Panel Data Regression Model Research Articles

The Influence Of Village Funds And Allocation Of Village Funds And Financial Assistance On Poverty Alleviation In East Kalimantan Province

The aim of this research is to determine and prove the effect of providing village funds, allocation of village funds and provincial financial assistance on the level of welfare of village communities in districts throughout East Kalimantan as viewed from a development economics perspective. The analytical method used in this research is a panel data regression model. Data processing techniques were carried out using the Eviews 7.0 computer program. The research results show that Village Funds have a positive and significant effect on poverty alleviation. This means that the greater the distribution of village funds, the more poverty alleviation programs in the village will increase; Allocation of village funds has a significant positive effect on poverty alleviation. This means that the greater the distribution of village fund allocations, the more poverty alleviation programs in the village will increase; Provincial financial assistance has a significant positive effect on poverty alleviation. This means that the greater the distribution of provincial financial assistance, the more poverty alleviation programs will increase; Village funds, village fund allocation and provincial financial assistance simultaneously have a significant effect on poverty alleviation. This means that the distribution of village funds, allocation of village funds and provincial financial assistance have a significant impact on poverty alleviation in villages.

Investigating the impact of artificial intelligence development on water pollution in China

Analysing the impacts of AI development on water pollution is of great significance for improving water environment management measures and promoting global sustainable development. In this study, macro and micro panel data of China from 2008 to 2019 were used to measure the development level of AI at the industry and provincial levels in China, and a panel data regression model was constructed to analyse the effects of AI development on water pollution and regional heterogeneity. The measurement results show that the development level of AI is increasing. Among the six industries, the intelligence level of the manufacturing industry has developed the fastest, by approximately 48.74 times compared with the baseline. At the provincial level, Guangdong Province made the greatest progress in intelligence level, increasing by approximately 23.6 times. The regression results show that AI technology is helpful in reducing the level of water pollution, and this conclusion remains valid after the regression of instrumental variables and robustness testing. In terms of regional heterogeneity, AI technology can significantly reduce the degree of water pollution in eastern and western China. However, the development of AI technology in the central region has no significant impact on water pollution, and a risk of increasing the degree of water pollution exists. The reasons may be that the eastern region has high levels of economic vitality and technological innovation and a strong ability to transform AI achievements, which can significantly improve the water environment. Industrial support policies in the western region are strong, and the application of AI can quickly improve production methods and significantly reduce water pollution levels. In comparison, the levels of economic development, technological innovation, and policy support in the central region need to be strengthened, so the environmental effect of AI is not significant.

Oil Price and Corporate Social Responsibility Disclosure (CSRD): Evidence from Indonesian Energy Companies

This study aims to examine the effect of world oil prices and other fundamental factors, which consist of the exchange rate, inflation, return on assets (ROA), debt to equity ratio (DER), and current ratio (CR) to the disclosure of corporate social responsibility (CSRD). The research sample is seven mining sector companies listed on the Indonesia Stock Exchange during 2017-2022. The estimation method and data analysis used a panel data regression model. The study's empirical findings show that world oil prices, exchange rates, inflation, and ROA positively affect CSRD, while DER and CR have the opposite effect. Macroeconomic variables, including world oil prices, exchange rates, and inflation, significantly encourage mining sector companies to disclose CSR more broadly. The increasing liquidity causes limited CSRD and leverages financial performance, while the profitability of the impact is different.

Can Crisis Periods Affect the ESG Reporting Scope? The Portuguese Euronext Entities Case

Portuguese companies are increasingly responding to the demand of stakeholders for transparent information about companies’ environmental, social, and governance (ESG) performance by issuing non-financial reports (NFRs). While the number of NFRs published annually has been increasing over the last two decades, their quality and companies’ ESG performance have been questioned, especially in times of crisis. To address these concerns, several jurisdictions have introduced mandatory NFR rules, such as the European Directive 2014/95/EU. Employing an institutional theory lens, this paper’s research objective is to evaluate whether the last decade’s crises and whether the fact that NFRs became mandatory for certain entities positively affected companies’ activities covered in the ESG reporting scope. We used panel data regression models on 45 listed companies in Portugal during the period 2008–2021. Our results show that the ESG reporting scope is not positively influenced by the transition from NFRs to a mandatory and global financial crisis (GFC). However, the COVID-19 crisis positively affected NFR quality. These results have major implications for practitioners, reflecting the importance of promoting these tools in an organization to improve non-financial performance and companies’ sustainability.

