Panel Data Regression Model Research Articles

Alcohol control policy and alcohol-attributable disease burden in Finland and the Baltic countries: A longitudinal study 1995-2019.

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. The study utilised national laws to score policy restrictiveness (higher BtG-M scores mean stricter policies) and age-standardised rates of disability-adjusted life years (DALY), years of life lost, years lived with disability 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 score and burden of disease. 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. 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.

Mainstreaming Microfinance: Balancing Financial Performance and Outreach

There is an unsolved dilemma in the Sri Lankan microfinance sector: whether microfinance institutions target low-income earners or seek profitability. To contribute to this debate, this research investigates the effect of financial performance on outreach and the effect of outreach on financial performance. Balancing financial performance and outreach of microfinance institutions have been conducted in various countries and regions, but specifically not for Sri Lanka after implementing No.06 of 2016 Microfinance Act. This study used an empirical data set for ten years, from 2010 to 2019. Data was collected from 16 MFIs and the panel data regression model was used for the analysis. According to the results MFIs can achieve financial and social objectives simultaneously when serving a larger number of customers and a high percentage of female borrowers. But providing services to the core poor people diminishes their financial performance. As per the findings, policy makers are required to make a roadmap to protect both customers and organization financial sustainability. This study emphasizes the importance of having a proper reporting system for the microfinance sector and future research may wish to consider more MFIs by considering a long period and future research can occupy financial performance and outreach variables which are good at forecasting.

The Effect of Debt To Equity Ratio (DER) and Cash Ratio on Profitability in Pharmaceutical Companies Listed on the Indonesian Stock Exchange for the 2018-2022 Period

The aim of this research is to examine the relationship between cash ratio, debt to equity ratio, and profitability. This research combines quantitative techniques with an associative descriptive approach. Over a period of five years, samples of financial report data from eleven companies were collected using a census approach. The Chow and Hausman tests are used in selecting the panel data regression model. The data processing tool used is called E-Views 12. The selected model is used to confirm conventional wisdom. This research involves model selection, panel data regression analysis, coefficient of determination, and testing its significance using t and F tests. The results of the research show that the Debt to Equity Ratio (DER) and Cash Ratio have a significant influence on profitability. It was determined that a random effects model was appropriate. The debt to equity ratio (DER) and cash ratio both have a positive effect on profitability, based on the findings of the significance test. However, the impact on profitability is slightly higher

Audit Quality, Board Dynamics, and Tax Strategies: Unraveling the Connections in Pakistan’ Corporate Sector

This study aim is to examine the effect of Demographic characteristics of the board of directors (Women on corporate board, Board size, Auditing firm, Size of a firm, Leverage and return on equity) on Tax Avoidance using a sample of30 big firms from different sectors listed in the stock exchange of Pakistan from 2010 to 2019. The study uses secondary data taken from the Balance Sheet of firms and SCS trade. To analyze the data, the Panel data regression model used to observe the result of the demographic characteristics of the board of directors on tax avoidance. The results indicate that a firm audited by Big-4 reduces the corporate tax avoidance. Additionally, firms with a larger size of board of directors are associated with more tax avoidance. However, the presence of women on the board of directors does not reduce the corporate tax avoidance.

Digitalisasi Mempengaruhi Kinerja Perusahaan: Peran dari Bisnis Model Inovasi (Evidence from Indonesia)

Advances in digitalization provide various opportunities to innovate and create value. It is hoped that this research can be a reference for academics and practitioners that companies need to prioritize investment in digital assets and technology that are integrated in innovative business processes so that they can create value and improve company performance. This research aims to determine the influence of digital operations capabilities and digital integration capabilities through the role of business model innovation in improving company performance. This research method uses purposive sampling on industrial companies in 2020-2022 with 120 data with a panel data regression model. The research results show that digital operational capabilities, digital integration capabilities and efficient business model innovation are not able to mediate digital operational capabilities and company performance. However, the efficiency of the innovation business model is able to mediate the relationship between digital integration capabilities and company performance

