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Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations
... Penelitian ini menggunakan model dinamis Generalized Method of Moments (GMM). Dalam analisis panel dinamis jenis estimasi terbagai dua yaitu, first difference (FD-GMM) atau Arellano-bond (AB-GMM) dan sytem GMM (SYS-GMM) dengan model one step dan two step (Bond, 1991). ...
... Ketiga adalah uji model dinamis Generalized Method of Moments (GMM). Dalam analisis panel dinamis jenis estimasi terbagai dua yaitu, first difference (FD-GMM) atau Arellano-bond (AB-GMM) dan sytem GMM (SYS-GMM) dengan model one step dan two step (Bond, 1991 adalah fungsi dari maka , −1 juga merupakan fungsi dari sehingga akan terjadi korelasi antara variabel regresor −1 dengan . Jadi, meskipun faktanya tidak berkorelasi, menghasilkan estimator PLS yang bias dan tidak konsisten. ...
... Model FDGMM dibangun seperti persamaan (2) berikut ini: = ,−1 + ; i = 1, …, N ; t = 1, …, T. = + ……………….....(2) SYS-GMM adalah solusi alternatif ketika kedua asumsi tersebut adalah FD-GMM (asumsi yang valid dan konsisten) tidak terpenuhi (Roodman, 2009). Pada saat yang sama SYS-GMM dikembangkan menggabungkan persamaan level pada first difference sebagai instrumen (Bond, 1991 Tabel 3 menunjukkan hasil uji stasioner menggunakan Levin, Lin dan Chu (2002), dalam setiap tes, jika h0: ρ = 0 akan menerima hipotesis nol mengatakan bahwa variabel memiliki root unit atau tidak stasioner dan jika h0: ρ <0 akan menolak hipotesis nol dengan demikian menerima alternatifnya, dengan mengatakan bahwa tidak adanya unit root atau setiap variabel stasioner. ...
Provinsi Aceh merupakan salah satu provinsi di Indonesia yang mengalami tingginya angka kemiskinan. Oleh karena itu kemiskinan di Aceh terus menjadi subjek diskusi yang hangat, ditambah lagi Pandemi COVID-19 meluluh-lantakkan banyak sistem kehidupan di seluruh dunia, memperburuk kondisi ini.Pada studi ini data yang digunakan adalah panel dinamis yang mencakup 23 kabupaten di Provinsi Aceh antara tahun 2014 sampai dengan tahun 2024. Penelitian ini menggunakan pendekatan Generalized Method of Moments (GMM). Hasil penelitian menghasilkan bahwa dengan pendugaan FEM (Fixed Effect Model) kesenjangan nilai konvergen rendah, ini lebih kecil dibandingkan dengan pendugaan PLS dengan kecepatan konvergen lebih besar dari pendugaan FDGMM (First Difference GMM). Kesenjangan yang memberikan kontribusi paling tinggi adalah dengan pendugaan SYSGMM (System GMM) dengan konvergen lebih besar dibandingnkan pendugaan FEM, PLS (Partial Least Square) dan FDGMM. Dengan demikian, estimasi SYSGMM merupakan model yang optimal dalam pendugaan parameter elastisitas jangka pendek dan jangka panjang dalam menurunkan kemiskinan.
... The Generalized Method of Moments (GMM) became a popular technique due to its ability to address endogeneity and the use of instrumental variables. Arellano and Bond (1991) pioneered the system GMM approach, which allows for dynamic models of panel data, enabling a more accurate estimation of the relationship between public debt and economic growth by controlling for country-specific effects and temporal dependencies. System GMM proved particularly valuable when examining the causal relationship between public debt and economic growth, as it offers a robust framework for dealing with potential biases in dynamic panel data models (Dumitrescu and Hurlin, 2012). ...
... In this study, we employ the differenced Generalized Method of Moments (GMM) to address endogeneity and account for the persistence of the dependent variable while removing fixed effects and their correlations. We use the one-step GMM estimator developed by Arellano and Bond (1991), as it produces less bias and smaller standard deviations compared to the two-step estimator, according to Judson and Owen (1999). ...
... The Hansen test is used to verify the validity of the instruments, and we check for first-order [AR1] and second-order [AR2] serial correlations in the differenced residuals. As noted by Arellano and Bond (1991), first-order autocorrelation in differenced residuals does not imply inconsistency, but second-order autocorrelation would indicate inconsistency. ...
... The GMM approach utilizes lagged values of dependent variables as instruments, both in levels and in differences, along with lagged values of other regressors that address endogeneity issues. This is referred to as difference GMM (Arellano & Bond, 1991). However, these methods become inefficient when the instruments are weak, as highlighted by Arellano and Bover (1995) and Blundell and Bond (1998). ...
... The Hansen test, with a p value of 1.000, further supports instrument validity. The Arellano-Bond autocorrelation test showed no second-order serial correlation in residuals, validating the dynamic GMM model and confirming the instruments' reliability for consistent estimation, as required by Arellano and Bond (1991). ...
During the COVID-19 lockdown, Indian migrant population face heightened vulnerability. Payment banks (PBs) were established to boost financial inclusion, catering to migrant labour, small businesses and low-income households with savings accounts and digital services. The study empirically evaluates the performance of six PBs, namely Airtel Payments Bank, India Post Payments Bank, Fino Payments Bank, National Securities Depository Limited Payments Bank, Jio Payments Bank and Paytm Payments Bank, encompassing annual panel data spanning from 2019 to 2022, and analysing financial metrics such as return on assets (ROA), profit margin, liquidity, banking business, leverage and efficiency to determine their impact on economic activities. Using the generalized method of moments and dynamic ordinary least squares, it is observed that all explanatory variables yielded a positive outcome, emphasizing the importance of PBs for those factors determining the profitability of bank operations. Payment banks have registered negative ROA and high operating expenses, although Airtel, Fino and Paytm Payments Banks exhibit profitable businesses among six. It is recognized that PBs play a crucial role in promoting financial services, promoting digital transactions and assisting India to achieve larger economic development objectives. The study recommended PBs to prioritize technological collaboration, efficient operations, financial literacy and regular monitoring of financial health, and encouraged payment banks to lend to micro-businesses within MSMEs for economic growth.
... Moreover, given the possibility of reverse causality between the number of home banking users and the amount of consumer credit or deposits, a Generalized Method of Moments (GMM) estimator is also employed. GMM is widely used in empirical studies on bank performance and digitalization to mitigate endogeneity concerns (Arellano & Bond, 1991;Windmeijer, 2005). To test the research hypotheses and respond to the research question, six econometric models are estimated, with robustness checks including tests for heteroscedasticity and multicollinearity. ...
