Static Panel Data Research Articles

The Effect of Innovation and Renewable Energy on CO2 Emissions For Emerging Asian Countries

This study investigates the impact of innovation and renewable energy consumption on CO2 emissions in seven emerging Asian countries using static panel data methods. The analysis employs Pooled Ordinary Least Squares (OLS), Fixed Effect (FE), and Random Effect (RE) models to estimate the relationships, with the most appropriate model selected based on the Breusch-Pagan LM test and the Hausman test. Our findings reveal that both GDP and urbanization significantly increase CO2 emissions, while GDP squared and renewable energy consumption significantly decrease emissions, supporting the Environmental Kuznets Curve (EKC) hypothesis. Diagnostic tests indicate the presence of heteroskedasticity and first-order autocorrelation, addressed using robust standard errors. The results underscore the dual role of economic growth and technological advancement in shaping environmental outcomes, highlighting the critical importance of sustainable development policies in emerging economies.

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.

Financial Impact on Aviation Industry Before and During Covid-19: Passenger Demand as Moderator

This study analyses the impact of the pandemic on the financial performance of airlines, with a specific focus on financial ratios. The travel limitations imposed as a result of the pandemic, coupled with a significant decline in passenger demand, resulted in significant financial losses. This study investigates how passenger demand moderates the relationship between financial ratios and the performance of the aviation industry. This study gathered data from 20 premier Asian airline companies, as acknowledged by Skytrax. The data was collected from 2016 to 2022, with the timeframe from 2016 to 2019 designated as the 'pre-Covid19' period, and the timeframe from 2020 to 2022 designated as the 'during Covid19' period. The study uses static panel data analysis to accomplish its objective by integrating cross-sectional and time series analysis. Based on this analysis, it was determined that the company's financial condition had a substantial impact on its performance and operating worth before the COVID-19 outbreak. This influence was observed across all variables, except TATO (Total Assets Turnover). However, the company’s financial condition does not affect its performance during the COVID-19 outbreak. This is due to the implementation of government initiatives and bailouts offered some respite, while also underscoring pre-existing structural weaknesses within the business. The results emphasize the crucial requirement for airlines to implement adaptable financial strategies and strong risk management techniques to successfully navigate future disruptions. Hence, the aviation sector should embrace a comprehensive strategy centered on minimizing expenses, expanding income sources, and implementing digitalization.

Does corporate green innovation unlock financial doors? The mediating role of environmental performance

Purpose This study aims to respond to the latest research calls to precisely revisit the nexus between corporate green innovation (CGI) and financial decisions through deeply investigating the mediating effect of corporate environmental performance measured by the effectiveness of emission reduction. Design/methodology/approach This study analyzes nonfinancial-listed firms on the Australian Securities Exchange from 2002 to 2019 using multiple regression analysis on a panel data set. Initially, different static panel data approaches were used. To account for the potential endogeneity issue and generate robust outcomes, the authors apply the one-step system generalized method of moment, two-stage least squares and lagged model approaches. Findings The results provide a clear indication that the practices of green innovation can favorably contribute to the level of environmental performance, which in turn affect the firm’s ability in opening the new financial doors and shape solid capital structure. In this context, the effective environmental performance fully mediates the nexus between CGI and capital structure of a firm. More importantly, the outcomes are robust and coherent across different estimation techniques. Originality/value The originality of this study lies in its utilization of mediation analysis to explore the relationship between CGI and a firm's financial structure. This approach distinguishes it from previous research by offering a thorough and nuanced understanding of how green innovation practices influence the financing decisions of a firm.

Role of Social Demography Factors in Economic Growth and Sustainability Models: Evidence from selected emerging economies

A country’s social demography characteristics are described by population dynamics and technology-based lifestyle changes. Such unique elements may correlate with economic growth and sustainability. In this study, a static panel data model analysis for economic growth and sustainable development of ten emerging economies was presented. Estimation results revealed that social demography factors exhibited a negative significant impact in both economic models, relative to the technological influence. Therefore, effective macroeconomic policies should be meticulously designed against changing demographic trends. Conclusively, by delivering focused public services to the urban area, more liveable cities will emerge to empower human capital development.

