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1 – 10 of over 1000Jenny N. Lye and Joseph G. Hirschberg
In this chapter we demonstrate the construction of inverse test confidence intervals for the turning-points in estimated nonlinear relationships by the use of the marginal or…
Abstract
In this chapter we demonstrate the construction of inverse test confidence intervals for the turning-points in estimated nonlinear relationships by the use of the marginal or first derivative function. First, we outline the inverse test confidence interval approach. Then we examine the relationship between the traditional confidence intervals based on the Wald test for the turning-points for a cubic, a quartic, and fractional polynomials estimated via regression analysis and the inverse test intervals. We show that the confidence interval plots of the marginal function can be used to estimate confidence intervals for the turning-points that are equivalent to the inverse test. We also provide a method for the interpretation of the confidence intervals for the second derivative function to draw inferences for the characteristics of the turning-point.
This method is applied to the examination of the turning-points found when estimating a quartic and a fractional polynomial from data used for the estimation of an Environmental Kuznets Curve. The Stata do files used to generate these examples are listed in Appendix A along with the data.
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Dao Le Trang Anh and Christopher Gan
The study aims to investigate the profitability and marketability efficiency scores and determinants of 899 listed manufacturers in six Southeast Asian countries: Indonesia…
Abstract
Purpose
The study aims to investigate the profitability and marketability efficiency scores and determinants of 899 listed manufacturers in six Southeast Asian countries: Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam.
Design/methodology/approach
The study employs the bootstrap two-stage data envelopment analysis (DEA) to measure profitability and marketability efficiencies of Southeast Asian manufacturers. The study uses the panel-data fractional regression model (FRM), which is an advantageous method that is suitable for the fractional response variables and applicable to time-differing heterogeneity, to investigate the determinants of Southeast Asian manufacturers' efficiencies.
Findings
The study demonstrates that listed manufacturers in Indonesia and Singapore achieve the highest average profitability and marketability efficiencies among the six Southeast Asian countries. The study also shows that the cash ratio, institutional ownership, headcount and technology-application positively affect Southeast Asian-listed manufacturers' profitability and marketability efficiencies at different levels of significance.
Originality/value
The current study is the first assessment of the listed manufacturers' profitability and marketability efficiencies in Southeast Asian countries, which consist of different market levels (developed, emerging and frontier markets). The study is a reference source for regional investors, manufacturers' managers and governments to make appropriate decisions in investing, managing and enhancing the development of the Southeast Asian manufacturing sector.
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The purpose of this paper is to investigate the extent of voluntary climate change disclosures in the Turkish banking industry and explore the factors explaining the extent of…
Abstract
Purpose
The purpose of this paper is to investigate the extent of voluntary climate change disclosures in the Turkish banking industry and explore the factors explaining the extent of such disclosures.
Design/methodology/approach
The research sample is based upon 24 banks that had been continuously operating in Turkey over the seven-year period from 2010 to 2016. The study uses a disclosure index to investigate the extent of voluntary climate change-related disclosures made in their annual and sustainability reports by banks. The study also investigates factors impacting the extent of disclosures by using multiple regression and fractional regression analysis.
Findings
The findings of the research reveal that while the number of banks providing voluntary information on their climate change-related practices substantially increased from 2010 to 2016, there remains a significant number of banks that have not incorporated climate change-related issues into their lending policies or corporate strategies. Further, with regard to the regression analysis, the study documents the significant and positive impacts of bank size, profitability, bank age and listing status upon the extent of the climate change disclosures, in line with political cost and legitimacy theory.
Practical implications
The banking sector crucially impacts climate change indirectly, since banks provide financial backing to companies operating in environmentally sensitive industries. This paper presents empirical evidence of the factors impacting the extent of climate change disclosures by these banks, which might then be referred to by regulatory bodies when developing policies to promote environmentally responsible business practices within the banking industry.
Social implications
Several parties, which include governments, companies, financial institutions and non-governmental organizations (NGOs) must work together to fight climate change. In this sense, the NGOs and green activists have a crucial role in raising public awareness about climate change, which might then inspire financial institutions to incorporate climate change-related issues into their policies, operations and strategies.
