled, girls spend more years in school relative to boys. Other results show that parental schooling has a positive and statistically significant impact on child schooling. There is statistically significant wealth effect, community effect and regional disparities between states in India.

The large sample size and the range of questions available in this data set, allows us to explore the influence of individual, household and village level social, economic and cultural factors on child schooling. The role of gender on child schooling within a village, intrahousehold resource allocation for schooling and regional gender differences in schooling are important issues in India, where education outcomes remain poor for large segments of the population.

The purpose of this paper is to examine the variation and dispersion of prime retail yields in eight Asia‐Pacific centres. It seeks to provide empirical evidence on the significance of real estate and capital market influences as systematic drivers of retail yields in the sample of eight cities. The aim is to build a model that enables market participants to obtain base case yield forecasts.

A panel model is deployed in this study utilising a database of yields of eight years (2001‐2007). The small number of observations for retail yields across cities is addressed with this approach, which combines time‐series and cross‐section data. A fixed‐effect specification allows for city specific influences that partially capture the heterogeneity of cities in the sample. Within this framework the influence of time varying factors across markets and random effects on yields is examined.

The empirical estimates established significant influences from real rent growth and interest rates on retail yields explaining 78 per cent of their variation when allowed for fixed effects. Systematic time influences and market size are not significant. Retail yields are found fairly sensitive to long‐term interest (LTI) rates with 1 per cent change in LTI rates resulting in an over 80 basis points shift in yields. In general, investors should be aware of interest rate shocks as these can move retail yields in the region significantly. Based on the actual and simulated values for 2007 Shanghai and Hong Kong are broadly fairly priced. In Tokyo, Sydney and Singapore retail yields are somewhat lower than the simulated values, which are attributed to greater liquidity and transparency in these markets than indicating over‐pricing. In Delhi, the prime yield above the actual a sign of a possible outward movement is found. Beijing appears under‐priced. Finally, in Mumbai, which has the highest yield in the sample, the simulated yield is below actual as per 2007. An adjustment may not be expected as this difference is attributed to the pricing of supply risks in this market.

This study addresses the dearth of research work on retail yields in the Asia‐Pacific region. Through the panel methodology proposed market participants can obtain fundamentals‐based forecasts for prime retail yields in the sample of the eight cities, understand the exposure to interest rate movements and make calls as to whether markets are mispriced. The study shows that pooling data and panel techniques represent a good option to study market dynamics in situations of small datasets.

The study seeks to find the effect of financial leverage on the firm performance of non-financial companies listed in the Tokyo stock market.

The study collected data from 263 companies in the automobile and industrial producer sectors listed on the Tokyo stock exchange between 2001 and 2021. The generalized method of moments was used to estimate the effect of leverage on financial performance due to its ability to overcome the problems of endogeneity and autocorrelation.

The study found that the equity multiplier has a positive and statistically significant effect on return on assets (ROA), return on equity (ROE) and earning per share (EPS). The study discovered that the interest coverage ratio has a positive and statistically significant effect on ROA, ROE, EPS and Tobin’s Q. The results revealed that the degree of financial leverage and debt to earnings before interest, taxes, depreciation and amortization (EBITDA) have a negative and statistically significant effect on ROE, EPS and Tobin’s Q. The study also found that the capitalization ratios of the firms have a negative and statistically significant effect on ROA, ROE, EPS and Tobin’s Q.

The use of debt financing, which presents financial leverage, indicates that the companies can make enough earnings to pay off the interest and principal (debt service obligations), which were shown by the interest coverage ratio, as well as to pay all the long-term fixed expenses, which were shown by the fixed charge coverage ratio. Interest and fixed charge coverage have a positive statistically significant effect on the financial performance of automobile and industrial producer companies.

The study focused on the effect of financial leverage on financial performance by relying on pecking and trade-off theories to contribute to the existing body of literature in finance.

The study aims to understand how published accounting information relates to share prices in a developed market in Asia, outside Japan. More specifically, the study aims to extend the international literature in market‐based accounting research by examining empirical evidence on relationships between share prices and the two summary accounting variables of equity book value and earnings for firms listed on the stock exchange in Malaysia.

The New Zealand (NZ) dairy industry faces the challenge of increasing productivity and dealing with public concerns over nutrient pollution. The effective policy needs to address regional differences in productivity and fertilizer use. The purpose of this paper is to investigate how spatial effects influence the relationship between dairy yields and intensive farming practices across regions in NZ.

This paper employs spatial panel data models to establish whether unobserved spatial effects exist in the relationship between dairy yields and nutrient inputs regionally and nationally using 2002, 2007 and 2012 data from Statistics NZ and DairyNZ.

