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1 – 10 of 310Mohammad Jashim Uddin, Md. Tofael Hossain Majumder, Aklima Akter and Rabaya Zaman
This paper aims to explore the effects of bank diversification (i.e. diversification of income and diversification of assets) on Bangladeshi banks’ profitability.
Abstract
Purpose
This paper aims to explore the effects of bank diversification (i.e. diversification of income and diversification of assets) on Bangladeshi banks’ profitability.
Design/methodology/approach
Using a dynamic panel data model with system generalized methods of moments, the authors examine an unbalanced panel data from 32 banks spanning 318 bank-year observations from 2007 to 2016.
Findings
The findings indicate a significant positive association of income diversification and asset diversification on bank profitability. Therefore, the results show that banks can generate profit from diversification of income and diversification of assets.
Originality/value
One of the rare attempts to investigate the relationship between diversification and profitability in Bangladesh’s banking sector is this report. The authors anticipate the results to have major consequences for Bangladeshi bank regulators and other related economies.
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Françoise Okah Efogo and Boniface Ngah Epo
This paper appraises the effects of monetary policy on trade in value-added (TiVA) using a panel of 38 developing countries spanning the period 1990 to 2019. Specifically, the…
Abstract
Purpose
This paper appraises the effects of monetary policy on trade in value-added (TiVA) using a panel of 38 developing countries spanning the period 1990 to 2019. Specifically, the authors subsequently summon the theory of trade in intermediate products within the New Keynesian framework for open economies that comprises price rigidity to verify this relationship and thereon control for robustness by correcting for endogeneity and unbalanced panel effect.
Design/methodology/approach
The authors mobilize the within estimator corrected for cross sectional dependence as well as the two-stage-least squares fixed effect estimator which corrects for endogeneity. For robustness, the authors also use the Hausman–Taylor estimator to control for endogeneity and random effects in annualized data and the least squares dummy variable corrected estimator.
Findings
Results suggest that the monetary policy instruments such as inflationary gaps and anticipatory inflationary outcomes significantly affect TiVA in developing countries only in the short term with no long-term effect. In addition to contributing to the scanty empirical literature, the authors provide relevant insights on monetary policy tools that can be mobilized in fashioning a global value chain penetration and upgrading strategies.
Originality/value
The authors convoke the theory of trade in intermediate products casted into the New Keynesian framework comprising price rigidity to verify the relationship between TiVA and monetary policy (b) verify for robustness by correcting for endogeneity and unbalanced panel effect.
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Evrim Hilal Kahya, Hüseyin Yiğit Ersen, Cumhur Ekinci, Oktay Taş and Koray D. Simsek
The paper aims to identify the differences between developed and developing country firms with respect to firm-specific and country-level determinants of their capital structure…
Abstract
Purpose
The paper aims to identify the differences between developed and developing country firms with respect to firm-specific and country-level determinants of their capital structure. For this purpose, all constituent firms in one of the oldest Islamic equity indices, Dow Jones Islamic Market World Index (DJIM), are considered and the Muslim-majority status of each firm's domicile country is recognized.
Design/methodology/approach
The study employs Hausman–Taylor random effects regression with endogenous covariates to explain the debt ratios of firms in DJIM by separating them into developed and developing country subsamples in an unbalanced panel data setting. Developing country subsample is further split into two based on the Muslim-majority status of each firm's domicile country.
Findings
Consistent with the previous literature, this study finds that firm-specific characteristics are the main determinants of their capital structure. Additionally, the paper shows that country-level characteristics have an impact on the debt ratio, however, the types of factors vary across developed and developing countries. Debt ratios in developing country firms are lower than those in developed country firms, largely due to the significantly smaller leverage ratios of firms in Muslim-majority countries. Although the debt ratios of DJIM firms are higher in “non-Muslim” countries, the set of firm-level capital structure determinants are not statistically explained by operating in a “Muslim” country. The study also documents that, before the global financial crisis of 2008, companies in developing countries have gradually become less leveraged worldwide.