Corporate Governance, Financial Performance and Macroeconomics: The Impact on Bank Profitability Information

Banks are institutions with stringent regulations related to corporate governance implementation and the demand for high financial performance. Macroeconomic conditions significantly affect the financial performance, including profitability, of banks. The study focused on Indonesia's four state-owned banks, Bank Tabungan Negara (BBTN), Bank Negara Indonesia (BBNI), Bank Rakyat Indonesia (BBRI), and Bank Mandiri (BMRI). The research sample or saturated sample was the entire population. The 10-year observation period ran from 2011 to 2020. The panel data regression model with a common effect was used to evaluate the data. The data showed that CGPI and LDR had no discernible impact on profitability. While NPL and FOREX had a large negative impact on profitability as evaluated by ROA, CAR, NIM, SIZE, and BIRATE had a significant positive impact. All independent factors simultaneously have a major impact on profitability. All independent factors were able to explain their impact on profitability to a degree of 94.39%, according to adjusted R-squared, while other variables outside the model were responsible for the remaining effects.

Do enterprises adopting digital finance exhibit higher values? Based on textual analysis

In this paper, we investigate whether enterprises adopting digital finance exhibit higher values. Based on the Management Discussion and Analysis (MD&A) sections of annual reports, we employ textual analysis and machine learning techniques to construct an indicator of the degree to which enterprises apply digital finance. We utilize panel data regression and mediation models based on data of Chinese A-share listed companies from 2016 to 2022 and explore the impact of this degree of digital finance application on enterprise value. We find that the degree to which enterprises apply digital finance elevates their values. The in-depth integration of digital technology and finance directly enhances enterprise value by reducing financing costs. Additionally, the effects are more evident among small-scale firms and enterprises in regions with lower marketization. However, in the face of the impact of the COVID-19 pandemic, the positive effects on enterprises are relatively low.

Pengaruh Perencanaan Pajak, Aset Pajak Tangguhan dan Beban Pajak Tangguhan terhadap Manajemen Laba

This research aims to analyze and test the influence of tax planning, deferred tax assets and deferred tax expenses on earnings management. The population in this research is non-cyclical consumer companies listed on the Indonesia Stock Exchange (BEI) in 2018-2022. The method used in this research is a descriptive research method with a quantitative approach using secondary data, namely in the form of financial reports and annual reports. The sampling technique in this research is purposive sampling. Based on predetermined criteria, a total of 26 Consumer Non-Cyclicals companies were listed on the Indonesia Stock Exchange (BEI) for the 2018-2022 period. The analysis techniques used in this research are descriptive analysis, panel data regression model testing, classical assumption testing, multiple linear regression testing and hypothesis testing. The results of this research show that deferred tax planning and deferred tax expenses have no effect on earnings management. Meanwhile, deferred tax assets have an effect on earnings management. Then, simultaneous research on tax planning, deferred tax assets and deferred tax expenses influences earnings management.

What Is the Relationship between Corporate Social Responsibility and Financial Performance in the UK Banking Sector?