THE IMPACT OF PORTFOLIO DIVERSIFICATION ON THE PROFITABILITY OF LICENSED COMMERCIAL BANKS IN SRI LANKA

Licensed commercial banks are essential for ensuring the stability of any country's financial system. According to the 2022 annual report of the Central Bank of Sri Lanka (CBSL), licensed commercial banks collectively held fifty-five percent of total assets. Portfolio diversification stands as a fundamental strategy for mitigating risk and enhancing returns in the banking sector. Thus, this study aims to investigate the relationship between portfolio diversification and profitability within the realm of licensed commercial banks operating in Sri Lanka. The researcher set out to achieve two research objectives by examining the correlation between the diversification index and profitability. Return on Asset and Return on Equity were used as measurement criterion of profitability. The dependent variable, portfolio diversification, was measured using a diversification index derived from the Herfindahl-Hirschman Index (HHI). A sample of ten listed banks was selected out of twenty-four licensed commercial banks. Secondary data were collected from the annual reports of ten listed commercial banks for the period of 2012 – 2022. A fixed effect model was selected among panel data regression models after conducting the F test, LM test, and Hausman test. The study's findings indicate that the diversification index has an insignificant negative impact on ROA and a significant negative impact on ROE. The equity ratio of banks has a negative, insignificant impact on both ROA and ROE. Bank size has a significant and negative impact on both ROA and ROE. Therefore, the findings of the study demonstrate that diversification negatively impacts both ROA and ROE. The findings from this study hold significant implications for both banking institutions and policymakers in Sri Lanka. Understanding the relationship between portfolio diversification and profitability can inform strategic decision-making within banks, guiding them towards more effective risk management practices and resource allocation strategies. In essence, this study contributes to the existing literature by offering empirical evidence and theoretical insights into the impact of portfolio diversification on the profitability of licensed commercial banks in Sri Lanka.

The Impact of Voluntary Reporting on the Creation of Firm’s Value: A Longitudinal Study

The primary objective of this study is to scrutinize the relationship between voluntary reporting and the creation of firm value within the context of Bangladesh. To achieve this, thirty banks listed on the Dhaka Stock Exchange have been chosen as the focal point of investigation, covering the time span from 2016 to 2020. The study relies predominantly on secondary data extracted from the annual reports of the selected banks. The measurement of voluntary reporting is conducted through the utilization of a checklist comprising 116 information items. Panel data regression models are employed to rigorously test the formulated hypotheses. The aggregate-level analysis of voluntary reporting practices reveals an average reporting level of approximately 55.40%. However, the results from the panel data regression analysis indicate that the voluntary reporting level does not exert a statistically significant influence on company value. This research contributes to the existing body of literature by providing empirical evidence that, in the case of a developing country such as Bangladesh, voluntary reporting alone does not lead to a substantial increase in firm value. The findings underscore the importance of considering contextual factors and the specific economic landscape when assessing the impact of voluntary reporting practices on firm value in diverse settings.

Pengaruh Financial Distress, Kompleksitas Operasi dan Auditor Switching Terhadap Audit Report Lag Dengan Ukuran Perusahaan Sebagai Pemoderasi

The aim of this research is to determine the influence of Financial Distress, Company Operational Complexity and Auditor Swithing on Audit Report Lag with Company Size as a moderating variable. The method used in this research is associative quantitative, using secondary data. The population of this research is food and beverage companies listed on the Indonesia Stock Exchange for the 2018-2022 period, namely 72 companies. With the research sample method using purposive sampling with six sample criteria, the total sample used was 19 companies so that the observations amounted to 95 data. Data analysis in this research uses descriptive statistical analysis, panel data regression model estimation, classical assumption testing, hypothesis testing and Moderated Regression Analysis (MRA) using eviews 10. The results of this research are that Financial Distress has an effect on Audit Report Lag, the complexity of company operations has no effect. on the Audit Report Lag, Auditor Swithing cannot influence the Audit Report Lag. And for the moderating variable, company size can only strengthen the relationship between company operational complexity and Audit Report Lag, while company size weakens the relationship between Financial Distress and Audit Report Lag, and company size weakens the relationship between Auditor Swithing and Audit Report Lag

Retail traders and co-movement: Evidence from Robinhood trading activity

We find evidence that retail trading activity by Robinhood traders is associated with lower levels of return co-movement and liquidity co-movement. We demonstrate the significance of these relationships primarily employing a two-way fixed effects panel data regression model covering cross-sectional and time-series observations of US stock trades from May 2018 to July 2020. The findings hold true across various cross-sectional subsamples and across subperiods before and after March 2020, coinciding with the stock market crash induced by heightened risks of the COVID-19 pandemic. With regard to returns, our analysis identifies three co-movement channels: 1) increased correlated trading by retail traders, 2) extended delay in incorporating market-wide information, and 3) a direct effect influenced by the integration of firm-specific information into prices. In contrast, for liquidity co-movement, we fail to identify evidence of plausible channels relating to either volatility or correlated trading. However, it appears that the significant direct effects that we document stem from a broadened array of trading strategies when retail traders contribute to the market. Collectively, these findings have important implications as return co-movement limits investors' ability to diversify investments and manage risks, while liquidity co-movement heightens market vulnerability to crashes.

