Fixed Effects Panel Data Model Research Articles

The influence of spousal care on the health of middle-aged and older adult caregivers in China—empirical analysis based on CHARLS data

ObjectivesWith the decrease of the number of children and the increase of population mobility, child care presents a phenomenon of “double shortage” of human and time resources, and spousal care is becoming an important care source for middle-aged and older adult people in China. However, less studies have taken middle-aged and older adult couples as research subject to explore the health effects of spousal care in the process of aging. This paper attempts to explore the effects of caregiving on the health of caregivers from the perspective of spousal care.MethodsUsing China Health and Retirement Longitudinal Study (CHARLS) database, this paper constructs a panel data fixed effect model to explore the effects of spousal care on the health of middle-aged and older adult caregivers. Further, instrumental variables (IV) estimation and propensity score matching (PSM) are used to minimize the impacts of endogeneity.ResultsSpousal care has no significant effect on the physical health of middle-aged and older adult caregivers, but it has a significant negative effect on their mental health. Providing spousal care has a stronger negative effect on the mental health of female or rural middle-aged and older adult caregivers. The mechanism analysis shows that spousal care affects the mental health by reducing the number of weekly exercise and increasing the family’s non-food expenditure.ConclusionThe provision of spousal care in the middle-aged and older adult groups does harm the mental health of caregivers. Vulnerable groups such as families in which both spouses need care, female or rural caregivers expect more attention and support.

Characteristics of the Chairman of the Board of Directors and Their Impact on Dividend Payments in the Moroccan Stock Exchange

This study examines the influence of chairman characteristics on dividend policy within Moroccan firms listed on the Casablanca Stock Exchange, addressing a critical gap in the behavioral finance literature. This research focuses on five key attributes of chairmen—age, gender, nationality, tenure, and founder status—and analyzes their impact on dividend decisions over a 16-year period (2003–2018). A fixed effects panel data model was employed, incorporating six control variables—firm age, growth opportunities, size, board size, female representation, and foreign ownership. The results demonstrate that chairman age and tenure significantly affect dividend policy. Older chairmen are more risk-averse, favoring higher dividend distributions to ensure financial stability, while longer-tenured chairmen tend to retain earnings for aggressive investments, reflecting overconfidence. The other variables—gender, nationality, and founder status—showed no statistically significant effects in this context. This research provides the first empirical evidence on the relationship between chairman characteristics and dividend policy in Morocco. The findings offer valuable insights for investors, analysts, and policymakers in emerging markets, emphasizing the role of leadership traits in corporate financial strategies. By highlighting the importance of behavioral factors, this study enhances understanding of dividend policy determinants in developing economies.

The Relationship Between Firm Formation and Unemployment: Evidence from Türkiye

This paper aims to explore the relationship between firm formation and unemployment using regional and city-level Turkish data. We focus on the post-2008 financial crisis period and analyze the effects of unemployment and other control variables on firm formation at NUTS-II and NUTS-III regions of Türkiye. We estimate a fixed-effects panel data model and control for GDP per capita, urbanization, population density, patents, high school education, and higher education. Our results suggest that there is a significant positive effect of unemployment on new firm formation. The analysis concerning the converse relation, the impact of firm formation on unemployment, reveals no significant results at the NUTS-II level; however, a significant negative relationship is found at the city level with 4- and 5-year lags.

Institutional Ownership and Corporate Risk-taking: Indian Evidence

The study examines the impact of institutional ownership on corporate risk-taking in India. It further differentiates institutional ownership into domestic and foreign categories and examines their respective influences on corporate risk-taking, alongside assessing the moderating role of the COVID-19 pandemic. The present study is based on a panel data set of 100 non-financial Indian firms randomly selected from the top 500 firms listed on the Bombay Stock Exchange, covering the period from 2013 to 2022. The study employs two market-based risk measures—total and idiosyncratic risk—to capture corporate risk-taking. Fixed effects panel data model, along with generalized estimating equations and generalized method of moments, is used to ensure robustness of results. The study finds a significant negative impact of institutional ownership on corporate risk-taking. Specifically, domestic institutional ownership significantly reduces corporate risk-taking, whereas foreign institutional ownership shows no significant impact. Furthermore, the COVID-19 crisis does not moderate the relationship between institutional ownership and corporate risk-taking or domestic institutional ownership and corporate risk-taking. However, it positively moderates the relationship between foreign institutional ownership and corporate risk-taking. The insights hold immense value for policymakers, regulators and industry practitioners. To the best of the authors’ knowledge, the present study is a maiden attempt to investigate the impact of domestic and foreign institutional ownership on corporate risk-taking in the Indian context. Furthermore, this is the first study to examine the moderating role of COVID-19 on relationships. Additionally, the study incorporates idiosyncratic risk as an additional measure of corporate risk-taking, largely overlooked in the Indian context.

