Fixed-effects Analysis Research Articles

Hospitalization- and death-related financial and employment effects in parents of children with life-limiting conditions: a fixed-effects analysis

The purpose of this study is to investigate out-of-pocket non-medical expenses and employment-related outcomes in families of children with life-limiting conditions, specifically, to quantify the financial and employment implications of two events: a child’s hospitalization and death. This cohort study used panel data collected prospectively for a larger study investigating the effectiveness of specialized pediatric palliative care. Participants were recruited by medical professionals between November 2019 and May 2022 at four Swiss children’s hospitals. The care follow-up and bereavement follow-up assessments were 330 and 300 days, respectively. We measured out-of-pocket non-medical expenses, individual full-time equivalent units, and personal income, as well as sick leave and vacation days taken. Analyses included descriptive statistics and two-way linear fixed-effects regressions. The analysis included 110 parents (mothers n = 59, fathers n = 51) of 61 children. Children were hospitalized for a median of 7 days (interquartile range 0–21, range 0–227). The fixed-effects models found a positive association between hospitalization, i.e., length of stay, and travel and accommodation expenses (coefficient 4.18, 95% confidence interval 2.20–6.16). On average, for each week of hospitalization, parents spent an additional 29 Swiss francs on travel and accommodation. During the 300-day bereavement follow-up, six (26%) of 23 parents increased their work commitments, while one reported a decrease.Conclusions: Families incur higher travel and accommodation expenses during hospitalization than during non-hospitalized periods. Instrumental support, e.g., parking vouchers, can help families minimize these costs. Future studies should investigate whether early return to work during bereavement is driven by economic considerations or a desire for distraction.Clinical trial registration: Data analyzed in this study were collected as part of a clinical trial, registered on ClinicalTrials.gov, No. NCT04236180, 15 March 2019What Is Known:• Families of children with life-limiting conditions are at risk of substantial financial burden from high out-of-pocket medical expenses.• It is also known that parents often have to incur out-of-pocket non-medical expenses and reduce their work commitments. Little is known about the economic consequences of losing a child to a life-limiting condition.What Is New:• We provide new longitudinal evidence on the hospitalization- and death-related financial and employment implications for families of children with life-limiting conditions.• Child hospitalizations add to families’ financial burden through increased travel and accommodation expenses. Work commitments rose during early bereavement.

Impact of financial reporting quality on investment efficiency and role of investor protection in frontier markets

PurposeThis study aims to examine the link between financial reporting quality and investment efficiency in publicly listed firms in frontier markets, taking into account country-level investor protection. By comparing real and accrual earnings management, this paper demonstrates the context-dependent nature of the impact of financial reporting quality. It emphasises the importance of improving investor protection and reducing agency conflicts in promoting investment efficiency in frontier markets.Design/methodology/approachAccounting data from 1998 to 2020 are collected for all listed firms in six frontier market countries across 21 industries. Fixed-effect regression analysis is used to test causal relationships; several robustness checks are performed; and two-stage least squares is used to address endogeneity concerns.FindingsHigher financial reporting quality improves investment efficiency in frontier markets. Furthermore, the positive effect is amplified when country-level investor protection in frontier markets is strong.Originality/valueThese findings add to the growing body of evidence showing that financial reporting quality improves investment efficiency, even in frontier markets. Furthermore, the level of investor protection within a country strengthens this relationship, particularly in firms that are prone to underinvestment.

DETERMINANTS OF RISK DISCLOSURE IN TOP-PERFORMING AUTOMOBILE COMPANIES IN INDIA

Considering the business environment, operations, and regulatory environment companies operate in, disclosure requirements per the regulatory authorities have been more stringent. This study examined the degree of disclosure of risk information disclosed by companies established in India in the automobile sector listed on the National Stock Exchange (NSE) and listed international companies with unlisted subsidiaries in India. This study also aims to identify the governance attributes that influenced the practice of risk disclosure among the selected companies in India. The main risks in top-performing automobile companies in India have disclosed are examined in this paper, along with the board characteristics associated with the disclosure of corporate risk information. The variables included in the study are board size, board independence, and ownership concentration. The content analysis approach was adopted to determine the degree of risk disclosure practices. This study has also applied the descriptive statistics method and fixed effect analysis to measure the degree of information disclosure and to elaborate on the interrelationship between disclosure practices in India and governance attributes. Assessing India's top-performing automobile companies eventually unraveled the risk disclosure practices. Agency and signalling theories were adopted in this study to elucidate the company disclosure practice. The study reveals that there is a significant positive association between board size and the extent of risk disclosure; a significant positive association between board independence and the extent of risk disclosure; and a significant negative association between ownership concentration and the extent of risk disclosure.

