Generalized Least-squares Research Articles

Pemberdayaan Ekonomi Perempuan Melalui Program Bank BTPN Syariah: Studi Literatur

The aim of this research is to find out whether financial inclusion has an effect on the stability of sharia banking in Indonesia using the Generalized Least Square (GLS) method. To measure the financial stability of Islamic banking, the inclusion variable contains MSMEs and Deposits, while the stability variable used is NPF. The research method used in this research is quantitative descriptive with the help of the Generalized Least Square (GLS) method which corrects problems in the classical assumption test, which is tested based on Eviews 12 with panel time series data. The research results show that the independent variable MSMEs has a significant effect on NPF. The independent variable Deposits has a significant effect on NPF. Reliability UI results using the F test for the MSME and Deposit variables together have an effect on NPF.

ASSERING THE IMPACT OF MACROECONOMIC INDICATORS ON CORPORATE FINANCIAL PERFORMANCE: AN EMPIRICAL ANALYSIS IN ASIA

This study investigates the impact of macroeconomic indicators, specifically GDP growth and inflation, on corporate financial performance in selected ASEAN countries (Indonesia, Malaysia, the Philippines, Singapore, and Vietnam) from 2010 to 2022. Using data sourced from the OSIRIS database and the World Bank's World Development Indicators, the analysis focuses on three key financial metrics: Return on Assets (ROA), Net Profit Margin (NPM), and Market Capitalization (MC). Employing the Generalized Least Squares (GLS) method, the study addresses heteroskedasticity and autocorrelation in panel data, incorporating control variables such as Total Assets, Current Ratio, and Interest Coverage. Results indicate that GDP growth positively correlates with ROA and NPM, underscoring the importance of economic expansion for corporate efficiency and profitability. However, GDP growth does not significantly impact Market Capitalization, highlighting potential differences in market valuation dynamics. Inflation positively affects ROA and NPM, suggesting firms effectively manage inflationary pressures but does not significantly affect Market Capitalization. The findings provide actionable insights for financial managers, investors, and policymakers. Companies should integrate macroeconomic forecasts into business planning and adopt strategies to mitigate inflationary impacts. Future research directions include sector-specific analyses, longitudinal studies, and the incorporation of additional macroeconomic variables to deepen the understanding of these relationships.

The impact of information and communication technologies on international trade: A case of Sub-Saharan Africa

The aim of this research is to analyze the effect of information and communication technologies (ICT) on the bilateral trade flows of the countries of Sub-Saharan Africa (SSA). We use the method of generalized least squares (GLS) panel to correct for correlation and heteroskedasticity problems. We have employed the gravity model extended to ICT to examine the effects of key ICT indicators on bilateral exports and imports. The sample includes 44 African countries of the subcontinent, including 43 countries as partners (importers/exporters) and one reporter country (exporter/importer) and covers the period 2010 to 2019. The results show that access to mobile telephony and the internet, as well as the development of e-commerce, have a great potential for improving intra-African bilateral trade and that the effect of ICT is not unequivocal according to the category of flow considered. However, it emerges from these results that the development of ICT as it is today has not yet succeeded in overturning the argument of physical distance as a barrier to trade in sub-Saharan Africa. The key conclusion is that the establishment of better-quality ICT services and infrastructure is more critical to intra-African trade. African policymakers should accommodate sufficient support to establish the ICT infrastructure and expand ICT penetration by reducing the costs of communication, transactions and access to ICT.

The Impact of Asset-Liability Management on the Profitability of Listed Commercial Banks in Vietnam

This paper investigates the effect of asset-liability management on the profitability of listed commercial banks in Vietnam, analyzing annual data from 2013 to 2023. The study uses VIF tests, Heteroskedasticity tests, Model Specification tests, and the Generalized Least Squares (GLS) model with the Modified Wald test to examine the data. The results reveal a positive correlation between bank asset management and annual GDP growth with profitability. Conversely, liability management and the year-on-year growth rate of total assets negatively impact profitability. Specifically, factors such as loans and advances, investments in securities on the asset side, and deposits and borrowings from other credit institutions, along with customer deposits on the liability side, are significant. Lending activities, in particular, are identified as key drivers of financial performance in the Vietnamese banking sector. However, the minimal impact of investment securities on profitability raises questions, given their traditionally significant role in banking profitability strategies globally. The study also highlights the negative effects of certain liabilities on bank profitability, stressing the need for careful liability management for banks in Vietnam. While GDP growth is generally linked with economic prosperity and financial sector growth, its impact on bank profitability in Vietnam appears limited, suggesting that other factors might play a more significant role.

