Panel Dataset Research Articles

The impact of floods and cyclones on fiscal arrangements in India: An empirical investigation at the sub-national level

Disasters can inflict severe devastation on communities and territories at all levels of authority. With regard to the connection between floods and cyclones and their financial impact, this study seeks to refocus national and subnational research efforts. The consequences of floods and cyclones on India's budget and economy at the subnational government level are examined in this study. The study creates a physical disaster intensity index to evaluate the impact on fiscal sustainability after disasters, as the estimated damages statistics are unreliable. Between 1995 and 2018, the study integrated disaster intensity index and budgetary data to produce a panel dataset of 25 Indian states. Using Panel Vector Autoregression, the study discovers that a state's overall government expenditure goes up, and its budget deficit worsens when floods and cyclones strike. By further breaking up the fiscal variables, we could pinpoint specific areas where disasters have exerted their influence, especially in terms of decreased own tax revenue, increased social sector expenditure and capital outlay, increased outstanding liability, increased primary deficit, and reduced transfers from the centre over time. It observed that after disasters, states more prone to disasters have higher volatility in revenue generation and expenditure patterns, and a sharp increase in outstanding liabilities. This suggests a greater reliance on borrowing for disaster recovery. Less-prone states, however, show higher utilization rates of disaster relief funds, indicating better resource allocation for disaster response and recovery. The study highlights that state governments rely highly on ex-post Disaster Risk Financing instruments, especially debt financing, as national relief and response funds couldn't manage the increased spending and budget deficit from disasters. This study thus helps policymakers and governments look for more proactive disaster financing instruments and make changes in India's fiscal framework to integrate climate change considerations.

Do ESG practices mediate the relationship between board characteristics and tax avoidance in G20 countries?

Purpose This study aims to investigate the direct and indirect relationship between board characteristics and corporate tax avoidance using the environmental, social and governance (ESG) index as a mediating variable in G20 countries. Design/methodology/approach To test the direct and indirect effects between board characteristics and tax avoidance using structural equation model analysis, this study used a panel data set of 522 companies from G20 countries between 2015 and 2021. Findings The regression results show that ESG reporting mediates the relationship between the board of directors and tax avoidance in G20 countries. Practical implications The findings have some policy and practical implications that may help regulators improve the quality of transactions and achieve more efficient market supervision. They recommend that governments implement regulations and restrictions on corporate tax avoidance through board mechanisms in G20 countries. Social implications The paper enables information users to assess future growth opportunities by emphasizing the importance of ESG policies and board characteristics in evaluating companies. Originality/value Although previous literature has investigated the direct relationship between the board of directors and tax avoidance, the present work focused on considering the direct and indirect association between the board of directors and tax avoidance through the mediating effect of ESG reporting, which has not been widely used in ESG studies so far.

Credit risk and Tunisian bank stability in the Covid-19 wave

<p style="text-align:justify"><span style="font-size:16px"><span style="font-family:Times New Roman,Times,serif"><span dir="ltr" lang="EN-US"><span style="color:black">Banks are at the core of economic functioning in various countries and are the cause of their development in various fields. In a changing environment, they must deal with certain risks and maintain financial stability as the ultimate objective. The primary objective of this study is to examine the correlation between credit risk and bank stability within the Tunisian banking sector, with a specific focus on understanding the moderating impact of the COVID-19 pandemic. To achieve this, we employ several econometric techniques, including panel unit root and cointegration tests, panel Vector Error Correction Model (VECM), Fully Modified Ordinary Least Squares (FMOLS), and Dynamic Ordinary Least Squares (DOLS). Our empirical analysis relies on a panel dataset that encompasses a comprehensive sample of 8 Tunisian banks over 2000-2020. The results of our analysis unveil a significant negative relationship between credit risk and bank stability, indicating that higher levels of credit risk exert a detrimental effect on the overall stability of Tunisian banks. Furthermore, our study highlights that this adverse impact is further exacerbated during the COVID-19 pandemic, suggesting that the pandemic acts as a moderator. The findings of this study hold substantial implications for policymakers, regulators, and bank managers in Tunisia. They emphasize the critical importance of implementing robust risk management practices to mitigate credit risk and bolster bank stability. Additionally, the research underscores the need to consider the unique challenges introduced by external shocks, such as the COVID-19 pandemic, when assessing the overall stability of the banking system.</span></span></span></span></p>