The digitalization of the banking industry has forced organizations to adapt to an increasingly competitive environment. This is particularly relevant for cooperative and popular banks in Italy, which have traditionally combined technical innovation with a commitment to fostering local social and economic development. This study investigates how digital transformation has influenced the relationship between the decline in cooperative bank branches and their performance in credit and deposit services, using data from 109 Italian provinces (2015–2023). The results reveal a complex impact: while home banking significantly influences deposit and consumer credit levels, the physical presence of cooperative bank branches remains crucial for credit issuance, highlighting the importance of local services. Digital tools, such as internet banking, have grown in importance, moderating the link between branch presence and deposit activity. By highlighting how digital service delivery interacts with the local roots and mutualistic nature of cooperative banks, this research contributes to understanding how innovation shapes institutional strategies. To maintain customer trust and ensuring efficient service in an increasingly digitalized environment, the study underscores cooperative banks’ need to integrate digital technology while preserving their local presence.
... To establish valid moment conditions, the study assumed no serial correlation in the error terms of the system GMM estimator. The Arellano-Bond test was used to assess autocorrelation, applied to the residuals in the first-difference equation (Arellano and Bond 1991). Models 9 and 10 confirmed the presence of first-order serial correlation in differences (see AR(1) in Table 5). ...
This study examines the impact of digitalisation on energy and environmental efficiency in developing countries using panel data from 2010 to 2020. Energy efficiency is measured by Energy Intensity per unit of output, while Environmental Efficiency is assessed through CO₂ emissions per economic output. The two-step system Generalised Method of Moments (GMM) estimates reveal that all proxies of digitalisation, except telephone subscriptions, have a negative effect on energy intensity, leading to improved energy efficiency. The findings indicate a distinct difference in the impact of digitalisation on energy intensity and carbon emission intensity. While developing countries benefit from digitalisation in achieving environmental efficiency, they still require targeted efforts to enhance energy efficiency and achieve the United Nations Sustainable Development Goals. This study provides valuable insights into promoting digital transformation, particularly in the energy sector, where developing countries face challenges in accelerating the impact of digitalisation. JEL Classification Code: O13; O31; O33; P18; P28; P33; Q21
... The Sargan test reveals the validity of the instruments, which means they do not correlate with the disturbance as the Chi-square values were not statistically significant throughout the estimates (e.g. Arellano & Bond 1991;Arellano & Bover 1995;Blundell & Bond 1998;Roodman 2008). ...
This study explores the influence of corporate governance mechanisms on Environmental, Social and Governance (ESG) disclosure within the emerging economy of sub-Saharan Africa. The specific focus is on assessing the role of institutional ownership as a potential moderating factor. Employing quantitative data from nine countries in sub-Saharan Africa, the research employs a two-step dynamic panel-data Generalised Method of Moments approach for estimations. The results underline the positive impact of corporate governance mechanisms on disclosing ESG. Surprisingly, when introducing institutional ownership as a moderating variable, the study does not uncover substantial evidence that the percentage of institutional ownership significantly moderates the relationship between corporate governance mechanisms and ESG disclosure. This research contributes to the existing body of knowledge on corporate governance and ESG disclosure, specifically within the context of sub-Saharan Africa. The results suggest that, despite the positive impact of corporate governance mechanisms, the role of institutional ownership in moderating this relationship is not as pronounced. This valuable information contributes to our understanding of ESG practices in sub-Saharan African countries, emphasising the significance of a well-composed board concerning substantial improvements in ESG disclosure among listed companies in the region.
... This result is contrary to the expected sign and some previous research results such as (Hayashi and Boadway, 2001;Wu and Hendrick, 2009;Yongzheng Liu, 2014). This result shows that which province has high tax competition (ie focusing on preferential policies, tax exemptions and reductions), considering from equation (1) shows that the provinces have different effective tax rates because the province is in a difficult area, enjoying higher preferential policies. As mentioned, currently, high incentives are concentrated in difficult and especially difficult economic areas. ...
This study assesses the impact of institutional factors such as: the level of local financial autonomy, provincial tax competition, provincial competitiveness, the level of technology use and provincial digital transformation on business performance of enterprises in provinces, cities and different regions of Vietnam, in the period from 2017 to 2021. Introduction: The author based on previous studies, develops research gaps in variable construction, model construction and synthesizes results from econometric models and at the same time gives some implications for businesses and government managers in localities to increase the operational efficiency of businesses located in their provinces. Objectives: The study examines the impact of institutional factors on business performance in localities. Methods: Using cross-sectional regression methods to calculate the level of provincial tax competitiveness, the method of benefit-cost analysis from tax incentives and the D.GMM method with dynamic panel data Results: The results show that local tax competition has an inverse effect on business performance. This result reaffirms that preferential policies in difficult areas do not necessarily help businesses increase investment and improve operational efficiency. The benefit-cost variable from tax incentives has a positive impact on business efficiency. This result shows that if the benefit received from incentives is lower than the loss from incentives, it means that the incentives are redundant or ineffective. The variable Automany2 (composite financial autonomy index) is negatively correlated with operating efficiency. Conclusions: These results are an important basis for making policy recommendations on tax incentive reform, tax competition, and financial autonomy in provinces and cities of Vietnam.
... Thus, it is suitable for estimations that involve high persistence in the characteristics of the dependent variable (Asongu et al., 2019;Kusi et al., 2022). Additionally, the formulation of the GMM generically enables it to eliminate endogeneity problems through the application of instrumental variables based on a forward orthogonal process which captures the neutralizes the effect of missing data in the sample while it accounts for these features are evident limitations of ordinary least square and fixed and random effect models regarding dataset analysis (Arellano & Bond, 1991;Arrellano & Bover, 1995;Kusi et al., 2022). Although the formulation of the difference and two-step GMM techniques are based on the same dynamic procedure, the predictive ability of the difference GMM estimator is minimal for a small sample size as utilized in analysis because it estimates all parameters of the model concurrently. ...
This study assesses the determinants of bank deposit flows under changing economic conditions by applying the dynamic panel two-step generalized methods of moments technique to annual observations covering 2007 to 2022 of 12 commercial banks in South Africa. The analysis revealed past deposit flow, profitability, bank size, and capital adequacy ratio as constituting a set of bank-specific variables with a positive predictive influence on deposit flows. At the same time, expenditure drives an adverse impact on deposits. These dynamics posit important implications for efficiency in bank expenditure management to sustain the inflow of depositors’ flows. Also, the results show the existence of a positive relationship between the unemployment rate and deposit flow, which is unexpected in practice, as an increase in joblessness in the country implies a decline in the financial capacity of the population to contribute to bank saving portfolios. However, the unexpected interaction between unemployment and deposit flow in this context can be explained by the adaptive principles of market interactions as the relationship between financial variables is unlikely to be the same under different economic conditions. Moreover, the analysis shows a positive effect of the economic condition on deposit flows which implies that an increase in national productivity exerts an impressive on the flow of depositors' funds to the banks based on market expansion and rapid growth momentum. Based on the findings, strategies to ensure the sustenance of a conducive macroeconomic environment should be reinforced by policymakers as the dynamics of bank deposit flows are linked to the direction of the current economic condition.