Corporate Boards and Firm Value: Evidence from Nigeria

Aim: The basis for the formation of the corporate board is to, among others, give strategic direction to the firm, monitor the activities of the salaried agents and reduce the likelihood of disincentive to investment. The aim of this study is to examine the efficacy of corporate boards in relation to the value of firms listed in Nigeria. Study Design and Methodology: It is a cross-sectional research design that empirically examined the influence of board mechanisms and Tobin’s Q of firms listed on the Nigerian Stock Exchange. The study used annual data of a panel sample of 85 firms from 2004 through 2023, It applied a Generalized Least Squares (GLS) econometric technique. Place and Duration of Study: This study examined the role of the boards of firms listed on the Nigerian Stock Exchange between 2004 and 2023. Results: The findings argued in favour of smaller boards, increased board independence and higher market capitalisation since they showed significant improvements in value of the firms in the sample. The findings imply that smaller boards that are highly independent tend to have better corporate governance and thus, superior firm value. Conclusion: In conclusion, the results advocate that the regulatory agencies and boards of the studied firms enact policies that will encourage minimum board sizes that are sufficiently independent.

The impact of LEP gene polymorphisms located at exon 2 (LEP-HinfI) and intron 2 (LEP-Sau3AI) on growth and reproductive traits in Saanen goats

Abstract. Leptin (LEP), alternatively recognized as the obesity gene, influences food consumption, energy balance, and lipid metabolism. Additionally, it plays a crucial role in energy metabolism, and variations in the LEP gene have been studied extensively among various livestock species. These investigations have unveiled correlations with traits such as meat quality, milk yield and composition, and growth characteristics. Nevertheless, the existing knowledge regarding its correlation with growth and reproductive traits in goats is comparatively limited, particularly when juxtaposed with studies of cattle. Hence, the objective of the current study was to investigate the relationship between polymorphisms in the intron 2 (Sau3AI) and exon 2 (HinfI) regions of the LEP gene and growth and reproductive traits in Saanen goats. The study comprised 185 Saanen goats in total. The PCR-RFLP (polymerase chain reaction restriction fragment length polymorphism) technique was employed to genotype these polymorphisms. Population genetic analysis included the number of effective alleles, heterozygosity, polymorphism information content, and compatibility with the Hardy–Weinberg equilibrium. The general linear model procedure's least-squares methods were used for the statistical analysis. The SNP (single-nucleotide polymorphism) located in exon 2 (LEP-HinfI) was monomorphic. Remarkably, the SNP located in intron 2 (LEP-Sau3AI) was associated with birth weight (p<0.05) and average daily weight gain (p<0.05). In this context, the AA genotype demonstrated higher birth weight and daily live weight gain means compared to other genotypes. No significant differences were observed in litter size, total weight gain, or morphometric measurements. The caprine LEP-Sau3AI polymorphism situated within intron 2 proved influential in traits critical for the profitability and sustainability of goat breeding. The findings of this study provide novel and valuable information for future research on the LEP gene in goats.

Income inequality thresholds that should be avoided for governance to promote economic growth with evidence from Africa

AbstractThis paper examines the role of inequality on the link between governance and economic growth in 44 African countries with data running from 2008 to 2018. Using a system GMM and the generalized least square (GLS) estimators, we establish that the effects of governance on growth are rightly conditioned by inequality. The GMM and GLS estimates portray positive effects of inequality on growth, but only the GMM estimates are significant. For both estimators, the effect of institutions on economic growth is positive and significant. However, inequality retards growth when embedded in selected institutions, which implies a substitution relationship between institutions and inequality on growth. The turning point beyond which inequality begins to contribute negatively to economic growth ranges between 34% and 49% based on the GMM estimates or 40.15% and 44.5% for the GLS analysis depending on the institutional indicator used. Therefore, institutions can only be effective in economic development if income inequality levels of not less than 0.34 and not more than 0.49 are maintained to ensure that inequality does not negate growth. Policy makers of African countries should ensure better income distribution alongside good institutions to achieve sustainable economic growth in the region.