The health effect of relaxing entry regulation for private hospitals and its nonlinear characteristics: evidence from China.

Relaxing entry regulation for private hospitals and fostering competition in the healthcare market are crucial prerequisites for addressing the diverse healthcare demands of the population and promoting the development of a Healthy China. This study aims to comprehensively evaluate the health effect of relaxing entry regulation for private hospitals and to examine its nonlinear characteristics. Using panel data from 31 provinces in mainland China, this study employs a fixed effects panel data model to investigate the health effect of relaxing entry regulation for private hospitals. To examine the potential nonlinear relationship, a panel threshold model is also employed. This study also employs a dynamic panel model as the econometric method to perform regression analysis for robustness testing. The empirical findings indicate that relaxing entry regulation for private hospitals significantly improves the residents' health level. This conclusion remains robust when different explanatory variables, measurement models and modified samples are applied. The heterogeneity analysis reveals that the health benefits of private hospital market entry are more pronounced in Central-Western region, regions with high medical resource endowment, and regions with High-quality competition. Furthermore, the health effect of relaxing entry regulation for private hospitals exhibits nonlinear characteristics: it weakens as economic development level reaches a certain threshold and becomes more pronounced as educational attainment reaches a specific threshold. Based on these empirical results, Chinese provinces can be classified into three distinct types to guide the development of differentiated policies tailored to local conditions. This study provides valuable theoretical insights into promoting a fair competition mechanism in the healthcare market, enhancing the quality of private hospitals, and improving the overall health level of residents in China and other developing countries facing similar challenges.

Do women commemorate women? How gender and ideology affect decisions on naming female streets

Street names are not neutral identifiers to navigate through cities but are charged with strong symbolic connotations and reflect power relations within society. A growing body of geographic scholarship documents a strong gender bias in the urban namespace, where women only represent a small fraction of streets named after people. This article investigates whether the lack of women in political decision-making roles contributes to explaining their marginalization in urban toponyms. More specifically, we study the impact of the gender and ideology of town mayors on their decisions to commemorate women in the street map. Focusing on the universe of Spanish towns during the period 2001–2023, we find through fixed effects panel data models and regression discontinuity design that the mayor's gender does not affect the percentage of female-named streets, while the ideology of the governing party does. Our findings thus indicate that it is ideology rather than gender what shapes politicians' preferences regarding the commemoration of women in the street map. We argue that this is because, on the one hand, strong political parties can impose their agenda on local leaders, making irrelevant differences in their gender and, on the other, the ideological cleavage is more relevant than the gender one to account for differences in attitudes towards symbolic gender policies. A natural implication of our results is that simply having more female politicians will hardly suffice to address the gender gap in street names and in other symbolically charged policies.

Occupational diversity in Chinese cities: facts, evolution and policy implications

<div><p>Measuring the occupational diversity and trend of Chinese cities from the perspective of the distribution of urban occupational types, and discussing the impact of urban characteristics on urban occupational diversity can provide reference for guiding urban full and high-quality employment. By using the improved Herfindahl index, panel data fixed effect model and Oaxaca blinder decomposition, it is found that the occupational diversity in Chinese cities showed a trend of first decreasing and then increasing from 2002 to 2016, which was due to the adjustment of urban industrial structure and the emergence of new economy after the financial crisis; at the same time, the larger the city, the higher the administrative level and the more developed the economy, the higher the degree of occupational diversity. The conclusion of the study is helpful to intuitively understand the occupational distribution, industrial structure and division of labor in different cities, evaluate the human resource structure and economic development potential of cities, and then provide policy suggestions for different cities to formulate industrial development and human resource planning.</p></div>

Impact of Socio-Economic Factors on Undernourishment in Central Asia

The Global Hunger Index reports a troubling rise in the global number of undernourished people, increasing from 572 million in 2017 to 735 million in 2023, highlighting persistent global challenges. In Central Asia, undernourishment poses a serious threat to public health and impedes both economic and social progress for millions. This study emphasizes the critical roles of political stability and remittances as primary determinants influencing undernourishment in the region. Utilizing a fixed-effects panel data model, we analyze the impact of these key factors, alongside other economic and social indicators, on food security. Our findings indicate that higher remittance inflows are inversely related to undernourishment, suggesting that increased household income from remittances greatly enhances food access and security. Furthermore, the analysis highlights that political stability plays a crucial role in mitigating undernourishment, with more stable governance correlating with lower rates of food insecurity. These insights emphasize the necessity for targeted policies that foster political stability and encourage remittance flows while ensuring inclusive food access and local production.