Corporate takeover susceptibility and classification shifting

PurposeThis paper examines the effect of firms’ takeover susceptibility on the manipulation of financial statements through classification shifting.Design/methodology/approachThe paper applies ordinary least squares regression (OLS) with fixed effects analyses to a sample of United States listed firms over the period 1992–2014. We use takeover index as a proxy for takeover susceptibility of firms, with high values representing higher takeover susceptibility and lower values representing lower takeover susceptibility.FindingsThe study finds that firms engage in classification shifting through core expenses, suggesting that takeover threats reduce the incentive to manage earnings through classification shifting. We also find that takeover susceptibility improves the monitoring mechanism for firms with low profitability because these firms have greater incentives to engage in classification shifting. Finally, we find that the Sarbanes–Oxley Act strengthens the monitoring mechanism influenced by takeover threats. Overall, the results provide evidence of the important role of takeover susceptibility in mitigating classification shifting. Our results are robust to a battery of sensitivity tests.Practical implicationsThe results emphasise the disciplinary role of the legal environment around corporate takeovers. The study suggests that policymakers and regulators should be cognisant of antitakeover laws which may increase agency conflicts between managers and shareholders and promote managerial self-seeking behaviours such as classification shifting.Originality/valueThe paper highlights the important role of takeover threats as an external governance mechanism to mitigate classification shifting which is detrimental to investors’ value. From prior literature, this study is the first to provide evidence of the effect of takeover threats on classification shifting.

The impact of ESG performance on intangible assets and intellectual capital in the food and beverage industry

PurposeThis study investigates how environmental, social, and governance (ESG) factors influence intangible asset and intellectual capital valuation within the food and beverage (F&B) industry. By examining and contrasting global and European contexts, the research highlights ESG’s critical role in shaping the economic dimensions of sustainability across different regulatory environments. The results provide essential insights for stakeholders aiming to enhance corporate value through responsible business practices.Design/methodology/approachWe adopt a quantitative fixed-effects panel regression analysis for ESG performance and intangible asset and intellectual capital values. The correlations between these variables are explored both globally and in the European Union using 1,034 observations from 502 F&B companies.FindingsGlobally, higher ESG performance corresponds to lower intangible asset values, a trend not observed in the European Union. Further, high ESG performance is associated with a decrease in intellectual capital value, suggesting that internal organisational efforts in this area should be rewarded in terms of short-term value.Originality/valueThis study provides a new understanding of the relationship between ESG performance, intellectual capital, and the F&B industry operating environment, highlighting the complexity and challenges associated with integrating ESG practices.

Factors associated with timely initiation of antenatal care among reproductive age women in The Gambia: a multilevel fixed effects analysis.

A significant factor impacting the incidence of maternal and neonatal fatalities is the timely initiation of antenatal care (ANC) services in healthcare facilities. Despite the recommendations by the World Health Organization and the numerous benefits of timely initiation of ANC, studies have revealed that the overall prevalence of timely ANC initiation in 36 sub-Saharan African countries remains low and women in The Gambia also initiate ANC late. However, no known study in The Gambia has focused on assessing the factors associated with timely initiation of ANC at the time of writing this paper. Thus, this study aimed to assess the prevalence and factors associated with the timely initiation of ANC among reproductive-age women in The Gambia. A cross-sectional survey design was used in this study and conducted among 5,734 reproductive-age women using data from the 2019-2020 Gambia Demographic and Health Survey (GDHS). Using STATA version 14.0, we conducted the analysis using descriptive and inferential statistics. Multilevel logistic regression models were fitted to determine the factors associated with timely ANC utilization and adjusted odds ratios were used to present the results with statistical significance set at p < 0.05. The overall prevalence of timely initiation of ANC services among reproductive-age women in The Gambia was 43.0%. We found that women aged 30-34 [aOR = 1.79, 95% CI = 1.30-2.47], those who were married [aOR = 2.69, 95% CI = 1.85-3.90] as well as women from the richest households [aOR = 1.63, 95% CI = 1.20, 2.20] had higher odds of seeking timely ANC services as compared to their counterparts. Also, those who had given birth to two children [aOR = 0.74, 95% CI = 0.6 -0.91] had lower odds of initiating timely ANC as compared to those who had given birth only once. Women who reside in rural areas [aOR = 1.72, 95%CI = 1.34, 2.20] also had higher odds of seeking timely ANC services than those residing in urban areas. Individual-level factors such as maternal age, marital status, parity, wealth status, place of residence, and religion were associated with the timely initiation of ANC services among reproductive-age women. These factors ought to be considered in efforts to increase the timely initiation of ANC among reproductive-age women in The Gambia.

