Least Square Dummy Variable Research Articles

The impact of corporate attributes on voluntary HR disclosure practices: a study of Indian corporate sector

PurposeThe objective of the present study is to examine the impact of corporate characteristics on human resource disclosures in Indian corporate sector.Design/methodology/approachThe study investigates the annual reports of 336 Indian listed companies of NSE-500 Index. The data are collected for the latest time period which contains eight years (FY 2012–13 to 2019–2020). The data of independent variables (company characteristics) have collected from annual reports and CMIE ProwessIQ Database of the Indian listed companies. The data of human resource dissclosure index (HRDI) is collected form annual reports using content analysis approach. For analysis purpose, descriptive statistics, Pearson's correlation matrix, Two-way Least Square Dummy Variable (LSDV) regression model have been used.FindingsThe outcomes show that net sales, market capitalisation, ROTA, return on equity, quick ratio, PAR have significant positive and age, profit after tax, current ratio have significant negative effect on HRDI. On the contrary, debt-equity ratio, earnings per share, type of auditor, listing status have insignificant positive and net fixed assets, promoter's holding have insignificant negative effect on HR disclosures of the selected Indian listed companies.Originality/valueThe HRDI constructed in the present study helps the Institute of Chartered Accountants of India (ICAI) and other regulatory bodies to make some standards regarding voluntary HR disclosure practices in Indian corporate sector.

PENGARUH PENGANGGURAN, PENGELUARAN PEMERINTAH DAN INFLASI TERHADAP KEMISKINAN DI INDONESIA TAHUN 2016-2020

This study aims to determine the effect of unemployment, government spending and inflation on poverty in Indonesia in 2016-2020 This study uses a quantitative approach. The data used is Indonesian secondary data from 2016-2020. The data analysis technique in this study uses time series data analysis with the Least Square Dummy Variable (LSDV) model. The results of the study show that: (1) The unemployment variable has a positive and significant effect on poverty by 3.559197; (2) Government expenditure variable has a negative and significant effect on poverty by -2.062619; (3) The inflation variable has a negative and insignificant effect on poverty by -0.116989; and (4) The variables of unemployment and government spending simultaneously affect poverty while the inflation variable simultaneously does not affect poverty.

Effect of board gender diversity on the financial performance of microfinance institutions: Does judicial efficiency matter?

AbstractThe impact of board gender diversity on the financial performance of firms is not known. This is because empirical investigations have yielded inconclusive outcomes. This study engages data from 408 microfinance institutions (MFIs) covering the period 2010–2018 from the six microfinance regions to investigate this impact using the Least Squares Dummy Variable (LSDV) and the System Generalized Method of Moments (SYS‐GMM) estimation techniques. The study also explores whether judicial efficiency exerts any significant effect on the board gender diversity–financial performance nexus. The study observes that board gender diversity exhibits a strong negative effect on the financial performance of MFIs. The study also observes that the effect of board gender diversity on the financial performance of MFIs escalates in the presence of judicial inefficiency. The study, therefore, unveils the judicial system as a channel through which gender diversity drives the financial performance of MFIs negatively.

Price Book Value Determination Panel Data Model on Property and Real Estate Companies (Compass 100 Stock Index in Indonesia Stock Exchange)

This research is entitled Panel Data Model: Determining Price Book Value in Property and Real Estate Companies (The Case of the Kompas 100 Stock Index on the Indonesia Stock Exchange). The purpose of this study is to find the Effect of Debt to Equity Ratio, Return On Asset, and Asset Growth on Price Book Value using the panel data analysis method. The panel data estimation technique used in this study is a common effect, fixed effect or random effect model. In the common effect model of parameter estimation using the Ordinary Least Square (OLS) technique, where as for the fixed effect model of parameter estimation can be done using the Least Square Dummy Variable (LSDV), and for the random effect model of parameter estimation using the Generalized Least Square (GLS) technique. The final model used with the Fixed Effect Model approach from several property and real estate companies. The results showed that the capital structure proxied by debt to equity ratio (DER) had a positive and significant effect on the value of Price Book Value (PBV). This is because the amount of company capital obtained through debt can be used as a measure to see the success of managers' performance in managing the company. Profitability proxied Return on Assets (ROA) has a positive and significant effect on the value of Price Book Value (PBV), because the higher the ROA level, the better the company's ability to manage the assets it has. Meanwhile, the Asset Growth variable proxied by (TAG) is not significant to the Price Book Value (PBV).

The Carbon Emission Trading Policy of China: Does It Really Boost the Environmental Upgrading?

