Panel Data Regression Model Research Articles

Determinants of Labor Migration to International Labor Markets: A Study of Sumatra Island

This research investigates the determinants of labor migration in Sumatera Island, focusing on per capita income, provincial minimum wage, unemployment, and education level using a panel data method with quantitative analysis. The study utilizes Labor Migration as the dependent variable and Per Capita Income, Provincial Minimum Wage, Unemployment, and Education Level as the independent variables. The research focuses on provinces across Sumatra Island, including Aceh, Riau, Bengkulu, Jambi, West Sumatra, North Sumatra, Lampung, South Sumatra, Riau Islands, and Bangka Belitung. The period selected in this study is from 2017 to 2021. The panel data regression model selected for analysis is the random effect model. The estimation results reveal that provincial minimum wages significantly influence Indonesian Labor Migration, while other variables show no significant impact. This finding is further supported by the observation that even in provinces with slightly higher minimum wages, such as Riau and West Sumatra, average wages may not ensure sufficient financial stability for individuals and their families. Consequently, the allure of higher wages in the international labor market becomes a compelling factor for many workers from Sumatra Island, driving them to seek employment opportunities overseas.

The Role Foreign Direct Invesment, Financial Development and Institutions Quality of Economic Growth Empirical Evidence From WANA Countries

Research Aims: The study investigates the impact of foreign direct investment, financial development, and institution quality on economic growth in nations located in western Asia and North Africa Methodology: This study methodology employs a panel data regression model using a fixed effect model (FEM) strategy. The study data is collected using the information that was available between the years 2000 and 2022. The WANA nations include Saudi Arabia, Iran, Israel, Jordan, Kuwait, Lebanon, Morocco, Egypt, Oman, Qatar, Tunisia, and the United Arab Emirates. Research Findings: The findings indicated that foreign direct investment (FDI), financial development (FD), and intellectual quotient (IQ) had an impact on economic growth. Specifically, foreign direct investment (FDI) has a beneficial and statistically substantial impact on economic development, but the quality of institutions has an adverse and statistically substantial impact on economic growth. However, financial development does not affect economic growth. Originality: The grand theory used in this research Economic Growth, Foreign Direct Investment, Institutions Quality, Financial Development, and Export and population growth variables are controlled. variables in this study by testing three variables consisting of independent variables, dependent variables and control variables. Research limitation and implication: The findings in this study suggest that policies implemented by governments, public institutions and academics aimed at increasing FDI, FD, and institutional quality can help improve economic growth in WANA countries.

PENGARUH FEE AUDIT, FINANCIAL DISTRESS, KOMISARIS INDEPENDEN, DAN KOMITE AUDIT TERHADAP INTEGRITAS LAPORAN KEUANGAN

This research aims to examine the influence of audit fees, financial distress, independent commissioners and audit committees on the integrity of financial reports. Audit fees are measured using the natural logarithm of professional fees, financial distress is measured using the debt to equity ratio, independent commissioners are measured using the ratio of the number of members of the company's independent commissioners to the number of members of the company's board of commissioners, audit committees are measured using the comparison of the number of audit committees that come from from the independent committee with the number of audit committee members and the integrity of the financial reports as measured using the market to book ratio. This type of research is quantitative. Based on purposive sampling, the number of sample companies was 29 companies with an observation period of 5 years, so the total sample was 145 data on the property and real estate sectors listed on the Indonesia Stock Exchange (BEI) during the 2018-2022 period. The data analysis used in this research is a panel data regression model using E-Views 12. The results of this research show that partially audit fees and audit committees have no effect on the integrity of financial reports. Financial distress and independent commissioners have a significant effect on the integrity of financial reports. Meanwhile, simultaneously audit fees, financial distress, independent commissioners and audit committees influence the integrity of financial reports. Keywords: Financial Statement Integrity, Audit Fees, Financial Distress, Independent Commissioner, Audit Committee.

