Threshold effect in the relationship between family ownership and firm performance: A panel smooth transition regression analysis

PurposeThis study aims to interrogate dynamic asymmetric relationships between public debt and economic growth in Southern African Developing Communities (SADC), over the period 2000–2018.Design/methodology/approachThe study employed a panel smooth transition regression (PSTR) technique to analyse dynamic asymmetric relationships between public debt and economic growth, and the threshold effect at which public debt hampers economic growth.FindingsThe findings indicate that there is a significant nonlinear effect of debt on economic growth in SADC. The study discovered a debt threshold of 60% to GDP at which debt beyond this threshold deteriorates long-term growth. The low-debt regime was found to be positive and statistically significant, while the high-debt regime is detrimental for long-term growth. Fiscal policymakers ought to consider the adoption of well-coordinated debt policies that aims to strike a balance between sustainable public debt and economic growth, within a reasonable threshold target.Originality/valueThe study focusses on asymmetric and threshold analysis of public debt on economic growth in SADC using sophisticated panel smooth transition regression (STAR). This study provides rigorous empirical evidence within the SADC perspective in which previous studies have predominantly been confined in advanced economies.

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The asymmetric impact of institutional ownership on firm performance: panel smooth transition regression model

Corporate Governance ◽

10.1108/cg-06-2020-0254 ◽

2020 ◽

Vol 20 (7) ◽

pp. 1191-1203

Author(s):

Abbas Ali Daryaei ◽

Yasin Fattahi

Keyword(s):

Firm Performance ◽

Regression Model ◽

Institutional Ownership ◽

Smooth Transition ◽

Content Type ◽

Smooth Transition Regression ◽

Asymmetric Impact ◽

Smooth Transition Regression Model ◽

Institutional Shareholders ◽

Panel Smooth Transition Regression

Purpose This study aims to test the asymmetric impact of institutional ownership on firm performance. This study does it through an examination of the hypotheses of efficient monitoring and convergence of interests from the Tehran Stock Exchange (TSE). Design/methodology/approach Using a panel smooth transition regression model, as a new econometric technique, this paper examined the data to explore the asymmetric impact of institutional ownership on firm performance. With regard to 177 firms for the period 2009 to 2018 from TSE. Performance proxies are returned on asset (ROA), return on equity (ROE) and Tobins’ Q. Findings The empirical for three performance proxies results strongly rejected the null hypothesis of linearity and the test for no remaining nonlinearity indicated a model with one transition function and one threshold parameters. The first regime (levels of institutional ownership below 28.5% and 43.5% for ROA and Tobins’ Q) showed that performance increases with institutional ownership while the trend was reversed in the second regime (levels of institutional ownership above 28.5% and 43.5% for ROA and Tobins’ Q percent). Also, institutional shareholders percent between 4.2 and 14.1 explain the positive relationship between institutional shareholders and ROE. Originality/value Furthermore, the findings of this study suggest that the application of institutional ownership theories calls for more inquiry.

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Does the Demographic Structure Affect Outbound Tourism Demand? A Panel Smooth Transition Regression Approach

Journal of Travel Research ◽

10.1177/0047287519867141 ◽

2019 ◽

Vol 59 (5) ◽

pp. 893-908 ◽

Cited By ~ 2

Author(s):

Zhiyong Li ◽

Haoyu Shu ◽

Ting Tan ◽

Songshan (Sam) Huang ◽

Jianping Zha

Keyword(s):

Demographic Factors ◽

Smooth Transition ◽

Nonlinear Relationship ◽

Tourism Demand ◽

Demographic Structure ◽

Regression Approach ◽

Smooth Transition Regression ◽

The Relationship ◽

Panel Smooth Transition Regression ◽

Demographic Effects

This study aims to examine the relationship between the demographic structure and outbound tourism demand using panel data from 72 countries and regions during the 2000-2014 period. A panel smooth transition regression (PSTR) model is employed to prove that there is a nonlinear relationship between demographic factors and outbound tourism demand and that the demographic effects can vary under different income regimes. The empirical results indicate that the impacts of demographic factors on outbound tourism demand change significantly when income constraints are relaxed. Based on this premise, we can better understand the travel characteristics of different groups, which are subdivided according to different demographic factors.

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