Fixed-effects Regression Models Research Articles

Technological diversification and innovation performance: ownership structure

PurposeThis study explores the contingent relationship between technological diversification (TD) and innovation performance, particularly in the context of China’s high-tech firms. It aims to understand how the structure of firm ownership influences the allocation of innovation resources and, consequently, the efficiency of innovation activities.Design/methodology/approachThe research employs a fixed-effect regression model to analyze a unique panel dataset of 1,139 Chinese listed high-tech firms over a nine-year period. The dataset includes firm-year observations from 19 industries, allowing for a comprehensive analysis of the relationships between TD, innovation performance and ownership structure.FindingsThis study finds an inverted U-shaped relationship between TD and innovation performance, indicating that while a certain level of TD can enhance innovation performance, excessive diversification can lead to diminishing returns. The findings also reveal that ownership concentration amplifies this relationship, suggesting that firms with more concentrated ownership structures can quickly reach optimal levels of innovation performance but are also more susceptible to the “over-diversification trap.” In contrast, equity restriction and ownership type (state-owned vs privately owned enterprises) moderate the relationship, indicating that firms with these structures may maintain optimal innovation performance levels for longer periods.Originality/valueThis research provides novel insights by confirming a nonlinear, inverted U-shaped relationship between TD and innovation performance, specifically within the context of Chinese high-tech firms. By integrating corporate governance theory, our study advances understanding of how ownership structure – through ownership concentration, equity restriction and ownership type – moderates the TD-innovation performance relationship. This perspective offers a deeper understanding of resource allocation and innovation efficiency in emerging markets. The findings hold practical implications for managers and policymakers, underscoring the importance of aligning TD strategies with firm ownership structures to optimize innovation outcomes.

Investigating Productivity of Microfinance Institutions in Nepal: Evidence from Panel Data Approach

The objective of the study is to analyze the factor affecting productivity of microfinance institutions in Nepal. The institutional characteristics (such as age, number of branches and number of staffs), outreach (such as number of active borrowers and average loan size), and efficiency (cost per loan) are taken as independent variables and productivity is taken as dependent variable. The productivity is measured by number of borrowers per staff. The microfinance institutions (established before 2016 AD) operating in Nepal are selected as sample through the convenience sampling method. Taking panel data from 21 microfinance institutions from 2016/17 AD to 2023/24 AD with 168 observations, Fixed Effect regression model is used. The study found that number of operation year, number of branch and number of active borrowers has positive significant impact on borrower per staff but number of staff, average loan size, and cost per loan has negative significant impact on productivity of Nepalese microfinance institutions. The study has important implications for the policy makers of Nepalese microfinance institutions to improve their productivity by utilizing their resources and making sound policy towards staff and borrower.

Corporate social responsibility and tax avoidance: evidence from BRICS countries

Purpose Using listed firms domiciled in the founding BRICS countries, i.e. Brazil, Russia, India, China and South Africa, this study empirically examines the impact of corporate social responsibility (CSR) engagement on the degree of tax avoidance. Design/methodology/approach Data used in this study is sourced from the EIKON database, where CSR variables, i.e. the scores of social and environmental pillars, are extracted from ASSET4, and accounting variables are sourced from Worldscope. The authors use a series of fixed effects regression models as the baseline approach to test the hypotheses. In addition, the 2SLS regression model is used to address endogeneity issues. Findings Their results show that firms domiciled in BRICS countries do not use CSR strategically as “a tool” to legitimate themselves, manage their risks or minimize public scrutiny from their tax avoidance behavior, but that they develop a culture of tax compliance and CSR engagement as a complementary strategy, promising ethical conduct to external audiences and committing to serving the interests of all stakeholders. Originality/value This study incrementally contributes to the extant literature on the link between tax avoidance and CSR engagement by offering evidence from dominant emerging markets, where the institutional factors differ considerably from those of developed countries. Furthermore, they provide essential insights for policymakers that including responsible tax payment as part of the global CSR agenda may motivate firms to align their behaviors to tax payment.