Originality/value
This paper provides a new perspective into the differences between developed and developing country firms' capital structures by focusing on a relatively homogeneous data set restricted by leverage screening rules of an Islamic equity index and recognizing the Muslim-majority status of each firm's domicile country.
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Boyao Song, Bingxin Liu and Chao He
The main objectives of collective forest tenure reform in China are to stimulate rural households to invest in forestry management, protect the ecosystem and improve their…
Abstract
Purpose
The main objectives of collective forest tenure reform in China are to stimulate rural households to invest in forestry management, protect the ecosystem and improve their livelihood. By constructing the unbalanced panel data of household investment, this study discusses the dynamic changes and influencing factors of household investment, which will lay a foundation for further research and provide a reference for decision-making.
Design/methodology/approach
Based on 3,500 samples from rural households in the provinces of Fujian, Hunan, Yunnan, Shaanxi, Jiangxi, Gansu, and Liaoning collected during field investigations from 2010 to 2015, this study conducts an empirical analysis of the household investment in forestry management and its factors with nonbalanced panels.
Findings
According to the analysis, the average investment in forestry management per household from 2010 to 2015 fluctuates greatly; the age of the householder, increased forestry area, subsidies, joining professional cooperatives, and forest tenure mortgage show positive effects on achieving the objectives.
Originality/value
The discussions are drawn from the study that supporting policies such as the forest tenure transfer system, professional cooperatives, financial services and subsidies should be further improved to sustain a positive in the forestry industry.
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Petra Sauer, Narasimha D. Rao and Shonali Pachauri
In large parts of the world, income inequality has been rising in recent decades. Other regions have experienced declining trends in income inequality. This raises the question of…
Abstract
In large parts of the world, income inequality has been rising in recent decades. Other regions have experienced declining trends in income inequality. This raises the question of which mechanisms underlie contrasting observed trends in income inequality around the globe. To address this research question in an empirical analysis at the aggregate level, we examine a global sample of 73 countries between 1981 and 2010, studying a broad set of drivers to investigate their interaction and influence on income inequality. Within this broad approach, we are interested in the heterogeneity of income inequality determinants across world regions and along the income distribution. Our findings indicate the existence of a small set of systematic drivers across the global sample of countries. Declining labour income shares and increasing imports from high-income countries significantly contribute to increasing income inequality, while taxation and imports from low-income countries exert countervailing effects. Our study reveals the region-specific impacts of technological change, financial globalisation, domestic financial deepening and public social spending. Most importantly, we do not find systematic evidence of education’s equalising effect across high- and low-income countries. Our results are largely robust to changing the underlying sources of income Ginis, but looking at different segments of income distribution reveals heterogeneous effects.
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Olfa Ben Salah and Anis Jarboui
The objective of this paper is to investigate the direction of the causal relationship between dividend policy (DP) and earnings management (EM).
Abstract
Purpose
The objective of this paper is to investigate the direction of the causal relationship between dividend policy (DP) and earnings management (EM).
Design/methodology/approach
This research utilizes the panel data analysis to investigate the causal relationship between EM and DP. It provides empirical insights based on a sample of 280 French nonfinancial companies listed on the CAC All-Tradable index during the period of 2008–2015. The study initiates with a Granger causality examination on the unbalanced panel data and employs a dynamic panel approach with the generalized method of moments (GMM). It further estimates the empirical models simultaneously using the three-stage least squares (3SLS) method and the iterative triple least squares (iterative 3SLS) method.
Findings
The estimation of our various empirical models confirms the presence of a bidirectional causal relationship between DP and EM.
Practical implications
Our study highlights the prevalence of EM in the French context, particularly within DP. It underscores the need for regulatory bodies, the Ministry of Finance, external auditors and stock exchange organizers to prioritize governance mechanisms for improving the quality of financial information disclosed by companies.
Originality/value
This research is, to the best of our knowledge, the first is to extensively investigate the reciprocal causal relationship between DP and EM in France. Previous studies have not placed a significant emphasis on exploring this bidirectional link between these two variables.
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Sebastiano Cupertino, Gianluca Vitale and Angelo Riccaboni
This paper aims to investigate whether being sustainable is also profitable for agri-food companies in the short-term.
