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Article
Publication date: 29 November 2018

Tiken Das

The purpose of this paper is to evaluate the rural credit demand by providing a theoretical and econometric framework which controls the problem of selection bias.

Abstract

Purpose

The purpose of this paper is to evaluate the rural credit demand by providing a theoretical and econometric framework which controls the problem of selection bias.

Design/methodology/approach

The study is conducted in Assam, India, and uses a quasi-experiment design to gather primary data. Heckman two-stage procedure and type 3 Tobit model are used to evaluate the rural credit demand.

Findings

It is observed that, in general, rural households’ credit demand is influenced by the ability and capacity to work, the value of physical assets of the borrowers as well as some other lenders’ and borrowers’ specific factors. But, the direction of causality of the factors influencing borrowers’ credit demand is remarkably different across credit sources.

Research limitations/implications

The study recommends that it is possible to provide an efficient credit demand estimate through a correct theoretical and econometric framework. The possible limitation of the study can be due to the exclusion of the role of “traditional community based organizations” in rural Assam while evaluating the credit demand, and therefore, this limitation is left to future research.

Originality/value

The study contributes to the literature by assessing the probable differences among formal, semiformal and informal credit sources with respect to rural credit demand.

Details

International Journal of Emerging Markets, vol. 13 no. 6
Type: Research Article
ISSN: 1746-8809

Keywords

Abstract

Several popular and academic pieces of late have expressed concerns regarding the sustainability of public defined benefit pension funds. Since the onset of the Great Recession, concern has increased. In this paper recent arguments are analyzed in the context of three related data sets: panel data on public sector pensions spanning 2001-2009, historic asset return data, and business cycle data. Findings generally indicate that while public sector plans have suffered a difficult decade, current anxieties may be somewhat overwrought. Several remedial policies are investigated. Remedial policies, such as improving plan administration, altering portfolio allocations, and increasing both employee and employer contributions, are observed to be more promising than either freezing or closing the funds.

Details

Journal of Public Budgeting, Accounting & Financial Management, vol. 25 no. 2
Type: Research Article
ISSN: 1096-3367

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Article
Publication date: 10 December 2019

Vincent Flifli, Peter Adebola Okuneye and Dare Akerele

The purpose of this paper is to study an innovative rice value chain financing system (VCFS) established in Benin, to identify the determinants of producers and processors…

Abstract

Purpose

The purpose of this paper is to study an innovative rice value chain financing system (VCFS) established in Benin, to identify the determinants of producers and processors access to formal credit, both at intensive and extensive margins. It focuses on multi-stakeholder platforms (MSP) which connect producers and processors in need of credit to potential financial lenders.

Design/methodology/approach

The empirical analysis uses rich cross-sectional survey data collected in Northern Benin in 2018. The sample consists of 215 rice producers and 217 rice processors randomly selected through a multi-stage sampling and interviewed with structured questionnaires. The empirical models analyze the determinants of the likelihood to receive a credit and the amount of credit received. To account for the sample selection and censored nature of the main outcome variable, the study considers a Heckman two-stage model coupled with a Tobit model for robustness checks.

Findings

The study finds that the MSP are effective in increasing access to formal credit and the amount borrowed. Producers and processors who are members of the MSP are more likely to receive credit and, conditional on being approved for credit borrower, a larger amount. Other key factors that significantly explain access to credit include the use of soft guarantee for securing a loan, the degree of participation in the platform and demographic characteristics. These findings are consistent across the Heckman and Tobit models.

Research limitations/implications

The study attempts to rigorously analyze the factors explaining producers and processors access to credit using cross-sectional survey data. But it has some limitations. The main limitation is the type of data used. Ideally, one would like to run a randomized control trial (RCT) to randomly assign participation in the MSP to causally estimate its impact of access to credit. The second-best option would be to have a panel data covering the period before and after the establishment of the platform. However, in the absence of an RCT or panel data, the study resorts to cross-sectional data and empirical models that account for sample selection bias and the censored nature of the credit received.

Practical implications

One of the key findings of the study is that participation in the MSP (through different value chain stages associations) increases access to formal credit. This highlights an important and effective mechanism, a well-coordinated value chains that integrated lenders, that policymakers can leverage to facilitate access to credit in the agricultural sector.

Social implications

Access to credit is important to boost agricultural productivity and income. Hence, the findings of the study have social implications in terms of poverty reduction in rural areas.

Originality/value

The study contributes to earlier theories and empirical studies on the demand for credit. It focuses on an innovative VCFS, increasingly adopted in many developing countries, adds originality and value to the understanding of mechanisms to unlock agricultural actors’ access to credit in low-income countries.

Details

Agricultural Finance Review, vol. 80 no. 2
Type: Research Article
ISSN: 0002-1466

Keywords

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Article
Publication date: 9 March 2021

Nicholas Oppong Mensah, Jacqueline Joyce Twintoh, Ernest Christlieb Amrago, Anthony Donkor and Samuel Afotey Anang

The study analyses the preference for forestry insurance amongst tree growers in the Ashanti Region of Ghana. Specifically, the authors examine the factors influencing the…

Abstract

Purpose

The study analyses the preference for forestry insurance amongst tree growers in the Ashanti Region of Ghana. Specifically, the authors examine the factors influencing the amount of forestry insurance and the choice for forestry insurance types.

