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This paper seeks to explain the serial persistence as well as the substantial number of zeros characterizing global bilateral investment holdings. We explore the different sources of serial persistence in the data (unobserved country pair effects, genuine state dependence, and transitory shocks) and examine the crucial factors affecting the decision to invest in a host country.

Based on a gravity setup, we consider investment behavior at the extensive (participation) margin and employ dynamic first-order Markov probit models, controlling for unobserved cross-sectional heterogeneity and serial correlation in the transitory error component, in order to explore the sources of persistence. Within this modeling framework we explore the importance of institutional quality of the host country in attracting foreign investment.

The data support that the strong persistence is driven by true state dependence, implying that past investment experiences strongly impact on the trajectory of future investment holdings. Institutional quality appears to play a significant role to attract foreign investment.

The empirical findings suggest that due to the existence of genuine state dependence, inward-investment stimulating policy measures could have a more pronounced effect since they are likely to induce a permanent change to the future trajectory of inward investment.

Both the substantial number of zeros and the salient persistence characterizing bilateral investment holdings decision have been previously overlooked in the literature. A study modeling jointly the levels and the selection mechanism could prove a fruitful direction for future research.

An adverse health event can affect women’s work capacity as they need time to recover. The institutional framework in the Netherlands provides employment protection during the first two years after the diagnosis. In this study, we have assessed the extent to which women’s employment is affected in the short- and long term by an adverse health event. We have used administrative Dutch data which follow women aged 25 to 55 years for four years after a medical diagnosis. We found that diagnosed women start leaving employment during the protection period and four years later they were about one percentage point less likely to be employed. Women in permanent employment did not reduce their employment during the protection period and reduced their employment with less than 0.5 percentage points thereafter. Furthermore, we found minor adjustments in the working hours in the short term and no adjustments in the long term. Lastly, we found that for wages, and not for employment and hours, adjustments could be related to the severity of the health condition: women diagnosed with temporary health conditions experienced a short-term wage penalty of about 0.5–1.7 percent and those diagnosed with chronic and incapacitating conditions experienced a long-term wage penalty of about 0.5 percent, while women diagnosed with some chronic and nonincapacitating conditions, such as respiratory conditions, experienced no wage changes in the short or long term.

The purpose of this paper is to examine the impact of the size of government and public debt on real economic growth, for a panel of 175 countries around the world.

The paper utilizes the fixed‐effects and random‐effects techniques to estimate the panel regressions.

The results indicate that both the size of government and the extent of government indebtedness have negative effects on economic growth.

The findings suggest that the authorities ought to take the necessary steps to curtail excessive government spending and public debts, in order to promote economic growth.

The contribution of the paper is its application of the fixed‐ and random‐effects techniques in modeling the relation of real economic growth to the size of government and public debt, for a panel of 175 countries around the world.

The information of pledging stocks for liquidity by controlling shareholders of publicly traded firms in Taiwan has been required to disclose since 1998. A common perception by market practitioners in Taiwan is that stock pledging by controlling shareholders is an indication of expropriation of firms. This study first examines the determinants of the tendency that controlling shareholders of firms in Taiwan pledge their stocks to financial institutions for liquidity and then evaluates how stock pledging by controlling shareholders affects their firms' accounting and financial performances. Determinants of firm attributes, market conditions, and corporate governance are identified. The tendency of stock pledging by controlling shareholders has a negative effect on accounting and financial performances. The negative effect on firm performance is reduced when the firm has a higher level of working capital. These findings indicate that stock pledging by controlling shareholders is an indication of weak corporate governance when the firm has lower liquidity. These findings may provide insights to the equity markets of the other countries in which public firms have more concentrated ownerships.

The purpose of this study is to verify all factors that promote renewable energy (RE) consumption. Past studies have shown that financial development (FD) and economic growth (EG) are the major drivers toward RE development, while oil prices had mixed outcomes in different regions by different studies.

Global warming effects have been the major reason of the transition by nations from fossil fuel use to RE sources that are considered as friendly to the environment. This research uses the fixed effects and random effects techniques, to ascertain the factors which impact RE development. The generalized linear model is also used to check the robustness of the Fixed Effects and Random Effects models’ results, while the Kao, Pedroni and Westerlund tests are used to check cointegration in the specified model.