Does green innovation facilitate buyer firms’ attainment of trade credit from suppliers? A signalling theory perspective

PurposeAs a crucial supply chain financing instrument, trade credit has become increasingly important for firms to enhance financial flows in supply chains. Yet, scant research has examined how firms’ green innovation affects the attainment of trade credit from their suppliers. To bridge this gap, this study aims to draw on signalling theory to investigate the impacts of incremental green innovation (IGI) and radical green innovation (RGI) on trade credit and the contingent roles of supplier concentration and industry dynamism.Design/methodology/approachUsing a data set of 3,302 Chinese listed manufacturing companies from 2007 to 2021, our research adopts fixed-effect regression models to test the proposed hypotheses.FindingsThe authors find that both IGI and RGI exert a positive effect on trade credit. Interestingly, supplier concentration weakens the association between RGI and trade credit, whereas it does not significantly influence the association between IGI and trade credit. Moreover, industry dynamism attenuates the relationship between IGI and trade credit, whereas it does not significantly alter the relationship between RGI and trade credit.Originality/valueThe paper extends the supply chain finance literature by applying signalling theory to uncover the effects of IGI and RGI on trade credit and the distinct contingency roles of supplier concentration and industry dynamism. It also provides supply chain managers with important implications regarding how to tailor the strategies of implementing different types of green innovation to acquire more trade credit in different situations.

Corporate social responsibility and the financial performance of global banks: the moderating role of corporate tax

ABSTRACT This study examines the relationship between corporate social responsibility (CSR) disclosure and the financial performance of global banks. This study investigates the moderating role of corporate tax on the nexus between CSR and the financial performance of banks. The sample consists of 233 banks available at Refinitiv Eikon database, and the sample period is between 2013 and 2018. This study tests the hypothesis using the year fixed-effect panel regression model. The findings show that CSR disclosures significantly and positively impact financial performance. Social and governance disclosure poses a positive relation. However, environmental disclosure shows a negative impact. Moreover, this study finds a significant and positive moderating effect of corporate tax between CSR and banks' performance. This study presents valuable insight into stakeholders about banks' CSR disclosure and the country's taxation benefits. Besides, the findings will be helpful for the regulators in implementing the CSR policy and making strategic decisions.

Neighbourhood socioeconomic conditions and emergency admissions for ambulatory care sensitive conditions in children: a longitudinal ecological analysis in England, 2012–2017

BackgroundAmbulatory care sensitive conditions (ACSCs) are those for which hospital admission could be prevented by interventions in primary care. Children living in socioeconomic disadvantage have higher rates of emergency admissions...

Altruism and tax compliance: Unveiling the dual role of charitable giving and social norms in global tax evasion

This study investigates the relationship between altruistic behaviors and tax evasion, using panel data from 172 countries spanning 2011 to 2020. The analysis focuses on three dimensions of altruism—helping strangers, volunteering, and donating to charity—derived from the World Giving Index, while tax evasion is proxied by the size of the informal economy as estimated by the IMF. With a final sample of 1,103 country-year observations, the study employs a fixed effects regression model to account for unobserved, time-invariant heterogeneity across countries and global shocks over time. GDP per capita, sourced from the World Bank, is included as a control variable. The findings reveal a dual relationship: the percentage of individuals helping strangers is negatively correlated with tax evasion, suggesting that strong social norms and intrinsic motivations for altruistic behavior promote tax compliance. In contrast, the percentage of individuals donating to charity is positively correlated with tax evasion, indicating that charitable giving may sometimes rationalize non-compliance through mechanisms like the Crowding-Out Hypothesis or the Compensatory Altruism Hypothesis. Volunteering, however, shows no significant effect on tax evasion. These results underscore the complexity of the relationship between pro-social behaviors and tax compliance. Policymakers are encouraged to promote social norms that foster both altruism and tax compliance while carefully designing tax incentives for charitable giving to prevent unintended consequences. This study contributes to the literature by providing nuanced insights into the interplay between altruistic behaviors and tax evasion on a global scale, highlighting the importance of context in understanding compliance behaviors.

Language capital and grade repetition: evidence from nationally-representative survey data in India

ABSTRACT This paper studies the links between discrepancies in the language spoken at home and the medium of instruction at school and grade repetition using nationally representative sample surveys in India. Our sample consists of more than 100,000 students attending educational institutions. Using a fixed effects regression model, we find that language discrepancy is negatively associated with grade repetition among boys and is not statistically significant for girls. Subgroup analyses suggest that results are driven by urban, relatively wealthier households residing in Hindi-speaking states. Implications for policies such as the recently proposed National Education Policy (NEP) are discussed.

The Impact of Digital Inclusive Finance on Regional Economic Growth and Environmental Quality

China has prioritized high-quality development as a key goal in building a socialist modernized country. Currently, regional economic development faces challenges such as blocked factor flows, regional disparities, and environmental degradation, highlighting the need for coordinated economic and environmental progress. This paper explores how digital inclusive finance impacts regional economic development and environmental quality. Using panel data from 31 provinces (20122022) and a bidirectional fixed-effect regression model, the study finds that digital inclusive finance drives economic growth through technological innovation and enhances environmental quality via industrial upgrading. This research offers empirical evidence on the role of digital finance in regional development and provides policy insights for promoting green transformation and sustainable growth.