IMPACT OF CAPITAL STRUCTURE ON PROFITABILITY: AN EMPIRICAL SEARCH

In today's corporate world, every company needs to survive in the long run by becoming financially sustainable. Firms must cope with a variety of financial variables for a successful long-term financial existence, where the two most crucial issues are capital structure and profitability. The finance manager must design the capital structure in such a way so that the company can earn a good profit to satisfy all of its stakeholders. A modest attempt has been made in this study to understand how far profitability is affected by the capital structure design. This study considered 100 manufacturing companies of India's National Stock Exchange (NSE) as the sample companies. The study has been purely based on secondary data, and the required data has been gathered from the 'CAPITALINE' database for a period of 10 years, i.e., from 2011 to 2020. This study considered ROIC ( proxy of profitability) as the dependent variable and leverage (proxy of capital structure) as the independent variable. Besides, some control variables such as firm size, Tangibility, uniqueness, growth, and firm quality have also been taken into account. A dynamic panel data regression model has been used in this study to examine the relationship between profitability and capital structure. The findings of the study clearly revealed that profitability is affected by the choice of capital structure design. KEYWORDS: Capital Structure, Leverage, Profitability, ROIC, Dynamic Panel, NSE

Capital structure and the firm performance nexus: the moderating and mediating roles of agency cost

PurposeThe purpose of this study is to examine the linear and non-linear relationship between capital structure (CS) and firm performance (FP) and the moderating and mediating roles of agency costs in the CS-FP nexus.Design/methodology/approachThis study used static and quadratic panel data regression models to examine the linear and non-linear relationships and structured equation models to analyze the mediating effect of agency costs in the CS-FP nexus of 38 listed non-financial Mauritian firms from 2009 to 2019.FindingsLeverage has a significant negative effect on FP supporting the pecking order theory. Agency costs are significantly and positively associated with FP. There is a strong non-linear relationship between leverage and FP supporting the trade-off and agency cost theories. Agency costs are an important moderator and mediator in the CS-FP nexus. Overall, the sensitivity analyses showed that the results were robust.Practical implicationsFirms need to carefully consider the levels and types of debt and equity in their CS involving the use of dynamic strategies to adjust CS in response to changing economic conditions and FP. The moderating effect of agency costs may guide firms in optimizing CS and may contribute to corporate governance discussions, emphasizing the importance of aligning interests to foster sustainable business practices.Originality/valueThis study adds to the extant literature by providing new evidence on the non-linear relationship between leverage and FP and the moderating and mediating roles of agency costs in the CS-FP nexus in emerging capital markets, where such studies are rare.

Impact of Minimum Wage, Inflation, and Economic Growth on Poverty in Yogyakarta Province

Poverty is a very complex problem caused by many factors. Poverty itself means that individuals lack the ability to fulfill the basic needs of life. Regional autonomy established by Indonesia requires regional governments to manage their respective territories. Yogyakarta Province has the highest poverty rate on the island of Java. Poverty occurs due to microeconomic factors. Minimum wages, inflation rates, and economic growth are among the macroeconomic factors that cause poverty. The aim of this research is to find out how Yogyakarta Province's minimum wage, inflation rate, and economic growth affect the province's poverty level. Panel data regression models are used in this type of quantitative research. Cross-sectional data from districts and cities in Yogyakarta Province for 2009–2023 were used in this study. Based on research findings, the poverty level of DI Yogyakarta Province is largely determined by the minimum wage and economic growth variables, while it is not influenced by the inflation variable.