The determinants of banks' capital structure in SAARC economies

The capital structure determinants for South Asian banks are required to be exposed. This investigation attempts to address the existing gap by examining the capital structure determinants for the South Asian Association for Regional Cooperation (SAARC) countries. To accomplish the main objective, the Panel Data of 52 banks is collected from the four main regional economies for the period starting from 2012 to 2022. The methodology is based on the estimation of constructed models by executing Static Panel Data analysis and Dynamic Panel Data analysis via the Generalized Method of Moments (GMM). The investigation discovered that tangibility, growth, profitability and non-performing loans have positive significant influences, whereas, liquidity and gross domestic products have negative significant impacts on the regional banks' capital structure. Also, the significant lagged variable and the presence of adjustment speed suggest the implementation of the Dynamic Trade-Off theory in the SAARC countries' banking sectors. The findings will help regulatory bodies develop a harmonization policy to enhance financial integration among SAARC economies via adopting identified capital structure determinants.

Determinants of the profitability of Sheltered Workshops: efficiency and effects of the COVID-19 crisis

The socio-labor inclusion of people with disabilities represents a substantial social challenge in European countries, particularly in Spain. Sheltered Workshops (SWs), a type of Work Integration Social Enterprise, are companies specifically designed to provide employment opportunities for individuals with disabilities, offering ongoing support throughout the integration process. SWs need to be profitable to sustain their social contributions. This study investigates the determinants of profitability for SWs in Spain, analyzing a sample of 1133 entities from 2010 to 2020. Using a static panel data model (random effects) and a dynamic panel data model (Generalized Method of Moments, GMM system), we estimate, among other factors, the impact of efficiency on profitability, with efficiency scores calculated via data envelopment analysis (DEA). Our findings reveal that the positive effect of operational efficiency outweighs the negative effect of social efficiency, resulting in a net positive impact of overall efficiency on profitability. The SWs were able to operate effectively to meet the needs of people with disabilities while achieving financial viability by combining social and economic goals. The study shows no significant differences in these effects when considering the legal status of the SWs (for-profit vs. non-profit). Additional factors influencing SW performance include size, low risk, and leverage, which have a positive impact, while age, liquidity, and tangibility generally have a negative and significant effect. During both the financial and COVID-19 crises, SWs experienced lower profitability; however, a positive and significant relationship between efficiency and profitability was observed during the COVID-19 crisis. The robustness of our results was confirmed through alternative measures of efficiency and performance and by addressing potential endogeneity issues. Understanding how financial and social factors influence profitability helps policymakers develop growth and sustainability policies for SWs and enables practitioners to identify strengths and weaknesses, facilitating better decision-making.

Examination of Banks' Performance and Intellectual Capital in Cambodia: Utilizing FMOLS and DOLS Methods

In order to address the potential presence of serial correlation and heteroscedasticity in static panel data models such as Pooled Ordinary Least Square (Pooled OLS), Fixed Effect (FE), and Random Effect (RE) models, the study employed Panel Fully Modified Ordinary Least Squares (FMOLS) and Panel Dynamic Ordinary Least Squares (DOLS) methodologies to evaluate the influence of value-added capital and its specific components - human capital, structural capital, and capital employed - on the performance of banks in Cambodia. The results of the research revealed that intellectual capital significantly impacted the return on assets in a positive manner. Specifically, human capital and capital employed were recognized as crucial elements in determining this connection. Both the FMOLS and DOLS estimation techniques produced reliable outcomes, showing positive slope coefficients that were deemed statistically significant at the 1% level. Conversely, the impact of structural capital on bank performance produced diverse results. While the determined slope was considered extremely significant at the 1% level through the FMOLS technique, the findings were inconclusive. More precisely, the projected coefficient showed a positive value when applying the FMOLS approach, but displayed a negative value when using the DOLS method.

