Is a Corruption Crackdown Really Good for the Economy? Firm-Level Evidence from China

2020 ◽  
Author(s):  
Zhiyuan Chen ◽  
Xin Jin ◽  
Xu Xu
Keyword(s):  
Negative Impact ◽  
Foreign Firms ◽  
Private Firms ◽  
Firm Level ◽  
Personal Connections ◽  
Before And After ◽  
Short Run ◽  
The Government ◽  
Negative Impacts ◽  
The Impact

Abstract We study the impact of anticorruption efforts on firm performance, exploiting an unanticipated corruption crackdown in China’s Heilongjiang province in 2004. We compare firms in the affected regions with those in other inland regions before and after the crackdown. Our main finding is an overall negative impact of the crackdown on firm productivity and entry rates. Furthermore, these negative impacts are mainly experienced by private and foreign firms, while state-owned firms are mostly unaffected. We present evidence concerning two potential explanations for our findings. First, the corruption crackdown may have limited bribery opportunities that helped private firms operate. Second, the corruption crackdown may have interfered with personal connections between private firms and government officials to a greater extent than institutional connections between state-owned firms and the government. Overall, our findings suggest that corruption crackdowns may not restore efficiency in the economy, but instead lead to worse economic outcomes, at least in the short run (JEL L2, M1, O1).

Impact of Dividend Tax Change on the Payout Policy of Indian Companies

2019 ◽  
Vol 20 (5) ◽  
pp. 1282-1291
Author(s):  
Sanjay Dhamija ◽  
Ravinder Kumar Arora
Keyword(s):  
Negative Impact ◽  
Payout Policy ◽  
Tax Law ◽  
Dividend Payout ◽  
Inside Ownership ◽  
Regulatory Changes ◽  
Before And After ◽  
The Government ◽  
The Impact ◽  
Dividend Tax

The article examines the impact of regulatory changes in the tax on dividends on the payout policy of Indian companies. The tax law was recently amended to levy tax on dividends received by large shareholders. As the promoters group is the largest shareholder, this is expected to have a negative impact on the payout policy of companies. Furthermore, companies with larger promoter holdings have a higher motivation to reduce their payout. The study covers 370 companies present in the BSE 500 Index and compares the dividend payout of the companies before and after the introduction of tax levy. The study finds that the newly introduced tax indeed caused a shift in the dividend policy of companies, particularly those companies which have high levels of inside ownership. The findings have significant implications for companies, investors and the government.

DOES FISCAL DEFICIT CROWD OUT PRIVATE CORPORATE SECTOR INVESTMENT IN INDIA?

2016 ◽  
Vol 64 (05) ◽  
pp. 1201-1224 ◽  
Author(s):  
RANJAN KUMAR MOHANTY
Keyword(s):  
Negative Impact ◽  
Investment Decision ◽  
Private Investment ◽  
Fiscal Deficit ◽  
Corporate Sector ◽  
Significant Negative Impact ◽  
Short Run ◽  
Financing Pattern ◽  
The Government ◽  
The Impact

This paper examines the impact of fiscal deficit and its financing pattern on private corporate sector investment in India, for the period from 1970–1971 to 2012–2013. Using Autoregressive Distributed Lag (ARDL) Models, the study finds that fiscal deficit crowds out private investment both in the long run and in the short run. The results also show that internal (domestic) financing of fiscal deficit has significant negative impact on private investment but external (foreign) financing of fiscal deficit has insignificant effect. In the short run, availability of bank credit plays a more important role in investment decision making than the rate of interest in India. The study suggests that government should maintain the fiscal deficit within a sustainable level by reducing its unnecessary non-developmental expenditure, subsidies etc. The government should restructure its financing pattern of fiscal deficit since internal financing has a significant negative impact on private investment.

scholarly journals Dampak Pembangunan Waterfront Pontianak CityTerhadap Perubahan Aspek Kehidupan Masyarakat Sekitar Tepian Sungai Kapuas

2020 ◽  
Vol 11 (1) ◽  
pp. 35
Author(s):  
Bangun Eddi Suryanto ◽  
Friska Devi
Keyword(s):  
Research Method ◽  
Qualitative Approach ◽  
Community Life ◽  
Economic Aspects ◽  
Before And After ◽  
Pros And Cons ◽  
The Government ◽  
Negative Impacts ◽  
Welfare Changes ◽  
The Impact