This paper aims to analyze the effect of fiscal decentralization on the structure of public spending in Cameroonian municipalities. The study covers 213 regional and local authorities for 11 years from 2010 to 2020. After briefly reviewing the literature, we used different estimation techniques to get our results. The results show that revenue decentralization positively and significantly affects overall municipal spending. We further disaggregate public spending into investment and operating spending. We find that expenditure decentralization positively and significantly affects operating and capital spending. However, the effect is more pronounced on capital spending. By changing the measure of decentralization, we also find that revenue decentralization positively and significantly affects local public spending. We therefore encourage policymakers to transfer more responsibilities and resources to local authorities.
This research investigates the impact of environmental, social, and governance (ESG) factors on the performance of 67 banks across 13 countries, with a specific focus on comparing Islamic banks (IBs) and Conventional banks (CBs) from 2009 to 2019. By leveraging the two‐step process generalized method of moments (GMM) estimator presented by Blundell and Bond (1998), we address potential endogeneity concerns associated with bank capitalization. Our examination, while controlling for bank‐specific and macroeconomic factors, demonstrates a noteworthy positive effect of ESG on overall bank performance, particularly attributable to the governance element. Curiously, our analysis indicates that while the governance factor of ESG positively affects IBs, it does not produce a similar impact on the performance of CBs. This differential effect highlights the distinct operational structures inherent in these banking paradigms and enriches the literature by offering empirical insights into how ESG factors affect bank performance differently within dual banking systems. The implications of the research advocate for policymakers and bank executives, particularly in Islamic banking, to devise tailored governance approaches to bolster ESG integration and performance.
Climate change mitigation requires adequate insights into the underlying causes to ensure environmental sustainability. To attain macroeconomic goals, countries deploy economic policies such as fiscal policy tools (government expenditure and taxation), monetary policy tools (real interest rate and money supply), and external policy variables (foreign trade and foreign direct investment). Though these tools/variables have the capacity to enhance sustained economic growth, they could have ramifications for climate change. Hence, this study is motivated by the necessity to balance the demands of economic policies on the environment and the economy. It determines the impact of economic policies on climate change using the panel data of 38 Organization of Economic Cooperation and Development (OECD) and 78 non‐OECD countries during 1990–2020. Evidence from the system Generalized Method of Moments (GMM) estimation indicates that government consumption expenditure, real interest rate, and money supply play vital roles in climate change mitigation, while foreign trade aggravates climate change in OECD and non‐OECD nations. Though tax revenue has an insignificant impact on climate change in OECD nations, it intensifies climate change in non‐OECD nations. Besides, the pollution halo hypothesis was confirmed in OECD nations, while the pollution haven hypothesis was confirmed in non‐OECD nations. This study implies that efforts to mitigate climate change should integrate fiscal, monetary, and external policies.
This study explores both the linear and nonlinear effects of corporate governance (CG) and enterprise risk management (ERM) on insurers’ risk-taking preferences. This paper was analysed using the generalised method of moments and the dynamic panel threshold estimation techniques based on a sample of 33 insurance companies in Ghana between 2015 and 2021. The results from the linear regression show that ERM significantly and positively influences insurers’ risk-taking, indicating that insurance companies with effective ERM programs are more inclined to assume higher risks. Additionally, the empirical findings indicate that risk-taking is negatively associated with gender diversity but positively influenced by board independence and size. The study further reveals nonlinearities between ERM, CG and risk-taking. The empirical evidence indicates that a strong ERM system enhances the risk-taking behaviour of insurers when it exceeds the threshold level and vice versa, implying a U-shaped relationship. Thus, an effective ERM program promotes better insurance risk-taking decisions. Also, the study presents a U-shaped relationship between board independence and insurers’ risk-taking. Contrarily, board size, and gender diversity reveal a relationship with an inverted U-shape, implying that the board makes less risky decisions when they are large, gender diversified and there are more females on the board. Policy implications are provided.
This study investigates the links between conflict‐driven internal displacement and the United Nations Sustainable Development Goals (SDGs). Analyzing annual data from 50 nations and territories spanning 2009 to 2022, the findings demonstrate a negative association between conflict‐induced internal displacement and SDG 2 (zero hunger), SDG 3 (health and well‐being), SDG 4 (quality education), SDG 6 (clean water and sanitation), and SDG 8 (economic growth and employment). Specifically, the result indicates that an increase in conflict‐induced internal displacement correspond to an in increase in unemployment rate, food insecurity, and maternal and under‐five mortality rates. Additionally, conflict‐induced internal displacement contributes to a rise in the number of children out of school and hinders access to safely managed drinking water. A 1% increase in conflict‐induced internal displacement is associated with a 0.099% rise in unemployment, a 0.356% increase in food insecurity, a 2.251% increase in children out of primary school, a 0.756% higher maternal mortality rate, and a 0.271% increase in under‐five mortality. Furthermore, the availability of safe drinking water is reduced by 0.055%. These results underscore the detrimental impact of conflict‐induced internal displacement on the socio‐economic fabric of conflict‐affected countries, suggesting that internal displacement presents a substantial barrier to the achievement of SDG targets. Policy interventions in conflict‐affected regions must account for the specific challenges posed by internal displacement in order to mitigate these adverse effects and promote progress towards the SDGs.
This study delves into the acreage response of chickpea (gram) by examining price and non-price factors from 1997-98 to 2022-23. Employing the Nerlovian expectation and adjustment approach along with the system GMM (generalized method of moments) estimator, the study unveils that lagged area, relative price, and yield compared to wheat significantly impact land allocation for the subsequent year. Conversely, lagged gross irrigation, technological advancements, and government policies negatively influence chickpea (gram) acreage expansion over wheat. The study highlights the importance of enhancing sustainable agricultural practices and carefully balancing government programs with market solutions to bolster the agricultural supply responsiveness of Indian farmers.
Introduction
The role of agglomeration economics in enhancing productivity is well-recognized, yet the influence of population agglomeration of urban clusters on Total Factor Productivity (TFP) within the enterprises of the agglomerates remains a relatively uncharted area. This study aims to investigate the impact of population agglomeration of urban clusters on the TFP of enterprises and its underlying mechanisms.
Data sources
The data for firm-levelwere sourced from the CSMAR and Wind databases. City-level data were obtained from the China City Statistical Yearbook and the China Urban Construction Statistical Yearbook.
Research method
A fixed-effects model was employed.
Key findings
① The baseline regression shows that population agglomeration of urban clusters significantly bolsters the TFP of enterprises. ② Heterogeneity tests further reveal that this simulative effect is more pronounced in the eastern region, inter-provincial city clusters, and large cities.. ③ The underlying mechanisms indicate that population agglomeration of urban clusters, through its market effects and scale economic effects effectively reduce production costs, thereby boosting overall production efficiency and promoting the elevation of TFP in enterprises.
Policy implications
To scientifically guide the orderly population agglomeration of urban clusters, it is essential to fully leverage the marketization effects of population agglomeration of urban clusters and deepen the specialization and division of labor within these clusters. This study provides empirical evidence and important references for policymakers to effectively leverage the marketization and specialization effects of urban cluster population agglomeration, thereby promoting new urbanization and achieving high-quality development.