Liquidity and credit risks during the COVID-19 pandemic: evidence from a dual banking system

Purpose The purpose of this paper is to investigate the relationship between liquidity risk and credit risk of Islamic and conventional banks in a predominantly Muslim country (Indonesia) adopting a dual banking system. Design/methodology/approach To investigate liquidity-credit risk nexus, this study used a sample of 72 Islamic and conventional banks in Indonesia for a period between 2019 Q4 and 2022 Q1. This paper used a generalized method of moments (GMM) and generalized least square (GLS) estimators. Findings This study found that there is a nonlinear (inverted U-shaped) relationship between liquidity risk and credit risk in dual banking system. Liquidity risk was found to increase credit risk if it is below the optimal threshold, and above this optimal threshold, liquidity risk begins to decrease credit risk, both before and during the pandemic. In addition, the impact of liquidity risk on credit risk is higher in Islamic banks compared to conventional banks. Originality/value This paper reinvestigates the puzzle between credit risk and liquidity risk by taking a sample of a dual banking system country and by considering the period of the COVID-19 pandemic. To the authors’ knowledge, this approach has not been addressed in prior empirical studies.

Unveiling the Welfare Puzzle: Exploring Fertilizer Subsidy Effects on Farmer's Earnings in Indonesia

This study investigates the unresolved issue of how fertilizer subsidies affect paddy production and farmer income, a critical aspect of Indonesia's agricultural policy that has not been fully understood. By analyzing panel data from 33 provinces between 2019 and 2022 using the Generalized Least Squares (GLS) method, the research explores both income dynamics and productivity. Results reveal that NPK and SP36 fertilizers boost paddy yields by 0.198% and 0.155%, respectively, while UREA and ZA have no significant impact on production. Additionally, rising wages reduce production by 1.343% but increase farmer income by 0.332%. These findings highlight the complexity of balancing productivity with farmer welfare, suggesting that while fertilizer subsidies can enhance yields, they are not a universal solution. Policymakers must consider multifaceted approaches that address both productivity and sustainable income growth to ensure long-term welfare improvements for Indonesian farmers.

ROBUST LEAST MEDIAN OF SQUARE MODELLING USING SEEMINGLY UNRELATED REGRESSION WITH GENERALIZED LEAST SQUARE ON PANEL DATA FOR TUBERCULOSIS CASES

Tuberculosis, primarily affecting the lungs and other organs, was the leading cause of death worldwide before the COVID-19 pandemic and continues to be a significant health concern. This research examined tuberculosis (TB) using a panel dataset. As a consequence, the datasets may contain outliers and contemporaneous correlations. A Robust Least Median of Square (LMS) model was developed in this research by combining Seemingly Unrelated Regression (SUR) with Generalized Least Square (GLS) on panel data to provide an analysis overview to overcome outliers and contemporaneous correlations. Based on secondary data obtained from the Central Bureau of Statistics of the Gorontalo Province and the Ministry of Health of the Gorontalo Province, this research examines TB cases between 2017 and 2021. The Chow test result suggests that CEM is the most appropriate model for analyzing panel data for TB cases in Gorontalo Province between 2017 and 2021. Due to the presence of outliers and influential observations in the data, robust LMS is employed. Furthermore, there is a problem of contemporaneous correlation in this research. Each regency or city can mitigate this problem by implementing robust LMS using SUR with GLS.