Tired of the double burden? The impact of work-to-family and family-to-work conflict on sleep duration

Objective: This study examines the impact of work-family conflict on sleep duration by gender from a longitudinal perspective, differentiating between work-to-family (WTFC) and family-to-work conflict (FTWC) as well as time- vs. strain-based conflict. Background: In previous research, work-family conflict was found to be related to adverse health outcomes. Although sleep is crucial for overall health, relatively few studies have explored the relationship between sleep and work-family conflict, especially with regard to the direction and type of conflict and gender. In exploring these aspects, we apply the Conservation of Resources Theory and Stress Process Theory, in which the distinction between conflict direction and type, as well as gender, is essential. Method: Using the German Family Panel study “pairfam” and a sample of 3,719 respondents, we apply fixed effects regression models to estimate the effects of time- and strain-based WTFC and FTWC on sleep duration for men and women. Results: Our results show a negative impact of both WTFC and FTWC on sleep duration, which is consistent with previous findings. Overall, FTWC affects sleep duration more strongly than WTFC. Looking at the type of conflict, the results for WTFC and FTWC differ: for WTFC, the time-based conflict has a stronger effect on sleep duration; for FTWC, the strain-based conflict is more relevant. Gender differences emerge, with men reducing their sleep duration with increasing WTFC and FTWC, while women only with FTWC. For women, only strain-based FTWC decreases sleep duration; for men, mainly time-based WTFC does so. Conclusion: It seems that the interference of time-based work demands with family life reduces sleep duration primarily among men, whereas when family demands interfere with work it is the psychological strain of the resulting conflict that impacts sleep for women.

Research on the impact of artificial intelligence technology on urban public health resilience.

Urban public health resilience has become a critical focus in the transition to high-quality development, especially in addressing increasing public health challenges. This study explores the role of artificial intelligence (AI) technology in enhancing urban public health resilience across 284 Chinese cities from 2011 to 2021. Using a comprehensive index based on resistance, recovery, and innovation dimensions, the study quantifies AI technology levels through patent applications and authorizations, further disaggregating these into invention, utility model, and design patents. A two-way fixed effects regression model and spatial econometric models are employed to analyze the direct and spillover effects of AI on urban public health systems. The results demonstrate that AI technology significantly enhances resilience by improving resource allocation and response efficiency, with stronger impacts observed in eastern and central regions compared to western regions, where economic and technological capacities are weaker. Spatial analysis reveals significant positive spillover effects, particularly from patent authorizations, which enhance public health resilience in neighboring cities through cross-regional collaboration and resource sharing. Despite these advancements, regional disparities in economic development and technological infrastructure limit AI's broader impact, underscoring the need for targeted policies, enhanced funding, and interdisciplinary training to bridge the digital divide. The findings highlight AI's transformative potential in fostering urban public health resilience and call for sustained investment and collaboration to maximize its benefits.

Housing Relocation and Residential Satisfaction After Relocation: Effects of Dwelling Condition Changes on Older Adults in the Community.

This study seeks to analyze the trajectories of residential satisfaction among older adults before and after relocation and explore the variability in the relationship between relocation and residential satisfaction based on changes in housing conditions during the relocation process. Utilizing a nationally representative longitudinal dataset of older adults (N=2718), this study employs individual-level fixed effect regression models to estimate the association between the timing of relocation and residential satisfaction. Stratified analyses are also conducted to explore how this association varies based on changes in housing conditions. Residential satisfaction tends to decrease before relocation, peaks at the time of relocation, and maintain higher levels as older adults adapt to their new environment. This adaptation process varies depending on changes in dwelling conditions during relocation, with transitions from poor to non-poor housing conditions positively affecting psychological responses, while moves from non-poor to poor conditions can lead to increased psychological burden and prolonged adjustment periods. Aging policies can prioritize programs that facilitate adjustment to new environments to improve residential satisfaction of older adults, thereby promoting healthy aging.