The impact of progressive era labor regulations on annual earnings and employment in manufacturing in the USA, 1904–1919

AbstractWe analyze the impact of the broad range of state labor regulations on employment and annual earnings in manufacturing for wage earners and salaried workers using a new panel data set for the 48 US states in 1904, 1909, 1914, and 1919. The effects of state labor regulations influenced the labor market for wage earners and had virtually no effect on the market for salaried workers. Fixed effects analysis shows that increases in a newly developed labor law index were associated with a rise in employment and a decline in earnings for wage workers. These changes imply a dominant rise in labor supply that reflected marginal benefits for workers that were higher than the marginal costs or marginal benefits to employers. After the demand and supply shifts were completed, both workers and employers ultimately experienced improved gains from trade. Under a wide range of assumptions about the earnings elasticity of demand, the results are also consistent with the regulation increasing labor demand and thus providing positive marginal benefits to employers. The effects of appropriations per gainfully employed worker were much smaller and depended on the size of the law index.

Using fixed-effects analyses to examine how neighborhood structural, process, and physical characteristics predict children’s cognitive skills in a national cohort of elementary school students.

Using fixed-effects analyses to examine how neighborhood structural, process, and physical characteristics predict children’s cognitive skills in a national cohort of elementary school students.

The carbon premium: Correlation or causality? Evidence from S&P 500 companies

In the context of whether investors are aware of carbon-related risks, it is often hypothesized that there may be a carbon premium in the value of stocks of firms, conferring an abnormal excess value to firms’ shares as a form of compensation to investors for their transition risk exposure through the ownership of carbon intensive stocks. However, there is little consensus in the literature regarding the existence of such a premium. Moreover few studies have examined whether the correlation that is often observed is actually causal. The pertinent question is whether more polluting firms give higher returns or do firms with high returns have less incentive to decarbonize? In this study, we investigate whether firms’ emissions is causally linked to the presence of a carbon premium in a panel of 141 firms listed in the S&P 500 index using fixed-effects analysis, with propensity score weighting to control for selection bias in which firms increase their emissions. We find that there is a statistically significant positive carbon premium associated with Scope 1 emissions, while there is no significant premium associated with Scope 2 emissions, implying that risks associated with direct emissions by the firm are priced, while bought emissions are not.

Effects of female CEO and female CFO on internationalization and firm performance

PurposeThe study aims to examine the influence of female chief executive officer (CEO) and female chief financial officer (CFO) on the linkage between internationalization and firm performance.Design/methodology/approachThis study used 2926 firm-year observations of nonfinancial firms listed on the Pakistan Stock Exchange over the period 2012–2021. This study used ordinary least squares regression method to test the hypotheses, and additionally, generalized method of moments estimation and fixed effect analysis were used to check for the robustness of the results.FindingsUsing the framework of upper echelons theory and resource dependence theory, this study reports that internationalization has a positive impact on firm performance. Moreover, the results show that the presence of female CEO and female CFO strengthens the positive relationship between internationalization and firm performance. The results add to the gender diversity literature by highlighting the positive role of female CEOs and female CFOs on the internationalization and performance of firms in a male-dominated society.Originality/valueThis study adds to the limited literature on the internationalization of businesses in an emerging market and provides empirical support to upper echelons theory and resource dependence theory by highlighting the benefits brought to the firm through female CEOs and female CFOs.