Exploring the influence of digital technology innovation on air quality: Insights from developed and developing economies

Progress in digital technology innovation (DTI) and its adoption in socioeconomic spheres of life emphasizes the need to explore whether it contributes to sustainability. This study examined the significant role of DTI and other key factors in reducing emissions across 85 developed and developing economies. Pooled regression and Generalized Least Squares (GLS) estimates showed that DTI significantly reduced air pollution. Moreover, green energy, governance, and economic-social performance are key contributors to air pollution reduction. These findings are insightful for informed environmental decision-making and open avenues for future research on how DTI interacts with other key environmental pollution factors.

Serum glycosylated hemoglobin and prostate cancer risk: Results from a systematic review and dose-response meta-analysis

ObjectivesTo evaluate the correlation between serum glycosylated hemoglobin (HbA1c) levels and the risk of prostate cancer incidence and mortality, providing a comprehensive analysis to inform preventative and clinical strategies. MethodsA systematic review and meta-analysis was conducted including studies based on their documentation of prostate cancer incidence and mortality related to HbA1c levels, with a minimum of 3 risk-related data levels. The Newcastle-Ottawa Quality Assessment Scale (NOQAS) was used for quality assessment and risk of bias evaluation. We employed generalized least squares (GLS) to assess the linear trend within individual studies and combined these estimates using a random effects model. Additionally, we utilized a restricted cubic spline (RCS) model to investigate potential nonlinear trends. ResultsA total of 13 studies were included in the quantitative synthesis ultimately. The quantitative analysis did not find a significant association between HbA1c levels and prostate cancer incidence. However, a significant positive correlation was revealed between HbA1c levels and both cancer-specific mortality (CSM) and all-cause mortality (ACM), with a 1% increase in HbA1c levels associated with a 26% increase in CSM and a 21% increase in ACM. ConclusionThe HbA1c level is significantly associated with increased prostate cancer mortality. The results highlight the importance of considering blood sugar control in the comprehensive risk assessment for prostate cancer, particularly among the nondiabetic population.

THE EFFECT OF THE SHADOW ECONOMY AND ECONOMIC FREEDOM ON ENTREPRENEURSHIP: AN EMPIRICAL STUDY IN ASIAN COUNTRIES

This study examines the effect of the shadow economy, economic freedom and other macroeconomic factors on formal entrepreneurship in Asian countries. The dataset encompasses 28 countries over the period from 1995 to 2018. The Fixed Effect Model (FEM) and Generalized Least Squares (GLS) methodologies are employed for regression analysis. The results indicate a nonlinear relationship between the shadow economy and formal entrepreneurship. Economic freedom, particularly trade freedom, significantly enhances entrepreneurship. Positive macroeconomic influences on formal entrepreneurship include financial development, political stability, GDP per capita growth and foreign direct investment net inflows, while government spending and unemployment negatively affect entrepreneurship. The findings suggest that a substantial shadow economy does not inherently impede formal entrepreneurship. Consequently, governments should prudently consider the role of the shadow economy in fostering entrepreneurial growth. Moreover, policies aimed at improving economic freedom, especially trade freedom, can create a conducive environment for boosting formal entrepreneurship.

The economic impact of terrorism in South Asia

This study examines the economic impact of terrorism in South Asia. The region is currently home to 123 active terrorist/insurgent groups and is accountable for over 27 % of recorded global terrorist attacks. The annual data from the six most-terror-affected South Asian countries (Afghanistan, Bangladesh, India, Nepal, Pakistan, and Sri Lanka) during the US-led war on terror (2001 - 2022) is used. For econometric estimation, the five models: fixed-effect, generalized least squares (GLS), generalized estimating equation (GEE), quantile regression (QR), and panel-corrected standard errors (PCSE) are applied. Terror-related death (a proxy for human capital loss) and per capita income (a proxy for purchasing power) are considered to measure terrorism and its economic impact. In addition, four economic indicators (military expenditure, population, official development assistance (ODA), and USAID) and three institutional indicators (electoral democracy index, political violence index, and mobilization for autocracy index) are taken into account as control variables. The result suggests that every additional 886 terror-related human capital loss across the region significantly reduces the purchasing power of each South Asian person by at least 9.800 US dollars. Moreover, among the control variables, military expenditure, political violence, and mobilization for autocracy negatively affect per capita income, while electoral democracy, population, ODA, and USAID positively impact it. This study will also help understand the implications of the United Nations' Sustainable Development Goals (SDGs) agenda and achieving specific targets such as SDG 8 (promoting economic growth) and SDG 16 (promoting just, peaceful, and inclusive societies) based on the most terror-affected region.