China’s rapid industrialization has led to massive resource consumption, and the country has recently been highlighted as the World’s top carbon emitter. To pursue a sustainable economy via environmental upgrading, reductions in carbon emission levels are of great concern. The carbon emission reduction policy (CETP) is an environmental regulation aimed at cutting emissions and achieving environmental protection. Based on panel data of pilot and non-pilot regions, this study investigated the policy impact of the CETP on carbon emission reduction through difference-in-differences (DID). The findings, based on pooled OLS (ordinary least squares) and LSDV (least square dummy variable) regressions, revealed that the carbon emissions of the pilot regions (Beijing, Tianjin, Shanghai, Guangdong, Chongqing, and Hubei) had reduced by 12 percent more than the non-pilot regions. Thus, this implies that the CETP causes environmental upgrading. The results were further verified using a number of robustness checks, including parallel trends, placebo test, Granger causality test, and DID regression with a longer sample period. Based on the study findings, it was concluded that to achieve higher upgrade levels related to the environment, the CETP needs to be encouraged and improved for nationwide implementation. Furthermore, sustainable economic development in China also needs strict environmental regulations and policy measures.

A Decision Support System to Estimate Green Sustainability from Environmental Protection and Debt Financing Indicators

In the social context of advocating a low-carbon economy, achieving sustainable growth in line with current social development requirements is an issue that agribusiness must face. In order to explore the mechanisms influencing the sustainable growth of Chinese agriculture and to optimize the quality of agribusiness decisions, this paper examines the relationship between environmental management, debt financing indicators, and financial sustainable growth of the company in Chinese agriculture. Specifically, a decision support system based on the least square dummy variable (LSDV) model, mediating effects model and threshold effects model was constructed by using annual financial reports and questionnaire data of the listed agricultural enterprises. After empirical analysis, the following results were obtained: first, both environmental management and debt financing management help Chinese agricultural firms achieve financially sustainable growth. Second, debt financing can transmit the effect of environmental management on financially sustainable growth. Third, there are significant differences in the effects of debt financing on financially sustainable growth under different environmental management conditions. Finally, in order to promote the development of Chinese agriculture, this paper suggests that agricultural enterprises should actively implement environmental management and that relevant Chinese authorities should lower the financing threshold of the agricultural industry, while ensuring risk regulation.

The Influence of a Firm’s Attributes on Human Resource Disclosure Level: Evidence from India

The aim of the present study is to examine the effect of a firm’s different attributes on human resources (HR) disclosure level of the Indian listed companies’. The study has been conducted on 126 companies listed on National Stock Exchange (NSE)-200 index for the time period of 7 years (F.Y. 2012–2013 to 2018–2019). The data were gathered from ‘annual reports and Centre for Monitoring Indian Economy (CMIE) ProwessIQ Database. For analysis, descriptive statistics, Pearson’s correlation matrix and Two-way Least Square Dummy Variable (LSDV) regression model’ have been used. The results of the study depicted that on an average, companies disclose 43.86% of HR information in their annual reports. Further, the results of the two-way LSDV regression model shows that there is a significant positive effect of net sales, market capitalization, pages of an annual report and significant negative of debt to equity ratio, promoter’s holding, profit after tax and listing status on HR disclosure level of the selected Indian listed companies. Overall, it can be said that The Institute of Chartered Accountants of India (ICAI) and other regulatory bodies should set standardized guidelines for enhancing the HR disclosure practices of the Indian companies, and in the near future, they should come up with different HR disclosure sheet.

Maintenance Cost Growth in Aging Aircraft: Analysis of a New DHS Dataset

This article finds that maintenance cost per flight hour increases by 8.0% as the average age of a fleet of aircraft increases by 1 year. Cost growth appears to decrease slightly as aircraft age, with an older group of aircraft showing maintenance cost per flight hour increasing by 7.6%. This is based on analysis of a new database from U.S. Customs and Border Protection Air and Marine Operations (CBP AMO). The article employs a Fixed Effect (FE) Least-Squares Dummy Variable (LSDV) regression model based on panel data from Fiscal Year 2015 (FY2015) to FY2020. The conclusion describes possible areas of additional research. This project’s findings may be interesting to the U.S. Coast Guard (USCG) and the Department of Defense (DoD). USCG aircraft conduct many similar missions to AMO’s aircraft (both organizations are part of the Department of Homeland Security [DHS]). DoD may find the analysis interesting for three reasons. First, while many of AMO’s approximately 200 aircraft are based on commercial designs, it includes military aircraft such as the UH-60, P-3, and MQ-9. Second, many of DHS’s acquisition and maintenance processes mirror DoD’s. Third, AMO’s data are a new dataset for examining aircraft maintenance costs already analyzed using DoD databases such as the Air Force Total Ownership Cost (AFTOC) and Naval Visibility and Management of Operating and Support Costs (VAMOSC) databases.

