Panel Regression Research Articles

The Impact of African Swine Fever on the Efficiency of China’s Pig Farming Industry

African Swine Fever (ASF) is a severe viral disease that has significantly impacted the pig farming industry in China. It first broke out in China in 2018 and quickly spread to multiple provinces, significantly affecting the production efficiency of the pig farming industry. This study utilized pig production data from 17 provinces in China from 2010 to 2022 and applied the Malmquist production efficiency index and panel regression methods to assess the impact of the ASF epidemic on the efficiency of the pig farming industry. The results indicated that the outbreak of ASF significantly reduced overall production efficiency, which magnified the vulnerabilities of the production system. Although there was a general decline in technological change and pure technical efficiency, the increase in scale efficiency suggested effective resource optimization by farmers under resource-constrained conditions. In light of these findings, it is recommended to strengthen biosecurity education and epidemic prevention measures in the pig farming industry and to enhance technological innovation and the application of smart technologies to improve production efficiency and disease response capabilities. Additionally, timely adjustments in farming scale and resource optimization will be key to addressing future challenges. Through these strategies, the pig farming industry can maintain stable production efficiency during future epidemics and push towards a more efficient and refined production model.

Towards Share Price Volatility: Does Capital Structure Choices Really Matter?

The study was conducted to assess the impact of capital structure on the share price volatility in Tanzania. The study utilized quantitative secondary data spanning a ten (10) year period from 2013 to 2022, sourced from the Dar es Salaam Stock Exchange (DSE) and annual reports of six (6) chosen manufacturing companies. The data was analysed using the random effect panel regression model. Findings revealed that all independent variables (Short term, long term and total debt) have a negative statistically significant effect on share price volatility. On the basis of the study’s findings, the research suggested that, listed companies should adopt effective debt management strategy to mitigate share price volatility. Also, Capital market and security authorities (CMSA) are advised to provide regulatory guidance and enforce transparent reporting requirements for listed companies. Furthermore, Investors are encouraged to adopt a strategic investment approach, considering companies with effective debt management in their decisions. Future researches should use Autoregressive Distributed Lag (ARDL) model to capture both short- and long-term impact of capital structure changes, and include additional debt related metrics and microeconomic factors for a more nuanced understanding of share price volatility.

The Impact of Digital Transformation on Enterprise Ambidextrous Innovation: Evidence from Manufacturing Listed Companies in China

In this paper, we theoretically discuss and empirically investigate the impact of digital transformation on the ambidextrous innovation of enterprises. We also examine the transmission mechanism of knowledge flows between digital transformation and ambidextrous innovation in enterprises. Based on the data of Shanghai and Shenzhen-listed companies from 2012 to 2020, using a two-way fixed-effect panel regression model, the results show that: (1) Digital transformation has a significant positive effect on both enterprise ambidextrous innovation, and its effect on exploratory innovation is greater than that on exploitative innovation. (2) Digital transformation promotes exploratory and exploitative innovation by accelerating knowledge flow. (3) The impact of digital transformation on exploratory innovation in enterprises is heterogeneous, while the impact on exploitative innovation is not heterogeneous. That is, the positive effect of digital transformation on exploratory innovation is significant in enterprises in high-tech industries, but not significant in enterprises in nonhigh-tech industries. Overall, our findings provide a deeper understanding for enterprises to grasp digital opportunities and carry out digital transformation in a timely and appropriate manner, as well as an essential policy implication for the government to strengthen the construction of digital infrastructure and improve the policies related to digital transformation.

Firm-specific and country-level determinants of commercial banks capital structures: evidence from Ethiopia

Since the seminal work of MM irrelevance theory, there has been a long history of controversy among academicians both in developed and developing nations regarding the determinants of capital structure. To this end, the main aim of this study was to investigate firm-specific and country-level determinants of the capital structure of Ethiopian commercial banks. The study adopted an explanatory research design with a quantitative research approach. A panel dataset was obtained from 14 commercial banks, which range from 2010 to 2022. A random effect panel regression result revealed that tangibility, non-debt tax shields, growth, and interest rate had a positive and significant effect, while the gross domestic product had a negative and significant effect on leverage which is used as a measure of capital structure. Among the independent variables tested, ROA, liquidity, effective tax rate, risk, and inflation have an insignificant effect on the capital structure of the selected commercial banks. The study will have implications for managers of commercial banks, legislators, regulators, and other interested parties that can use the study's conclusions to help them make well-informed capital decisions and implement the necessary measures to enhance the financial performance of Ethiopian banks with an optimal ratio of debt to equity.