The aim of this paper is to investigate how ESG (environmental, social, and governance) performance can enhance the information environment. We consider whether ESG performance reduces information asymmetry and whether ownership concentration has a moderating effect on the association between ESG performance and information asymmetry. Based on a sample of nonfinancial listed firms from 16 European countries, we find evidence that overall corporate ESG performance reduces information asymmetry. Both the environmental and social pillars independently contribute to this significant relationship. Additionally, we find that a higher concentration of strategic investors negatively moderates the effect of ESG performance on information asymmetry. This effect indicates that this concentration allows these investors to leverage their private information advantage, thereby weakening ESG's role in reducing information asymmetry. Moreover, our results indicate that the positive effect of ESG performance on information asymmetry is more pronounced for firms operating in environmentally sensitive sectors. This finding shows that heightened scrutiny in these industries motivates greater ESG engagement to enhance legitimacy and protect the firm's reputation. Our findings are relevant to managers, capital market agents, and other stakeholders by offering insights into the crucial roles of ESG engagement in the information environment. Additionally, our findings are pertinent to regulators and policymakers as the regulation of ESG issues is an ongoing process.
This paper investigates how economic disasters affect sustainable development worldwide. These disasters, defined as particularly severe economic crises that cause a significant drop in GDP (10% or more), are the main focus of the study. In addition to being massive, economic disasters refer to both economic (financial, debt, and sovereign crises) and noneconomic events such as natural disasters, wars, and epidemics. This allows us to account for various events that potentially affect sustainability and differentiates us from other studies in the field, which typically focus on a much narrower concept—economic crises. In addition, this study looks at various sustainable development indicators and their components, thus enabling a more thorough and all‐encompassing analysis compared to other papers that primarily focus on the environment only. Finally, this paper investigates both the short‐ and long‐term effects across countries at different levels of development, thus providing additional insights into this topic. The findings show that economic disasters harm key sustainability indicators like adjusted net savings and the human development index, with low‐ and lower‐middle‐income countries being hit the hardest. Economic disasters also impact environmental indicators such as CO2 emissions, deforestation rates, air pollution, energy efficiency, and resource consumption. In addition, the study highlights how these disasters affect progress on specific sustainable development goals, emphasizing the need for policies that focus on long‐term sustainability rather than short‐term economic recovery.
This study uses data from 31 provinces in China between 2006 and 2020 to investigate the impact of financial structure on economic resilience. The findings show a significant inverted U‐shaped relationship between financial structure and economic resilience. Financial structure has a positive effect on economic resilience before reaching the inflection point; however, the impact becomes negative after reaching it. Endogeneity and robustness tests support this conclusion. Furthermore, factors such as crises, economic development levels, and the financial ecosystem moderate the relationship between financial structure and economic resilience. Finally, convergence tests reveal that disparities in financial structure and economic resilience across different regions in China are gradually narrowing, with financial structure converging towards the inflection point.
This study examines the relationship between integrated reporting quality (IRQ) disclosures, corporate governance quality (CGQ), and the implied cost of equity capital (ICC) in developed markets, focusing on Australia and New Zealand. The increasing adoption of integrated reporting and its potential implications for firms’ ICC motivates this research. Moreover, the study highlights the role of IRQ in mitigating information asymmetry between firms and investors, emphasizing the need for high-quality disclosures. Using a quantitative approach with panel data analysis, the research analyzes a sample of the top 174 companies by Standard and Poor’s market capitalization in Australia and New Zealand from 2018 to 2022, encompassing 870 observations post-IRQ implementation. Statistical methods, including fixed-effects, IV2SLS, two-step system-GMM, pooled OLS, and medium quantile regression, were applied to ensure robust findings. The results reveal a significant negative relationship between IRQ disclosure and ICC, with CGQ playing a moderating role in strengthening this association. Consistent with agency theory, the findings suggest that to reduce information asymmetry, firms issue more information which allows to reduce the cost of capital. Therefore, a more comprehensive firms’ reporting, including information about their strategy and risks, increases investors’ confidence, hence it may reduce the cost of capital. This study provides valuable insights for regulators and policymakers by emphasizing the importance of integrated reporting frameworks and robust corporate governance practices to promote transparency, reduce information asymmetry, and optimize capital allocation efficiency in developed markets.
This study explores how FinTech advancements, economic policy uncertainty (EPU), and social media sentiments affect bank stock returns in the United States. We analysed data from 338 listed banks between 2010 and 2022, using a two‐step Generalised Method of Moments estimator to address potential biases. Our findings show that EPU has the most significant negative impact on bank stock returns, highlighting the importance of stable policies for maintaining investor confidence. While FinTech advancements generally boost bank performance, they can temporarily hurt profitability due to initial costs and market scepticism. Positive social media sentiments, especially from platforms like Twitter, significantly enhance investor confidence and bank stock returns. However, when combined with high EPU, the positive effects of FinTech and social media are diminished, showing the density of these interactions. Robustness checks, including feasible generalised least squares and control variables such as unemployment, political stability, and the Z‐Score, confirm the consistency of our results. This study provides valuable insights for policymakers, financial institutions, and researchers, emphasising the need for strategies that integrate technological, social and policy factors to support financial stability and market performance.
The influence of chief executive officer (CEO) power on innovation has only briefly been the subject of study thus far creating a need for further exploration. The purpose of this research is to provide more evidence of the impact of CEO power on innovation as a business strategy. We also address the moderating effect that national culture has on the relationship between CEO power and innovation. The Thomson Reuters database provided the data for this research. The cohort of firms represents different countries, specifically, a sample of firms from 37 countries. To estimate the model, we used the generalised method of moments (GMM) procedure, an estimator that allows the researcher to control for unobservable heterogeneity and endogeneity. GMM also attenuates estimation bias. Our findings reveal that CEO power has a positive effect on innovation. In turn, the dimensions of national culture used here do not have the same moderating effect on the relationship between CEO power and innovation. Power distance and uncertainty avoidance negatively moderate the positive association between CEO power and innovation; individualism and indulgence reinforce the positive effect of CEO power on innovation; masculinity and long‐term orientation do not affect the relationship.
Purpose
The purpose of this study is to find out how firm’s competitive position plays the moderating role between the relation of information risk and COE. The study considers the effect of two different types of information risk, i.e., lack of information quality and transparent information.
Methodology
The data of the study is collected from all the non-financial firms listed on PSX from 2007 to 2022. Two-step system GMM dynamic panel estimators are applied to test the dynamic nature of the proposed model.
Findings/Results
The findings show that firms having better competitive position signal their strength through improved information disclosure in order to gain the confidence of shareholders. This competitive environment poses a governance effect by imposing discipline on manager’s behavior, reducing information asymmetry and improving the quality of information disclosure, resulting in reduction of the COE. Further, a more competitive environment improves the readability of the annual report and reduces information asymmetry. In addition, by reducing financing frictions, this research provides new and unique insights pertaining to the importance of competitive position in the sensitivity of investment to information risk.
