Firm-level Analysis Research Articles

Industrial Energy Demand and Technological Change: A Firm-level Analysis of the Manufacturing Sector of India

From the study it is concluded that after implementation of the scheme, 93% respondents stated that they have been provided irrigation facilities for farming to enhance agriculture productivity. Around 91.8% respondents admitted that due to the provision of irrigation facilities for farming, the production of commercial crops (89.5% respondents) have increased and 91.8% respondents stated that agriculture lands have been covered under cultivation.

Knowledge transfer and technological upgrading of foreign affiliates in Indonesia: firm level analysis

Knowledge transfer and technological upgrading of foreign affiliates in Indonesia: firm level analysis

Knowledge transfer and technological upgrading of foreign affiliates in Indonesia: firm level analysis

Knowledge transfer is an essential process to generate the capacity of technological advancement for industrial development in developing countries. This paper aims to explore the role of knowledge transfer and learning process to support the improvement of technological capabilities of local suppliers. By using a sampling method of 26 multinational companies (foreign affiliates) in machinery and electrical components sector in Indonesia, several possible determinants pursuing knowledge transfer activities are analysed. The size of the sample is limited by the data collection. This study confirms findings that the possibility of knowledge transmission for local suppliers does exist, particularly for joint venture firms and those who have export activities. The foreign affiliates with research and development divisions are more likely to transfer knowledge to local firms. To explore in detail, two case studies were selected from the sample to describe how knowledge transfer activities managed among partners. It suggested that knowledge transfer as an effort of upgrading technology dependent on the learning experience between firm development and external source of knowledge. A process to formalise knowledge transfer relationships with equal benefits between sender and recipient is a key.

Finance, Informal Competition, and Expectations: A Firm-Level Analysis

Finance, Informal Competition, and Expectations: A Firm-Level Analysis

Finance, Informal Competition, and Expectations: A Firm-Level Analysis

Finance, Informal Competition, and Expectations: A Firm-Level Analysis

Nacionalni intelektualni kapital - komparativna longitudinalna studija

Since its inception, the intellectual capital (IC) framework, which developed from accounting and financial perspectives, focused primarily on firm-level analysis. There have been several important attempts in the literature to take IC to the macroeconomic level. The purpose of this paper is to assess the relationship between national intellectual capital, proxied with modified National Intellectual Capital Index (NICI) introduced by Bontis [7], and the Human Development Index (HDI), which became an important alternative to the traditional single dimensional measure of a country's development, like the gross domestic product [42]. The paper proposes a modified NICI suggested by Užienė [52]. The analysis includes panel data regression analysis for 12 countries. The dataset incorporated longitudinal data for weighted components of the NICI index for the period of 21 years (2000-2021). The results revealed that each of the elements of NICI, namely National Human Capital (NHC), National Market Capital (NMC), National Process Capital (NPC), and National Renewal Capital (NRC), exhibits significant impact on the levels of HDI in the said period. However, all elements, apart from NRC, show significant positive impact on HDI, pointing to the conclusion that these factors represent an important foundation for achieving and maintaining national competitiveness. Contrariwise, NRC was revealed to have the significant negative impact on HDI, opening the door to the question whether NRC is a real driver of national development, or just the effect of already reached development level.

Lessons from the EU Effort Sharing Decision for Supranational Climate Cooperation: A Firm-Level Analysis

Lessons from the EU Effort Sharing Decision for Supranational Climate Cooperation: A Firm-Level Analysis

Big Pharma and Monopoly Capitalism: A Long-Term View

Are IPRs institutions meant to foster innovative activities or conversely to secure appropriation and profitability? Taking stock of a long-term empirical evidence on the pharmaceutical sector in the US, we can hardly support IPRs intended as an innovation rewarding institution. According to our analysis, pharma patents have constituted legal barriers to protect intellectual monopolies rather than an incentive and a reward to innovative efforts. Patenting strategies appear to be quite aggressive in extending knowledge borders and enlarging the space protected from the possibility of infringements. This is also witnessed by the fact that patent applications are very skewed in the covered trade names and patent thickness expands over time. Conversely, the number of patents protecting new drugs approved by the FDA which draw upon government-sponsored research - as such a mark for quality - falls. Firm-level analysis on profitability confirms strong correlation, restricted to listed pharmaceutical firms, between patent portfolio and profit margins.