The Effect of Inventory Management on Company Value (Empirical Study on Food and Beverage Sub-Sector Companies Listed on the Indonesia Effek Exchange in 2020-2023)

The purpose of this study is to test and analyze the influence of "Inventory Management" on Company Value, which is calculated using PBV. Inventory management is calculated using RMC, WIPC, FGC, INVTC. The research was conducted on F&B companies listed on the Indonesia Effek Exchange (IDX) with the period 2020-2023 using quarterly data. The method used by the Data Regression Panel. The results of the study showed that Inventory Management had an effect on PBV, and the RCM variable had an effect on PBV. Meanwhile, the variables of WIPC, FGC, INVTC had no effect on PBV.

The impact of unmet community service demand on the loneliness of older adults: based on CLHLS (2008-2018).

To explore the impact of unmet community service demands on loneliness among older adults. Based on the longitudinal tracking data of CLHLS (2008-2018), latent growth curve model (LGCM) was used to describe the trajectory of loneliness among older adults. Panel regression was used to analyze the impact of unmet community service demands on loneliness, and latent classification analysis (LCA) was used to classify the older adults and analyze the differences in loneliness among different types of older adults. A total of 1445 older people participated in all four surveys, and 22.4% of them reported feeling lonely. From 2008 to 2018, there was a significant non-linear increase in loneliness, with average values of 1.77, 1.81, 1.83, and 1.96, respectively. The level of community service supply (1.31) was far from meeting the demand level (5.11). Unmet community service demands were associated with a higher prevalence of loneliness (β = 0.012, P = 0.003, 95% CI = [0.004, 0.020]). In addition, according to the demand difference for community services, older adults were classified into the comprehensive demand type (Type I) and the medical demand type (Type II). The loneliness of Type I older adults was significantly higher than that of Type II (P < 0.05). With the passage of time, loneliness of older adults is showing an accelerating upward trend. Unmet community services can lead to enhanced loneliness among older adults, and the higher the demand for community services, the stronger the loneliness. The government should increase the supply of community services to meet the basic and socio-emotional needs of the older adults to reduce loneliness.

Analysis of the Relationship Between Entrepreneurship and Trade Openness within the Framework of Quantile Panel Approach: The Case of OECD Countries

This study aims to examine the impact of the trade openness of selected OECD countries on entrepreneurship. There is a general acceptance that the impact of the trade openness of economies on entrepreneurship is positive. In the analysis process, econometric modeling studies were carried out based on the data of the selected OECD countries for the 2006-2020 period. The quantile panel regression technique was used to test the impact of trade openness on entrepreneurship. The quantile panel regression analyses have been carried out with an approach that considers the asymmetric situation between the selected OECD countries. Hence, this approach has been a contribution to the literature. Policy recommendations are presented within the framework of empirical findings. According to the empirical findings, entrepreneurship activities are important in terms of increasing economic performance in the selected OECD countries and show that policies should be implemented in support of entrepreneurship activities. The necessity of considering the impact of the trade openness level on entrepreneurship in determining policies has been revealed. In particular, the fact that the economies assess this issue in the policy development process can be considered a strategic instrument.

Unveiling Poverty Dynamics in India: Examining Convergence and Determinants at Sub-National Level

ABSTRACT This paper tries to investigate the question of whether the poverty ratio across Indian states is converging in the post-2000s. We addressed this question of spatial convergence of the poverty ratio using unconditional convergence over the period 2004–05 to 2018–19 for 18 major states of India, considering both rural and urban regions. We used the unit-level data of NSSO’s Consumer Expenditure Surveys (CES) for the 61st, 68th and PLFS 2018–19 rounds for the analysis. Besides, we try to assess the driving factors of poverty through a panel regression model. The results reveal that in the first period from 2004–05 to 2011–12, Indian states experienced a divergence in the overall poverty ratio and rural poverty. However, the second period, 2011–12 to 2018–19, witnessed no specific trend of convergence or divergence across states. Again, in the case of urban poverty, there is no particular pattern of poverty convergence or divergence during both periods. The study shows that the Gini coefficient, educational expenditure, household size, infant mortality, literacy rate, MPCE, primary-sector income and per capita power availability are the significant determinants of poverty in India.

Debt erosion: Asymmetric response to demand and supply shocks

This paper explores the effect of inflation supply and demand shocks on government debt for a sample of 32 advanced economies and 24 emerging markets from 1970 to 2022. The shocks are identified using a sign-restricted structural vector autoregression model with quarterly data. Estimations of dynamic panel regressions and local projections suggest that supply shocks lead to persistent increases in government debt, while demand shocks result in long-lasting declines. Furthermore, high debt levels amplify the impacts of both supply and demand shocks by more than three times. Specifically, supply shocks contribute to an increase in debt through elevated borrowing costs and prolonged depreciation, whereas demand shocks erode debt through persistent improvements in the primary balance, driven by increased revenues.