Job security, socio‐economic background, and worker performance: Evidence from Major League Baseball

AbstractUsing a panel dataset of contract‐year observations for Major League Baseball (MLB) players, this study looks to understand how job security affects incentives for worker performance. Prior works have found evidence of diminished performance when job security is high in the early years of guaranteed contracts (shirking) and heightened performance when job security is low at the end of contracts when players are hoping to secure new contracts (opportunistic behavior). The focus of this study is on how socio‐economic background interacts with job security to influence performance. Theory and empirical evidence suggest that workers from disadvantaged socio‐economic backgrounds may care more about job security, which could subsequently lead the performance of such workers to be more affected by changes to job security. This hypothesis is tested empirically. In testing this indirectly, evidence of stronger impacts of job security on performance of MLB players from lower income countries relative to those from higher income countries is found. To directly test this hypothesis, data on player socio‐economic backgrounds is hand‐collected. The performance of players from less‐advantaged socio‐economic backgrounds is found to be more affected by job security. Given that job security is common in many work settings, these findings have implications for workers and employers both inside and outside of sports.

Political governance and urban systems: A persistent shock on population distribution from capital relocation in ancient China

This paper exploits a quasi-natural experiment with the exogenous shock of capital relocation in ancient China from Nanjing to Beijing in 1421 CE during the Ming Dynasty, to investigate the relationship between political governance and urban systems. We constructed a unique historical panel dataset that measures population distributions among Chinese counties spanning over centuries. Using a difference-in-differences identification strategy, our results reveal that after the capital relocation, the effect of localities' distance to Beijing, the newly established capital at that time, on local population size turns to be significantly negative. Moreover, these effects still persisted in the next dynasty and modern China. Furthermore, the results indicate that the impact of the capital relocation on population distribution occur through two major channels of political governance: delivery and national security. The causal relationship between capital relocation and population distribution is demonstrated to be robust using a variety of identification strategies and robustness checks.

Board gender diversity and voluntary disclosure: moderation of family ownership in India

Purpose Given the dominance of family ownership in India, this paper aims to examine whether the impact of board gender diversity (BGD) on voluntary disclosure (VD) is moderated by family ownership. Design/methodology/approach Based on a panel data set of the top 100 listed Indian firms for five years, this study examines the impact of BGD on VD by segregating the sample between family-owned and nonfamily firms. For empirical analysis, we use appropriate panel data models. For robustness, we employ a three-stage least square (3SLS) model. Findings The findings reveal the significant positive impact of BGD in terms of its different measures on VD for family and nonfamily firms. However, the impact becomes insignificant for nonfamily-owned firms when female directors are not substantially represented on the board. Originality/value This study extends the ongoing debate about the outcomes of the mandatory gender quota on board by providing novel evidence on the difference between the impact of BGD on VD for family and nonfamily firms in the Indian context.

Bank fundamental dynamics: the role of optimal bank management

Purpose This study aims to investigate the dynamic relationships between profitability, credit risk, liquidity risk and capital in Indonesian banking industry. Design/methodology/approach The authors use a panel vector autoregression model that incorporates macroeconomic variables: growth, interest rate, foreign exchange. The analysis is based on a monthly panel data set of 88 banks spanning from January 2012 to September 2021, which comprises 10,296 bank-month observations. Findings Our key findings highlight (i) permanent credit cost and liquidity cost pass through practices, (ii) complementary function of liquidity and capital, (iii) earning management motivated asset write off and (iv) credit risk-liquidity risk neutrality. In addition, the authors observe that the banks demonstrated resilience to macroeconomic shocks. Research limitations/implications Our study have shown some interesting dynamic patterns of fundamentals; nevertheless, unified theoretical underpinning of the process is still unavailable. This should be an important future reasearch avenue. Practical implications The study brings significant implications for regulatory and supervisory practices aimed at enhancing the financial stability of banks. Originality/value We conduct estimation of Indonesian banks system in dynamic perspective and perform impulses responses.