Investment Decisions and Firm Value: The Moderating Role of Profitability

Firm value (FV) describes the performance of management in carrying out the work entrusted to them by shareholders related to company management. Shareholders expect Increasing FV because it can achieve the company's goal of maximizing its welfare. The study investigates the influence of investment decision factors and asset turnover (TATO) and the role of Profitability (ROA) as a moderator variable on FV. The research sample includes 32 property and real estate sector companies listed on the Indonesia Stock Exchange (IDX) for 2018-2022. The estimation method applied is a panel data regression model that includes common, random, and fixed effects to test the research hypothesis. Fixed effect model (FEM) estimation based on selected diagnostic tests to test the research hypothesis. Investment decisions proxied by the price-earnings ratio (PER) in the model with ROA moderator, directly without interaction, have a negative impact on FV. Still, the interaction between PER and ROA has a positive but insignificant effect. Conversely, PER does not affect FV without the role of the ROA moderator. TATO, which measures efficiency, positively impacts FV in both models without and with the role of the ROA moderator. On the other hand, TATO has a negative impact on FV if it interacts with ROA. ROA directly without interaction is negatively related to FV. ROA, which acts as a moderator variable, can only moderate TATO negatively on FV.

The Influence of Educational Diversity on Shareholder Value Creation in South African Corporate Boards

This study investigates the influence of board education diversity on shareholder value creation of South African non-financial companies listed on the JSE for the 10 years from 2013 until 2022. In this study, a quantitative quasi-experimental design was used. Data were collected from 2013 to 2022 from 101 non-financial companies listed on the JSE. The final sample consisted of 1010 company-year observations. The study measured board education level diversity using the proportion of board members with master’s degrees, the proportion of board members with PhD and the Blau index for board education level diversity. On the other hand, the proxies of shareholder value creation included the standardised market value added, market-to-book ratio and Tobin’s Q. A fixed effects panel data regression model was employed to estimate the influence of board members’ education diversity measures on shareholder value creation measures. Based on linear models, the proportion of board members with master’s degrees and the proportion of board members with PhDs negatively influence all shareholder value creation measures. In contrast, BI_BED positively impacts all shareholder value creation measures. Concerning curvilinear quadratic models, all board members’ education diversity measures positively and negatively impact all shareholder value creation measures, highlighting an inverted U-shaped effect. This study advances the understanding of the double-edged sword effect of educational diversity on shareholder value creation in South African corporate boards.

THE EFFECT OF CORPORATE POLICIES, BOOK TAX DIFFERENCES AND CARBON EMISSION DISCLOSURE ON EARNING QUALITY WITH INSTITUTIONAL OWNERSHIP AS A MODERATING VARIABLE

This research is a quantitative study which aims to find out how company policy, book tax differences and carbon emission disclosure influence earnings quality which is moderated by institutional ownership in manufacturing companies listed on the Indonesia Stock Exchange in 2022-2023. The number of companies studied in this research was 47 companies with an observation period of 2 years which resulted in a sample of 94 with a sampling method using a purposive sampling method. This research uses secondary data obtained through company financial reports accessed via the website www.idx.co.id. Data analysis uses panel data regression which consists of descriptive statistics, classical assumption tests, selection of panel data regression models, moderating regression analysis tests and hypothesis testing using the Eviews 12 program. The results of the moderating regression analysis analysis show that parsial ly the variables investment policy, dividend policy and debt policy influences earnings quality. The book tax differences and carbon emission disclosure variables have no effect on earnings quality. The variables of dividend policy and debt policy on earnings quality can be moderated by institutional ownership. Meanwhile, investment policy, book tax differences and carbon emission disclosure on earnings quality cannot be moderated by institutional ownership. The results of the coefficient of determination or the influence of the independent variables in this study on earning quality were 38%, while the remaining 62% was influenced by other variables not measured in this regression model.