Originality
This research extends to the corpus of literature by investigating the unexplored strategic determinants, such as a firm’s competitive position, to mitigate the impact of two distinct types of information risk: lower quality and reduced transparency. Additionally, it explores how these risks influence both the cost of equity and corporate investment.
Driven by the growing focus on decarbonisation and energy economic dynamics in emerging economies, this study examines the interplay between executive compensation (EC), sustainability‐based compensation (SBC), board sustainability committee initiative (BSCI), corporate energy transition initiatives (CETIs), corporate carbon emissions (CCEs) and firm performance (FP) using a multi‐theoretical framework. Analysing a panel dataset from 13 emerging economies spanning 2002–2022, we find that SBC positively influences CETIs, while EC has no significant effect. Our results also show that EC and SBC do not impact CCE. BSCI positively affects CETIs but has no significant influence on CCE. Additionally, BSCI moderates the relationship between EC and CCE, highlighting the critical role of governance structures. While CETIs are associated with low FP, CCE appears to have no direct impact on FP. These findings vary across business operating periods and remain robust under alternative measures, addressing potential endogeneities and sample selection bias. The results provide insights for policy makers and practitioners aiming to enhance sustainability practices in emerging economies.
This study investigates the relationship between capital structure and firm performance, concentrating on the moderating influence of monetary policy by means of bank credit. By using a sample of 49 real estate firms listed on the Ho Chi Minh City Stock Exchange between 2007 and 2021 and applied some econometric models such as ordinary least squares, fixed-effects, random effects estimation, and two-step system GMM, this research pioneers the concept of a minimum debt threshold or lower-bound debt threshold, addressing theoretical and empirical gaps in the evaluation of the effects of maintaining debt levels below this threshold, in contrast to traditional studies that primarily emphasize the optimal debt level or maximum debt threshold. Moreover, the study highlights the semi-moderating impact of bank credit on the threshold, emphasizing the important interaction between monetary policy and capital structure decisions. Specifically, this study finds that debt financing below the minimum threshold has a negative impact on performance, encouraging firms to seek alternative capital solutions or increase leverage above the minimum threshold, which is defined for each industry in accordance with the context of individual economies. The research offers significant insights for companies in capital budgeting and adjusting to variations in credit policies, particularly within Vietnamese real estate sector, which is highly dependent on debt financing and sensitive to monetary changes.
JEL Classification: E51, E52, G32.
The study examines the relationship between stock liquidity and the firms' extension and use of trade credit. In addition, this study examines the impact of financial constraints and dependence on external financing on the relationship between stock liquidity and trade credit. The study is based on secondary data of non‐financial Indian companies obtained from Center for Monitoring of Indian Economy Prowess database, pertaining to a period of 18 years (2000–2018). This study employs two‐step generalized method of moment's technique to arrive at results. Results of study confirm that firms with more liquid stock tend to provide more trade credit to their customers and also reduce the use of expensive trade credit financing from suppliers. Further, we find that higher stock liquidity is associated with significantly longer receivable period and shorter payable period for firms facing high financial constraints and also for firms with high external financial dependence.
This study examines the impact of a sustainability policy, the 2015 Chinese ban on fishing in the Yangtze River, on economic outcomes. Utilizing Chinese county‐level data and the DID approach, results reveal that the policy has a negative consequence, reducing growth in the agricultural sector by 3% in counties located within prefecture‐level cities adjacent to the Yangtze River. Notably, the largest adverse effects is found in the central Yangtze River Basin, compared to the western and eastern regions. The findings remain robust across a variety of econometric specifications. However, results show that the extended fishing ban does not induce significant job losses or income reductions, suggesting that the policy facilitated a shift from traditional fishing to other sectors, thereby reducing income volatility for workers within the agricultural industry.
Research Summary
Consistent with the theories of planned behavior and social contagion, this study is based on the notion that entrepreneurial intentions affect entrepreneurial behavior (“conversion channel”), which in turn affects others' intentions (“contagion channel”). GMM estimation results of a simultaneous equation model suggest that entrepreneurial intentions and new business ownership are reciprocally related. The conversion channel appears to be the stronger force in the relationship. Additional moderator analyses suggest that environmental munificence, as expressed by regulatory quality, advanced stage of the economy, and economic growth strengthen, whereas the GDP level weakens the relationship. Furthermore, entrepreneurial perceptions, exits, and knowing other entrepreneurs promote the conversion channel but mitigate the contagion channel. These findings yield implications relevant for research and policy makers.
Managerial Summary
A positive feedback loop in the economy is a situation where two events reinforce each other. In such situation, small and random changes in the economy, such as policy changes or economic shocks, are magnified. This study shows that there is a positive feedback loop in entrepreneurship between entrepreneurial intentions and behavior: individuals' entrepreneurial intention determines actual entrepreneurial behavior, which in turn encourages others to develop entrepreneurial intentions. The positive feedback loop is strengthened by environmental munificence, weakened by living standards, and ambiguously affected by entrepreneurial perceptions, experience, and networks. These findings deepen our understanding of how startup hotspots emerge, emphasize the importance of accounting for structural influences, and contribute to the discussion on cross‐country variation in entrepreneurial activity.
This study analyzes the effect of information and communication technologies (ICTs) on higher education enrollment in seven WAEMU countries over the period 2000-2023, with a particular focus on gender disparities. To address potential endogeneity bias, the two-stage least squares method with instrumental variables (IV-2SLS) is used for the estimations. The results reveal that mobile telephony and the internet exert a positive and statistically significant effect on increased enrollment in higher education, with a more pronounced impact among men. On the other hand, fixed-line telephony, whose penetration remains low throughout the region, has no significant effect. Persistent inequalities in access to ICT limit the benefits for women and hinder their inclusion in digital higher education. These findings underscore the need for targeted policies: massively investing in mobile coverage and broadband internet, especially in rural areas; setting up subsidy or credit mechanisms to facilitate the acquisition of digital equipment by female students; integrating digital skills into higher education curricula to enhance their pedagogical use; and adopting a harmonized regional strategy among member states to strengthen the integration of digital skills in higher education. Such measures would reinforce the impact of ICT on higher education access while helping reduce gender inequalities.
Although the relationship between corporate social responsibility (CSR) and banking performance has been the subject of several articles, the non-linear relationship between CSR disclosure and banking efficiency remains less explored, specifically in the Islamic banking sector and notably in the Gulf Cooperation Council (GCC) region. Moreover, the moderating effect of audit quality (AUQ) on this relationship has not also been examined. This research aims to examine the nonlinear relationship between CSR disclosure CSR disclosure and Islamic bank efficiency (IBE) and analyses the moderating effect of AUQ in this relationship. To achieve this, a sample of 43 Islamic banks located in the six GCC countries is constructed over the period 2012–2020. The sample was selected based on the completeness and availability of CSR-related data. This ensured a standardized dataset to enhance the reliability of the results. To estimate this relationship, we used system GMM method, addressing endogeneity concerns like reverse causality, unobserved heterogeneity and dynamic panel bias. Contrary to alternative estimation techniques, this method uses internal instruments to correct for potential biases, thereby improving the robustness and precision of estimates in dynamic panel models. The results revealed that there is an inverted U-shaped relationship between CSR disclosure and IBE. Furthermore, AUQ moderates the link between CSR disclosure and IBE. The results suggest that the interaction between CSR and AUQ enhances IBE, but bank efficiency could be affected by weak AUQ. The results will be useful to policy makers and Islamic bank managers in the GCC countries by increasing the CSR disclosure.