The Impact of International Talent Inflow on Technological Innovation: The Moderating Role of Guanxi Culture and Social Trust

This paper studies the effect of international talent inflow on technological innovation and the influence of the Chinese cultural environment on their relationship. Based on provincial-level data from 2000 to 2012, we construct a static panel data model to explore the effects of international talents on technological innovation and the moderating role of Guanxi culture and social trust in the above relationship. We find that international talent inflow positively impacts technological innovation. Guanxi culture significantly negatively impacts technological innovation and negatively moderates the relationship between international talent inflow and technological innovation. Social trust significantly positively impacts technological innovation and positively moderates the relationship between international talent inflow and technological innovation. The interaction between social trust and Guanxi culture has a significant positive effect on technological innovation. The study shows that different cultural environments have an essential impact on developing international talent’s innovation ability. This paper provides evidence for the need to improve China’s cultural environment and provides important implications for the formulation of talent policies. Based on this, we suggest improving the talent introduction system, optimizing the relationship culture, and building a good social trust system to promote regional innovation.

FACTORS AFFECTING THE FINANCIAL PERFOMANCE OF AGRICULTURAL COMPANY’S: EVIDENCE FROM THE INDONESIA STOCK EXCHANGE

The Indonesian economy is primarily based on the agriculture sector, even growing when other sectors are down. This role is supported by the existence of agricultural companies that run businesses with profit-oriented goals. The company's ability to generate profits reflects the company's financial performance and is influenced by various factors. Using panel data for the years 2015–2021 from 17 agricultural companies listed on the Indonesia Stock Exchange (IDX), this study aims to determine the influence of internal and external factors on the financial performance of agricultural companies in Indonesia. The results of static panel data regression found that the company's growth and the dummy of the Covid-19 pandemic had a positive and significant effect on the company's financial performance which was proxied through the profitability ratio (ROA). Debt asset ratio (DAR), COGS/sales, and exchange rate have a negative and significant effect on ROA. In general, these results confirm the pecking-order theory in the relationship between ROA and DAR, as well as the ability of agricultural companies in Indonesia to survive in the conditions of the Covid-19 pandemic. The implication for improving the performance of agricultural companies in Indonesia is that companies must be able to reduce the percentage of production costs (COGS/sales) and implement an optimal capital structure mix. Companies are also required to carry out good risk management to anticipate exchange rate fluctuations.

A study of big bath practices in the Egyptian capital market: an emphasis on CEO turnover and origin

Purpose This study aims to investigate how major big bath accounting practices and CEO turnover in Egypt relate to one another, as well as the first to use the CEO’s origin as a moderating factor. Design/methodology/approach This study uses 10-year longitudinal data from 2012 to 2021 and 290 firm-year observations from Egypt’s listed nonfinancial firms that witnessed CEO turnover to identify the significant big bath accounting practices in Egyptian businesses after the Egyptian revolution and the COVID-19 pandemic. Using fixed and random effect models, the authors investigate the impact of CEO turnover on company earnings during the first year of a newly appointed CEO as an indicator of big bath practices after controlling CEO gender, experience, firm size, leverage, return on assets, return on equity and industry. The hypotheses were investigated using static panel data. Findings The results show the presence of big bath practices in the Egyptian market. Furthermore, big bath accounting practices are positively correlated with CEO turnover. Moreover, the results indicate that big bath accounting practices are only endured when external CEOs are employed, rather than internal ones. Research limitations/implications The sample size and availability of data are the main research limitations. In addition, this study only examined CEO turnover and CEO origin as moderators in big bath accounting. Thus, future research may consider other CEO characteristics and political factors associated with big bath practices. Practical implications The findings from this study offer valuable insights to investors and regulators for effective decision-making and governance practices within the Egyptian capital market, while also contributing to a more informed approach to emerging markets on a global scale. Originality/value The findings contribute to the big-bath and CEO turnover and origin literature by showing a lower ceiling for earnings manipulation and using Egypt as a case study due to its unique institutional environment.

The Impact of Sectoral Investment on Economic Growth: Evidence from Algeria using Static Panel Data Models

The Impact of Sectoral Investment on Economic Growth: Evidence from Algeria using Static Panel Data Models

Marketing Strategy of Private Enterprises Based on Bayesian Dynamic Panel Model of Machine Learning Algorithms

Machine learning algorithms have attracted widespread attention in both industry and academia. This article mainly studies the marketing strategy decision-making of private listed enterprises based on Bayesian panel data model. By constructing a Bayesian static panel data model and a Bayesian dynamic panel data model, an empirical analysis was conducted on the debt financing decisions of private enterprises from two aspects: external financial environment and internal governance. The experimental results show that the MC error and standard deviation of parameter estimation for Bayesian static panel data model and Bayesian dynamic panel data model are both very small. This method contains more information, increases observation data and degrees of freedom. This article provides important theoretical guidance for the coordinated development of private listed enterprises and state-owned enterprises. It is conducive to promoting the coordinated development of the entire national economy.