Originality/value
The study extends the prior literature in two ways. This study has concentrated on environmental reporting practices in the banking sector which have been investigated in very few prior studies. Since prior research has focused on developed countries, this paper adds to the current literature by examining the environmental disclosure practices of commercial banks operating in Turkey, which is a rapidly developing country.
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Recent evidence on the impact of the crisis on developed countries shows that changes in income inequality and poverty have been relatively small in spite of the macroeconomic…
Abstract
Recent evidence on the impact of the crisis on developed countries shows that changes in income inequality and poverty have been relatively small in spite of the macroeconomic heterogeneity of the recession across different economies. However, when evaluating individual perceptions linked to the crisis any changes in the chances to scale up or lose ground in the income ladder are also crucial. Our aim in this paper is to analyze to what extent the recession has had an impact on individual equivalent incomes and, in particular, on the prevalence of downward mobility in two developed countries where job losses have been large. We find that income losses have increased, particularly in Spain, and while age and education are key determinants of the probability of experiencing an income loss in both countries, the presence of children only increases the probability of an income loss in Spain.
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Kamakhya Nr Singh and Shruti Malik
The COVID-19 pandemic has exposed the financial-economic vulnerability of the public and threatened the household financial stability, especially of the low-income group…
Abstract
Purpose
The COVID-19 pandemic has exposed the financial-economic vulnerability of the public and threatened the household financial stability, especially of the low-income group population, in developing economies such as India. The assessment of household financial vulnerability has gained considerable attention these days, especially in poor and developing countries. This article seeks to assess the level of household financial vulnerability in India, based on a household survey conducted across India.
Design/methodology/approach
This paper has proposed a financial vulnerability index (FVI) based on three self-reported parameters: (1) making end meet, (2) perception of income shock and (3) perception of expenditure shock. Subsequently, the impact of various behavioural and socioeconomic factors on the proposed financial vulnerability index has been assessed using fractional probit regression.
Findings
The research findings indicate that higher financial knowledge, better money management skills and lower impulsivity in financial behaviour can reduce financial vulnerability. It is suggested that suitable financial literacy programmes be implemented for vulnerable sections of society to enhance their financial knowledge, improve money management skills and manage impulsivity, thereby helping them make informed financial decisions leading to their financial well-being.
Originality/value
To the best of the authors’ knowledge, none of the past studies have developed and assessed the financial vulnerability index in India. This study provides relevant recommendations for various financial sector regulators and government institutions in India.
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Abhishek Ranga and Rajesh Pathak
The authors investigate the effect of audit quality and analysts' coverage on firms' compliance concerning goodwill impairment testing and disclosure requirements with the Indian…
Abstract
Purpose
The authors investigate the effect of audit quality and analysts' coverage on firms' compliance concerning goodwill impairment testing and disclosure requirements with the Indian Accounting Standard (Ind AS) over the period of 2017–2020.
Design/methodology/approach
The authors conduct univariate analysis and employ pooled ordinary least square (POLS) and Fama–MacBeth (FMB) regression techniques for empirical testing.
Findings
The authors report a substantially higher disclosure score (DS) for firms with superior audit quality and for firms with incidence of analysts' coverage. Moreover, the authors show a positive impact of audit quality on the firm's degree of disclosure. This signifies better compliance by the clients of Big-4 audit firms in the enforcement of standard's mandates. Besides, the results on analysts' coverage indicate that the increasing number of analysts discipline managers in terms of appropriate compliance with disclosure requirements, hence favours the monitoring effect hypothesis for Indian firms. The results are robust to the alternate measures of key regressors, set of firm controls and alternate estimation technique.
Originality/value
The study adds to the knowledge concerning the economic consequences of mandatory disclosures and is possibly the first to investigate compliance related to goodwill impairment disclosure regime under the new Ind AS.