The Effect of Informal Caregiving on Depression: An Asymmetric Panel Fixed-Effects Analysis of In-Home and Out-Of-Home Caregivers Across Europe

ABSTRACT Previous research has shown that providing intensive informal care can have a negative effect on an individual’s mental health. However, few studies have been able to draw a precise comparison between the experiences of in-home and out-of-home caregivers. This study used data from 16 countries collected from 2011–2019 as part of the Survey of Health, Ageing and Retirement in Europe (SHARE) to conduct asymmetric panel fixed-effects models that examined within-person variation in depression scores after a respondent started providing daily or almost daily personal care either inside or outside of their home. The results substantiated previous findings that in-home caregivers experience more pronounced increases to their reported depressive symptoms after starting to provide daily personal care than do out-of-home caregivers. In addition, in-home caregivers in countries with greater governmental responsibility for long-term care provision (The Northern and Central Clusters) reported fewer increases to their depressive symptoms after starting to provide care than caregivers in countries where long-term care responsibility predominantly rests on families (The Southern and Eastern Cluster). Further, Northern Cluster countries most successfully shrank the pool of out-of-home care providers. Together, these findings underscore the context-specific nature of caregiver wellbeing.

CEO attributes and borrowing costs: exploring the moderating role of financial literacy

ABSTRACT This study examines the effect of Chief Executive Officer (CEO) attributes on borrowing costs and the moderating role of the CEO’s financial literacy on this relationship. We employed 2926 firm-year observations of non-financial firms listed on the Pakistan Stock Exchange. We used ordinary least squares regression to test the hypotheses and further employed fixed effect analysis, generalized method of moments estimation and two-stage least squares analysis to resolve the possible endogeneity concerns. Our empirical results indicate that CEO age, tenure, ownership and gender are negatively associated with borrowing costs, whereas CEO duality is positively associated with borrowing costs. Furthermore, we report that a financially literate CEO strengthens the relationships in the cases of age, tenure, ownership and gender while it weakens the relationship in the case of CEO duality. Our results provide novel evidence in this context and extend empirical support to upper echelons theory in the case of an emerging economy.

Relative improvements between roads and railways and economic performance: A panel data analysis

Prior studies indicate that expanding the length of roadways and railways has a beneficial effect on economic performance. Nevertheless, the requirement for land transport infrastructure, which offers different degrees of accessibility and mobility, to facilitate economic expansion differs based on a country's stage of development. The present study has two objectives. Firstly, it is essential to ascertain the required investment for different types of land transport infrastructure to facilitate different stages of economic performance. Secondly, the objective is to examine the impact of different forms of land transportation infrastructure on economic performance by means of urbanization and exports. To highlight these concerns, a fixed-effects panel linear regression analysis was conducted on a panel consisting of 50 countries spanning the years 1980–2018. In countries with lower levels of urbanization and exports, improvements to road infrastructure, especially roads with high accessibility, are of greater importance for economic performance compared to the improvement of railways. Nevertheless, as urbanization and exports rise, the comparative impact of improvements in road infrastructure on economic performance in relation to improvements in railway infrastructure diminishes. Railway improvements have a more significant effect on economic performance compared to road improvements, owing to increased urbanization and export rates. During these stages of development, high-mobility roads are more crucial for economic performance compared to high-accessibility roads. The conclusion of the research examined a variety of policy recommendations derived from our findings, which are applicable to different levels of urbanization and exports.

Positive relationship between bird diversity and human mental health: an analysis of repeated cross-sectional data