Design/methodology/approach

A total of one hundred and seventy (170) tree growers were sampled for the study. The tobit model, multi-nomial regression and Kendall's tau were employed to analyse the factors affecting the amount for forestry insurance, the choice for forestry insurance types and the perils to forest quality, respectively.

Findings

The results of the study indicate that the incidence of bush fire and theft were the key perils that affect forest quality. In total, 52.94% of respondents preferred forest plantation fire insurance as named-peril insurance whereas 70.59% preferred a combination of forest plantation fire, windstorm and consequential loss insurance as multi-peril insurance. The majority (89.4%) of the respondents were willing to pay an amount between Ghc 10.00–49.00 (US$ 2–8) per stand. On the one hand, results of the tobit model reveal age, income, experience in forest management, land ownership and the previous occurrence of fire as the factors affecting the amount for forestry insurance. On the other hand, the multi-nomial results indicate the previous occurrence of fire, gender, forest size, income and risk aversion significantly influenced the choice for forestry insurance types, namely named peril and multi-peril.

Originality/value

Several studies exist for forestry insurance in the developed countries. However, in West Africa specifically, Ghana, studies on forestry insurance appear to be non-existent. Above and beyond, this study, therefore, adds to the paucity of research on forestry insurance in Ghana and serves as a framework for agricultural insurance institutions such as the Ghana Agricultural Insurance Pool (GAIP) and World cover and other agricultural insurance institutions globally.

Details

Managerial Finance, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0307-4358

Keywords

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Article
Publication date: 8 July 2020

Lixin Cai

The purpose of this study is to enhance understanding labour supply dynamics of the UK workers by examining whether and to what extent there is state dependence in the…

Abstract

Purpose

The purpose of this study is to enhance understanding labour supply dynamics of the UK workers by examining whether and to what extent there is state dependence in the labour supply at both the extensive and intensive margins.

Design/methodology/approach

A dynamic two-tiered Tobit model is applied to the first seven waves of Understanding Society: the UK Household Longitudinal Study. The model used accounts for observed and unobserved individual heterogeneity and serially correlated transitory shocks to labour supply to draw inferences on state dependence.

Findings

The results show that both observed and unobserved individual heterogeneity contributes to observed inter-temporal persistence of the labour supply of the UK workers, and the persistence remains after these factors are controlled for, suggesting true state dependence at both the extensive and intensive margins of the labour supply. The study also finds that at both the margins, the state dependence of labour supply is larger for females than for males and that for both genders the state dependence is larger for people with low education, mature aged workers and people with long-standing illness or impairment. The results also show that estimates from a conventional Tobit model may produce misleading inferences regarding labour supply at the extensive and intensive margins.

Originality/value

This study adds to the international literature on labour supply dynamics by providing empirical evidence for both the extensive and intensive margins of labour supply, while previous studies tend to focus on the extensive margin of labour force participation only. Also, unlike earlier studies that often focus on females, this study compares labour supply dynamics between males and females. The study also compares the estimates from the more flexible two-tiered Tobit model with that from the conventional Tobit model.

Details

International Journal of Manpower, vol. 42 no. 3
Type: Research Article
ISSN: 0143-7720

Keywords

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Article
Publication date: 3 September 2018

Ammad Ahmed, Helen Higgs, Chew Ng and Deborah Anne Delaney

This paper aims to investigate the determinants of women representation on Australian corporate boards under the ASX’s “if not, why not” corporate governance framework. It…

Abstract

Purpose

This paper aims to investigate the determinants of women representation on Australian corporate boards under the ASX’s “if not, why not” corporate governance framework. It further aims to improve the study of Geiger and Marlin (2012) by using a theoretically sound two-limit Tobit model to examine the determinants.

Design/methodology/approach

This study uses the two-limit Tobit model to examine the determinants of women representation on ASX 500 boards. This approach is used due to the censored nature of the dependent variable.

Findings

This study finds that the two-limit Tobit model is an appropriate methodology to accommodate the censored dependent variable. It further finds that firm size, women as chair of boards, corporate governance index, Global Reporting Initiative signatory, debt ratio, average board age, BIG4 auditors, chief executive officer tenure and shareholder concentration are major determinants of women on boards.

Research limitations/implications

The use of only ASX 500 companies and the sample years (2011-2014) may limit the generalisation of the findings.

Originality/value

This is the first extensive longitudinal Australian study to examine the drivers of women representation on corporate boards. It is also the first of its kind to use the two-limit Tobit model to consider these determinants.