ICT Infrastructure and Trade in Services: A Cross-country Analysis

Share of services in the economy increased drastically in developed as well as developing countries in last couple of decades. However, the share of services was very less in the export basket of these countries due to the mobility constrains associated with services delivery, until 21st century. The drastic development in Information Communication Technology (ICT) in the form of mobile phone and internet played a vital role in removing this constraint in recent years. So the share of services in the total export almost doubled in many countries. Moreover, foreign exchange earnings through services export is the main source to finance technology embodied manufacturing goods import in many developing countries. Services export also had impact on long term economic growth via Total Factor Productivity (TFP). So, ICT induced services export has a prominent role to play in modern liberalised economies. The present study examines the impact of ICT on trade in services with Least SquareDummy Variable (LSDV) panel data estimation by controlling human capital, socio political conditions and other omitted country specific factors. The study period span from 2002 to 2016, for 34 services exporting countries, which is covering more than 85 percent of total world services export. The present study has two improvement over existing services trade and ICT literature. First, our ICT variable was constructed by a Principle Component Analysis (PCA) on the internet spread, and telephone and mobile phone connectivity, instead of using either internet spread or a compound index provided by ITU (International Telecommunication Union) as in the literature. Second, this study corrects omitted variable bias which is observed as a major problem in the literature, by employing LSDV estimation. We found that better ICT infrastructure increases share of services in total export. Moreover, ICT has contributed for the services export of developing countries than for developed countries in recent years. So, the policies to increase mobile phone connectivity and internet can restructure the trade pattern of a country. Countries with better human capital and healthy socio political conditions .

Analisis Kinerja Keuangan Pemerintah Daerah Lingkup Provinsi Sulawesi Utara Tahun 2014 - 2020

This research is conducted based on Supreme Audit Agency’s (BPK) opinion on Local Government Financial Statement (LKPD) that is released anually and to observe the effect of BPK’s opinion has on local government financial performance in North Sulawesi Province which consists of 15 municipalities/cities and 1 provincical government. In addition to BPK’s opinion, the author takes some variabels in consideration to analyze factors affecting local government financial performance in order to find out problems faced by local government. The dependent variable used in this research is Efficiency Ratio that reflects the local government financial performance. This research uses Least Square Dummy Variable (LSDV) regression method with selected fixed effect model. It is found that, some variables that significantly affect financial performance of local government are government expenditures, independent financing, BPK’s opinion, tax ratio, and Indonesia Net Budget Financing (SILPA).

A Composite Impact of Urbanization and Liberalization on Environmental Degradation in Developed and Developing Economies

Now a days, urbanization and liberalization play a crucial role in environmental degradation. However, the composite impact of urbanization and liberalization on environmental degradation is missing in the existing literature. To cover this gap, the current study used the annual panel dataset of 103 developed and developing countries over the period from 1980 to 2018, to empirically investigates the composite impact of urbanization and liberalization on environmental degradation. For estimation purposes, this study employed the fixed, Random effect, Least Square Dummy Variables (LSDV), and 2SLS approach. The study results indicate that the composite impact of globalization and urbanization have a positive effect on CO2 emissions in developed economies, which explains that globalization speeds up urbanization with increasing carbon emissions. Furthermore, the results show that globalization is linked to urbanization through trade, economic growth, capital-labor ratio, and financial integration in developing economies by reducing the environmental quality. Based on estimates results, the current study recommends that a comprehensive policy is required for urban improvement and for the creation of smart cities to decrease the urbanization influence on environmental pollution.

Foreign ownership and firm performance in Sub-Saharan Africa

Our study investigates the effects of foreign ownership on firm performance with respect to profitability, productivity, export intensity, and skills acquisition in Sub-Saharan African (SSA) countries. This is particularly important given that in the last three decades, the stock of FDI has increased by over 20,000% in SSA countries. To achieve the objectives of this paper, we employed firm- and country-level data from the World Bank Enterprise Surveys and the World Bank Development Indicators, respectively. Results of the least squares dummy variable (LSDV) and propensity score matching (PSM) estimations showed that foreign ownership was positively associated with higher levels of financial profitability, productivity, exports, and skilled labour acquisition. Policy implications were deduced from the findings.