The major findings of this study show the importance of EG and FD in promoting RE development. Oil prices, inflation rate and public sector credit present a negative effect on RE development, while foreign direct investment does not significantly impact RE development.

This research recommends the use of FD in promoting RE sources, as well as the stabilization of oil prices and consumer prices.

This research is important because it specifies the three proxies of FD, together with foreign direct investment inflation rate, EG and oil prices, in modeling RE. By investigating the impact of oil prices on RE in the emerging seven economies, this research becomes one of the few studies done in this region, as per the authors’ knowhow.

The objective of the study is to analyse the impact of research and development investment on the firm performance of “small” scale firms vis-a-vis “medium”-scale firms.

The dataset comprised of a balanced panel of 486 research and development conducting Indian manufacturing small and medium enterprises, constructed for the period of 2006–2017. Fixed Effects, Random Effects Model and Hausmann test were used to analyse the determinants of firm performance in manufacturing small and medium enterprises in India.

It was found that from firms’ research and development (R&D) investments in terms of performance could be attained if simultaneously internationalisation and higher capital intensity could be achieved.

Managers could pay specific attention to the antecedents of firm performance and calibrate their R&D investment, internationalisation efforts and capital intensity simultaneously to achieve higher growth and productivity. For policymakers, the results provide an insight into how the firms in both categories could be differently incentivised, such that resources are better utilised.

The study analysed the determinants of firm performance in small and medium-sized firms at a disaggregate level as well as at a sectoral level using fixed effects, random effects and lagged effects to arrive at novel results, which have important implications for their competitiveness.

The purpose of this study is to examine whether there is a unidirectional or a bidirectional relationship between women and the environment, and to further study the effect of women on environmental quality.

To achieve this purpose, a Granger causality test and a random effects panel data model are used to study women–environment relationship in developing countries. Error correction model (ECM) is the chosen estimation technique. A Granger causality test is used because of its frequent use in examining the existence of a unidirectional or a bidirectional relationship between two or more variables. A random effects panel data model is used as it has proven to be more efficient than the fixed-effects panel data model.

Women Granger-cause environmental quality while the opposite is not true in developing countries in the long run. This indicates the existence of a unidirectional relationship between women and the environment when the long-run relationship is considered. However, when considering the long- and short-run relationship together, the results indicate the presence of a bidirectional relationship. The empirical results of the random effects panel data model through ECM estimation indicate the positive effect of women on improving environmental quality as illustrated by the coefficient of the current change of women. This shows that women are concerned about environmental degradation. In addition, the empirical results highlight the persistence of CO₂ emissions. Results also confirm that foreign direct investment inflows lead to further environmental degradation. However, education and trade openness coefficients are found insignificant at the current period.

The research results have great implications on women empowerment, the reduction of gender bias and the increase in government expenditure on women’s education and health because of women’s positive effect in improving environmental quality.

To the best of the author’s knowledge, this is the first paper that examines the two-way relationship between women and the environment and, hence, it fills the gap present in the literature.

Panel data, where observations of entities are repeated over time, are common in strategic management research. However, explorations of the role of time on predictors of interest are often unexplored. In this chapter, we illustrate how the use of mixed-effect growth models can enhance theory and research in strategic management by exploring changes in outcomes of interest over time. Mixed-effects models allow for testing both within and between effects, while also calculating specific intercepts (firm average values) and slopes (trajectories of specific firms over time) using empirical Bayes estimates. We also illustrate how a discontinuous growth model could be used to assess differences in firm intercepts and slopes surrounding exogenous events (e.g., global pandemics) without requiring a control group.

Field experiments have raised important issues of interpretation of bargaining behavior. There is evidence that bargaining behavior appears to vary across groups of populations, such as nationality, ethnicity and sex. Differences have been observed with respect to initial behavior and with respect to the adjustment pattern over time. Often, such behavioral differences are referred to as cultural, although the delineation of the cultural group has been confined to one or other observable characteristic in isolation. We show that this way of characterizing cultural differences is overly simplistic: at best, it leads to unreliable claims; at worst, it leads to erroneous conclusions. We reconsider the evidence provided by previous experiments using ultimatum game rules, and undertake new experiments that expand the controls for demographics. The lesson from our demonstration is that the task of designing experiments for the field offers many challenges if one wants to define and control for cultural impacts, but that field experiments also offer potential for providing new insights into these issues.