SUSTAINABILITY AND TAX INCENTIVES

This study examines the link between sustainability practices and tax incentives for Indonesian firms by analyzing Bloomberg data from 2013 to 2022. It assesses sustainability through the Sustainability Growth Rate (SGR) and disclosures in the Environmental, Social, and Governance (ESG) domains, while tax incentives are measured by the Effective Tax Rate (ETR). A fixed-effects regression model controls firm-specific factors, revealing that a higher SGR significantly correlates with reduced tax liabilities. This study also suggests that firms with substantial sustainability growth are able to gain tax benefits. However, ESG disclosures alone do not significantly impact the ETR. Its robust sustainability practices have led to tax advantages rather than mere disclosure in Indonesia. Furthermore, this research contributes to the existing literature by highlighting the distinct impacts of various sustainability measures on financial outcomes, particularly in developing countries. They overview the importance of comprehensive sustainability strategies incorporating real growth in initiatives for achieving ethical and financial outcomes. This research also addresses critical insights for policymakers and business leaders in response to the emerging markets around developing countries.

Nexus between corporate sustainable practices and sustainable development goals: Indian evidence

Purpose The purpose of this study is to explore the disclosure of sustainable development goals (SDGs) by Indian firms and to examine the association between sustainable business practices and the disclosure of SDGs. Design/methodology/approach The study is based on large Indian non-financial firms listed in Bombay Stock Exchange 200 for six years from 2016–2017 to 2021–2022. Sustainable business practices are measured using four important indicators - the quality of sustainability discourse, compliance with Global Reporting Initiative guidelines, adoption of the guidelines of the International Integrated Reporting Council and external assurance of published reports. Content analysis is used to compute the disclosure score of SDGs and corporate sustainability performance. The authors have used a fixed effects regression model followed by Tobit model and two-stage least square model to examine the association between sustainable business practices and the disclosure of SDGs. Findings The results indicate an increasing trend of disclosure of SDGs by Indian firms. The empirical findings suggest a positive impact of sustainable business practices on the SDGs disclosure after controlling for firm-specific and corporate governance variables. Among the components of corporate sustainability, social and environmental factors positively influence the SDGs. Originality/value The study is a noble attempt to enrich the extant literature by providing empirical evidence on the association between sustainable business practices and disclosure of SDGs considering four important indicators of sustainable practices. The findings are useful for theoretical and practical implications.

Breathing dirty air, struggling in school: The case of air pollution and Student Learning in Chile

AbstractAir pollution has been linked to various health problems in children, including respiratory and neurological issues. Existing research has also found that exposure to air pollution can affect children's cognitive ability and academic performance, with some studies showing a decrease in test scores and grade point averages associated with increased exposure to hazardous air pollution. This study examined the association between air pollution and children’s academic performance in Chile. This research addressed a critical gap in the literature by providing data from an understudied context and tracking children's academic performance at an individual level over time. We constructed a panel dataset that followed students from 1st to 8th grade and estimated their exposure to PM2.5, based on the distance of their school to air monitoring stations from elementary to middle school. We tracked students' academic performance using a longitudinal fixed-effects regression model to assess the relationship between their grade point average (GPA) and air pollution. The results revealed that, on average, an increase in the percentage of days exceeding different official air quality standards significantly affected students' annual GPA. The study also showed that academic performance among students from families with lower economic resources is disproportionately affected by air pollution. The findings underscore the pressing issue of environmental justice, highlighting that numerous students attend schools in the unhealthy environments of several Chilean cities that frequently bear the burden of socioeconomic disadvantage.

Etiology and correlates of alcohol misuse in early midlife.

Early midlife individuals (ages 30-40) experience demographic shifts that may influence the remainder of adult life. Although new or persistent alcohol misuse is common during this period, early midlife is understudied in alcohol use literature. We examined the heritability of alcohol misuse; the associations between alcohol misuse and sociodemographic factors, physical health, and well-being; and whether these associations were robust in cotwin comparisons. Participants were 1446 Finnish twin pairs and 748 nonpaired Finnish twins with mean age 34 years. The alcohol misuse index was a composite measure of frequency of use, intoxication, heavy episodic drinking, and alcohol problems assessed with the Malmö-modified Michigan Alcoholism Screening Test and the Rutgers Alcohol Problem Index. Early midlife correlates included relationship status and length, family formation, unemployment status, education level, self-rated health, pain, sleeping difficulties, life satisfaction, psychological health, and other substance use. We employed a sex-limitation model to estimate early midlife heritability. Linear and fixed effects regression models were used for individual and cotwin comparison analyses, respectively. Additive genetic (A) and unique environmental (E) components of alcohol misuse variance differed across sex (Females: A = 62%, E = 38%; Males: A = 49%, E = 51%). In individual-based analyses, higher scores on the alcohol misuse index were associated with lower relationship stability, financial situation, education level, self-rated health, physical fitness, life satisfaction and psychological health, and higher self-reported pain, sleep difficulties, unemployment rates and other substance use (R2 = 0.008-0.12). Associations remained significant in cotwin comparison analyses (R2 = 0.004-0.10) except for financial situation and education level. There is evidence of sex differences in the etiological factors that influence early midlife drinking. After controlling for confounding familial factors, associations between alcohol misuse and poorer early midlife functioning largely remained, suggesting that alcohol misuse may play a role in poorer functioning across several outcomes.