Details

Accounting Research Journal, vol. 31 no. 3
Type: Research Article
ISSN: 1030-9616

Keywords

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Article
Publication date: 1 July 2006

Carla Susana Marques and José Monteiro‐Barata

The aim of this paper is to analyze the determinants of the main phases of the innovation process in Portuguese manufacturing firms. The analysis will adopt as its main…

Abstract

The aim of this paper is to analyze the determinants of the main phases of the innovation process in Portuguese manufacturing firms. The analysis will adopt as its main frame of reference an interactive model of the innovation process, on which empirical tests will be carried out, making use of tobit and probit models and simultaneous equation systems. It is broadly concluded that the relationships shown between the main variables that are typical of the innovation process in the context of Portuguese manufacturing firms are tenuous and unsystematic.

Details

Management Research: Journal of the Iberoamerican Academy of Management, vol. 4 no. 2
Type: Research Article
ISSN: 1536-5433

Keywords

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Article
Publication date: 1 February 2001

Martin Falk and Katja Seim

This paper analyses the link between educational qualification structure and information technology (IT) in the service production process. The analysis is based on 1996…

Abstract

This paper analyses the link between educational qualification structure and information technology (IT) in the service production process. The analysis is based on 1996 cross‐sectional data for approximately 1,000 West German firms. The empirical evidence indicates that IT capital and high‐skilled labor are complements in the production process: firms with higher IT investment output ratios employ a larger fraction of high‐skilled workers at the expense of unskilled workers. To a lesser extent, the positive IT effect carries through for workers with vocational degrees including masters and technicians. Furthermore, we find that firms’ expectations of the future size of their high‐skilled workforce are positively related to their initial IT investment output ratio. To account for censoring in the employment variables, the empirical analysis uses Powell’s Censored Least Absolute Deviations estimators as well as standard Tobit estimators.

Details

International Journal of Manpower, vol. 22 no. 1/2
Type: Research Article
ISSN: 0143-7720

Keywords

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Article
Publication date: 31 August 2010

Yudan Zheng

The paper aims to study the effect of tenure on the structure of CEO compensation. The relation between CEO compensation and CEO tenure provides a good testing bed for…

Abstract

Purpose

The paper aims to study the effect of tenure on the structure of CEO compensation. The relation between CEO compensation and CEO tenure provides a good testing bed for many effects: the managerial power effect, the portfolio consideration effect, the learning effect, and the career concern effect.

Design/methodology/approach

Tobit regressions were run of the percentage of equity‐based compensation on CEO tenure and the effect of tenure compared between inside CEOs and outside CEOs.

Findings

It was found that the percentage of equity‐based compensation increases during the early years of tenure for outside CEOs, and decreases during the later years of tenure for inside CEOs. Before they are tenured, outside CEOs have significantly higher and faster growing percentage of equity‐based compensation than inside CEOs. Furthermore, the portfolio consideration effect and the learning effect are the major effects in explaining the effect of tenure on the compensation structure.

Practical implications

The evidence that boards of directors take into account the CEOs’ holdings of equity incentives, the types of CEOs, and their years on tenure to adjust the structure of CEO compensation indicates that firms should, and do, try to optimize their CEO compensation structure on the basis of firm‐specific or CEO‐specific characteristics. It is suggested that there is no simple formulaic approach to governance reform.

Originality/value

The paper contributes to the literature by studying and explaining the different patterns of compensation structure over CEO tenure between inside CEOs and outside CEOs.

Details

Managerial Finance, vol. 36 no. 10
Type: Research Article
ISSN: 0307-4358

Keywords

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Article
Publication date: 1 October 2018

Nassim Ghondaghsaz, Asadollah Kordnaeij and Jalil Delkhah

Firms are working in a complex environment in which the updated information increase the pace of precise decision making and reduce the risk of wrong decisions. Therefore…

Abstract

Purpose

Firms are working in a complex environment in which the updated information increase the pace of precise decision making and reduce the risk of wrong decisions. Therefore, discovering firms’ performance is a major issue. The purpose of this paper is to evaluate the efficiency of Iranian plastic producing companies by using data envelopment analysis (DEA). It also discovers various drivers that significantly affect the efficiency of enterprises.

Design/methodology/approach

The authors studied a sample of 17 manufacturing firms to examine the relative efficiency of companies. They, then, evaluated the effects of efficiency drivers and used two methods for these purposes: DEA and bootstrapped Tobit regression model.

Findings

The study has shown that two manufacturing firms out of selected 17 are efficient under the Charnes, Cooper, and Rhodes model. Also, nine out of 17 plastic producing companies are productive under the Banker, Charnes, and Cooper model. The results of Tobit regression shows that only two efficiency drivers out of four have a significant positive influence on the efficiency of plastic producing firms.

Research limitations/implications

Considering one industry and country limits the generalizability of the results provided. Besides, data availability has limited the analysis in some parts, particularly in bootstrapped Tobit regression.

Practical implications

The authors listed this section into benchmarking and strategical management; more importantly, the suggestions for improving the chemical industry and its future evolution are presented.

Originality/value

The paper is classified into two issues: the efficiency of plastic producing firms in Iran and evaluating the reason for inefficiency, apart from internal managerial procedures.

Details

Benchmarking: An International Journal, vol. 25 no. 7
Type: Research Article
ISSN: 1463-5771

Keywords

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