Empowering more balanced energy futures: The role of the digital economy in alleviating China's energy trilemma at the city-level

This study explores the influence of the Digital Economy (DE) on the Energy Trilemma (ET) across Chinese cities from 2008 to 2021. Leveraging an extensive panel dataset encompassing 276 cities, we constructed a city-level ET index, categorized cities using k-means clustering, and employed IV-GMM regression to scrutinize the impact of DE. Our findings reveal that DE is instrumental in tackling ET issues, with significant variations attributed to city-specific attributes, including centralized heating systems and the complexity of urban terrain. The mediation analysis pinpoints the optimization of industrial structures, technological progress, and the attraction of foreign investment as key conduits through which DE exerts its influence on ET. These insights highlight the pivotal role of DE as an essential instrument for bolstering sustainable energy frameworks. They also emphasize the necessity for city-specific digital economy policies to effectively address the unique ET challenges faced by each municipality. Additionally, the study underscores the positive influence of openness to foreign investment in the energy sector as a strategy for confronting ET challenges.

The impact of renovation on the air quality in the stadium, and prevention of indoor air pollution

Indoor air quality is a critical factor influencing athletic performance, particularly in professional sports settings, yet its impact remains underexplored. This study utilizes a panel dataset from 2516 Chinese Basketball Association (CBA) matches across 20 cities in China between 2014 and 2019. We integrate daily air pollution metrics with player efficiency ratings (PER) to investigate the effects of air quality on individual performance. We find that a 10% increase in the air quality index (AQI) corresponds to a 1.4223 decrease in PER, indicating a strong negative effect of poor air quality on player productivity. Different pollutants have varying effects, with some exacerbating the decline in both overall performance and precision in tasks. Notably, older players and international players exhibit greater resilience to air pollution. These insights contribute to the development of a comprehensive index for assessing work efficiency under varying air quality conditions and suggest targeted strategies to mitigate the negative impacts of air pollution in competitive athletic settings.

Direct and indirect effects of degree of interdisciplinarity on firms' innovation performance: The moderating role of firms' capabilities

AbstractCombinations of heterogeneous knowledge from different scientific domains may drive highly innovative outcomes. Our study investigates whether firms can benefit from interdisciplinary research and development (R&D) activities by also reflecting on the potential negative consequences of increasing complexity of outcome validation activities at later stages of innovation processes. We explore which resources and organizational capabilities may influence the efficacy of interdisciplinary R&D activities. We examine whether the available financial slack, collaborations with universities, and a high betweenness centrality in scientific networks may promote the flexibility, scope, and efficiency of knowledge integration, and thus moderate the direct and mediated relationships between the degree of interdisciplinarity (DoI) of a firm's R&D activities and innovation performance. To test our hypotheses, we performed an analysis of medical technology firms that are highly dependent on interdisciplinary R&D. We collected a panel dataset of R&D activities and successful market launches of new products from 79 large medical technology firms between 1997 and 2021. The measurement of a firm's DoI is based on a novel approach involving neural networks in a bibliographic data graph. Our results suggest that firms can improve their innovation performance if they conduct interdisciplinary R&D activities. However, higher levels of DoI also increase the complexity of the required outcome validation, which reduces a firm's innovation performance. We also found that high levels of financial slack help to overcome barriers of implementing interdisciplinary R&D activities. Collaborations with universities, and good access to knowledge in scientific networks, further foster interdisciplinary knowledge application in new product development.

Getting across the finish line: how to boost completion rates for underrepresented student groups

ABSTRACT There remains a gap in college completion rates for Black and Hispanic students. Universities have focused on creating a diverse student body (peer effects), a diverse faculty (role model effects) and on providing resources to boost completion rates. This paper tests these effects in a panel data set of 9800 observations from 1493 universities over 2011–2018. Regression results show peer effects disappear when role model effects are included suggesting that previous literature testing only peer effects could be suffering from omitted variable bias. Faculty salaries and the percentage of full-time faculty are also highly significant in helping close the gap.