Is there a connection between ESG scores and a company’s profitability? Empirical evidence on selected Stoxx Europe 600 firms

This study scrutinizes the potential correlation between Environmental, Social, and Governance (ESG) scores and the profitability of firms listed in the selected STOXX Europe 600 index. Utilizing panel regression analysis, the study examines data from 385 non-financial companies over the period 2017 to 2021, correlating CSRHub's ESG scores and selected financial variables with corporate profitability measured by ROA. The investigation reveals that, overall, ESG scores do not have a significant impact on profitability, except for the ESG-community sub-score, which shows a slight negative influence. Thus, this paper partially supports studies that show a negative correlation between ESG and profitability, even though such results are in the minority in the literature. The overall results suggest that while ESG scores may reflect a company's ethical stance, they are not a predominant factor influencing its profitability. However, this is not the case for leverage, as the importance of capital structure for profitability is confirmed. AcknowledgmentThis research has been supported by the Scientific Grant Agency of the Slovak Republic under project VEGA No. 1/0579/21.

DETERMINAN VOLATILITAS HARGA SAHAM PADA INDEKS IDX30 (STUDI PADA TAHUN 2018-2021)

The purpose of this study is to determine the factors that influence the volatility of the IDX30 company’s stock prices. Independent variable used are Stock Trading Volume, dividend policy, leverage, firms size, and asset growth. This study using the report data from companies listed in IDX in the Index IDX30 between 2018-2021. Data analyzed using data panel regression analysis. The result from the analysis found out if variable dividend yield, firm size, and growth asset has no significant effects on Stock Price Volatility. Meanwhile, trading volume and leverage have a significant effect on stock price volatility.

Contribution of Islamic Banking Towards Economic Growth in Indonesia With Data Panel Regression Approach

Contribution of Islamic Banking Towards Economic Growth in Indonesia With Data Panel Regression Approach

Inequality in Public Provision of Healthcare: Do Fiscal Transfers Matter?

ABSTRACTIn this paper, we investigate the inequality in the public provision of healthcare in India and assess whether states are converging over time. We locate the equalization of public provision within the framework of fiscal federalism. Departing from previous work, we gauge disparity in public provision by scrutinizing the provision in terms of primary and community health centers. The and convergence analysis indicate no substantial reduction in inter‐state disparities, raising concerns regarding the attainment of universal healthcare access. In addition, the club convergence analysis identifies states converging into multiple clubs in the public provision of health centers, indicating the persistence of inter‐state disparity. The panel regression estimates indicate the prominence of own revenue over fiscal transfers in determining the public provision of healthcare. The findings underscore the necessity of reforms in fiscal devolution, with a particular emphasis on tax devolution and revamping sector‐specific grants to achieve national targets. The present paper contributes to a long‐standing debate on unconditional versus conditional transfers for public provision.