This study rigorously investigates the intricate dynamics between Corporate Social Responsibility (CSR), quantified through Environmental, Social, and Governance (ESG) scores, and financial performance (FP), measured via the return on assets (ROA) and return on equity (ROE), within the UK banking sector. Our analysis is based on a comprehensive dataset from Bloomberg. This research encapsulates data from 32 banks publicly listed on the London Stock Exchange over a six-year span from 2017 to 2022. Employing panel data regression models while controlling leverage and bank size, we delve into the relationship between banks’ CSR engagements, as reflected in their ESG scores, and their financial outcomes. Our findings indicate a negative correlation between the ESG score and both the ROA and ROE, suggesting that elevated CSR commitments may inversely impact short-term financial returns. This finding not only challenges prevailing narratives within the sector but also fosters a crucial discourse on the balance between ethical banking practices and profitability. The implications of this research study are manifold, extending to policymakers, banking executives, and investors, suggesting a revaluation of CSR strategies in alignment with long-term value creation and sustainable banking. This study not only enriches academic discourse on CSR within the financial sector but also serves as a beacon for future inquiries into the evolving landscape of responsible banking, advocating for a nuanced understanding of CSR’s role in shaping the financial and ethical contours of the banking industry.

Regresi Data Panel Indeks Pembangunan Manusia Provinsi Kepulauan Bangka Belitung

The Human Development Index (HDI) isused as tool to measure the success or failure of program aimed at improving the quality of human life. Itserves as determinant of the level of development of a country or region.. in this research, panel data is utilized in the form of a combination of cross-section and time series. This type of data can provide insights into two types of information: inter-unit and inter-time information. Panel data regression is a regression with a data structure in the form of data on the diversity of location aspects alone but also influenced by other factors. The purpose of this study was to determine the factors that affect the quality of life in the Bangka Belitung Islands Province. As a result of this study, the best panel data regression model uses the Random Effect Model (REM). Life expectancy variables, average years of schooling, expected years of schooling and per capita expenditure were able to explain HDI in the Bangka Belitung Islands Province by 99.80%. The panel data regression equations are IPMit = 4.904 + 0,488 UHHit + 1,322 RLSit + 1,004 HLSit + 0,000 PPit.Keywords: HDI, Random Effect Model, Panel Data Regressioan.

Pengaruh Profitabilitas, Solvabilitas, dan Aktivitas terhadap Nilai Perusahaan dengan Ukuran Perusahaan Sebagai Variabel Moderasi Pada Perusahaan Makanan dan Minuman Yang Terdaftar di Bei Tahun 2017-2022.

This research aims to analyze the effect of profitability, leverage and activity on company value with company size as a moderating variable. This research is a causal associative research with a quantitative approach. In this research, sample selection was carried out using a purposive sampling method which focused on food and beverage sub-sector companies listed on the Indonesia Stock Exchange during the 2017-2022 research period. By considering the established criteria, the sample was obtained from 28 companies from 46 companies so that the research data analyzed amounted to 168 observations. In this research, the panel data regression model is applied using the Fixed Effect Model (FEM) approach, while testing the moderating variables is carried out using Moderated Regression Analysis (MRA). The model data analysis utilizes the Eviews version 12 program. The research results show that profitability has a positive and significant effect on company value. Leverage has a positive and significant effect on company value, and activity has a positive and insignificant effect on company value. Company size is unable to moderate the influence of profitability, solvency and activity on company value

The Influence of Net Profit Margin, Return on Asset, Current Ratio, Price Earning Ratio, Solvency Ratio on Market Price

This study aims to analyze the influence of Profit Margin, Return on Assets, Current Ratio, Solvency Ratio on Market Price. Information about company share prices is related to these 5 variables. The data used in this research is the Consumer Good Industry Company (CGIC) which has complete data related to these variables so that the sample obtained is 13 companies in 2019-2022. The data analysis technique used in this research is the selection of a panel data regression model with the Chow test, Hausman test, large range multiplier (LM) test, and parameter significance test. The test results can be concluded that Net Profit Margin (NPM) has a significant effect on Market Price (MP) while Return on Assets (ROA), Current Ratio (CR), Price Earning Ratio (PER), Solvency Ratio (SR) do not have a significant effect on Market Price (MP).