Porter-Type Regional Agglomerations, Export Performance, and Inclusive Regional Policy: An Empirical Assessment of Turkish Manufacturing Sector

Abstract This study aims to evaluate the medium-term impact of regional agglomerations in the manufacturing sector of Turkey on export performance. To this end, we identified Porter-type agglomerations in ISIC two-digit manufacturing sectors for 58 NUTS-3 regions and the 2008-2019 period. In the empirical analysis section, we used a two-way fixed effects panel data model to analyze the effects of these agglomerations on sectoral export performance. The findings indicate that the advantages of Porter-type agglomeration are limited to certain mid-tech sectors. Also, labor-intensive low-tech manufacturing sectors are found to have no agglomeration advantages in export performance compared to mid-tech sectors. The findings indicate a technology policy need and an inclusive smart specialization strategy (3S) to enhance productivity and export competitiveness.

How does supplier digitalization improve customer resource allocation efficiency? The role of supply chain entrainment

PurposeCustomer resource allocation efficiency (RAE) refers to the ability of customers to use, allocate and manage their available resource inputs to produce valuable outputs. This study draws on organizational entrainment theory (OET) to examine how the implementation of supplier digitalization affects customer RAE through supply chain entrainment.Design/methodology/approachBased on supplier and customer data disclosed by Chinese A-share listed firms from 2009 to 2022, this study uses fixed effects panel data models to empirically examine the impact of supplier digitalization on customer RAE and the mechanistic role of supply chain entrainment.FindingsThe results show that supplier digitalization significantly increases customer RAE. It improves RAE by influencing the three dimensions of supply chain entrainment (the bullwhip effect, inventory management coordination and risk management coordination).Practical implicationsThis study provides important insights into how managers can adapt the external digital environments and maintain synchronous operations with their supply partners. Our findings demonstrate how managers can fully leverage the advantages of digitalization of their suppliers to improve their own RAE through supply chain entrainment strategies.Originality/valueThis study introduces the concept of supply chain entrainment to reveal how firms optimize their own resource allocation strategies and achieve efficient operations. Our research enriches the understanding of supply chain governance in the digital age and contributes to the literature on supply chain digitalization.

The macroeconomic determinants of trade openness in Latin American countries: A panel data analysis

Background Trade openness shows a positive impact on economic growth, supported by economic theory, and export diversification and economic complexity show a positive dynamic in trade openness in the world; however, a specificity is generated in South American countries. Therefore, the objective of the research is to analyse the macroeconomic determinants of trade openness in Latin American countries. Methods The research approach was quantitative and explanatory using panel data methodology from the databases of the World Bank, Harvard University and the Economic Commission for Latin America and the Caribbean for the period 2000-2020. Results The fixed effects panel data model showed that the variables that had a negative impact on trade openness were GDP, the economic complexity index and the logistic performance index, while the variables that had a positive impact were exports of high-tech products (a proxy for innovation), exports, imports, research and development expenditure and interregional trade in goods. Conclusions Therefore, during the analysis period of 2000-2020 in South America, based on the panel data analysis under fixed effects, a total of 8 countries had a negative impact on trade openness, and only the economies of Chile, French Guiana, and Brazil had a positive impact on trade openness; these economies are characterized by their better performance in the economic complexity index, their higher percentage of budget for research and development expenses, and their trade policies oriented towards the industrialization of their value-added products.

PENGARUH PENDAPATAN PREMI, BEBAN KLAIM, RISK BASED CAPITAL DAN HASIL INVESTASI TERHADAP LABA PERUSAHAAN ASURANSI UMUM SYARIAH YANG TERDAFTAR DI OTORITAS JASA KEUANGAN INDONESIA