Predicting the drivers of Bothrops snakebite incidence across Brazil: A Spatial Analysis

Snakebite envenoming poses a significant public health challenge on a global basis, affecting millions of people annually and leading to complications that may result in fatalities. Brazil stands as one of the countries most impacted by snakebite envenoming, with snakes of the Bothrops genus being responsible for most bites. The current study aimed to identify the determinants of Bothrops snakebite incidence across different regions of Brazil. An ecological study was conducted using municipality-aggregated data, with snakebite incidence as the dependent variable. The study period comprised the years 2015–2021. We constructed Species Distribution Models (SDMs) for Bothrops species, and information was collected on precipitation, runoff, maximum and minimum temperatures, native forest, historical forest loss, agriculture, and pasture in each Brazilian municipality. These data were employed to assess the association between snakebite incidence and biotic, climatic, and landscape factors. The data were analyzed using Generalized Least Squares (GLS) regression. The SDMs demonstrated good performance. The average annual snakebite incidence during the study period ranged from zero to 428.89 per 100,000 inhabitants, depending on the municipality. Higher incidence rates were concentrated primarily in municipalities in the northern region of the country. In this study, we found that nationwide, areas with extensive native forests and those that have historically experienced significant loss of forest cover exhibited higher snakebite incidence rates. Additionally, areas with higher temperatures and precipitation levels, as well as greater climatic suitability for the species B. jararaca, showed significantly higher snakebite incidence rates in the South and Southeast of Brazil, respectively. These associations may be linked to increased snake abundance and active behavior, as well as to engagement in activities favoring human-snake contact in these areas. The findings of this study can contribute to the improvement of prevention and control strategies for this public health issue in Brazil.

Learning by exporting: the moderating role of employee human capital

PurposeThe purpose of this study is to explore the means by which exporters foster innovation via the learning-by-exporting effect and to appraise the moderating role of employee human capital in the export–innovation relationship.Design/methodology/approachLeveraging the linked-survey-secondary data from the Human Capital Corporate Panel (HCCP) spanning 2011–2017, with 890 observations from 228 Korean exporters, this study utilizes Generalized Least Squares (GLS) regression to empirically test the proposed hypotheses.FindingsThe results indicate that exporting significantly boosts a firm’s innovation performance by encouraging the generation of new concepts in products, services, technologies and/or production lines. Moreover, the presence of international talent and highly educated staff positively moderates the relationship between export intensity and innovation performance.Originality/valueBy integrating organizational learning and human capital theories, this study yields theoretical and managerial insights by elucidating the roles of exporting and human capital in advancing innovation performance, thereby guiding corporate export strategies and human resource policies.

The Impact of Corporate Governance on Bank Risk-taking: Evidence of Islamic Banks in Gulf Cooperation Council (GCC) Countries

Purpose — This study investigates the impact of Islamic corporate governance variables on risk-taking within a sample of 31 Islamic banks (IBs) operating in six countries in the Arab Gulf region during the period 2013–2022. Design/Methodology/Approach — The study utilises content analysis and employs two econometric models: the random-effect generalised least squares (GLS) technique and the generalised method of moments (GMM) approach. Findings — The findings reveal that two characteristics of Sharīʿah supervisory boards (SSBs), namely cross membership and knowledge in accounting and finance, have a negative impact on bank risk. However, it is observed that SSB size demonstrates a positive correlation with bank risk-taking, indicating that SSBs face challenges in effectively performing their supervisory role. Furthermore, it is noted that during the pandemic period, banks demonstrated significantly higher levels of credit risk and global risk. Originality/Value — This research provides a valuable addition to the existing literature by conducting the inaugural analysis of the relationship between SSBs and bank risk-taking in the Arab Gulf region, adding to the understanding of Islamic corporate governance dynamics. Research Implications — The study suggests reinforcing the structure of SSBs in IBs in the Gulf Cooperation Council (GCC) countries by appointing members with educational backgrounds in business, accounting, and finance. Furthermore, it supports the idea that the presence of shared scholars in IBs facilitates rational decision-making by SSBs and contributes to reduced risk-taking. Haut du formulaire