Trách nhiệm xã hội và hiệu quả tài chính của các ngân hàng thương mại niêm yết: Bằng chứng thực nghiệm tại Việt Nam

This article employs panel data regression model to investigate the impact of Corporate Social Responsibility (CSR) on the Corporate Financial Performance (CFP) of 29 listed commercial banks in Vietnam from 2016 to 2022. The research results reveal the positive influence of CSR on ROE and ROA, whereas the relationship between CSR and Tobin’s Q demonstrates a non-significant negative impact. Based on these findings, the study provides recommendations and policy implications to enhance awareness of CSR and establish encouraging policies and support for implementing CSR in the business operations of financial institutions.

FAKTOR-FAKTOR YANG MEMENGARUHI NILAI PERUSAHAAN PADA PERUSAHAAN MANUFAKTUR TAHUN 2017 – 2019

Firm value is a benchmark for investors to invest their capital in the company. This study aims to examine the effect of intellectual capital, financial perfomance, sales growth, and firm size toward firm value. Sample was selected using purposive sampling method. The total sample is 120 manufacturing companies listed on the Indonesia Stock Exchange during the period 2017 to 2019, where each period consists of 40 companies, which are processed using Eviews 12. The results of the model feasibility test indicate that this study uses a random effect model as a panel data regression model. The results of this study based on multiple linear regression analysis stated that intellectual capital and sales growth have an insignificant influence on firm value, and financial perfomance and firm size have a significant influence on firm value.

Ethnicity, social connectedness, and the rural-urban food continuum: Food security among urban informal settlement dwellers in Kenya

Rapid urbanization in developing countries is increasingly becoming an important development issue due to its negative effects on poverty and food insecurity in cities. This study investigated the determinants of the food insecurity gap among urban households living in informal settlements in Nairobi, Kenya, and the role of social connectedness and the rural-urban food continuum. Using panel data collected from 385 households using a two-stage cluster sample design, the study applied panel data regression and decomposition models to understand the factors affecting food insecurity access scores and weekly household food consumption expenditure. Descriptive results showed a score of 8.00 for the pooled sample on the household food access scale, with households from other regions having a lower score (7.94) than those from the Western region (8.32). 43 % of households from Western Kenya engaged in farming in rural areas (43 %) and had higher social connectedness (45 %) than households from other regions. The results indicate that dependency ratio, income, savings, social connectedness, rural visits, and dietary knowledge are significant factors impacting food security. Decomposition of levels and change in food insecurity revealed that endowments from the random effects model contributed to reducing the food insecurity gap between households originating from the Western region and those from other regions. The study highlights the importance of considering regional factors and promoting social connectedness and rural-urban linkages in addressing food insecurity in informal urban settlements.

The Role of Green Banking Implementation in Sharia Banking Performance from an Islamic Perspective

The aim of this research is to determine the effect of implementing green banking on the profitability of Islamic commercial banks in Indonesia and the concept of green banking from an Islamic perspective. This research was conducted at Islamic commercial banks registered with the Financial Services Authority (OJK) for the 2016-2022 period. The population in this study consisted of 12 Islamic commercial banks. The sample selection used a non-probability sampling method with a purposive sampling technique and a sample of 8 Islamic commercial banks with 7 years of observation was obtained so that 56 research data were obtained. The hypothesis testing method in this research uses a panel data regression model with a Fixed Effect Model (FEM) approach using the EViews program. The urgency of this research is to see the impact of implementing green banking on Sharia banking performance, especially from an Islamic perspective. The research results show that Green Banking practices have a negative and insignificant effect on Sharia banking performance.

Impact of ESG Disclosure Score on Firm Value: Empirical Evidence From ESG Listed Company in Indonesia Stock Exchange

The trend in ESG investment was responded to by the Indonesia Stock Exchange, which released four ESG indexes. ESG indexes consist of the companies that have a better concern in ESG. Each ESG index has its positive or negative performance compared to the combined stock index. This research aims to determine the impact of ESG Disclosure on firm value. The sample of this research covers 55 companies that have been listed in the ESG index in the 2017–2021 period. The data is collected from the Bloomberg database and processed with a panel data regression model using Stata 17. The finding of this research is that there is a positive but no significant impact between the ESG Disclosure Score and firm value. This finding will contribute to the previous study about the disclosure information of non-financial information and its impact on the firm’s value in the market.