Abstract: Corporate Profit or commonly called profitability, is a measure of how well a company has succeeded in generating net profit from its operations in a certain period. This study aims to determine how much influence Premium Income, Claim Expenses, Risk Based Capital and Investment Returns have on the Profit of Sharia General Insurance Companies registered with the Indonesian Financial Services Authority, with an observation period of three years, namely from 2020 to 2022. The data used in this study are secondary data that are quantitative in nature, namely by using financial reports published by the Financial Services Authority. The population in this study were 25 issuers and the sample selected in this study were 17 issuers, and using the purposive sampling method with certain criteria. The analysis method uses the panel data regression analysis method. The model used in this study is the panel data fixed effect model, classical assumption test and hypothesis test. The results show that premium income, claim expenses, risk based capital and investment returns simultaneously have a significant effect on the Profit of Sharia General Insurance Companies registered with the Indonesian Financial Services Authority. Premium income partially has a negative and significant effect on company profits. Claim expenses partially have a positive and significant effect on company profits. Risk based capital partially has a positive and significant effect on company profits. Investment results partially have no effect on company profits. Keywords: Premium Income, Claims Expense, Risk Based Capital, Investment Results and Company Profit

Capital Structure and Enterprise Market Value: An Empirical Analysis Based on S&P 500 Companies

Abstract: This study explores the impact of capital structure on enterprise market value, specifically examining the influence of the debt ratio on the market valuation of S&P 500 companies. Capital structure decisions are crucial for corporate managers and investors, as they significantly affect firm performance, risk, and market perception. The research is motivated by the need to understand how financial leverage influences market valuation, particularly in large, publicly traded companies. Utilizing two-way fixed effect panel data models spanning from 2020 to 2023, we find significant evidence that higher leverage is associated with an increase in market valuation, offering a comprehensive view of the factors that influence corporate market values. Additionally, the study reveals that the impact of leverage varies across company sizes and examines sector-specific effects and the role of long-term debt. The findings provide key insights for investors and corporate managers regarding the impact of financial structure on company valuation, emphasizing the importance of optimizing capital structure to enhance firm value and strategic decision-making.

Effects of Working Capital Management on Small-Sized Businesses in Competitive Environments with Economic Policy Uncertainty—A Case Study Applied to Chilean Companies

Working capital is a strategic resource that not only enhances financial performance but also ensures the long-term sustainability of organizations, especially SMEs. In the context of evolving economic policies and the challenges of gender equity affecting Chilean companies, this study explores how economic policy risk (EPU) and CEO characteristics influence working capital, which are essential investments for sustainable growth. The analysis covers 12,839 SMEs from 2014 to 2019. Using a fixed-effects panel data model, the findings reveal that firms tend to increase their investment in working capital in response to rising economic policy uncertainty. However, the relationship follows a non-linear inverted U-shaped pattern, which suggests the existence of an investment optimum between working capital and the EPU. Considering the level of competition, companies increase their investment in working capital when the level of competition is higher. Regarding the gender and age of CEOs, it is observed that women invest less in working capital, as do young CEOs. These results underscore the importance of EPU, along with the gender and age of CEOs, as key factors in promoting sustainable working capital management.

The macroeconomic determinants of trade openness in Latin American countries: A panel data analysis

Background Trade openness shows a positive impact on economic growth, supported by economic theory, and export diversification and economic complexity show a positive dynamic in trade openness in the world; however, a specificity is generated in South American countries. Therefore, the objective of the research is to analyse the macroeconomic determinants of trade openness in Latin American countries. Methods The research approach was quantitative and explanatory using panel data methodology from the databases of the World Bank, Harvard University and the Economic Commission for Latin America and the Caribbean for the period 2000-2020. Results The fixed effects panel data model showed that the variables that had a negative impact on trade openness were GDP, the economic complexity index and the logistic performance index, while the variables that had a positive impact were exports of high-tech products (a proxy for innovation), exports, imports, research and development expenditure and interregional trade in goods. Conclusions Therefore, during the analysis period of 2000-2020 in South America, based on the panel data analysis under fixed effects, a total of 8 countries had a negative impact on trade openness, and only the economies of Chile, French Guiana, and Brazil had a positive impact on trade openness; these economies are characterized by their better performance in the economic complexity index, their higher percentage of budget for research and development expenses, and their trade policies oriented towards the industrialization of their value-added products.

Multivariate Analysis of the Determinants of Total Mortality in the European Union with Focus on Fat Intake, Diabetes, Myocardial Infarction, Life Expectancy, and Preventable Mortality: A Panel Data Fixed-Effects Panel Data Model Approach.

Cardiovascular disease is the leading cause of death in the European Union (EU), and while the mortality rates of diabetes, myocardial infarction, and the total fat intake have been extensively studied, we believe that understanding the interaction between such closely correlated determinants is crucial to the development of effective health policies in the EU. Our paper's novelty is represented by the econometric modelling, and its ability to capture both temporal and unit variations. The research methodology consists of using a panel data model with fixed effects for the 27 EU member states over the period 2010-2021. The results of the study show that the standardized mortality rate for deaths preventable by prevention and treatment and diabetes-related mortality are significant predictors of total mortality in the EU. The standardized mortality rate for deaths preventable by prevention and treatment had a significant positive impact, suggesting that improved preventive and therapeutic interventions can significantly reduce total mortality. Diabetes-associated mortality also showed a strong positive correlation with total mortality, emphasizing the need for effective diabetes management and prevention strategies. These results are useful for the formulation of public health strategies aimed at improving life expectancy and reducing the burden of chronic diseases.