Do family ownership and supervisory board characteristics influence audit report lag? A view from a two-tier board context

Do family ownership and supervisory board characteristics influence audit report lag? A view from a two-tier board context

Survival of biomass and waste power generation: A global overview

Biomass and waste power generation holds the promise to secure electricity supply for a growing population and mitigate global warming simultaneously. Along with the increasing commission and installation of biomass/waste power units (BWPUs) across the globe, some BWPUs failures have been observed, including the cancellation of planned/commissioned BWPUs and the termination of those in operation before reaching their natural retirement. While empirical evidence suggests that factors like feedstock accessibility and policy instruments might affect the feasibility and performance of BWPUs, there is a lack of comprehensive investigation about why some BWPUs failed at the global scale. To fill this knowledge gap, this study quantifies the hazard ratio of BWPUs via a parametric survival analysis using a panel dataset covering a total of 12,829 BWPUs (relying on woody, non-woody, and waste biomass as raw feedstocks) located in 164 countries/regions worldwide for the period of 2001–2021. The analytical results suggest that large unit size is conducive to BWPUs failure, while feedstock accessibility and the implementation of policy instruments (including Feed-in-Tariff and carbon pricing) could largely reduce the hazard ratio of BWPUs, with varying impacts on BWPUs at the planned/commissioned stage or the operation stage, located in developed or developing countries. Our findings not only shed additional light on the fate of BWPUs, which is crucial to enriching our understanding about the development of the bioenergy sector worldwide, but also provide salient empirical evidence for policy-making in terms of ensuring feedstock accessibility, overcoming diseconomies of scale, and making fiscal instruments available and transparent to boost the confidence of investors and entrepreneurs in support of BWPUs development.

Efficient estimation of true fixed-effects stochastic frontier models

AbstractFixed-effects modeling has become the method of choice in several panel data settings, including models for stochastic frontier analysis. A notable instance of stochastic frontier panel data models is the true fixed-effects model, which allows disentangling unit heterogeneity from efficiency evaluations. While such a model is theoretically appealing, its estimation is hampered by incidental parameters. This note proposes a simple and rather general estimation approach where the unit-specific intercepts are integrated out of the likelihood function. We apply the theory of composite group families to the model of interest and demonstrate that the resulting integrated likelihood is a marginal likelihood with desirable inferential properties. The derivation of the result is provided in full, along with some connections with the existing literature and computational details. The method is illustrated for three notable models, given by the normal-half normal model, the heteroscedastic exponential model, and the normal-gamma model. The results of simulation experiments highlight the properties of the methodology.

An application of LASSO and multiple imputation techniques to income dynamics with cross‐sectional data

This paper introduces, validates, and applies a Least Absolute Shrinkage and Selection Operator with multiple imputation by Predictive Mean Matching (LASSO‐PMM) method to estimate intra‐generational income dynamics from cross‐sectional data. We validate the method using 36 harmonized panel data sets in four Latin American countries and apply it to cross‐section data from 43 countries across the world. Results show that LASSO‐PMM predictions are statistically indistinguishable from actual household poverty rates, mobility indicators, and income or consumption changes. These findings suggest that estimating economic mobility using a LASSO‐PMM approach may accurately approximate actual income dynamics when panel data are unavailable.

The effect of CSR and corporate ethical behavior on implicit cost of equity: the mediating role of integrated reporting quality

Purpose The purpose of this study is to analyze the effect of corporate social responsibility (CSR) practices and corporate ethical behavior on implicit cost of equity (COE) using integrated reporting quality (IRQ) as a mediating variable in European companies belonging to the environmental, social and governance (ESG) index. Design/methodology/approach The authors use a panel data set of 540 European firms from the ESG index from 2013 to 2022. The data were collected from I/B/E/S and Thomson Reuters ASSET4 database and analyzed using the structural equation model to test hypotheses. Findings In the instance of ESG European firms, the findings indicate that CSR practices and corporate ethical behavior are negatively related to the COE. From the result of the Sobel test, this study indicated that IRQ has only indirect mediation on the relationship between CSR, ethical behavior of the company and implicit COE. Practical implications The findings have some policy and practical implications that may help regulators and managers in improving the COE and helping companies envision their future growth opportunities in a context where responsibility, ethics and disclosure are central to corporate valuation. Using the implicit COE is a better estimate of shareholder requirements in the context of ESG companies. Originality/value This research concentrates on ESG companies since they are more likely to contribute to environmental protection, which attracts responsible investors. Furthermore, the findings may be useful to worldwide managers and investors who use responsible practices as a criterion in their decision-making.