This paper tests the ‘productivity paradox’ with a new approach, investigating the impact of not only computerisation but also knowledge factors on productivity. The paper applies the two-step GMM system model for 2007 to 2011, the period strongly reformed in science and technology in an emerging country like Vietnam. There are mixed findings, ‘productivity paradox’ depends on the kind of knowledge factors and firm attributes. Human capital is a knowledge factor which has positive and sustainable power on labour productivity. In general, business model innovation has the strongest impact on productivity, for small-sized or FDI firms. ‘Productivity paradox’ in terms of computerisation appears for large-sized firms. Computerisation should be boosted for small and medium-sized. Small-sized, medium-sized, or foreign invested firms should invest more in innovation and development. ‘Productivity paradox’ depends on the interaction effect between human capital efficiency and computerisation.
JEL Classification: D2, D8, L2, J2.
This paper aims to analyze how innovation and gender diversity combine to affect labor productivity within the context of Moroccan SMEs, using data from the World Bank Enterprise Surveys and the Enterprise Survey Follow‐up on COVID‐19. Several studies have shown that female‐led firms, though much more reluctant to innovate than their male counterparts, performed equally in productivity compared to firms with male owners when they eventually did so. Using the CES production function and System GMM analyses, we deal with the endogeneity problem and show coherent results. Our results indicate that female‐led firms have a lower propensity to engage in innovation activities. However, when they do, their level of productivity is very close to that of their male‐led counterparts. In addition, we found that nearly 70% of the gap in productivity levels can be attributed to higher technological levels. Conclusions stress the importance of the policy recommendations, where the focus is made on increasing the support to women entrepreneurs, improving the conditions for financing the companies, as well as providing specific incentives and training.
Food insecurity remains a critical global challenge, disproportionately affecting emerging economies due to persistent undernourishment, population growth, and resource constraints. Motivated by rising global hunger due to both traditional pressures and newer challenges like energy utilization, this study explores the combined effects of economic, agricultural, and demographic factors on food insecurity. Using panel data from 10 emerging economies (Brazil, China, India, Indonesia, the Philippines, South Africa, South Korea, Russia, Thailand, and Vietnam) over the period 2000–2022, this research examines food insecurity through factors such as agricultural land area, cereal production, population growth, GDP growth, and trade openness. This study also introduces energy intensity into the analysis, offering a novel combination of factors and addressing a significant gap in the discourse on food security. We employ Fixed Effects, System Generalized Method of Moments (Sys‐GMM), and Difference Generalized Method of Moments (Diff‐GMM) estimation methods to address endogeneity and country heterogeneity. Empirical findings indicate that higher energy intensity and high population growth exacerbate food insecurity, while increased agricultural land use and increased cereal production significantly alleviate undernourishment. These findings illustrate the importance of focused policies on energy efficiency, agricultural productivity, and trade integration to achieve sustainable improvements in food security.
This paper examines the relationship between democratization and the development of AI and information and communication technology (ICT). Our empirical evidence shows that in the past 10 y, the advancement of AI/ICT has hindered the development of democracy in many countries around the world. Given that both the state rulers and civil society groups can use AI/ICT, the key that determines which side would benefit more from the advancement of these technologies hinges upon “technology complementarity.” In general, AI/ICT would be more complementary to the government rulers because they are more likely than civil society groups to access various administrative big data. Empirically, we propose three hypotheses and use statistical tests to verify our argument. Theoretically, we prove a proposition, showing that when the above-mentioned complementarity assumption is true, the AI/ICT advancements would enable rulers in authoritarian and fragile democratic countries to achieve better control over civil society forces, which leads to the erosion of democracy. Our analysis explains the recent ominous development in some fragile-democracy countries.
Background
The United Nations' Sustainable Development Goals (SDGs) Agenda 2030 is bent on achieving sustainable development with a key focus on governance and accountability. African countries are among the many other nations that face significant challenges such as corruption, weak institutional structures, limited rule of law, and political instability that affect developmental progress.
Aim
The study explores how these weaknesses can be addressed using governance and accountability as a sustainable development vehicle.
Materials & Methods
The paper analyzes the composite SDG Index (SDGI) using data from Worldwide Governance Indicators (WGI) and SDGs databases for 48 sub‐Saharan countries for the 2016–2020 period. Feasible Generalized Least Squares (FGLS) and Two‐Step System Generalised Method of Moments (TS‐GMM) were employed for the data analysis.
Results
The results show that, though regulatory quality and governance effectiveness showed no significant relationship, the control of corruption, rule of law, political stability, and voice and accountability affect SDGI significantly.
Discussion
The study stresses the importance of governance mechanisms in ensuring that nations achieve SDGs, especially in African countries, where significant governance reforms are needed.
Conclusion
It offers unique actionable recommendations that can aid policy formulation and help address systemic challenges. The study adds to academic discourse on how societal well‐being could be improved through sustainable development driven by effective governance with the introduction of SDGIs.
We investigate the impact of corporate social responsibility (CSR) on energy efficiency for the Iron and Steel Industries of India. Using firm‐level data, the panel fixed effects regression model shows an inverse relationship between CSR and energy intensity, suggesting that a strategic firm's involvement in CSR increases energy efficiency. In addition, businesses with higher CSR spending tend to be more energy efficient; however, the association is not consistently observed across all profit‐making CSR firms. Our findings at the disaggregate level suggest that firms that spend beyond the threshold levels experience a visible impact on energy efficiency. Further, CSR expenditure of R&D‐intensive firms tends to have higher energy efficiency than their counterparts. We conclude that CSR plays a significant role in enhancing the energy efficiency of a socially and environmentally responsible firm. Thus, environmental sustainability should be one of the priority investment areas for CSR‐driven firms in India.
This study explores the role of financial technology (FinTech) in promoting financial inclusion across 28 emerging and developing economies (EMDEs) from 2011 to 2021. While financial inclusion has been widely studied, limited research focuses on the concurrent impact of FinTech on financial access in multiple EMDEs. Using Principal Component Analysis (PCA), a new financial inclusion index was constructed, incorporating two dimensions: access and usage. A System Generalized Method of Moments (GMM) model was applied to examine the relationship between FinTech and financial inclusion, while the Ordinary Least Squares (OLS) technique was used to assess factors influencing barriers to inclusion. The results reveal that a 1% increase in FinTech leads to a 0.1772 unit rise in the financial inclusion index. Additionally, education, GNI per capita, and broad money to GDP were found to affect barriers to financial inclusion. This study underscores the importance of FinTech in achieving the United Nations’ Sustainable Development Goals (SDGs) and G20 principles for digital financial inclusion, recommending investment in digital infrastructure and stronger regulatory frameworks for FinTech development.