Pengaruh Net Profit Margin dan Debt to Equity Ratio Terhadap Kebijakan Dividen Perusahaan BUMN di BEI: Studi Kasus Periode 2012-2021

The aim of this research is to discover, explain and conduct analysis regarding the impact of profitability (NPM) and leverage (DER) on the dividend policy of state-owned companies listed on the IDX for the 2012-2021 period. Quantitative methods with descriptive and verification approaches were used in the research. There were 20 state-owned companies that were the population in the research, then a purposive sampling technique was carried out so that 7 state-owned companies were selected that met the criteria. Panel data regression analysis is a data analysis method in research. In panel data regression testing, the results obtained were that the panel data regression model formed was a fixed effect model (FEM). Apart from that, a classical assumption test was also carried out. The research results show that profitability (NPM) and leverage (DER) simultaneously influence dividend policy in state-owned companies listed on the Indonesia Stock Exchange for the 2012-2021 period. Partially profitability (NPM) has no influence and is not significant on dividend policy, while leverage (DER) has an influence and is significant on dividend policy. The results of the analysis of the coefficient of determination show that the profitability (NPM) and leverage (DER) variables of 56.78% can predict dividend policy, while the remaining 43.22% is influenced by other factors not examined in the research.

The effect of good corporate governance on financial performance in banking companies listed on the Indonesia stock exchange

This research was conducted by a banking company listed on the Indonesia Stock Exchange. The purpose of the study is to find out and analyze the influence of Good Corporate Governance on financial performance in banking companies listed on the Indonesia Stock Exchange. Good Corporate Governance in this study is measured by the Independent Board of Directors, Independent Board of Commissioners, Managerial Ownership and Audit Committee. Meanwhile, Financial Performance is measured by return on assets (ROA). The number of samples in this study is 120 financial statements. The research was conducted from 2021 to 2023. This study uses quantitative data processed with the Eviews application with a linear regression model of panel data. The data source used is secondary data taken from the Indonesia Stock Exchange website. The results of the study show that the Independent Board of Directors partially has a positive but not significant effect on ROA. The Independent Board of Commissioners has a significant positive effect on ROA. Managerial ownership has a significant positive effect on ROA. The Audit Committee has a significant positive effect on ROA. Meanwhile, simultaneously the Independent Board of Directors, the Independent Board of Commissioners, Managerial Ownership and the Audit Committee simultaneously had a significant positive effect on the ROA variable. The amount of influence contribution is 84.82%.

Analysis of Factors Affecting the Import and Export of New Energy Products

With global warming and climate change becoming more and more serious, countries around the world have begun to pay attention to emission reduction and environmental protection, and the concept of ‘dual carbon’ has further penetrated into people's hearts, bringing new opportunities for the export of power lithium batteries from China. This paper aims to conduct a digital analysis of the export trade of the top seven countries (regions) in terms of the volume of power lithium battery trade in China, and to explore the influencing factors of the export volume of power lithium batteries from China. This paper first conducts a contour analysis based on the data fluctuations of five indicators in 32 provinces (excluding Hong Kong, Macao and Taiwan) from 2019 to 2021: total carbon dioxide emissions (mt), lithium iron phosphate production (10,000 tons), lithium battery electrolyte (10,000 tons), two-wheeled electric vehicles (100,000 vehicles), and lithium battery separators (10,000 tons). The final conclusion is that the ‘dual carbon’ background has a significant impact on China's power lithium battery industry. Furthermore, based on a panel data regression model, the factors affecting trade between China and the major countries (regions) exporting power lithium batteries are explored in depth. The results of the analysis found that the power generation, economic freedom, number of charging piles, population size, and per capita GDP of the exporting countries significantly affect the export volume of power lithium batteries in China. Among them, the population size and per capita GDP growth rate of the exporting countries have a negative impact, while the rest have a positive impact on the export volume of power lithium batteries in China.

Do CSR practices affect perceived market performance through compliance status? Evidence from a quasi-natural experiment in India