Abstract
Purpose
This paper aims to investigate whether being sustainable is also profitable for agri-food companies in the short-term.
Design/methodology/approach
The study analysed the impacts of sustainability multiple issues on one-year lagged return on assets, developing a longitudinal analysis focused on best and worst companies' samples for a timeframe of ten years. Notably, we performed OLS regressions on unbalanced panels data collecting overall 1,760 annual observations from 318 companies. Moreover, we examined the moderating effects of slack resources on the relationship between sustainability and the short-term firms' profitability.
Findings
The results show that the best sustainable companies usually improve future profitability. Conversely, the worst ones should prioritize efforts in specific initiatives (i.e. responsible products, eco-innovation, management and governance commitment to sustainability), which positively affect their profitability and compensate possible short-term financial losses due to CSR strategy execution and sustainable production/supply chain management. Finally, the study found mixed results regarding the moderating effects of slack resources on the scrutinized relationships.
Practical implications
The paper highlights the key environmental, social and governance aspects to be addressed for consolidating and enhancing the virtuous relationship between non-financial and financial performance, distinguishing between best and worst sustainability performers.
Originality/value
This study is among the first that decomposed sustainability in multiple micro aspects (i.e. sustainable strategy, products and processes) investigating the effects of each of them on the short-term agri-food firms' profitability.
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Sorphasith Xaisongkham and Xia Liu
The main purpose of this research is to examine the impact of institutional quality and sectoral employment on environmental degradation in developing countries. This paper also…
Abstract
Purpose
The main purpose of this research is to examine the impact of institutional quality and sectoral employment on environmental degradation in developing countries. This paper also re-examined the validity of the Environmental Kuznets Curve (EKC) hypothesis and estimated the long run impact of explanatory variables on CO2 emissions.
Design/methodology/approach
In this paper, the balanced panel data for the period 2002–2016 was used based on data availability and applied two-step SYS-GMM estimators.
Findings
The results showed that institutional quality such as government effectiveness (GE) and the rule of law (RL) reduce CO2 emissions and promote environmental quality in developing countries. Interestingly, the authors found new evidence that employment in agriculture and industry has a positive impact on pollution, while employment in the service sector was negatively associated with CO2 emissions, and the validity of the EKC hypothesis was confirmed. In addition, the research suggests that strong institutional frameworks and their effective implementation are the most important panacea and should be treated as a top priority to counteract environmental degradation and achieve the UN Sustainable Development Goals.
Originality/value
This is the first study to examine the short run and long run effects of institutional quality and sectoral employment on environmental degradation using the balanced panel data for a large sample of developing countries. This paper also used a special technique of Driscoll and Kraay standard error approach to confirm the robustness results and showed the different roles of sectoral employment on environmental quality.
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Zihan Nie, Nico Heerink, Qin Tu and Shuqin Jin
The purpose of this paper is to examine the effect of adopting certified food production on chemical fertilizer and pesticide use in China.
Abstract
Purpose
The purpose of this paper is to examine the effect of adopting certified food production on chemical fertilizer and pesticide use in China.
Design/methodology/approach
The authors estimate fixed effect models to track the changes in agrochemical consumption at household level over time and evaluate the effect of certified food production, using an unbalanced panel data set covering 4,830 households in six provinces over the period 2005–2013.
Findings
On average, the authors do not find significant effects of certified food production on either chemical fertilizer or pesticide consumption among Chinese farmers. The effects are heterogeneous across villages, but the heterogeneous effects show no clear pattern that is consistent with different types of certification. The findings are robust to the use of alternative panel structure and certification indicators. The lack of knowledge about certification among farmers, the price premium and differences in regulation enforcement across regions may explain why the authors do not find negative effects on agrochemical use.
Practical implications
This study suggests that careful inspections and strong enforcement of certified food production is needed to ensure that the environmental goals of certified food production can be achieved and the reputation of certification in China can be improved. The inspection of certification producers and the enforcement of current regulations should be stricter for the further healthy development of certified food production in China.
Originality/value
This study is the first attempt to systematically evaluate the impact of food certification on the use of agrochemicals in Chinese agriculture.
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