A random effects multinomial logit model for the determinants of exit modes

2018 ◽  
Vol 45 (4) ◽  
pp. 791-809 ◽  
Author(s):  
Mohd Irfan ◽  
Sarani Saha ◽  
Sanjay Kumar Singh
Keyword(s):  
Random Effects ◽  
Choice Model ◽  
Multinomial Logistic Regression ◽  
Manufacturing Firms ◽  
Data Set ◽  
Content Type ◽  
Advertising Intensity ◽  
Factors Associated ◽  
Independent Events ◽  
Voluntary Liquidation

Purpose The purpose of this paper is to examine the factors associated with three modes of firms’ exit (voluntary liquidation, involuntary liquidation and acquisition) in a mutually exclusive environment. In particular, three modes of exit are treated as independent events given that different causes and consequences exist for each exit mode. The data set is a panel of 4,408 US manufacturing firms spanning over the period 1976–1995. Design/methodology/approach The discrete choice model is used to establish a relationship between modes of exit and a set of explanatory variables, which are specific to the firm, industry and macroeconomic conditions. Use of panel data encourages us to estimate a random effects multinomial logistic regression model, which allows exit modes as mutually exclusive events and at the same time controls the firm-specific unobserved heterogeneity in the sample. Findings The analysis suggests that the determinants of voluntary liquidation are age, size, profitability, technology intensity and inflation level. The determinants of involuntary liquidation are size, leverage, profitability and inflation level. For acquisition, determinants are age, size, advertising intensity, Tobin’s q, GDP growth, inflation level and interest rate. The findings suggest that exit modes have a different set of determinants and the scale of effects of some common determinants such as age, size and profitability differs between exit modes. Research limitations/implications The analysis presented in this study relies on data from US manufacturing firms only. Thus, there is a need to explore the determinants of exit modes in other countries as well using the proposed econometric model. Practical implications The findings presented in this paper are useful for managers and policymakers to design strategies/actions for avoiding particular mode of exit. Originality/value This study provides empirical evidence on the differences in factors associated with exit modes and confirms the existence of mutually exclusive nature of exit modes. Findings suggest that for future empirical studies on firm exit, the exit modes must be treated as a heterogeneous event.

Developing process and product innovation through internal and external knowledge sources in manufacturing Malaysian firms: the role of absorptive capacity

2020 ◽  
Vol 26 (5) ◽  
pp. 1021-1039 ◽  
Author(s):  
T. Ramayah ◽  
Pedro Soto-Acosta ◽  
Khoo Kah Kheng ◽  
Imran Mahmud
Keyword(s):  
Absorptive Capacity ◽  
Product Innovation ◽  
Manufacturing Firms ◽  
Innovation Performance ◽  
Knowledge Sources ◽  
Manufacturing Companies ◽  
Organizational Capability ◽  
Data Set ◽  
Content Type ◽  
External Knowledge

PurposeFirms' knowledge-processing capabilities have a central role in achieving innovation performance and competitive advantage. Absorptive capacity capabilities and innovation are viewed as essential for enterprise success. Absorptive capacity is deemed as a highly important organizational capability to recognize value and assimilate both external and internal knowledge in order to enhance firm innovation. The aim of this study is to determine if innovation performance can be improved through absorptive capacity (knowledge acquisition, dissemination and utilization), when it is supported by internal (firm experience) and external knowledge sources (R&D cooperation and contracted R&D).Design/methodology/approachA quantitative methodology based on employing a structured questionnaire was used for data collection. The proposed research model and its associated hypotheses are tested by using Partial Least Squares (PLS) structural equation modelling (SEM) on a data set of 248 manufacturing companies located in the Northern Region of Malaysia.FindingsResults showed that firms' experience is significantly related to absorptive capacity, while for R&D cooperation and contracted R&D findings were mixed. In addition, absorptive capacity was found as a strong predictor of innovation performance.Originality/valueOne of the defining features of competition in many industries has been the extremely rapid pace of technological change, marked by a continuous stream of innovations. Manufacturing firms, therefore, face the challenge of nurturing existing knowledge and developing novel knowledge in order to create new business opportunities. This study makes valuable contributions with regard to understanding the behavioural of manufacturing firms towards process and product innovation.

Success criteria of toll road projects from a community societal perspective

2017 ◽  
Vol 7 (1) ◽  
pp. 32-44 ◽  
Author(s):  
Mohammad Arif Rohman ◽  
Hemanta Doloi ◽  
Christopher Andrew Heywood
Keyword(s):  
Societal Perspective ◽  
Social Benefit ◽  
Social Dimension ◽  
Data Set ◽  
Content Type ◽  
Factors Associated ◽  
Toll Road ◽  
Success Criteria ◽  
Road Projects ◽  
Project Lifecycle

Purpose While the success of the toll road projects procured through public private partnerships (PPPs) routes are widely confined to the cost, time and quality performance in the delivery context, considerable evidence suggests that such success criteria are not sufficient when the toll road projects are assessed in relation to meeting the long-run community expectations. The purpose of this paper is to examine the key factors associated with the success of the toll road projects from a societal perspective in Indonesia. Design/methodology/approach Based on the input from 12 experts and a rigorous literature review, a questionnaire survey was designed and a total of 206 respondents from three broad stakeholders’ groups, namely, government, private and end-users’ communities were surveyed to measure the performance of eight toll road projects. The data were primarily analyzed using exploratory factor analysis and reliability test using SPSS Software. Findings Four significant factors associated with the project social benefit were established as a measure of the overall success criteria in toll road projects. It is expected these can be used as guidance to deliver project social benefit to the community in the overall project lifecycle. Research limitations/implications This research contributes to the incorporation of social project benefit attributes to the the toll road projects’ success criteria in overall project lifecycle. Practical implications This study can be used as guidance for the overall stakeholders, such as the government and the project manager to address the current social problems and better navigate the project direction in order to achieve the overall toll road project success in the overall project lifecycles. Social implications The research highlights how the Indonesian government’s program of developing toll road projects using the PPP procurement routes can be supported for complete social inclusivity by considering the social dimension to achieve long-term success. Originality/value Identification of the key project social factors based on the data set with a wide representation of the stakeholders has made the research original and unique.