PurposeThe study examines the impact of corporate social responsibility (CSR) non-compliance on firm value. It also investigates the moderating roles of ownership concentration and research and development (R&D) intensity in this relationship.Design/methodology/approachFor hypothesis testing, the authors utilized panel data regression models on a dataset comprising 13,760 firm-years listed on the Bombay Stock Exchange, covering a period of nine years following the legislation (from March 2015 to March 2023).FindingsOur findings reveal a detrimental effect of mandatory CSR spending on the value of non-compliance firms, consistent with the notion of deterrence theory. Further, we find that the negative impact is more pronounced among widely-held firms compared to closely-held firms, aligning with shareholder activism and information asymmetry theory. Our subsequent tests indicate that R&D intensity mitigates the negative impact, indicating a substitution relationship between CSR and R&D expenditure. Consistent with this finding, we find a lesser negative impact of CSR non-compliance on firm value of widely-held R&D intensified firms. Our findings are robust to the problem of endogeneity and self-selection bias.Practical implicationsOur findings highlight practical implications for managers regarding performance management. Managers should recognize that mandatory CSR spending can negatively impact performance, especially in widely-held firms, leading to shareholder dissatisfaction. To mitigate these effects, increasing R&D investment is likely to buffer against the adverse impacts of CSR mandates. Firm managers should align R&D efforts with CSR obligations to counterbalance costs and manage shareholder expectations, thereby maintaining performance and enhancing the perception of innovation among stakeholders.Originality/valueIt is the first study to consider the degree of compliance within firms while examining the impact of mandatory CSR spending on firm value. Also, the study is among pioneer attempts to investigate the moderating role of ownership structure and R&D intensity on the relationship.

The impacts of World Governance Index on Global Peace Index between 2008 and 2022

PurposeWhile many factors contribute to peace, economic and governmental factors are considered essential litmus tests for determining peace levels. This study aims to examine the impacts of World Governance Index (WGI) variables on the Global Peace Index (GPI) which ranges from 0 (very high) to 5 (very low).Design/methodology/approachThe GPI serves as a key indicator of peace levels. Valid data from two databases covering 161 countries from 2008 to 2022 were collected and analyzed by using a logarithmic panel data regression model. This approach ensures robust results, particularly when endogenous and exogenous variables have different measurement units.FindingsAccording to the Feasible Generalized Least Squares (FGLS) estimators, five WGI components exhibit inverse relationships with the GPI (increasing WGI components leads to a decline in GPI, indicating an enhancement in peace quality). The most significant factor influencing peace is “Political Stability and Absence of Violence/Terrorism”, while the effects of “Voice and Accountability” and “Control of Corruption” are also noted.Originality/valueExtant studies have largely overlooked the interaction between governance and peace, often relying on regional data (with neighboring countries) or case studies on local solutions. This paper, based on data from 161 countries, evaluates governance quality and its dimensions in relation to peace conditions on a global scale, providing more generalizable results for policymakers and scholars.

The role of Sharia compliance in moderating the indirect influence of board diversity on roe mediated by Zakat disclosure

This study aims to examine the moderating role of Sharia compliance on the relationship between the diversity of the Board of Directors, Board of Commissioners, and Sharia Supervisory Board and Return on Equity (ROE), with Zakat Disclosure as a mediating factor. The research is grounded in agency theory, stakeholder theory, and legitimacy theory, focusing on how board diversity and Sharia compliance influence corporate governance and financial performance, specifically in the context of Islamic banking. The study utilizes a sample of Islamic commercial banks listed with Bank Indonesia. Data from the banks' annual reports and financial statements between 2013 and 2023 are analyzed using a panel data regression model. Multi-Group Analysis (MGA) is employed to test the moderating effects of Sharia compliance on the indirect relationships between board diversity and ROE, mediated by zakat disclosure. The results show that Sharia compliance moderates the relationship between the diversity of the Board of Directors and ROE, with zakat disclosure acting as a mediator. However, Sharia compliance does not moderate the relationship between the diversity of the Board of Commissioners and Sharia Supervisory Board with ROE, as mediated by zakat disclosure. The research provides insights for Islamic banks, highlighting the importance of Sharia compliance and board diversity in enhancing financial performance through zakat disclosure. The findings can inform regulators and practitioners in improving corporate governance practices within Islamic financial institutions. This study contributes to the literature by offering new evidence on the role of Sharia compliance in the governance-performance relationship, particularly the indirect effects through zakat disclosure, and how this dynamic operates within the unique framework of Islamic banking.