Analisis Pengaruh Perang Dagang Global Terhadap Kondisi Ekonomi ASEAN 5

International trade between countries aims to support economic growth. Indications of the success of international trade carried out by the state can be studied based on the results of the trade balance. In this study, researchers observed the impact of international trade competition activities in ASEAN countries due to the U.S.-China trade war that affects global trade. The study was analyzed through quantitative methods using Random Effect Model (REM) model panel data through the Least Squares Dummy Variable (LSDV) technique. The object of the study observed is the independent variables of the U.S.-China trade balance, balance of payments, imports and exchange rates. While the dependent variance observed is the economic growth of 5 ASEAN countries (Indonesia, Malaysia, Philippines, Singapore and Thailand).
 The results of the analysis of data processing explained that the U.S.-China balance of trade and exchange rates had a significant negative impact on the economic growth of the 5 ASEAN countries. On the other hand, the balance of payments and imports has a positive impact. The model shows that together the variables of the U.S.-China balance of trade, balance of payments, imports and exchange rates have an impact on the economic growth of the 5 ASEAN countries.

Aggressive or not aggressive: the different role of ego-network dynamics and density in the international network

PurposeThis study aims to explore the effect of competitive aggressiveness on firm performance and the moderating effect of firm 2019s ego-network structures in the international coopetition network.Design/methodology/approachFrom the perspective of strong cooperation of the global automobile industry in recent years, this study uses the global automobile firms in Factiva database as samples to test hypotheses using the least squares dummy variable (LSDV) model.FindingsThis study finds that there is different relationship between the number and variety of competitive actions and firm performance. In addition, ego-network structures have different coefficients for the number and variety of competitive actions.Originality/valueThe conclusions provide theoretical support and policy suggestions for firms to develop effective competitive strategies according to ego-network structures in the international coopetition network.

Impact of Intergovernmental Fiscal Transfer on Inter-Provincial Fiscal Disparity in Pakistan

The purpose of this research is to evaluate the disparity in the intergovernmental fiscal transfers to the sub-national governments, in the last four NFC awards specifically in the 7thNFC award in Pakistan. This study measures the disparity by employing two different approaches. Firstly coefficient of variation (C.V) approach i.e. variation in the regional own-source revenues to the variation in the total resource of regional government after inclusion of federal transfer and the own-source revenue, secondly, In addition, to estimate the impact of intergovernmental transfers on the fiscal disparity among the sub-national government this study uses panel data technique i.e. least square dummy variable (LSDV). The Results of fiscal disparity reflect that in Pakistan the disparity in combined regional own source revenue increases from 0.52 to 0.83 points during the last four NFC awards. However, at the sub-national level, the values of disparity remain constant at 0.16 in Sindh province which reflects fiscal efforts for the collection of own-source revenues among provinces. In contrast to this, the disparity increases in KPK, and its value reaches 0.240 in the existing award. The results of the empirical analysis also reveal that when the intergovernmental transfer increases by 1 percent the disparity ratio increases by 1.19percent. While the expenditure of the government increases the disparity at the sub-national level as the positive sign of the model reflects. Based on the findings this study suggests that Pakistan still needs to devise a revenue-sharing formula that encourages the efforts of optimal resource generation from the regional governments.

Inclusion of unexposed clusters improves the precision of fixed effects analysis of stepped-wedge cluster randomized trials.

Stepped-wedge cluster randomized trials (SW-CRTs) are typically analyzed using mixed effects models. The fixed effects model is a useful alternative that controls for all time-invariant cluster-level confounders and has proper control of type I error when the number of clusters is small. In principle, all clusters in SW-CRTs are designed to eventually receive the intervention, but in real-world research, some trials can end with unexposed clusters (clusters that never received the intervention), such as when a trial is terminated early based on interim analysis results. Typically, unexposed clusters are expected to contribute no information to the fixed effects intervention effect estimator and are excluded from fixed effects analyses. In this article we mathematically prove that inclusion of unexposed clusters improves the precision of the fixed effects least squares dummy variable (LSDV) intervention effect estimator, re-analyze data from a recent SW-CRT of a novel palliative care intervention containing an unexposed cluster, and evaluate the methods by simulation. We found that including unexposed clusters improves the precision of the fixed effects LSDV intervention effect estimator in both real and simulated datasets. Our simulations also reveal an increase in power and decrease in root mean square error. These improvements are present even if the assumptions of constant residual variance and period effects are violated. In the case that a SW-CRT concludes with unexposed clusters, these unexposed clusters can be included in the fixed effects LSDV analysis to improve precision, power, and root mean square error.