The results show positive spatial spillovers for most intensive inputs. The high level of effluent use and estimated negative yield response to nitrogen suggests that an opportunity exists for greater use of effluent as a substitute for nitrogenous fertilizer. Substitution has the potential to reduce dependence on fertilizer and contribute to a reduction in the nutrient pollution.

This paper is the first empirical application of spatial econometric methods to examine the spatial relevance of dairy yields and intensive farming in NZ. In particular, the spatial panel data model accounts for cross-sectional dependence and controls for heterogeneity. The results contribute to an understanding of how farmers can improve their management of intensive inputs and contribute to the formation of regional environmental policy that recognizes regional heterogeneity.

As one of the main purposes of financial statements is to provide relevant information for investors, relationships between share prices and accounting variables have been widely researched. Early studies focus mainly on earnings, but attention has turned in recent years to valuation models that include the book value of the equity. Many of these studies cite the residual income model as their theoretical base and, with the growing emphasis on shareholder value, residual income measures are more commonly used in the business community to track financial performance. Given such trends, the purpose of this paper is to review the theoretical background of the residual income model and discuss results of empirical studies that use it.

The study seeks an understanding of how published accounting information relates to share prices in the developed market in Asia, outside Japan. More specifically, the study aims to extend the international literature in market based accounting research by examining empirical evidence on relationships between share prices and the two summary accounting variables of equity book value and earnings for firms listed on the stock exchange in Malaysia.

The findings imply that, the two accounting variables summarising the balance sheet and the income statement, respectively, are significant factors in the valuation process, and that managers are justified in using the accounting system as a primary source of information for monitoring financial performance.

These findings should be of interest to other researchers, and to managers and investors who currently use or are planning to use residual income to monitor business performance.

While the relationship between military expenditure and economic growth during the Cold War period is well-researched, relatively less is known on the issue for the post-Cold War era. Equally how the relationship varies with respect to exposure to conflict is also not fully examined. Therefore, the purpose of this paper is to investigate the causal impact of military expenditure on growth in the presence of internal and external threats for the period 1990-2013 using data from 70 developing countries.

The main estimates are based on the generalized method of moments (GMM) regression model. But for comparison purposes, the authors also report estimates using fixed and random effects as well as pooled cross-section regressions. The regression specification accounts for non-linear effect of military expenditure allowing for interaction with conflict variable (where distinction is made between external and internal conflict).

The analysis indicates that methods as well as model specification matter in studying the effect of military spending on growth. Full sample estimates based on GMM, fixed, and random effects models suggest a negative and statistically significant effect of military expenditure. However, fixed effects estimate becomes insignificant for low-income countries. The effect of military spending is also insignificant in the cross-sectional OLS model if conflict is not considered. When the regression model additionally controls for conflict, the effect of military spending conditional upon (internal) conflict exposure is significant and positive. No such effect is present conditional upon external threat.

One important limitation of the analysis is the small sample size – the authors had to restrict analysis to 70 low and middle-income countries for which the authors could construct post-Cold War panel data on military expenditure along with information on armed conflict exposure (the later from the Uppsala Conflict Data Program, 2015).

To the best of the author’s knowledge, this is the first paper to examine the joint impact of military expenditure and conflict on economic growth in post-Cold War period in a sample of developing countries. Moreover, an attempt is made to review and revisit the large Cold War literature where studies vary considerably in terms findings. A key reason for this is the somewhat ad hoc choice of econometric methods – most rely on cross-section data and rarely conduct sensitivity analysis. The authors instead rely on panel data estimates but also report results based on naïve models for comparison purposes.

The purpose of this paper is to investigate the impact of demand uncertainty on inventory turnover performance through empirical modeling. In particular the authors use the inaccuracy of quarterly sales forecasts as a proxy for demand uncertainty and study its impact on firm-level inventory turnover ratios.

The authors use regression analysis to study the effect of various measures on inventory performance. The authors use a sample financial data for 304 publicly listed US retail firms for the 25-year period from 1985 to 2009.

Controlling for the effects of retail segments and year, it is found that inventory turnover is negatively correlated with mean absolute percentage error of quarterly sales forecasts and gross margin and positively correlated with capital intensity and sales surprise. These four variables explain 73.7 percent of the variation across firms and over time and 93.4 percent of the within-firm variation in the data.

In addition to conducting an empirical investigation for the sources of variation in a major operational metric, the results in this study can also be used to benchmark a retailer’s inventory performance against its competitors.

The authors develop a new proxy to measure the demand uncertainty that a firm faces and show that this measure may help to explain the variation in inventory performance.