Does the U.S. extreme indicator matter in stock markets? International evidence

We propose a new predictor—the innovation in the daily return minimum in the U.S. stock market (ΔMINUS\\documentclass[12pt]{minimal} \\usepackage{amsmath} \\usepackage{wasysym} \\usepackage{amsfonts} \\usepackage{amssymb} \\usepackage{amsbsy} \\usepackage{mathrsfs} \\usepackage{upgreek} \\setlength{\\oddsidemargin}{-69pt} \\begin{document}$$\\Delta {MIN}^{US}$$\\end{document})—for predicting international stock market returns. Using monthly data for a wide range of 17 MSCI international stock markets during the period spanning over half a century from January 1972 to July 2022, we find that ΔMINUS\\documentclass[12pt]{minimal} \\usepackage{amsmath} \\usepackage{wasysym} \\usepackage{amsfonts} \\usepackage{amssymb} \\usepackage{amsbsy} \\usepackage{mathrsfs} \\usepackage{upgreek} \\setlength{\\oddsidemargin}{-69pt} \\begin{document}$$\\Delta {MIN}^{US}$$\\end{document} have strong predictive power for returns in most international stock markets:ΔMINUS\\documentclass[12pt]{minimal} \\usepackage{amsmath} \\usepackage{wasysym} \\usepackage{amsfonts} \\usepackage{amssymb} \\usepackage{amsbsy} \\usepackage{mathrsfs} \\usepackage{upgreek} \\setlength{\\oddsidemargin}{-69pt} \\begin{document}$$\\Delta {MIN}^{US}$$\\end{document} negatively predicts the next-month stock market returns. The results remain robust after controlling for a number of macroeconomic predictors and conducting subsample and panel data analyses, indicating that ΔMINUS\\documentclass[12pt]{minimal} \\usepackage{amsmath} \\usepackage{wasysym} \\usepackage{amsfonts} \\usepackage{amssymb} \\usepackage{amsbsy} \\usepackage{mathrsfs} \\usepackage{upgreek} \\setlength{\\oddsidemargin}{-69pt} \\begin{document}$$\\Delta {MIN}^{US}$$\\end{document} has significant predictive power and it outperforms other variables in international markets. Notably, ΔMINUS\\documentclass[12pt]{minimal} \\usepackage{amsmath} \\usepackage{wasysym} \\usepackage{amsfonts} \\usepackage{amssymb} \\usepackage{amsbsy} \\usepackage{mathrsfs} \\usepackage{upgreek} \\setlength{\\oddsidemargin}{-69pt} \\begin{document}$$\\Delta {MIN}^{US}$$\\end{document} demonstrates excellent predictive power even during the periods driven by financial upheavals (e.g., Global Financial Crisis and European Sovereign Debt Crisis). Both panel regressions and out-of-sample tests also support the robust predictive performance of ΔMINUS\\documentclass[12pt]{minimal} \\usepackage{amsmath} \\usepackage{wasysym} \\usepackage{amsfonts} \\usepackage{amssymb} \\usepackage{amsbsy} \\usepackage{mathrsfs} \\usepackage{upgreek} \\setlength{\\oddsidemargin}{-69pt} \\begin{document}$$\\Delta {MIN}^{US}$$\\end{document}. The predictive power, however, disappears during the non-financial crisis caused by COVID-19 pandemic, which is originated from the health sector rather than the financial sector. The results provide a new perspective on U.S. extreme indicator in stock market return predictability.

Influence of education on improving the employment prospects of individuals with disabilities

The occurrence of disparities in income among various social groups is defined by the economic term social inequalities. In the subject literature, this term is often used in association with the individuals with disabilities and their uncertain position in the job market or the barriers that they face in the education process. Thus, this paper attempts to fill an existing research gap by answering the research question of how the employment level will change among individuals with disabilities with a specific level of education if the number of individuals with disabilities with higher education changes. The main goal of the conducted study is to analyse the impact of the population size of individuals with disabilities of working age on their employment level in Poland, taking into account differences in the level of education. Particularly, the focus is on the relationships between the level of education and earning potential. To obtain answers to the research question, a national and international literature analysis was conducted, and in the empirical part, a panel regression model was employed. The results of the panel regression analysis indicate a significant impact of the interaction between the population of individuals with disabilities and the level of education on employment in Poland. Education plays a significant role in the employment outcomes of individuals with disabilities, and this dependency is also influenced by the demographic factor of population size. The interpretation of indicators may indicate a significantly higher demand for vocational and technical skills in the labour market, compared to contributing to higher employment rates of individuals with disabilities possessing these specific qualifications.

BOARD INDEPENDENCE AND FINANCIAL REPORTING QUALITY OF LISTED OIL AND GAS COMPANIES IN NIGERIA MODERATED BY FIRM SIZE

In the dynamic landscape of corporate governance, the interplay between board characteristics and financial reporting quality stands as a focal point for scholarly investigation. This study investigates the moderating effect of firm size on the relationship between board independence and financial reporting quality of listed oil and gas companies in Nigeria. The study employs a quantitative research design and the populations of the study were all the oil and gas companies listed on the floor of Nigerian Exchange Group from 2012 to 2021. The study used ten (10) oil and gas companies as the population and sample size. The study further used panel regression technique as method for data analysis. The result of the direct relationship revealed that board independence and board size negatively and significantly influence the financial reporting quality of listed oil and gas companies in Nigeria. In the case of moderated effect, the results indicate that firm size does not significantly moderate the influence of board independence on the financial reporting quality of listed oil and gas companies in Nigeria. Based on the results obtained, it can be concluded that the interaction between firm size and board independence does not have a significant impact on the financial reporting quality of listed oil and gas companies in Nigeria. Based on the findings, the study recommended that policymakers such as financial reporting council and Securities and Exchange Commission should enforce the code of corporate governance that will provide for mandatory independent directors with financial expertise. Secondly, the firm size should be properly put into consideration in constituting the number of non-executive directors on the board of directors of listed oil and gas companies in Nigeria.