Understanding change and differential updating of risk perceptions associated with illicit substance use: a panel study

While risk perceptions affect various health behaviors, there is insufficient knowledge about how they are formed and change over time surrounding illicit substance use. This study investigates the role of prior use, social influences, and media information on changes in the risk perceptions of expected susceptibility and severity of side effects in the context of the nonmedical use of prescription drugs for cognitive enhancement. It also examines differential updating by testing for the potential conditioning effects of prior use and self-control. We use a three-wave panel design (N = 8,377) with a nationwide random sample of adults in Germany. Fixed-effect regression models show that prior use and positive media information lower both risk perceptions, while negative information from others and the media produce increases. Rare users compared to non- and frequent users were more sensitive to new information obtained through others, thus showing stronger changes in risk perceptions. Moreover, self-control partially moderated the magnitude of changes in both risk perceptions, for example, regarding side effects reported in the media, which affected individuals with low self-control more strongly. In sum, the results indicate that personal and vicarious information affect the updating of risk perceptions, while partial evidence exists for differential updating.

Can farmers' digital literacy improve income? Empirical evidence from China.

This paper explore the impacts and mechanisms of digital literacy of farm households on income. The baseline regression of the impact of digital literacy of farm households on household income uses a fixed effects regression model, and the 2SLS regression model is used to address the endogeneity problem present in the model. The findings reveal that improving digital literacy among rural households significantly increases their family income, a result that remains robust even after considering endogeneity issues. Further examination of the mechanisms shows that enhancing digital literacy among rural households significantly improves their information acquisition capabilities and cognitive skills. It also deepens financial services, boosting the usage and engagement of rural households in digital financial activities, thereby enhancing family income levels. Facilitating rural residents' access to digital skills and tools to ride the digital economic wave, ensuring fair access, and achieving sustainable family income are of paramount significance for rural revitalization. It is also a crucial step in bridging the digital divide and promoting shared prosperity.

The Estimation of Health State Utility Values for Psychological Distress in Australia: Implications for Future Economic Evaluations.

Psychological distress is a state of emotional suffering and discomfort that often manifests as anxiety, depression, or other mental health symptoms, impairing daily functioning and hindering concentration, relationships, and work or school performance. We aimed to examine the disutility associated with psychological distress. We used longitudinal data obtained from the Household, Income, and Labour Dynamics in Australia Survey. We measured health state utility values (HSUVs) using the Short-Form 6-Dimension (SF-6D) Utility Index and psychological distress using the Kessler Psychological Distress Scale. We used longitudinal fixed-effects regression model to examine the effects of psychological distress on HSUVs. The results from fixed-effects panel regression models indicate a negative effect of psychological distress on HSUVs. We found that moderate psychological distress (β=-0.057, 95% CI-0.059 to-0.055) and high psychological distress (β=-0.123, 95% CI-0.126 to-0.121) led to a significant reduction in HSUVs. These findings hold across different subsamples, such as age, gender, and race. By quantifying the reduction in HSUVs due to psychological distress, our study provides valuable data for future economic evaluations of healthcare interventions. The evidence generated from future economic evaluations will assist policymakers in making informed decisions about the cost-effective interventions for treating psychological distress.

The impact of credit ratings on international investment: Evidence from an emerging market

This study examines the influence of sovereign credit ratings on international investments in emerging markets, focusing on Foreign Direct Investment (FDI) and Foreign Portfolio Investment (FPI). Using data from 22 emerging economies spanning 1999 to 2019, we employ OLS and fixed-effects regression models to analyze how credit ratings affect investment flows and market volatility. The findings indicate that sovereign credit ratings significantly impact investor decisions, as these ratings serve as a key metric in assessing investment risk and potential. This research highlights the essential role of credit ratings in enhancing financial stability and promoting economic integration through foreign investments, with implications for growth and trade. The study provides novel insights for investors, policymakers, and rating agencies on the role of credit ratings in emerging market investments, contributing to a deeper understanding of their impact on global economic dynamics.