Finance, Informal Competition, and Expectations: A Firm-Level Analysis

Finance, Informal Competition, and Expectations: A Firm-Level Analysis

Complementarity between Labor and Energy: A Firm-Level Analysis

Complementarity between Labor and Energy: A Firm-Level Analysis

Working Capital Emergence of the Credit Channel: A Firm-Level Analysis of Iranian Enterprises

Working Capital Emergence of the Credit Channel: A Firm-Level Analysis of Iranian Enterprises

Kenyan Exports: Tax Incentives, Firm Traits, Firm-Level, and Macroeconomic Determinants

This study sought to understand the traits of the Kenyan exporter, what drives exports performance, and how the exporter responds to targeted policy measures. A two-stage approach to modelling was used. In the first stage, the firm’s decision to export was done in a panel logistic model. In stage two, the drivers of export volumes at the macro-level were estimated using a Vector Autoregressive (VAR) model. The panel econometric modelling method was applied to 118,380 firm-level data spanning 2014 to 2019. While firm-specific characteristics (age, size, access to credit, labour intensity, and labour quality) affect exports, government policy informs of tax incentives may not create a substantial difference in the decision and volume of exports at the firm level. Exporting firms are labour intensive. The results of a VAR model using time series data from 1960 to 2020 confirm the firm-level analysis. Kenya exports are more driven by local production capacity than world demand. Secondly, exports are more labour responsive than capital responsive at a macro level. Local productivity capacity is significantly labour-driven than capital-driven. Therefore, labour-targeted policies would be more impactful. Exports response to local production capacity is instantaneous while a period of 3.5 years lapses before exports respond significantly to world-changing demand.

The Impact of Heterogeneous Environmental Regulations on Location Choices of Pollution-Intensive Firms in China

The spatial transfer pattern and dynamic mechanisms of pollution-intensive industries are key issues for national and regional sustainable development. Although previous studies have emphasized the impact of environmental regulations on the transfer of pollution industries, there is a lack of firm-level analysis of the combined effects of different types of environmental regulations and other factors on them, which has led to the pollution haven hypothesis remaining contested. In order to provide micro evidence to test the pollution haven hypothesis, this paper reveals the temporal and spatial evolution of pollution-intensive foreign firms’ distribution in China, and explores the impact of heterogeneous environmental regulations on the location choices by using spatial analysis and zero-inflated negative binomial regression. The empirical results were as follows: Firstly, pollution-intensive foreign firms were highly concentrated in the eastern developed region and have a strong path dependency in China. Secondly, environmental regulations, especially the market-based environmental regulation, had a significant negative impact on the location choices of pollution-intensive foreign firms. Thirdly, the spatial distribution of pollution-intensive foreign firms was strongly influenced by new economic and geographic factors. Fourthly, pollution-intensive foreign firms have a significant pollution border effects in developed regions but not in economically less-developed regions due to transportation costs. The governments are expected to adopt heterogeneous environmental regulations based on the level of regional economic development to avoid the pollution haven phenomenon, thus achieving a sustainable development.

Evidence-based Stock Price Behaviour Around Cash Dividend Announcements in an Emerging Market Set-up

This article examines how stock prices behave following cash dividend announcements in the Indian equity market considering 3,671 cash dividend announcements during the period 2012–2019, using both aggregate-level and firm-level analysis. Further, the study investigates the factors that lead to the generation of abnormal gain or loss following dividend announcements. We found that cash dividend announcements generate abnormal stock returns in the Indian equity market immediately after the dividend announcement. However, this impact persists for a very short spell, and after that, the stock prices normalize gradually. Results also show that firms with a higher promoter shareholding gain less on dividend announcements. The empirical evidence of this study thinly supports the information signalling theory and dividend clientele theory in the Indian market.