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Haki Pamuk, Marcel van Asseldonk, Ruerd Ruben, Tumainiely Kweka, Cor Wattel and Joseph Phillip Hella
Institutional structures of rural savings and loan associations influence their performances. One of the guiding principles for defining clear group membership boundaries is by…
Abstract
Purpose
Institutional structures of rural savings and loan associations influence their performances. One of the guiding principles for defining clear group membership boundaries is by setting rules on who has access. Social ties is a prominent requirement for membership. The objective of the current study is to provide quantitative evidence on the role of social ties membership criteria for the performance of saving and loan associations.
Design/methodology/approach
A cross-sectional survey was conducted in July–August 2019 comprising 48 associations in 13 villages in the Iringa District of Tanzania. In the current study, the authors use two indicators to measure the social ties between members, namely social closed association (the association applies criteria to accept only members who are relatives, friends or from the same hamlet) and physical distance (the fraction of members from other villages).
Findings
The authors find that associations are diverse both in terms of social ties, physical distance and performance, even in a small homogeneous region like Iringa District. Providing loans more easily to members with social ties has a negative relationship with loan repayment rates. Associations applying the social closeness criteria experience higher default rates than those not applying. The default rates become even worse when the fraction of member members from other villages increases in the socially tied associations.
Practical implications
Physically distant members are more likely to default as they perceive less social pressure in an association with socially tied members. Development practitioners and policy makers should integrate the potential implications.
Originality/value
The authors provide empirical evidence on the relevance of social ties on credit access and repayment in savings and loan associations, using a novel multi-level data on financial performance in the context of community-based finance organizations in rural areas.
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Ana Burcharth, Mette Præst Knudsen and Helle Alsted Søndergaard
The purpose of this paper is to examine how organisational activities that formally provide employees with work autonomy explain the performance of open innovation (OI).
Abstract
Purpose
The purpose of this paper is to examine how organisational activities that formally provide employees with work autonomy explain the performance of open innovation (OI).
Design/methodology/approach
The study reports the results of mediation analyses conducted on the basis of survey data from 307 firms.
Findings
The economic benefits of both inbound and outbound OI are fully captured only if firms provide employees with time, freedom and independence. The results show that employee autonomy fully mediates the relationship between openness and innovation sales, while the adoption of inbound OI is positively associated with the introduction of new products.
Practical implications
The opening of innovation induces managers to provide employees with discretion, as OI requires high levels of flexibility and experimentation.
Originality/value
The paper addresses theoretically and empirically the role of job design in the implementation of OI, while also distinguishing between the effects of inbound and outbound practices on innovation performance.
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The discrete Fourier transform (dft) of a fractional process is studied. An exact representation of the dft is given in terms of the component data, leading to the frequency…
Abstract
The discrete Fourier transform (dft) of a fractional process is studied. An exact representation of the dft is given in terms of the component data, leading to the frequency domain form of the model for a fractional process. This representation is particularly useful in analyzing the asymptotic behavior of the dft and periodogram in the nonstationary case when the memory parameter
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Institutional bibliometric analyses compare as a rule the performance of different institutions. The purpose of this paper is to use a statistical approach which not only allows a…
Abstract
Purpose
Institutional bibliometric analyses compare as a rule the performance of different institutions. The purpose of this paper is to use a statistical approach which not only allows a comparison of the citation impact of papers from selected institutions, but also a comparison of the citation impact of the papers of these institutions with all other papers published in a particular time frame.
Design/methodology/approach
The study is based on a randomly selected cluster sample (n=4,327,013 articles and reviews from 2000 to 2004), which is drawn from a bibliometric in-house database including Web of Science data. Regression models are used to analyze citation impact scores. Subsequent to the models, average predictions at specific interesting values are calculated to analyze which factors could have an effect on the impact scores-the journal impact factor (JIF), of the journals which published the papers and the number of affiliations given in a paper.
Findings
Three anonymous German institutions are compared with one another and with the set of all other papers in the time frame. As an indicator of institutional performance, fractionally counted PPtop 50% on the level of individual papers are used. This indicator is a normalized impact score whereas each paper is fractionally assigned to the 50 percent most frequently cited papers within its subject category and publication year. The results show that the JIF and the number of affiliations have a statistically significant effect on the institutional performance.
Originality/value
Fractional regression models are introduced to analyze the fractionally counted PPtop 50% on the level of individual papers.
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