Role of potential power: The effect of part-time board secretary on merger decisions

Based on the data of Chinese A-share listed companies from 2009 to 2018, this study employs panel data regression model and instrumental variables approach to investigate the impact of part-time board secretaries who also hold positions as other senior executives on merger decisions and performance. We find that compared with companies with full-time board secretaries, listed companies with senior executives concurrently serving as board secretaries are more likely to initiate mergers, initiate more mergers, while the positive effect on long-term merger performance is limited to only one year after the merger. Moreover, the impact of part-time board secretaries on merger decisions or performance is more significantly when the deputy general manager concurrently serves as the board secretary, while there is almost no significant impact when the board director or CFO is the board secretary. Finally, this study further explores the mechanisms by which part-time board secretaries influence their merger decisions from a relative remuneration perspective, confirming that the power behind the executives is an important factor driving merger transaction.

A Pretest Estimator for the Two-Way Error Component Model

For a panel data linear regression model with both individual and time effects, empirical studies select the two-way random-effects (TWRE) estimator if the Hausman test based on the contrast between the two-way fixed-effects (TWFE) estimator and the TWRE estimator is not rejected. Alternatively, they select the TWFE estimator in cases where this Hausman test rejects the null hypothesis. Not all the regressors may be correlated with these individual and time effects. The one-way Hausman-Taylor model has been generalized to the two-way error component model and allow some but not all regressors to be correlated with these individual and time effects. This paper proposes a pretest estimator for this two-way error component panel data regression model based on two Hausman tests. The first Hausman test is based upon the contrast between the TWFE and the TWRE estimators. The second Hausman test is based on the contrast between the two-way Hausman and Taylor (TWHT) estimator and the TWFE estimator. The Monte Carlo results show that this pretest estimator is always second best in MSE performance compared to the efficient estimator, whether the model is random-effects, fixed-effects or Hausman and Taylor. This paper generalizes the one-way pretest estimator to the two-way error component model.

Does internationalization and board diversity affect family firms' sustainable performance? Empirical evidence from an emerging economy

AbstractThe purpose of this study is to examine the relation between internationalization and firm sustainable performance on a set of listed Indian family firms belonging to mid‐cap and large cap categories and listed on NIFTY 500. This paper aims to explore the heterogeneity among internationalization and a set of defined variables, namely, female representation on the board, firm size, firm age, industry type, leverage, corporate social responsibility (CSR) and the number of female executives in influencing the firm performance. We aim to incorporate corporate governance, the factors influencing decisions related to it and gender diversity in understanding the relationship between internationalization and firm performance in the context of Indian family firms. The Generalized Method of Moments (GMM) and panel data regression models are both used in the study's empirical methodology. In order to examine the relationship between internationalization, as indicated by the percentage of foreign ownership, and family firm performance, as indicated by Return on Equity (ROE), the study uses the data from 2014 to 2023 for analysis, totaling 16,586 firm‐year observations. The findings indicate that internationalization, measured in this study by the investments the companies make abroad, positively affects the performance of the family firms. Age, women on board and number of female executives are seen to have positive associations with the performance of family firms. However, it is seen that firm size for family firms negatively impacts the performance while CSR and leverage seem to have no significant impact.

Faktor-Faktor Yang Mempengaruhi Kebijakan Hutang Pada Perusahaan Manufaktur Sektor Industri Barang Konsumsi

The purpose of this study was to determine the effect of liquidity, sales growth and profitability on the debt policies of manufacturing companies listed on the Stock Exchange in the consumer goods industry sector between 2018 and 2020. Sampling was carried out by purposive sampling for sample selection with 33 selected companies. The panel data regression model used is REM and tested using multiple linear regression. The results showed that there was a significant positive effect between profitability on debt policy, but liquidity had a significant negative effect on debt policy. There is no significant effect between sales growth on debt policy.