The relationship between knowledge-based economies and economic growth: an empirical analysis on the Asia-Pacific region 2011–2018

PurposeThis paper aims to examine the relationship between knowledge-economy and economic growth in 16 Asia-Pacific (AP) countries during the period 2011–2018. The study also aims to investigate a diversity of knowledge-economy pillars, including tertiary education, domestic innovation, foreign innovation, economic incentives and institutional regime and information and communications technologies (ICTs) and their relation to economic growth.Design/methodology/approachThe study applies a comparative empirical analysis using pooled ordinary least squares (OLS), one-step difference generalised methods of moments (GMM) and bias-corrected least-squares dummy variables (LSDVc) estimators to test this relationship.FindingsPooled OLS estimators deemed suboptimal to the panel data under study, while GMM results reveal a significant relationship between tertiary education, domestic and foreign innovation, government expenditure and investments with economic growth. Of these results, domestic innovation, investments and government consumption are positively correlated with economic growth, whereas tertiary education and foreign innovation show a negative relation. Meanwhile, institutions and ICT have insignificant relationships with economic growth. LSDVc results coincide with GMM results with respect to tertiary education, whereas institutions is the only additional significant and negatively correlated variable with economic growth.Research limitations/implicationsThe main limitation of this research lies in the unavailability of proxy data for knowledge economy pillars in monetary terms, and hence, the paper relies on indices.Originality/valueThe novelty of the study lies in its aim to investigate economic growth in the AP region that is enhanced by domestic innovation, foreign innovation or both – an area which is empirically understudied in the knowledge-economy context. Further, the paper’s novelty lies in its application of a comparative empirical analysis between the most popular dynamic panel estimators – dynamic GMM and bias-corrected LSDVc for AP countries.

Corporate characteristics and HR disclosure: a missing link in Indian corporate sector

The present study has been conducted to know the current state of voluntary human resource (HR) disclosure practices in an emerging economy of India. This study also examines the association between corporate characteristics and the level of HR disclosure by Indian listed companies, based on a sample of 125 companies listed on National Stock Exchange (NSE-200 Index) for the time period of nine years (F.Y. 2012-2013 to 2020-2021). The outcomes revealed that there is only 45.51% HR information disclosed by the selected companies. Further, the outcomes of two-way least square dummy variable (LSDV) regression model revealed that out of selected independent variables only company age, company size, ownership concentration, debt-equity ratio, and total number of pages of an annual report have significantly associated with the level of HR disclosure. The present study provides useful insights to policymakers for constructing a human resource disclosure index (HRDI) which should be mandatory for Indian companies to disclose the items that are included in the index.

Capital Structure and Firm Performance: Evidence From 2021 Best-Performed Stocks in Nigeria

The researcher used an eight-firm sample drawn randomly from a population of ten to study the relationship between capital structure and stock performance of the companies that traded the best-performing stocks on the Nigerian stock exchange in 2021. The study used a four-year panel data collection (2018–2021). For hypothesis testing, the study used EXCEL-generated research statistics and the least-squares dummy variables (LSDV) regression in SPSS. The findings show a statistically significant positive correlation between corporate capital structure and stock performance (ROA and R.O.E.). The study recommended employing larger samples of the best-performing equities over two or more years.

What drives variations in public health and social services expenditures? the association between political fragmentation and local expenditure patterns.

The US spends two times more than the OECD average in health expenditure but has a much smaller portion of public health spending to total health expenditure than other OECD countries. While it has been suggested that public health and social services spending is crucial to promoting health outcomes, less is known about what drives variations in public health expenditure across regions. This study aims to examine whether political fragmentation inlocal governance is associated with variations in public health and social services expenditures. Using the US Census of Governments, we constructed a panel dataset of political fragmentation and local government spending patterns (1997-2012) for 792 US counties (population > 60,882, top 25%) and employed Least Squares Dummy Variable (LSDV) and Generalized Estimating Equations (GEE) models. We found that per capita public health spending tended to be smaller in areas where the degree of political fragmentation was higher (Coef: - 0.034; p < 0.01), particularly when general-purpose governments were more fragmented (Coef: - 0.087; p < 0.001). The proportion of public health spending alsodecreased when local governments were more fragmented (Coef: - 0.012; p < 0.001). Social services expenditures and their proportions to total government expenditure fell with an increase in the degree of political fragmentation. Our findings suggest that fragmented governance settings, in which localities are more likely to face competition with others, may lead to a reduction in public spending essential for population health and that political fragmentation can also have a deterrent effect on broader categories of health-related social services spending.