CORPORATE GOVERNANCE AND REAL EARNINGS MANAGEMENT IN NIGERIAN LISTED FINANCIAL FIRMS

The focus of the study is the examination of the relationship that exists between corporate governance and real earnings management in Nigerian listed financial firms, with attention on three corporate governance variables (board tenure, board expertise and CEO ownership). The study adopts a longitudinal research design. Descriptive statistics, correlation analysis and panel regression analysis technique, with emphasis on the random effect model, were used for data analysis. A purposive sample of thirty seven (37) firms, out of the Forty nine (49) financial firms listed on the Nigerian Exchange Group, at year end 31st December, 2022 was studied for a period of seven years, 2016 to 2022. Findings from data analysis revealed that board expertise and CEO ownership have insignificant but positive relationships with real earnings management. In addition, board tenure was found to be significantly but negatively related to real earnings management. The correlation analysis revealed that there is a negative correlation between the variables board expertise, CEO ownership and real earnings management. Also, board tenure has a positive correlation with REM. The study recommends that directors of companies should be encouraged to spend longer time on the board as this will serve as incentive to avoid unfavourable earnings management.

DOES ESG INVESTMENT IMPACT THE FINANCIAL SUSTAINABILITY OF NIGERIAN ENERGY COMPANIES: A PANEL REGRESSION APPROACH?

The destruction of around 5% to 10% of Nigerian mangrove ecosystems and the disappearance of approximately 7,400 square kilometres of rainforest have shifted managerial priorities in Nigeria's energy sector from purely financial gain to increased social responsibility. The rising concerns regarding climate change, environmental risks, social well-being, and sustainability have propelled ESG investment to the forefront of corporate sustainability considerations. The study delves into the influence of ESG investment on the financial sustainability of listed industry players in Nigeria's oil and gas industry. By utilizing quantitative data from sustainability and corporate annual reports of listed firms on the Nigeria Exchange Group from 2013 to 2023, a fixed pooled panel regression model was conducted to statistically test the three hypotheses anchored on the ESG nexus on financial sustainability. The findings indicate that the relationship between environmental investments, measured by environmental emissions, and return on assets (ROA) for the examined listed entities is insignificant. However, the research establishes a notable correlation between social investing practices, quantified by workforce size, and ROA, displaying a positive coefficient. Moreover, the study does not confirm a substantial impact of governance investing practices, measured by board size, on the ROA of the scrutinized corporations. The research acknowledged the impact of ESG on the financial sustainability of Nigeria’s energy sector. The research recommendations include integrating ESG factors into investment strategies, enhancing disclosure and transparency, improving risk management and resilience measures, and collaborating with policymakers.

Has the Digital Economy Boosted Carbon Reduction in Livestock Farming in China?

Carbon reduction in livestock is a necessary path for the green transformation of the livestock industry. Has the digital economy as an emerging productive force in recent years driven carbon reduction in the livestock sector? This paper employs dynamic panel regression models, mediation effect models, and spatial econometric models to investigate the impact mechanisms of the digital economy on carbon emission reduction in livestock husbandry. The results indicate the following: (1) The digital economy has a positive impact on carbon reduction in livestock farming by fostering technical innovation, enhancing the level of human capital, and transforming the mode of production. (2) From 2013 to 2021, the digital economy did not show a significant carbon reduction effect until 2018. It has had a substantial impact on carbon reduction in livestock husbandry in the northeastern and western regions, while its influence in the eastern and central regions has not been significant. The digital economy positively affects carbon emission reduction in non-dairy cows and pigs, negatively affects poultry, and shows no significant effect on dairy cows and sheep. (3) In terms of spatial effects, the digital economy is not only driving carbon emission reductions from livestock farming in the local region but is also significantly driving carbon emission reductions from livestock farming in the surrounding provinces. The findings of this article provide some insights into future policy formulation for low-carbon development in the livestock sector.

Superstars Really Are Scarce: Shohei Ohtani and Baseball Attendance

We estimate the superstar effects in Major League Baseball, focusing on a particularly unique international athlete, Shohei Ohtani, using a fixed effects panel regression with multiway clustering. Ohtani’s scarce talent as both a pitcher and a hitter provides the potential to have outsized influence on demand at home (superstar effect) and away (superstar externality) games, providing new marketing opportunities for the league. We compare Ohtani’s impact on attendance with other top pitchers, particularly after large attendance drops attributed to the COVID-19 pandemic, suggesting that his superstardom played a key role in bringing fans back to baseball games. Results revealed a large attendance externality, especially after the pandemic, that increased away attendance by up to 40% in 2021 specifically (and up to 20% overall). We propose that Ohtani provides an opportunity for Major League Baseball to leverage a recognizable face of baseball and leverage superstar value that was previously shown to be in decline.