Exploring the effect of enterprise risk management for ESG risks towards green growth

PurposeDespite the growing emphasis on sustainability and the need to manage environmental, social, and governance (ESG) risks, the direct relationship between enterprise risk management (ERM) and green growth (GG) has not been investigated. This study seeks to fill this gap by examining the effect of ERM on the GG of oil and gas (O&G) companies in Malaysia.Design/methodology/approachThe study used panel data regression models to analyze panel data from 2012 to 2021. For computing GG, we adapted the Organization for Economic Cooperation and Development’s (OECD) GG framework. ERM is computed using COSO and WBCSD guidelines for ESG-related risks. Weighted content analysis is used to measure ERM and GGFindingsThe findings derived from the content and descriptive statistics analyses indicate a consistent and ongoing rise in the adoption of ERM practices over time. However, some companies are still in the initial stages of incorporating ERM to address ESG risks. The study’s findings unequivocally establish a substantial and positive relationship between ERM and GG. ERM drives GG by significantly influencing its environmental and resource productivity dimensions. The study further reveals that the impact of ERM on economic opportunities and policy responses, as well as the natural asset base, is statistically significant, albeit with relatively lower coefficient values.Practical implicationsTo enhance the legitimacy of organizations and foster positive stakeholder relationships, regulators, governments, and policymakers should actively promote the adoption of ERM standards that specifically address ESG risks, as outlined by COSO and WBCSD. This strategic alignment with risk management practices will ultimately contribute to improving green growth for organizations.Originality/valueTo the best of the authors' knowledge, this is the first study examining ERM’s effect on GG. The study adds to the existing literature by focusing on ERM’s role in a company’s GG. It clarifies ERM’s significant effect on diminishing emerging ESG risks and advancing GG

Socioeconomic and territorial dynamics of bullfighting in contemporary Spain

This paper explores the territorial, economic, and social factors that affect the evolution of bullfighting festivities in Spain. Using data from the Ministry of Culture and Sports, we employ panel data regression models to analyze bullfighting celebrations from 2011 to 2019 before the COVID pandemic. The main findings include the significant role of public interest and attendance in bullfights, the heterogeneity of regions responses to the decline in festivities, and the influence of rural depopulation on this decline. Additionally, political factors, particularly support for animal welfare parties, negatively affect bullfighting celebrations, while economic indicators show no significant impact during the study period.

The Influence Of Gravity Model And Intra Industry Trade Factors On Indonesian Tourism Demand From Ten Countries

The health emergency conditions during the Covid-19 pandemic which also had an impact on the global social and economic crisis, the tourism sector was one of the sectors most negatively affected, especially the decline in tourist visits due to the travel restriction policy. This condition also affects the contribution of the tourism sector to the national economy. This research was conducted to observe the impact of factors in the gravity model and intra-industry trade, including relative distance, GDP per capita, tourism sector integration, and exchange rates on tourism demand in Indonesia from ten countries during 2017-2022 on 60 data samples with observation techniques and panel data regression model observations. Results were obtained which stated that the relative distance variable and GDP per capita had a negative effect on Indonesian tourism demand, conversely the integration of the tourism sector had a positive effect on Indonesian tourist demand, while the exchange rate variable had no significant impact on housing tourism demand in Indonesia from ten countries in 2017-2022.

Modelling Mean Years of Schooling (MYS) Districts/Cities of West Kalimantan Province

Mean years of schooling (MYS) is one of the indicators measuring the quality of education in Indonesia, regulated through the nine-year compulsory education policy. West Kalimantan Province is one of the provinces with the lowest MYS rates in Indonesia, with only one out of its 13 districts/cities fulfilling the compulsory education policy. Therefore, research is needed to obtain the best model and understand the factors that influence the MYS districts/cities of West Kalimantan Province. This study uses the Geographically Weighted Panel Regression (GWPR) analysis method, due to the annual changes in MYS numbers indicating time effects in data and differences in MYS numbers in each district/city indicating differences in characteristics between regions. GWPR is a combination of panel data regression model and geographically weighted regression (GWR) model. The results showed that the best model obtained is the GWPR adaptive bisquare model with an AIC value of -147.241 and R2 value of 80.07%. The variables of per capita income, dependency ratio, literacy rate, and the number of schools significantly influence MYS, and four groups of regions are formed based on significant variables.