An increasing body of research has examined the link between biodiversity of birds and human mental health, but most studies only use cross-sectional data. Few studies have used longitudinal or repeated cross-sectional data to investigate the mental health benefits of bird diversity. The aim of this study is to analyse the relationship between bird diversity and mental health at the national level using a unique repeated cross-sectional dataset. I used repeated cross-sectional health data from the German National Cohort health study, collected between March, 2014, and September, 2019, and annual bird citizen science data to investigate the effects of bird-diversity exposure on mental health. Mental health was measured using the summary score of the Patient Health Questionnaire depression module 9 (SumPHQ) and the Short Form Health Survey-12 Mental Health Component Scale. As a proxy for bird diversity, I created a unique indicator called reporting-rate richness and combined it with the health data. Reporting-rate richness measures the number of bird species within postcode areas across Germany in probabilities while accounting for variation in survey efforts. Alternative indicators of bird diversity, such as bird-species richness or abundance, were also calculated. Associations between bird diversity and mental health were estimated using linear regression with region and time fixed effects, adjusted for a range of sociodemographic and environmental confounders and spatial autocorrelation. Interaction terms between income levels and reporting-rate richness were also analysed to examine the moderating effect of socioeconomic status. I did the analyses for an unbalanced (n=176 362) and balanced (n=125 423) dataset, with the balanced dataset comprising only regions (postcode areas) in which health data were available for each year. The linear fixed-effects regression analysis indicated a significant negative association between reporting-rate richness and SumPHQ, as observed in both the unbalanced dataset (β -0·02, p=0·017) and the balanced dataset (β -0·03, p=0·0037). Similarly, regression results with both datasets showed a positive relationship between reporting-rate richness and Mental Health Component Scale (MCS; unbalanced β 0·02, p=0·0086; balanced β 0·03, p=0·0018). The moderator analyses revealed a significant influence of socioeconomic status on the relationship between reporting-rate richness and mental health. The robustness of these findings was confirmed through sensitivity analyses. The results suggest that a greater likelihood of having many different bird species in a person's area of residence might positively contribute to mental health, especially for people with lower socioeconomic status. These findings could have implications for biodiversity conservation and health policy decisions, as governments are facing challenges such as global biodiversity loss and growing public mental health problems. None.

Exploring the multidimensional impact of ICT on academic achievement and mental health: Evidence from a large‐scale survey of higher vocational students in China

AbstractBackgroundHigher vocational education is an essential part of the higher education system that complements conventional education. In the context of information and communication technology (ICT) development and academic competition, more and more literature has proved the importance of ICT use in educational development (academic achievement and mental health) and the relationship between information literacy and the educational development of higher vocational students.ObjectivesBased on one of the most extensive surveys of higher vocational students, the study combined the Opportunity‐Propensity (O‐P) framework and ecological model to explore the direct effects of different types of ICT use on educational development and the indirect effects from psychological and social factors.MethodsThe data involved 28,956 students from seven higher vocational colleges. The class fixed effect and causal mediation analysis models verified the results.Results and ConclusionThe results found differential effects of different types of ICT use on academic achievement and mental health. Information literacy ability can improve the academic achievement of higher vocational students, but at the cost of mental health. ICT use not only directly impacts the academic achievement and mental health, but also has an indirect impact through psychological factors represented by self‐efficacy and technostress and social factors represented by social support.ImplicationsThis study promotes integrating and expanding the O‐P framework and ecological model, enriching the relevant research in ICT use and educational development. Meanwhile, it also provides practical suggestions for realizing rational interventions in ICT use and improving the educational development level of higher vocational students.

Islamic banks' contribution to Indonesia districts' economic growth and poverty alleviation

PurposeThis research investigates the Islamic banks’ intermediation role (e.g. branches and deposits) in financing. It also examines how financing contributes to the regions' economic growth and poverty alleviation as a predictor and mediator variable.Design/methodology/approachA total of 297 observations were extracted from 33 Indonesian districts and 14 Islamic banks during the period 2012–2020. Fixed-effect regression analysis was used to examine variable’s interactions.FindingsThe empirical results indicate that Islamic banks have adopted a channelling role towards redistributing capital from lender to borrower. Besides, there are crucial roles in developing economies and reducing poverty at the district level. This study also reinforces the critical role of financing in mediating the relationship between branches and deposits as predictor variables and GDP and poverty as outcome variables.Research limitations/implicationsThe current study was limited to Indonesian Islamic banks and the district’s perspective. Future research needs to cover sub-districts and other poverty measurements (e.g. human education and development perspectives), including conventional and Islamic banks. It can help practitioners, regulators and researchers observe the dynamic behaviour of the banking sector to understand its role in the economic and social fields.Practical implicationsBank managers and regulators should promote branches, deposits and financing. It also enlightens people about the essential role of Islamic banks and their fundamental operations in business and economics.Originality/valueThis study contributes to economic literature, bank managers and local governments' decision-making processes by developing and testing an economic growth and poverty model.