Corporate Social Responsibility and Country Governance: An International Comparative Study Amid the COVID-19 Pandemic

This paper assesses the association of ESG scores with stock returns and highlights the moderating role of the COVID-19 pandemic and the country’s governance. The study uses panel data regression models to assess the relationship between ESG factors and stock returns, focusing on the moderating role of country governance and the COVID-19 pandemic. The results reveal that governance quality significantly enhances the positive effects of ESG practices on returns, particularly during times of crisis. These suggest that higher overall ESG scores are related positively to financial performance, and this relation is enhanced during the COVID-19 pandemic. Specifically, the two dimensions of ESG that matter most are environmental and governance. Country-level governance is important because firms in well-governed countries amplify the benefits of high ESG scores. The opposite is true for the higher controversies scores, whose bad financial outcome is magnified during the pandemic. These results present an argument for the resilience of firm financial performance, dependent on strong ESG practices and governance frameworks. This holds great interest for investors and policymakers in associating good ESG considerations with the effective management of financial risks, leading to sustainable returns during periods of widespread economic uncertainty.

Air cargo transport and economic development in emerging economies: A case study of Brazil with panel data analysis

Air cargo transportation accounts for less than 1% of the global trade volume, yet it represents approximately 35% of the total value of goods transported, highlighting its strategic importance in trade and economic development. This study investigates the relationship between domestic air cargo transport in Brazil and key macroeconomic variables, focusing on how regional economic dynamism, logistical infrastructure, and population density impact the country’s development. Using a panel data regression model covering the period from 2000 to 2020, the study analyzes the evolution of air cargo transportation and its role in redistributing economic growth across Brazil’s regions. The findings emphasize the key factors influencing the air cargo sector and demonstrate how these factors can be leveraged to optimize public policies and business strategies. This research provides valuable insights into the relevance of air cargo transportation for regional and national development, particularly in emerging economies like Brazil, offering guidance for the formulation of strategies that promote balanced economic growth across regions.

Long-Term Impact of Mergers and Acquisitions on Firm Performance: A Panel Data Study

Purpose - This study aims to examine the long-term impact of mergers and acquisitions (M&As) on firm performance, particularly within the pharmaceutical industry. Using a panel data regression model, the study assesses how key financial ratios such as Net Profit Margin, Return on Capital Employed (ROCE), Debt to Equity Ratio, and Enterprise Value influence postmerger firm performance over time. Design/methodology/approach - A panel data approach has been conducted using data from 10 pharmaceutical companies from their post-merger period, focusing on the effects of M&As on firm performance as measured by Net Profit Margin. Financial ratios related to profitability, liquidity, and valuation were used as independent variables. Findings - The study finds that M&As have a positive long-term impact on firm performance, particularly in companies with strong Earnings per Share (EPS), efficient capital management, and good liquidity. ROCE, Debt to Equity Ratio, and Current Ratio were significant predictors of improved Net Profit Margin, highlighting the importance of financial efficiency and debt management in the post-merger phase. Research limitations/implications - The focus on the pharmaceutical industry limits the generalizability of the findings to other sectors. Future studies should examine a broader range of industries to better understand the effects of M&As across different contexts

Alcohol policy and alcohol-attributed disease burden in Finland and the Baltic countries 1995-2019

Abstract Introduction Alcohol remains a significant contributor to mortality and morbidity in Finland and the Baltic countries, particularly among men. This study aimed to assess alcohol policy restrictiveness in this region from 1995 to 2019 using a modified version of the Bridging the Gap (BtG-M) policy scale and examine its association with alcohol-related disease burden. Methods The study utilised national statutory laws to score policy restrictiveness (higher BtG-M scores mean stricter policies) and age-standardised rates of disability-adjusted life years (DALYs), years of life lost (YLLs), years lived with disability (YLDs) and deaths per 100,000 from the 2019 Global Burden of Disease Study (GBD). Spearman correlation tests and panel data regression models were applied to assess the association between policy scores and burden of disease. Results Finland maintained a high BtG-M score, while the Baltic countries experienced recent increases from initially lower scores. Alcohol-related disease burden showed an inverse association with policy changes in these countries. Strongest association was seen between the BtG-M score and DALY rates attributed to injuries. Premature mortality among men constituted the largest proportion of disease burden. Discussion and Conclusions Despite challenges in accessing and comparing policy data over time, we showed a strong association between alcohol policy and alcohol-related harm in Finland and the Baltic countries. This study is one of the first to use the BtG-M scale to monitor changes in alcohol policies over time and their relationship to alcohol-related harm using GBD methodology. The study highlights the effects of national alcohol policies on levels of alcohol-related harm. Key messages • This study stands out due to its longitudinal study design, which quantitatively compares the level of alcohol policy restrictiveness in Finland and the Baltic countries from 1995 to 2019. • Our study suggests that shifts towards more restrictive alcohol policies are linked to reduction in alcohol-related harm in Finland and the Baltic countries.