Informality and Inclusion: Assessing the effects of the Shadow Economy and informal labour in Europe

Abstract The informal economy, often characterized by unregulated and untaxed economic activities, has significant yet understudied implications for sustainable development and inclusivity. This paper explores the influence of the size of the shadow economy and undeclared work patterns (envelope wage, without a formal contract and bogus self-employed) on the Leave No One Behind Index and the Sustainable Development Index developed by the United Nations across European countries from 2000 to 2021. Employing panel data regression models, the research investigates the differential impacts of informality on these indices, revealing a negative correlation with the informal economy and a positive association with various forms of undeclared work. The analysis, comprising 18 models segmented by region – Central and Eastern Europe, Western Europe, and Europe – demonstrates that the adverse effects of the informal economy are more pronounced, whereas the positive contributions of undeclared work patterns are subtler, yet significant. The study’s findings suggest a complex interaction between informal economic activities and sustainable development goals, challenging the conventional perspective on informality and its role in inclusive development. The results indicate that while the shadow economy may hinder broad development efforts, informal labor arrangements support vulnerable populations, underscoring the need for nuanced policy interventions that recognize the multifaceted nature of work and its impacts on development.

The Impact of Digital Financial Services on Financial Inclusion: A Panel Data Regression Method

This paper delves into the intricate relationship between digital financial services (DFS), traditional payment methods (TPM), economic factors, and demographic variables in a quest to enhance financial inclusion. Panel data regression models were employed to analyse the data encompassing credit card access, borrowing, mobile money accounts, electronic payments, and economic and demographic factors. The findings underscore the pivotal role of digital financial services in promoting financial inclusion, particularly mobile money accounts and electronic payments. These services offer cost-effective and efficient alternatives to traditional banking, facilitating greater economic participation. Furthermore, the study reveals the influence of conventional payment methods, with suggestive continuing relevance on a long run. Economic and demographic factors such as age, income, education, and gender emerge as crucial determinants of financial inclusion, emphasising the need for tailored strategies in diverse population segments. Overall, the results are promising with demonstrable statistically significant evidence in the approach to financial inclusion, leveraging digital innovations while addressing various economic factors and demographic groups' needs. The approach seems to guarantee a more equitable, accessible and efficient global financial system to foster economic growth and societal well-being. Thus, the output in this paper will be economically useful to financial institutions, modern digital technology companies and further researchers who aimed to continuously adapt and improve the approach to financial inclusion.

Does community-based health insurance affect lifestyle and timing of treatment seeking behavior? Evidence from Ethiopia

ObjectivesThis paper aims to investigate the effects of enrollment in the Ethiopian community-based health insurance (CBHI) scheme on household preventive care activities and the timing of treatment-seeking behavior for illness symptoms. There is growing concern about the financial sustainability of CBHI schemes in developing countries. However, few empirical studies have identified potential contributors, including ex-ante and ex-post moral hazards. MethodsWe implement a household fixed-effect panel data regression model, drawing on three rounds of household survey data collected face to face in districts where CBHI scheme is operational and in districts where it is not operational in Ethiopia. ResultsThe findings show that enrolment in CBHI does not significantly influence household behaviour regarding preventive care activities such as water treatment before drinking and handwashing before meals. However, CBHI significantly increases delay in treatment-seeking behaviour for diseases symptoms. Particularly, on average, we estimate about 4‒6 h delay for malaria symptoms, a little above 4 h for tetanus, and 10‒11 h for tuberculosis among the insured households. ConclusionsWhile there is evidence that CBHI improve the utilization of outpatient or primary care services, our study suggests that insured members may wait longer before visiting health facilities. This delay could be partly due to moral hazard problems, as insured households, particularly those from rural areas, may consider the opportunity costs associated with visiting health facilities for minor symptoms. Overall, it is essential to identify the primary causes of delays in seeking medical services and implement appropriate interventions to encourage insured individuals to seek early medical attention.

Modeling Economic Growth in Papua Province Using Panel Data

This study aims to determine and analyze simultaneously the effect of Average Years of Schooling, and School Participation Rate on GRDPHB in Papua Province, the type of research used is the panel data regression model. This study uses panel data regression methods, the data used involves a combination of time series and cross-section data. The results showed a positive and significant effect of RLS and TPAK on GRDPHB in Papua Province with an adjusted R Square value of 0.998016 or 99.80%. This finding confirms the importance of focusing on improving the quality of education along with maintaining a high labor force participation rate as a strategy to strengthen Papua's economic base. Thus, human development and strengthening human resources will be the key to sustainable economic growth in Papua.