The Influence of Natural Resources, Energy Consumption, and Renewable Energy on Economic Growth in ASEAN Region Countries

This research aims to identify and analyze the role of natural resources, CO2 emissions, and renewable energy on the economic growth of countries in the ASEAN region. In this study, we tested whether a dynamic process occurred based on a dynamic panel data model while comparing it with static panel data. The dataset used is ASEAN region countries with time series data from 2000-2021. The analysis tools used are static and dynamic panel data. The research results found that natural resources, FDI, and renewable energy significantly positively affect economic growth in the ASEAN region. Conversely, CO2 has a negative and insignificant effect. These results prove that the ASEAN region's economic development has been clean energy-oriented.

Investigating CSR Disclosures and Aggressive Financial Reporting in Relation to Tax Aggressiveness: Can Board Structure Change The Status Quo?

In recent years, academic researchers and policymakers have increasingly discussed the role of Corporate Social Responsibility (CSR) disclosures and aggressive financial reporting in tax aggressiveness. Tax aggressiveness can be defined as a company's eagerness in using legal loopholes and other methods of tax reduction. Companies must evaluate how their tax practices affect their reputation and adhere to tax reporting and CSR standards. The objective of this research is to investigate in the relationship between CSR disclosures and aggressive financial reporting on tax aggressiveness moderated by board structures. The board's internal control function is expected to reduce tax aggressiveness-related risks. The study employed static panel data regression analyses on 665 firm-year data from the Indonesia Stock Exchange from 2016 to 2020. This study discovered that a larger board size could diminish the negative relationship between CSR disclosure and tax aggressiveness in particular industries while strengthening the positive relationship between aggressive financial reporting and tax aggressiveness. The current work suggests that companies with more independent boards of directors could increase the negative association between CSR disclosure and tax aggressiveness while reducing the positive association between aggressive financial reporting and tax aggressiveness. This study could reference future corporate policy regarding the most effective board structures to minimise tax aggressiveness.

The Impact of Foreign Direct Investment, Green Technology Innovation and GDP on CO2 Emissions in Western China: A Static Panel Data Analysis

This study investigates the impact of FDI, green technology innovation and GDP on CO2 emissions in the western region of China. This study applies the extended STIRPAT model, selects the relevant data of nine provinces in western China from 2000 to 2019, applies the static panel data analysis method, compares and analyses the estimation methods of Pooled OLS, fixed effect and random effect, and finally adopts the robust standard error estimation method of fixed effect. The results of the robust standard error estimation indicate that, in addition to the negative impact of green technology innovation on CO2 emissions, CO2 emissions are positively impacted by FDI, GDP, population, and the proportion of the secondary and tertiary industries. Therefore, reasonable introduction of FDI and improving green technology innovation levels are crucial in reducing CO2 emissions in the western region of China.

Dependence and sustainability: a disaggregated analysis of electricity generation in ASEAN countries

Purpose This study aims to explore the diverse sources of electricity generation (coal, natural gas, oil and hydroelectricity) and their respective associations with economic growth and environmental quality. Design/methodology/approach This study uses static panel data analysis with a random effects model for six selected ASEAN countries (Indonesia, Malaysia, Filipina, Thailand, Vietnam and Myanmar) from 1994 to 2014. Findings This study reveals that economic growth in six selected ASEAN countries is enhanced by electricity generation from all sources, while the contribution of electricity production from hydroelectricity remains the largest and strongest. There is no environmental impact of electricity production from hydroelectric, whereas fossil fuel-based electricity production emits carbon dioxide, with coal sources being the largest contributor, followed by natural gas and oil. Practical implications Based on the results, these six ASEAN countries should invest more in hydropower projects, reduce the coal mix in power generation and promote clean coal technology to improve economic efficiency and environmental sustainability. Originality/value To the best of the authors’ knowledge, no research has examined the relationship between electricity production, environmental quality and economic growth in Southeast Asian nations. Therefore, the outcome of this study is expected to provide insightful results to supplement the framing and implementation of national and collective regional strategies for sustainable electricity generation in ASEAN countries.