DETERMINAN PERTUMBUHAN PENYALURAN KREDIT MODAL KERJA DI BANK KBMI 4 PADA TAHUN 2011-2021

The purpose of this study is to analyze the influence of Non-Performing Loan, third-party funds, Net Interest Margin, and Gross Domestic Product per capita on the growth of working capital loan banks in KBMI category 4 period 2011-2021. This research employs secondary data acquired from banks in the Buku Empat Category between 2011 and 2021. To analyze the data, a panel data regression model was utilized, with eviews13 serving as the research instrument. The findings of this study show that net interest margin and third-party funds have a positive and statistically significant impact on Working Capital Loan growth. Additionally, this study demonstrates that the mandatory reserve requirement (GWM) significantly and negatively impacts Working Capital Loan growth. In contrast, neither the unemployment rate nor the GDP per capita have a substantial impact on KMK growth.

Analisis Pengaruh Beban Pajak Kini, Beban Pajak Tangguhan, dan Aset Pajak Tangguhan Terhadap Manajemen Laba

This study aims to empirically determine the effect of current tax burden, deferred tax burden, and deferred tax assets on earnings management in automotive companies listed on the Indonesia Stock Exchange (IDX) during the 2018-2022 period. The research method used is a quantitative research method. The data used are secondary data, namely financial statements registered on the Indonesia Stock Exchange (IDX) from 2018 to 2022. The sample was selected using purposive sampling. Based on the determined criteria, a total of 6 automotive companies listed on the Indonesia Stock Exchange (IDX) from 2018 to 2022 were obtained. The analysis techniques used in this study are panel data regression analysis, panel data regression model testing, classical assumption testing, and the coefficient of determination test. The results of this study indicate that the current tax burden affects earnings management, while the deferred tax burden and deferred tax assets do not affect earnings management. Furthermore, the study found that simultaneously, the current tax burden, deferred tax burden, and deferred tax assets affect earnings management.

Analisis Pengaruh Beban Pajak Kini, Beban Pajak Tangguhan, dan Perencanaan Pajak Terhadap Manajemen Laba

This research aims to determine empirically the influence of current tax burden, deferred tax burden and tax planning on earnings management in automotive companies listed on the Indonesia Stock Exchange (BEI). during the 2018-2022 period. The research method used is a quantitative research method. The data used is secondary data, namely financial reports listed on the Indonesia Stock Exchange (BEI) in 2018-2022. The sample was selected using the purposive sampling method. Based on predetermined criteria, there were 6 automotive companies listed on the Indonesia Stock Exchange (BEI) in 2018-2022. The analysis techniques used in this research are descriptive statistical analysis, panel data regression model testing, classical assumption testing, panel data linear regression testing, and hypothesis testing. The results of this research show that current tax burden and tax planning have an effect on earnings management, while deferred tax burden has no effect on earnings management. Then research simultaneously current tax burden, deferred tax burden, and tax planning influence on earnings management.

Determinants of Inflation Rate Fluctuations in Five ASEAN Nations

This paper examines the key relationships between independent variables and inflation fluctuations in the ASEAN-5 countries, which include Malaysia, Indonesia, Singapore, Thailand, and the Philippines. Using annual data from 2001 to 2020, a static panel data regression model is employed. The empirical results reveal that at least two independent variables significantly impact inflation rates in these five ASEAN nations. Specifically, the unemployment rate has a significant negative correlation with inflation fluctuations, while economic growth shows a significant positive correlation. Overall, this study provides valuable insights into how exchange rate determinants influence inflation fluctuations, highlighting the importance of balanced policies to address the interactions between unemployment, economic growth, and inflation.