Research on the Impact Effect of Digital Finance on the Development of Low Carbon Economy

The report of the 20th Party Congress pointed out that “promoting the greening and low-carbonization of economic and social development is the key link to achieve high-quality development”, and steadily promoting carbon peak and carbon neutral work is the proper meaning of promoting the development of low-carbon economy. Digital finance, as a fusion of digital technology and financial business, can form a long-term mechanism of governance of pollution, so the study of the impact of digital finance on the development of China's low-carbon economy has certain theoretical value and practical significance. Based on the panel dataset of 30 provinces from 2011 to 2021, this paper constructs a benchmark regression model and a mediation effect model to analyze the impact effect of digital finance on the development of low-carbon economy, and based on the theoretical analysis and the empirical results, it provides referable policy suggestions for promoting the development of low-carbon economy.

Unravelling the Link Between Bilateral Investment Treaties and Environmental Sustainability in Sub-Saharan African Countries

This study investigates the practical relationship between foreign direct investments (FDI), bilateral investment treaties (BITs), income, energy consumption and CO2 emissions in sub-Saharan African (SSA) countries between 2000 and 2020. To address the challenges of heterogeneity, non-stationarity and cross-sectional dependence, we employed the dynamic common-correlated effects estimation method introduced by Chudik and Pesaran. This methodology provides reliable results for panel datasets of significant to moderate size. The results indicate a direct connection between FDI and CO2 emissions, providing evidence for the pollution haven theory. Notably, BITs also have a favourable and substantial impact on environmental degradation in SSA countries. These findings emphasise the need for effective environmental regulatory frameworks and management techniques. Achieving sustainable growth and economic development in SSA countries requires prioritising the adoption and implementation of carbon reduction strategies. SSA countries can attain balanced growth between economic progress and environmental preservation by reducing the negative effects of FDI inflows and BITs on environmental sustainability. This study expands the current knowledge base by providing insights into the complex relationship between FDI inflows, BITs, income, energy consumption and CO2 emissions in SSA countries. The findings offer valuable guidance to policymakers and stakeholders in formulating and executing effective environmental policies and regulations to promote sustainable development in the area.

Exploring the (dis)advantages of smart cities’ inclusive, integrative and social practices in new business creation: the effect of human capital inflow

ABSTRACT The term ‘smart’ has become key in cities’ development policies. The need to adapt to an increasingly global and dynamic context is fundamental to cities’ survival and development trajectories. Nonetheless, how this goal should be met and how the ‘smart’ dimension in cities impacts the social, economic and urban levels are still subject to debate. In the present paper, we focus on the relationship between the ‘smart living’ dimension, which includes integrative, inclusive and social practices, and the promotion of a local entrepreneurial environment by considering the moderating role of intra- and international human capital inflow. Using a GLS method and a panel dataset that includes 30 cities, we demonstrate that the relationship tends to be an inverted U-shaped curve, contributing to the discussion on the impact of smart cities’ social policies on entrepreneurship in urban contexts. Furthermore, we highlight that human capital inflow positively moderates this relationship, showing that intra- and international human capital flows contribute differently in this regard, producing divergent effects. We conclude with implications for academics and policymakers, and practical and theoretical suggestions.

Digital technology and industry-university-research (IUR) R&D network configurations: An exploration of market participation and market maturity

Amidst the rapid transformations ushered in by digital technology, which forges comprehensive digital connections across research & development (R&D) networks, leaders of pioneering organizations are diligently predicting market shifts, leveraging insights from institutional and network theories. This research enriches understanding by exploring how the digital technology adoption focus of innovative organizations affects their position within R&D networks, integrating perspectives from both theories. It identifies market participation and market maturity as key moderating factors and assesses their differential moderation effects. Employing a panel dataset of 1654 records from 2010 to 2022, which scrutinizes industry-university-research (IUR) R&D endeavors in China, the analysis demonstrates that an organization's digital technology adoption orientation positively influences its network centrality but adversely affects its position in structural holes. Additionally, the study finds that market participation diminishes the positive relationship between digital technology adoption focus and both network centrality and structural hole bridging capabilities. Conversely, market maturity enhances the association with network centrality but weakens the capacity to bridge structural holes. Further analysis was conducted on the temporal variations and the relationship between digital technology adoption and R&D network centrality and structural holes within heterogeneous innovative organizations. The investigation concludes with a discussion of the theoretical and practical implications of these findings, rooted in institutional and network theory insights.