The impact of the digital economy on high-quality agricultural development--Based on the regulatory effects of financial development.

The digital economy, as a new economic form with high information density, provides a new driving force for the realization of high-quality agricultural development. Panel data of 31 provinces in China from 2011 to 2020 were selected for analysis. The static panel data interaction effect model and panel threshold model were used to verify the nonlinear influence mechanism and heterogeneity of financial development in the process of the digital economy affecting high-quality agricultural development. The findings are as follows. (1) During the study period, the high-quality development of China's agriculture showed a steady upward trend; however, the regional differences were significant, and the eastern part was larger than the central and western part. (2) The digital economy can promote high-quality agricultural development. (3) The digital economy has a double threshold effect in the process of affecting high-quality agricultural development, which depends on the level of financial development. When the threshold is exceeded, the digital economy has a more significant promoting effect on high-quality agricultural development. (4) The impact of the digital economy on high-quality agricultural development is heterogeneous. From the perspective of different regions, the impact effect is greatest in the eastern region, while the effect is smaller in the central and western regions. From different resource endowments, the positive impact effect is greatest in the major grain-selling areas, followed by the major grain producing areas, but the positive digital economy driving effect is not significant in the balance of production and sales areas. Finally, three policy suggestions are proposed. First, the Chinese government should increase investments in and support for digital technology to promote the integration of the digital economy and agriculture. Second, the Chinese government should promote the development of digital inclusive finance in areas with financial development below the threshold. Third, different regions should implement differentiated digital economies to promote high-quality agricultural development.

The Impact Of ESG Techniques On ROIC And EPS For Manufacturing Firms: Research From Listed Companies In India

Companies that are publicly traded worldwide are shifting their focus away from maximizing short-term profits to achieving long-term environmental, social, and governance (ESG) objectives. The growing importance of environmental sustainability concerns is now recognized by most business leaders. They have started to believe that an organization's financial health and reputation in the marketplace may be affected by this. A study recently concluded that companies that have strong ESG performance may be able to enhance their financial performance. The question of how ESG affects financial performance has received little attention in India. Our study examines the link between ESG operations and financial indices in India's publicly traded firms by analyzing dynamic and static panel data. Our initial step is to gather financial data from Bloomberg and preprocess it using descriptive statistics. The consequence of ESG variables on the financial performance of the manufacturing companies during 2018 to 2022 was investigated. The analysis was done based on 701 BSE manufacturing companies’ year-wise data. The independent variable is the ESG scores; the dependent variables are performance indicators, i.e., Return on Invested Capital (ROIC) and Earnings per share (EPS). The control variable that is employed: Firm size. 
 The empirical findings indicate that ESG doesn’t have a substantial positive impact on performance. However, the relationship between ESG disclosures do vary if measured individually; the disclosures are found putting positive effect on ROIC but EPS. 
 Financial performance may be improved through ESG activities, which could have an impact on investors, business administrators, decision-makers, and industry regulations.

An evaluative study of economic security from the perspective of land resource assets

Food availability, economical and social stability, ecological sustainability, and sustainable urban and rural growth are all aspects of China's land resource economic security (LRES). This study constructs indicators which utilize panel statistics of 31 Chinese provinces from 2004 to 2019 to properly evaluate the extent of China's LRES, considering quantitative, qualitative, structural, price, and efficiency security. Hence, it analyzes the factors that affect LRES using static panel data. The study finds that, first, the level of LRES in China has fluctuated widely, with an upward trend over the past three years. Second, it varies across regions, with the highest level occurring in the central regions. Third, an inverse "U" relationship is observed between the level of economic development and land resource security. The level of LRES is negatively impacted by population On the other hand, the level of human capital, the scale of fixed asset investment, the improvement in pollution control, and the rationalization of the manufacturing system all increase LRES.Hence, over time, the economic security of land is expected to improve.