The Asymetric Relation between Money Supply and Inflation

In this study using yearly data, it is examined if the effect of money supply (broad money) on inflation is asymmetric or not. 38 countries which have 5% and above inflation rate in average during the period of 1989–2018 are investigated through the panel data analyses. The study differs from other researches, which use monetary shocks in explaining the asymmetric relation, in which that it uses broad money change intervals along with control variables to see the asymmetric impact. Using broad money change intervals, it is concluded that the relation between broad money and inflation is explained better in the asymmetric pooled and fixed effect panel data models, compared to the symmetric models. According to the results, the effects of negative and positive changes in money supply on inflation are not symmetric. Moreover, as broad money increases, inflation goes up further. In the light of this information, it is possible to mention an asymmetric relation between broad money and inflation.

Do venture capital investments contribute to the achievement of the sustainable development goals?

AbstractAchieving the goals of the 2030 agenda for sustainable development requires substantial investment and depends on the ability to attract private capital to complement public resources. Venture Capital (VC) investments have traditionally focused on sectors such as technology, healthcare, and clean energy, which align closely with the enhancement of sustainable development, and VC investors can accelerate progress toward sustainability by providing expertise and mentorship to startups working on sustainable solutions. This study aims to contribute to the literature on the intersection between finance and sustainability by investigating whether higher VC investments are associated with a higher level of achievement of the Sustainable Development Goals (SDGs). Using a panel data fixed effect model on a sample covering more than 100 countries, we find that a higher level of VC activity is associated with stronger SDGs' performances, with this effect being primarily driven by economic factors. We document heterogeneous effects related to the round of investments as well as the organizational form of VC investors and the industry and country of the VC‐backed companies.

The macroeconomic determinants of trade openness in Latin American countries: A panel data analysis

Background Trade openness shows a positive impact on economic growth, supported by economic theory, and export diversification and economic complexity show a positive dynamic in trade openness in the world; however, a specificity is generated in South American countries. Therefore, the objective of the research is to analyse the macroeconomic determinants of trade openness in Latin American countries. Methods The research approach was quantitative and explanatory using panel data methodology from the databases of the World Bank, Harvard University and the Economic Commission for Latin America and the Caribbean for the period 2000-2020. Results The fixed effects panel data model showed that the variables that had a negative impact on trade openness were GDP, the economic complexity index and the logistic performance index, while the variables that had a positive impact were exports of high-tech products (a proxy for innovation), exports, imports, research and development expenditure and interregional trade in goods. Conclusions Therefore, during the analysis period of 2000-2020 in South America, based on the panel data analysis under fixed effects, a total of 8 countries had a negative impact on trade openness, and only the economies of Chile, French Guiana, and Brazil had a positive impact on trade openness; these economies are characterized by their better performance in the economic complexity index, their higher percentage of budget for research and development expenses, and their trade policies oriented towards the industrialization of their value-added products.

Institutional distance and subsidiary performance of multilatinas: moderating effects of ownership strategy and government support

Purpose: In this article we investigated the effects of regulatory and normative institutional distances on Emerging Market Multinational Enterprises (EMNEs) subsidiaries performance, and the moderating roles of the ownership strategy and the government support. Design/methodology/approach: We applied fixed-effects regression models for panel data to analyze a sample of 296 subsidiaries of 32 Brazilian EMNEs, from 2006 to 2015. Findings: We found that institutional distance positively affects subsidiary performance. Although, full ownership, and government support positively affects subsidiary performance, subsidiaries with partial ownership located in more developed and institutionally distant host countries presents superior performance. We also found a positive relationship between government support, regulatory distance, and subsidiary performance. However, the same relationship with normative distance was not statistically relevant. Originality/value: By analyzing different ways in which the institutional context affects subsidiary performance and different approaches to increasing or mitigating those effects, this study contributes to furthering the understanding of how institutional issues affect EMNEs, and the role of the home country government. Conclusions: The findings of this study could help policymakers make informed decisions about investments in EMNEs. This is achieved by analyzing the impact of government financial aid on the performance of subsidiaries.