IMPACT OF E-COMMERCE ON INDONESIA ECONOMIC GROWTH: INTERMEDIATION MODELS WITH FINANCIAL TECHNOLOGY CONSTRAINT

The COVID-19 pandemic triggered economic shocks that adversely affected the global economy. Economic growth contracted significantly. Restrictions on economic activity trigger people's shopping behavior to switch to non-cash and online systems. E-commerce, as one part of digital economic transformation, has experienced a significant increase which impacts the flow of dissemination of ideas, innovations, and information, thus encouraging economic growth. This study analyzes the Impact of e-commerce on economic growth in Indonesia during the COVID-19 pandemic using intermediation models and fixed effect analysis. The results show that e-commerce negatively and significantly impacts economic growth during 2019 and 2021. Because e-commerce stimulates economic growth in a country but needs to be supported by quality infrastructure, quality broadband internet, online security (cyber security), and digital payment systems (e-payment). The variables of online financing, efficiency of government spending, length of schooling, and number of tourists have a positive and significant effect. Meanwhile, the poverty rate and human development index have a negative and significant effect. In maximizing e-commerce activities in Indonesia, strong support and collaboration from the government, financial institutions, and the Ministry of Communication and information technology are needed.

Reducing administrative burdens in an energy bill assistance program

ABSTRACT This article investigates the impact of categorical eligibility, a policy aimed at easing administrative burdens, on outcomes of the Low Income Home Energy Assistance Program. Through two-way fixed effect analyses, the study extends the focus of administrative burden scholarship beyond program take-up and examines the programmatic costs of reducing burdens in a new empirical context – a budget-constrained program. Findings indicate categorical eligibility is associated with boosted enrolment and improved program efficiency, reducing overhead costs and increasing assistance expenditures. However, increased participation relies on sufficient funding, underscoring the need to consider policy designs’ effects on participation and expenditures in budget-constrained programs.

Exploring the nexus between corporate digitalisation and environmental sustainability: The moderating role of slack resources

This paper investigated if high digitalisation exposure allows companies to reduce their environmental impacts. Further, the study also deepened the critical role of available slack resources by analysing their possible moderating effects on the relationship between the firm's higher digitalisation exposure and environmental performance. Adopting the unbalanced panel data approach, the authors performed 5 years fixed-effects regression analysis on a sample of 5,481 non-financial listed companies' data derived from the Refinitiv ESG universe, as well as considering the annual constituents lists of the STOXX® Global Digitalisation index. Findings showed digitalisation positively affects specific environmental performance. Moreover, results highlighted that available slack resources negatively moderate the relationship between the firms' higher digitalisation exposure and the sustainable management of resources in internal business and procurement processes. Accordingly, slack resources could stress the profit maximisation logic penalising corporate sustainability.

Short-term panel data analysis of the effect of flood risk communication on individual evacuation decisions

People-centered risk communication is important to mitigate the flood damage caused by the recent increase in heavy rainfall events in Japan. Longitudinal studies are particularly important for evaluating the effectiveness of risk communication methods; however, current research is insufficient. To address this gap, we conducted a longitudinal study, specifically through four panel surveys conducted over a short period, to investigate the effects of various risk communication methods such as running an evacuation simulation to learn about flood damage, providing information about the evacuation behavior of others, and distributing hazard maps. The results of a fixed effects analysis of the panel data suggest that the impact of risk communication depends on the initial evacuation attitude. In particular, we find that distributing hazard maps had a negative effect on the evacuation behavior of those who initially responded that they would evacuate. This suggests that residents in non-flood-prone areas may have acquired the correct hazard perception from these hazard maps. However, for those who initially chose not to evacuate, receiving the distributed content had a positive effect on their evacuation behavior 12 h before the typhoon hit. This suggests that those who initially chose not to evacuate may have reconsidered their decision. The findings of this study may help future risk communication by reducing congestion at evacuation sites due to excessive evacuation, while increasing the evacuation rate of those who should evacuate.