We investigate the asymmetric effects of climate-related actions on the profitability of a sample of more than 40 European banks over the period 2006–2022. We focus on two dimensions of climate actions related to transition risk, country-level climate change performance and bank-level environmental initiatives, and employ an asymmetric non-linear autoregressive distributed lag model. Our findings indicate that positive changes in both country-level and bank-level climate actions enhance profitability in the long run. Conversely, in the short run, these actions yield negative effects, and negative changes in climate-related actions reduce bank profitability. Furthermore, banks with greater investment activities are more sensitive to changes in climate-related actions. These results demonstrate that while proactively addressing climate risks incurs short-term costs, it is economically beneficial for banks in the long run. This highlights the crucial role of both bank-level sustainability initiatives and supportive national climate policies in fostering bank profitability within a low-carbon economy.
This study assessed the moderating influence of governance quality on the effect of health expenditure on economic growth, and exploring the analysis further to determine whether there exists possible heterogeneity in the distribution of this effect amongst 27 Sub‐Saharan African countries for the period 2005–2021. Public health expenditure (HExp), and six indicators of governance quality (control of corruption [Ccor], rule of law [Rlaw], political stability [Post], voice and accountability [Vacc], government effectiveness [Geft], and regulatory quality [Regq]) were utilised as proxy(ies) for HExp, and governance respectively. Two‐step dynamic panel data system generalised method of moments (DPD‐SGMM) estimation technique was used to estimate the conditional mean effect, while Possible heterogeneity in the distribution was explored using the method of moments quantile regression (MM‐QR); the study relied on annual time‐series indices of governance as developed by Kaufman and Kraay. Estimates demonstrate that: (i) while a significant positive relationship was observed between HExp and economic growth, Rlaw, Vacc, and Regq significantly reduce economic growth, (ii) interaction between HExp, and Vacc, Regq, individually increases the potency of HExp to stimulate economic growth by 2.2%, and 1.2% respectively, as against 1.3% reduction for Rlaw, (iii) no heterogeneity was observed in the distribution of these amongst the sample of countries.
Impact Statement
This study analyzes how collaborations between commercial banks and fintech firms influence bank performance, using data from Türkiye between 2013 and 2021. The findings reveal a nuanced picture. For large-scale traditional banks, partnering with fintech firms tends to improve return on equity (ROE), suggesting that these collaborations can complement existing business models. However, the broader development of fintech across the industry appears to have a negative impact on both return on assets (ROA) and ROE for large banks. This suggests that some fintech products and services may be substituting traditional banking functions, thereby reducing profitability. The work is significant because it offers empirical evidence on the mixed impacts of fintech integration. It helps clarify that while collaborations with fintech firms can drive improvements in certain performance metrics, they can also disrupt traditional revenue streams. This insight is valuable for banks as they look to strike a balance between embracing technological innovation and safeguarding their core operations.
The consensus among academics and policymakers is that countries in Sub‐Saharan Africa (SSA) must pursue policies aimed at promoting inclusive growth to have the needed impact on minimizing income inequality and reducing poverty. However, there are ambiguities in the literature regarding the main factors that can elicit the participation of poor and marginalized groups in the growth process. This thesis extends the arguments of the new institutional economics and law and finance theory to examine the roles of legal institutions in promoting inclusive growth in SSA. Using data from 2007 to 2018, and after having controlled for endogeneity bias with the two‐step system generalized method of moments (GMM), we find evidence to support the hypothesis that strengthening the overall quality of legal institutions (rule of law) enhances inclusive growth in the region. Further, we document a significant positive influence of disaggregated measures of judicial independence, reliability of police, cost of enforcing contracts, and legal procedures in settling disputes on inclusive growth. However, our findings reveal that strengthening creditor rights protection and property rights protection harms inclusive growth in the region. Therefore, seeking to enhance equitable access to social and economic opportunities, our findings call for SSA countries to strengthen the quality of their legal framework. By unbundling the legal framework of the countries, our findings also provide pertinent inferences for policymakers on which institution‐specific aspects of the legal framework are vital for promoting inclusive growth in the region.
This study investigates the impact of ESG controversies on the performance of publicly listed firms in the ASEAN‐5 countries with the moderating effect of board gender diversity and sustainability committees. By employing random‐effects regression, this study examines 1414 observations covering 2017 to 2023. Besides, a two‐step GMM and 2SLS regression were used to address the endogeneity problem. The results found a significant negative relationship between ESG controversies and firm performance, implying that firms with fewer ESG controversies have higher performance. Besides, board gender and sustainable committees contribute to reducing the intensity of ESG controversies, which subsequently improves corporate reputation and hence their performances. This outcome presents policymakers with recommendations on how to develop regulations concerning ESG controversies, board gender diversity, and sustainability committees. This study is among the first that highlights the role of board gender diversity and sustainability committees in the context of ESG controversies and firm performance in the region of ASEAN.
This study investigates the collective impact of key corporate governance variables namely board composition, audit committee characteristics, and foreign ownership on firm performance in an emerging economy, India. Unlike prior research that examines these mechanisms in isolation, this study highlights their significance and evaluates their collective influence, particularly in light of the regulatory changes introduced by the Companies Act, 2013. To address methodological limitations in prior studies, this research employs the System Generalized Method of Moments (GMM) to mitigate endogeneity concerns and uses Ordinary Least Squares (OLS) for robustness checks. The results reveal that these governance mechanisms when analyzed together, provide deeper insights into their synergistic effects on operational efficiency and profitability. Board meetings suggesting their importance in strategic decision-making whereas Gender diversity demonstrating the importance of diverse viewpoints. Influence of CEO duality is ambiguous, implying a complex influence on performance results. Independent directors’ presence and more prominently independent audit committees is directly linked with improved performance, indicating improved governance and monitoring. Larger board sizes, on the other hand, have a negative influence, emphasizing possible complexity in collaborative decision-making. For policymakers, reinforcing diversity policies could enhance firm performance, while for companies, limiting board size may reduce decision-making delays. Regulators could consider incentivizing foreign ownership, given its positive association with firm value, and strengthening audit committee independence to bolster monitoring functions. Investors may also view gender-diverse boards and foreign-owned companies as favourable indicators of long-term performance.