Forecast of Foreground Cleaning Strategies for AliCPT-1

We report the test results of several independent foreground cleaning pipelines used in the Ali CMB Polarization Telescope experiment (AliCPT-1), a high-altitude cosmic microwave background (CMB) imager in the Northern Hemisphere with thousands of detectors dedicated to the search for a primordial CMB polarization B-mode signature. Based on simulated data from four detector modules and a single season of observation, which we refer to as Data Challenge 1 (DC1), we employ different and independent pipelines to examine the robustness and effectiveness of estimates on foreground parameters and primordial B-mode detection. The foreground cleaning strategies used in the pipelines include the parametric method of template fitting (TF) and the nonparametric methods of constrained internal linear combination (cILC), analytical blind separation (ABS), and generalized least squares (GLS). We examine the impact of possible foreground residuals on the estimate of the CMB tensor-to-scalar ratio (r) for each pipeline by changing the contamination components in the simulated maps and varying the foreground models and sky patches for various tests. According to the DC1 data with the simulation input value r true = 0.023, the foreground residual contamination levels in the TF/ABS/cILC/GLS pipelines are well within the corresponding statistical errors at the 2σ level. Furthermore, by utilizing the tension estimator, which helps identify significant residual foreground contamination in the detection of the primordial B-mode signal by quantifying the discrepancy between various r measurements, we conclude that the presence of small foreground residuals does not lead to any significant inconsistency in the estimation of r.

Do Bank Governance Mechanisms and Financial Report Lag Affect Audit Quality?

ABSTRACT In the aftermath of banking failures in Africa, the survival of firms has thus been placed with the application of good corporate governance practice and the oversight role of internal and external auditors. This study examines whether audit quality is related to corporate board of directors and financial reporting timeliness in the context of developing countries. Using sample data from 21 universal banks in Ghana and 31 commercial banks in Kenya for the periods 2010 to 2019. The study employs the Generalized Least Square(GLS), using fixed effect to estimate the relationships. The empirical results document that board size, average 9, and board independence, 59% on average, increase audit quality in Africa. However, the relationship between board gender and audit quality is not significant. Financial report lag is not significant to audit quality in Africa. However, financial report lag in Kenya is negative and significant to quality audit. Our findings recommend that commercial banks in Africa should implement policies that would increase the size of their boards and the number of independent directors to enhance maximum benefits from good corporate governance practices.

Bottom-up processes drive isotopic variation in the South American sea lion Otaria flavescens across a 2300 km latitudinal gradient

Spatial differences in the isotope values of widely distributed marine apex consumers may reflect geographical differences in the isotopic composition of basal resources (e.g., phytoplankton) fueling food webs (bottom-up effects) or spatial differences in the trophic ecology of the taxon of interest (top-down effects). We examined spatial variation in δ13C and δ15N values from 264 South American sea lions (SASL, Otaria flavescens) of different age classes (adults, subadults and juveniles), their putative prey consisting of pelagic and benthic coastal fishes, and particulate organic matter (POM) measured from locations situated across >2300 km of the Chilean coast (between 18°42′ and 39°17′ S). We used generalized least squares (GLS) models to compare the form of the relationship between δ13C and δ15N and latitude between the three functional groups. Our results show that SASL from northern, central, and southern areas were isotopically distinct, with individuals from the north having lower δ13C and higher δ15N values in comparison to individuals from the south. When the relationship for each functional group was modelled individually using GLS, results indicated that for each degree of increasing latitude δ15N decreased on average by 0.12‰ (POM), 0.15‰ (prey), and 0.14‰ (SASL), while δ13C increased by 0.06‰ (POM) and 0.05‰ in both prey and SASL. We suggest that the latitudinal differences observed in SASL δ13C and δ15N values reflect baseline isotopic variation rather than marked differences in trophic ecology of these widely distributed consumers.