The purpose of the study with the title the impact of Pontianak City waterfront development on changes in aspects of community life around the banks of the Kapuas river, by taking the issue of how the economic situation of the community around before and after the construction of Waterfront Pontianak City and how the impact of the development of Pontianak City waterfront on aspects of community life around the banks of the river Kapuas. This research method is a descriptive qualitative approach, using interview and observation techniques. The results showed that the changes that occurred after the development of Waterfront Pontianak City experienced positive and negative impacts. Where these changes occur in economic aspects and social welfare. Changes in the economic aspects, namely they feel the income they get increased from before this development. But for the sake of the construction of the Waterfront Pontianak City, the government demolished the houses of residents around the banks of the Kapuas river. So this causes the pros and cons of the community because the community feels that the compensation given by the government is not what they expected.

scholarly journals International Real Estate Review

2007 ◽  
Vol 10 (2) ◽  
pp. 113-130
Author(s):  
Benoit Julien ◽  
◽  
Paul Lanoie ◽  
Keyword(s):  
Real Estate ◽  
Negative Impact ◽  
House Prices ◽  
Real Estate Market ◽  
Data Set ◽  
Long Run ◽  
Before And After ◽  
Short Run ◽  
Noise Barrier ◽  
The Impact

This paper provides the first study on the impact of noise barriers on the price of adjacent houses based on a repeat sale analysis (RSA). RSA allows us to empirically examine the differential between the prices of houses sold before and after an event that may have affected their value, and after other relevant variables such as the evolution of the real estate market and major renovations performed on the house are controlled. This paper focuses on the neighborhood of Laval, a suburb of Montreal, where a large noise barrier was built in 1990 along a highway. The data set contains transaction information on 134 houses that were sold at least twice from 1980–2000. The empirical result will show that the noise barrier induced a decrease of 6% in the house prices in our sample in the short run, while it had a stronger negative impact of 11% in the long run.

scholarly journals An Investigation into the Impact of COVID-19 on the Performance of a Non-profit Microfinance Institution

2021 ◽  
pp. 175-181
Author(s):  
B. Zaneta Prarthana ◽  
K. R. Ashok ◽  
K. Mahendran ◽  
Srivara Buddhi Bhuvaneswari
Keyword(s):  
Tamil Nadu ◽  
Ground Level ◽  
Microfinance Institutions ◽  
Loan Repayment ◽  
Non Profit ◽  
Before And After ◽  
Microfinance Institution ◽  
The Government ◽  
Negative Impacts ◽  
The Impact

This article deals with the effect of the COVID-19 pandemic on the performance of a non-profit microfinance institution operating in the Nilgiris and Perambalur districts of Tamil Nadu in India. The primary focus of the paper is on the microfinance institute’s financial performance in terms of outreach and portfolio quality before and after the coronavirus outbreak. The most worrisome factors that were encountered in due course of the study include a decline in loan portfolio and clientele, and an increasing trend in portfolio at risk (PAR) percentage due to a surge in client overdues, outstanding loan amount and rise in number of delinquent clients. These negative impacts on performance were further investigated by establishing a connection to the clients’ repayment ability. A survey was conducted among the women clients of the microfinance institution by enlisting 120 respondents, 60 from each district to identify the various constraints faced by them in loan repayment as a result of the government-imposed lockdown that affected their livelihood and curbed their source of income. Therefore, an attempt has been made to bring out the ground level realities that played an important role in disrupting the normal functioning of the microfinance institution during the pandemic outbreak. This will prove useful in setting guidelines for future crises of like nature to enable microfinance institutions to keep functioning efficiently without any drastic changes to their performance.

scholarly journals Changing shareholding pattern in companies established prior to liberalization and the impact

2018 ◽  
Author(s):  
vinita pimpale
Keyword(s):  
Industrial Structure ◽  
Listed Companies ◽  
Business Organizations ◽  
Firm Level ◽  
Public Companies ◽  
Indian Economy ◽  
Before And After ◽  
The Government ◽  
Indigenous Entrepreneurs ◽  
The Impact