Do technological investments promote manufacturing productivity? A firm-level analysis for India

This paper assesses the effects of firms' investments in Information Technology (IT) and Research and Development (R&D) on their productivity growth. Unlike prior studies, our models examine individual as well as combined effects of these investments. We employ recently developed methods to control for transmission bias in production function estimation. For analysis, we utilise a panel of 900 manufacturing firms in India during 2000–2016. Our results show that (i) firms in high-technology industries are more productive than those in low-technology industries (ii) combined use of IT and R&D inputs yields higher productivity growth (iii) export-oriented firms are more technology-intensive and more productive than non-exporting firms (iv) exporting firms' productivity gains from IT investment are higher by around 0.03–0.04 percentage-points compared to non-exporting firms’

The Extensive Margin of Exporting Products: A Firm-Level Analysis

To quantify trade frictions, we examine multiproduct exporters. We build a flexible general-equilibrium model and estimate market entry costs using Brazilian firm-product-destination data under rich demand and market access cost shocks. Our estimates show that additional products farther from a firm’s core competency come at higher production costs, but there are substantive economies of scope in market access costs. Market access costs differ across destinations, falling more rapidly in scope at nearby regions and at destinations with fewer nontariff barriers. We evaluate a counterfactual scenario that harmonizes market access costs across destinations and find global welfare gains similar to eliminating all current tariffs. (JEL D22, F12, F13, F14, O14, O19)

What is the role of telecommunications infrastructure construction in green technology innovation? A firm-level analysis for China

Telecommunications infrastructure can lead to network spillovers and has the advantages of breaking spatial barriers, reducing transaction costs, and fostering business model innovation. In this way, it can promote the proliferation and progress of green technology and may impact green technology innovation. This paper studies the impact of telecommunications infrastructure on green technology innovation, identifies its mechanism, and analyzes the scale, structure, and heterogeneity of its effects. This research treats the Broadband China pilot policy as a quasinatural experiment in telecommunications infrastructure and uses firm- and city-level data from 2008 to 2018 to conduct a difference-in-difference (DID) model analysis. The study finds that telecommunications infrastructure promotes green technology innovation. However, telecommunications infrastructure has a more significant impact in promoting low- rather than high-quality green technology innovation. Additionally, the results of the mediating effect analysis show that telecommunications infrastructure stimulates corporate green technology innovation by improving the level of informatization, increasing media attention and improving corporate governance. It is noteworthy that, when heterogeneity in enterprise ownership, financing constraints, and technology level is considered, non-state-owned enterprises and enterprises with low financing constraints and a high technology level are found to be more clearly affected by telecommunications infrastructure.

Determinants of sustainable & responsible innovations: A firm-level analysis for Italy

This paper provides a micro-econometric analysis of the factors facilitating the introduction of Sustainable & Responsible Innovations by firms, with a focus on those aimed at improving occupational health and safety and reducing environmental impacts. Compared to the latter, the former objective of innovation has rarely been investigated with quantitative methods. By means of a bivariate probit model, we assess whether firms pursuing workers’ health and safety as innovation objective are also ascribing high importance to environment preservation. The evidence provided by using data for Italian firms highlights the key role of external knowledge and innovation sources and internal human resource practices for the achievement of Sustainable & Responsible innovative outcomes. Many similarities but also some differences between innovative firms emerge, according to whether they are committed to health and safety or environment protection.

Foreign direct investment and productivity spillovers: a firm-level analysis of Bangladesh in comparison with Vietnam

Foreign direct investment (FDI) is expected to generate external effects—usually termed FDI spillovers—for a host country, and these spillovers are thought to have consequences on the productivity of domestic firms. Despite this strong expectation, the empirical findings on FDI spillover are still indecisive. This study examines firm-level panel data to determine the effects of FDI spillover on firms’ productivity in Bangladesh in comparison to Vietnam. We consider both the horizontal and vertical (backward and forward) spillover effects of FDI. We find evidence that Bangladeshi firms gain productivity improvement through intra-industry or horizontal linkages, whereas Vietnamese firms gain through backward linkages. Our findings suggest that increases in foreign presence in the same industry for Bangladesh and in downstream industries for Vietnam are related with increase in output of domestic firms.

Rookie independent directors and corporate fraud in China

This paper examines whether rookie independent directors (RIDs) have an effect on corporate fraud in Chinese public companies. In firm-level analysis, we find that the presence of RIDs increases the likelihood of corporate fraud. In director-level analysis, we reveal that rookie independent directors are less likely to dissent using the voting records collected from company announcements. And the cost of dissension for RIDs is the higher likelihood of losing current board seats, compared with seasoned independent directors. Our results are robust to alternative variables about the existence of RIDs, the IV approach and the conditional model.