This study aims to assess the impact of working capital management on the financial performance of listed enterprises. Based on 441 enterprises listed on Vietnam’s Stock Exchange during from 2012 to 2022, and the regression methods such as Pooled ordinary least squares (OLS), fixed effect method (FEM), random effect method (REM), and feasible generalized least squares (FGLS) as well as the possibility of endogenous phenomena in the estimated model, the research results show that working capital has an impact on the corporate financial performance. Specifically, the components of working capital, such as the days sales outstanding (DSO), days inventory outstanding (DIO), cash conversion cycle (CCC), and operating cash cycle (OCC), have negative and statistically significant impacts on return on assets (ROA) and return on equity (ROE). Thus, improving working capital efficiency through DSO, DIO, CCC, and OCC makes the business more efficient. However, the study also finds that days payable outstanding (DPO) has a negative impact on financial performance, indicating that delays in payment to suppliers tend to reduce business profitability. The endogeneity problem is controlled, CCC and OCC lose their relationships with both ROA and ROE. Furthermore, there exists an inverted U-shaped relationship between working capital management and financial performance.
This research examines how various ownership composition, such as royal, family, state, director, foreign, and block-holders, affect the performance of firms in the GCC region during the Covid-19 pandemic. The sample includes 373 non-financial GCC firms and the research uses the OLS regression technique with data from 2020 to 2023. To fix the endogeneity, a ‘two-step system GMM estimation’ was adopted. The analysis found that family, block-holder, and director ownership of Covid-19 had a favourable impact on ROE, whereas royalty and state ownership had a negative impact. Regarding Tobin’s Q, the findings revealed that family ownership was substantial and positive, whereas block-holder, royal, and foreign ownership were significant and negative. The findings of this work are significant for investors, regulators, and management, particularly those seeking to improve a company’s capital market performance through ownership changes during crises in emerging economies such as the Covid-19 outbreak. The study’s outcomes provide authorities with insights into how they might regulate and monitor corporate activity, particularly amid unpredictable market conditions. To the authors’ knowledge, this is the first study to look into the influence of diverse ownership arrangements on business performance in the context of Covid-19 in emerging countries such as the GCC.
This study examines the intersection of corporate social responsibility (CSR) precedence, circular economy (CE) practices, and the United Nations Sustainable Development Goals (SDGs) through the theoretical frameworks of the organizational culture and dynamic capabilities theory. We explore how historical CSR commitments influence firms’ resource utilization, emissions, waste management, and integration of sustainable practices such as renewable energy consumption and water recycling, using panel regressions with fixed effects and Heckman two‐stage regressions, analyzing data from 1072 public traded US firms from 2007 to 2017. Our findings suggest that firms with a robust history of CSR activities are better positioned to reduce their environmental footprint and enhance their alignment with specific SDG targets, particularly those related to responsible consumption and production (SDG 12) and climate action (SDG 13). Through a comprehensive analysis grounded in organizational culture theory, we demonstrate that firms with a strong CSR precedence foster a green organizational culture, which supports sustainable operational strategies and increases the capability to achieve sustainable outcomes. Drawing on dynamic capability theory, this study underscores the role of CSR precedence in strengthening a firm's capability to adapt and reconfigure resources in response to changing environmental demands, promoting a transition toward a CE, and thereby contributing to the broader objectives of environmental sustainability.
This study explores the relationship between governance, technological progress, and internet banking adoption in the European Union (EU) from 2000 to 2023, focusing on the global financial crisis of 2008 and the COVID-19 pandemic. Employing a dynamic system GMM methodology, the analysis highlights the pivotal roles of governance quality and technological advancements in driving internet banking adoption. A key contribution of this research lies in its comparative analysis of the two crises. The findings reveal that governance priorities evolved from financial stabilization during the 2008 crisis to fostering digital transformation and cybersecurity during the COVID-19 pandemic. The study also demonstrates the synergistic effects of governance and technological infrastructure in reducing the digital divide, especially in EU states with historically low adoption rates. The practical implications of this research highlight how governance quality and technological advancements collectively influence internet banking adoption. Strengthening regulatory frameworks and improving digital security measures are essential for fostering trust and confidence in digital banking systems. Additionally, the findings emphasize the role of technological infrastructure in expanding access, particularly through enhanced broadband and mobile connectivity, which can drive digital banking even in regions with weaker governance indicators.
The study investigates factors affecting corporate financial performance listed in Vietnam’s stock exchange during the period from 2012 to 2022. The research uses analysis methods including Pooled OLS, FEM, REM, FGLS and S-GMM. Research results show that there is no clear relationship between financial reporting quality and corporate performance, however, the size of the board of directors (BOD) has a positive impact on the financial performance. Further, the participation of foreign members as well as increasing board independence has a negative and economically significant impact on firm performance. The research results also indicate that revenue growth can significantly increase firm performance; and firm size, investment in fixed assets and choice of equity sources have the ability to create higher profits.
This study investigates the impacts of macroeconomic volatility, economic policy uncertainty on short-term, medium-term, and long-term credit growth, as well as the overall financial stability of Vietnam's commercial banking sector. Analyzing data from 26 commercial banks in Vietnam from 2010 to 2022, this research endeavors to explain how volatilities in macroeconomic conditions, particularly heightened during periods of economic policy uncertainty, adversely influence credit expansion and financial stability. The study reveals that macroeconomic instabilities exert a detrimental effect on the financial robustness of commercial banks. Notably, fluctuations in GDP growth emerge as the most substantial and negatively impactful factor. This instability in GDP growth profoundly affects credit growth in short-term, medium-term, and long-term periods. The impact of macroeconomic instability factors on credit growth is pronounced in the short and medium term and diminish over the long term. Consequently, this research underscores the criticality of maintaining economic growth stability for ensuring the resilience of the commercial banking system in Vietnam.
The study examines the impact of Integrated Reporting (IR) on firm value, and it explores the moderating role of CEO integrity (CEOI) in this relationship for companies listed on GCC stock exchanges. The sample consists of 177 listed firms from six GCC countries (Saudi Arabia, UAE, Bahrain, Qatar, Oman, and Kuwait) that published integrated reports from 2017–18 to 2022–23 in Arabic and English. Using secondary data from the firms’ websites, the research applies the system GMM model and dynamic fixed-effect robust standard error model to analyze the data. The findings reveal that IR positively influences firm value. Furthermore, CEO integrity moderates the relationship between IR and firm value, amplifying the positive effects of IR when CEOs demonstrate ethical leadership. The study’s implications suggest that firms should adopt IR practices and ensure CEO integrity to boost firm value. Supervisory boards must oversee both IR practices and CEO performance to maintain transparency, safeguard the firm’s reputation, and drive sustainable value creation.
This study presents an in-depth analysis of factors affecting the increase and fluctuation of food prices in Sub-Saharan Africa (SSA). It analyses data from 32 countries within the region for the years 2000–2022. Through the application of three-panel regression models, the fixed effects (FEs), a hybrid model and a dynamic model, this research takes a detailed look at factors unique to each country to ensure a comprehensive and accurate examination of the effects. Our results align with both existing theories and prior empirical studies, highlighting the significant roles played by domestic supply shocks, changes in the exchange rate, variations in the money supply from previous periods and the influence of international market trends on food price inflation in SSA. Interestingly, the effect of exchange rate changes and international market influences appears to be waning over time, despite a recent uptick. Additionally, our study points to exchange rate fluctuations as a crucial factor in the instability of food prices.
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