ABSTRACTChanging shareholding pattern in companies established prior to liberalization and the impact.Prior to 1991, the Indian economy was averse to policies that diluted the government’s control over the companies established in the country. A closed economy of sorts, the Indian economy perceptibly faced the pressure of global forces as well as internal turbulence's resulting in negativeeconomic indicators. As a result of the same, the government yielded to the situation and began the process of liberalization. The 1980s saw the advent of these policies through the delicensing of certain key industries which was then followed by the introduction of the New Economic Policywhich laid down the framework of liberalization as a formal reform in the economy in 1991.Clusters of business groups in India formed around ethnic, religious and social communities, for example, the Marwaris of Rajasthan formed businesses in Bengal and elsewhere; the Gujaratis in the West, the Chettiars in the South, etc. There is a vast diversity in the Indian economy,comprising of listed as well as unlisted, regional as well as foreign, private as well as public companies. The indigenous entrepreneurs in the Indian markets have now become veterans in their respective industries. Over the years, from government monopolies to family owned businessstructures to the emergence of corporations’, the shareholding patterns in the Indian industrial fora have transitioned through various stages.This research study tracks the movements in the shareholding patterns of Indian Companies spanning over a period from the 1980s up to 2015 to examine the impact of liberalization as an economic policy. The key objectives of this study are:1. To describe the evolution of India’s listed companies’ shareholding structure.2. To study the evolution of India’s industrial structure at the firm level as a result ofthe reforms.3. To analyze the industrial composition by ownership before and after reforms.This study offers a captivating kaleidoscope of shareholding trends across the companies in the different industries over the years. This study is organized as follows:Section 1: Overview of evolution in Company incorporations in India pre and postliberalization.Section 2: Description of trends in Industrial Structure in Non-Government Companies’incorporations and the corresponding sectorial contributions to the GDP.Section 3: Study of various ownership patterns in Indian Companies and the trends therein.Section 4: Analysis of shareholding structures in listed companies (SENSEX.)Section 5: Study of impact of foreign investments in the Indian Corporate Sector.Section 6: Brief comparison of the shareholding patterns of business organizations as well as liberalization policies among the BRIC nations.The last unit of the study sets out the findings, interpretations, conclusions and recommendations on the subject.

scholarly journals Kampung Pulo Environmental Planning Observed from Biophysical Aspects as Adaptation of Flood in Jakarta

2018 ◽  
Vol 7 (2.3) ◽  
pp. 82
Author(s):  
Deffi Ayu Puspito Sari ◽  
Astrid Sugiana ◽  
Ristianti Yuri Ramadhonah ◽  
Suci Innaqa ◽  
Robbi Rahim
Keyword(s):  
Urban Areas ◽  
Environmental Planning ◽  
Negative Impact ◽  
Residential Buildings ◽  
Secondary Data ◽  
Environmental Damage ◽  
Before And After ◽  
The Government ◽  
Flooded Area ◽  
The Impact

Urbanization triggers an increase in urban land conversion. Along with the increasing population and the increasing needs of the shelter, people tend to use the remaining space such as riverbanks and river bodies which are not intended for residential buildings. This has a negative impact on the environmental and river ecosystems, as well as causing the changes in the function of rivers in urban areas, one of it is Ciliwung River which runs through Kampung Pulo. The government seeks to deal with the environmental damage on the riverbank through a revitalization program. This research was conducted to find out the impact of revitalization process by observing biophysical condition of river before and after eviction of people that live in the Ciliwung riverbank and provide a landscape plan of Kampung Pulo segment. Using secondary data of rainfall, land use, land cover and flooded area. The mapping with ArcGIS 10.1 shows there decrease in the area of flood puddle in Kampung Pulo.  

scholarly journals The Impact of Heterogeneous Environmental Regulations on Location Choices of Pollution-Intensive Firms in China

2021 ◽  
Vol 9 ◽  
Author(s):  
Chenghui Tang ◽  
Jianmin Dou
Keyword(s):  
Sustainable Development ◽  
Negative Binomial ◽  
Negative Impact ◽  
Environmental Regulations ◽  
Foreign Firms ◽  
Pollution Haven Hypothesis ◽  
Location Choices ◽  
Firm Level ◽  
Pollution Haven ◽  
The Impact

The spatial transfer pattern and dynamic mechanisms of pollution-intensive industries are key issues for national and regional sustainable development. Although previous studies have emphasized the impact of environmental regulations on the transfer of pollution industries, there is a lack of firm-level analysis of the combined effects of different types of environmental regulations and other factors on them, which has led to the pollution haven hypothesis remaining contested. In order to provide micro evidence to test the pollution haven hypothesis, this paper reveals the temporal and spatial evolution of pollution-intensive foreign firms’ distribution in China, and explores the impact of heterogeneous environmental regulations on the location choices by using spatial analysis and zero-inflated negative binomial regression. The empirical results were as follows: Firstly, pollution-intensive foreign firms were highly concentrated in the eastern developed region and have a strong path dependency in China. Secondly, environmental regulations, especially the market-based environmental regulation, had a significant negative impact on the location choices of pollution-intensive foreign firms. Thirdly, the spatial distribution of pollution-intensive foreign firms was strongly influenced by new economic and geographic factors. Fourthly, pollution-intensive foreign firms have a significant pollution border effects in developed regions but not in economically less-developed regions due to transportation costs. The governments are expected to adopt heterogeneous environmental regulations based on the level of regional economic development to avoid the pollution haven phenomenon, thus achieving a sustainable development.

Transport infrastructure of the Rostov Oblast: Problems and prospects for development in the context of national projects implementation

2020 ◽  
Vol 19 (6) ◽  
pp. 1015-1034
Author(s):  
O.Yu. Patrakeeva
Keyword(s):  
Time Series Data ◽  
Mutual Influence ◽  
Rostov Oblast ◽  
Transport Infrastructure ◽  
Series Data ◽  
Cointegration Tests ◽  
Level Of Economic Development ◽  
Short Run ◽  
The Government ◽  
The Impact

Subject. The paper considers national projects in the field of transport infrastructure, i.e. Safe and High-quality Roads and Comprehensive Plan for Modernization and Expansion of Trunk Infrastructure, and the specifics of their implementation in the Rostov Oblast. Objectives. The aim is to conduct a statistical assessment of the impact of transport infrastructure on the region’s economic performance and define prospects for and risks of the implementation of national infrastructure projects in conditions of a shrinking economy. Methods. I use available statistics and apply methods and approaches with time-series data, namely stationarity and cointegration tests, vector autoregression models. Results. The level of economic development has an impact on transport infrastructure in the short run. However, the mutual influence has not been statistically confirmed. The paper revealed that investments in the sphere of transport reduce risk of accidents on the roads of the Rostov Oblast. Improving the quality of roads with high traffic flow by reducing investments in the maintenance of subsidiary roads enables to decrease accident rate on the whole. Conclusions. In conditions of economy shrinking caused by the complex epidemiological situation and measures aimed at minimizing the spread of coronavirus, it is crucial to create a solid foundation for further economic recovery. At the government level, it is decided to continue implementing national projects as significant tools for recovery growth.

KAJIAN DAMPAK KEBIJAKAN PENUTUPAN LOKALISASI TELEJU OLEH PEMERINTAH KOTA PEKANBARU

2017 ◽  
Vol 15 (2) ◽  
pp. 78
Author(s):  
M. Zainuddin
Keyword(s):  
Social Order ◽  
Qualitative Method ◽  
Negative Impact ◽  
Early Stage ◽  
Policy Research ◽  
Research Approach ◽  
Policy Content ◽  
The Government ◽  
Closure Policy ◽  
The Impact

This research to analyze the impact of closure policy Teleju brothel by Pekanbaru govermentin 2010. Guidelines for works are Pekanbaru Local Regulations No. 12 of 2008 on Social Order-liness. Closure this brothel inflicts positive and negative impact for society.The research wasconducted to obtain early stage formula for the government to take action against the prostitu-tion activities. This research uses policy research approach with a qualitative method, becausein prostitution activities and prohibition by goverment is an assessment that needs to be done byanalyzing documents and unstructured interview.The results showed that after the closing of the Teleju brothel have an impact on the deploy-ment of a prostitution and affect the economy of the surrounding residents. Government seeksto tackle prostitution in Pekanbaru by moving the brothel, conduct regular raids and providetraining. The effort is considered to be less than the maximum because the handling is not basedon the root of the problem and not programmed properly. There are several causes of failure ofgovernment to overcome the prostitution problem in Pekanbaru, including: policy content isless focus on the prostitution problem, the government did not proceeds with data, lack of finan-cial support, contra productive programs between local government with the police and TNI,and the policy object is difficult to be given understanding.

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