Determinants of SME growth

2016 ◽  
Vol 39 (9) ◽  
pp. 966-986 ◽  
Author(s):  
Habib Kachlami ◽  
Darush Yazdanfar
Keyword(s):  
Random Effects ◽  
Financial Institutions ◽  
Significant Influence ◽  
Fixed Effects ◽  
Explanatory Power ◽  
Ordinary Least Squares ◽  
Firm Level ◽  
Data Set ◽  
Content Type

Purpose The purpose of this paper is to study the firm-level financial variables affecting the growth of small and medium-sized enterprises (SMEs). Design/methodology/approach The study applies a resource-based view to analyze the firm-level as well as industry-level determinants of SME growth. Empirical evidence has also been provided from a data set of SMEs in Sweden to support the hypotheses. For a robust statistical analysis, three models – ordinary least squares (OLS) regression, random-effects regression and fixed-effects regression – are used to examine the influence of explanatory variables on growth. Findings The findings of this study show a positive and significant influence of profitability, short-term debt and size on a firm’s growth across all three models. Results regarding the influence of long-term debt on growth, however, are mixed. While the results of a fixed-effect model show the negative and significant influence of long-term debt on growth, the results according to OLS and random effects show long-term debt positively related to growth. Research limitations/implications This study has been conducted over a period of four years and in the context of Sweden which may limit the generalizability of its results for longer periods and for different contexts. Moreover, the low explanatory power of the models implies the need to also consider other types of variables, such as managerial or socio-economic variables, to better explain the determinants of SME growth. Practical implications Understanding the determinants of growth can be important for policy makers, SME managers and financial institutions. The findings of this study can be used for designing policies which stimulate SME growth. Realizing the financial resources that influence growth can also help SME managers and financial institutions to understand each other’s need for better cooperation. Originality/value This paper applies different models for analyzing large and cross-sectoral data regarding SME growth in the context of Sweden.

Geographical Orientation of Export in Manufacturing Sector in Sub-Sahara Africa

2015 ◽  
Vol 15 (3) ◽  
pp. 337-351
Author(s):  
Didier Yelognisse Alia
Keyword(s):  
Choice Model ◽  
Manufacturing Sector ◽  
Multinomial Logistic Regression ◽  
Manufacturing Firms ◽  
Sub Saharan Africa ◽  
Explanatory Variables ◽  
Sub Saharan ◽  
Multinomial Choice ◽  
Export Decision ◽  
Export Destination

This paper analyses firm’s decision to export and the geographical orientation of manufacturing firms in selected countries in Sub-Saharan Africa. It uses a dataset collected by Rankin, Söderbom, and Teal (2006) on manufacturing firms in Kenya, Ghana, Tanzania Nigeria and South Africa over the period 1991–2004. The paper develops a multinomial choice model of export destination in which profit maximizing firms choose between selling only on domestic market, export only to another African country, and export only outside Africa or export to both destinations. The model is estimated using a multinomial logistic regression. The paper finds evidence of a positive effect of firm size and firm efficiency on export decision and its geographical orientation, especially for the decision to export outside Africa. There is also significant industry, country and time effects in explaining export orientation. Unlike many previous studies, this paper finds that foreign ownership does not substantially determine firm decision to export. Using non-parametric regression, the paper finds that there is a lot of heterogeneity in the relation between the explanatory variables and the propensity to export or to export to various geographical destinations.

Factors associated with the voluntary disclosure of the integrated report in Brazil

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ruhama Bezerra Fernandes ◽  
Alexandro Barbosa
Keyword(s):  
Voluntary Disclosure ◽  
Stock Exchange ◽  
Multinomial Logistic Regression ◽  
Positive Association ◽  
Cultural Dimensions ◽  
Board Structure ◽  
Integrated Reporting ◽  
Financial Reports ◽  
Content Type ◽  
Factors Associated

Purpose This paper aims to investigate the factors associated with the voluntary disclosure of integrated reporting (IR) in Brazil of the companies listed on the stock exchange – Brasil, Bolsa, Balcão. The cultural dimensions of a nation reflect different priorities in accounting practices. The Brazilian case, therefore, becomes significant, as Brazil is increasingly important in world markets. Design/methodology/approach As an explanatory econometric model, multinomial logistic regression was used (Y = 2 to describe the probability of the IR disclosure; Y = 1 to describe the occurrence of reports with practices similar to the IR and Y = 0 to describe the occurrence of non-disclosure of non-financial reports). Applied to panel data with random effects (chosen for best performance) in the period from 2016 to 2019. Findings Reveals the positive association of the company’s profitability and market-to-book with the probability of the IR disclosure. Regarding the board composition, it is suggested that size does not make a difference, with the greater participation of women and independence of directors associated with better probabilities of adopting the IR in Brazil. Originality/value This work is the first to characterize the Brazilian reality of voluntary disclosure, specifying the implementation of IR, compared to publishing reports similar to the IR and not reporting structured non-financial statements. It can also be considered the first study on the relevance of the board structure in the disclosure of IR by Brazilian companies. Finally, it contributes to the literature on IR adoption, bringing practical results in understanding the most favorable conditions in which the IR framework will be fully implemented.

Aligning operational practices to competitive strategies to enhance the performance of Indian manufacturing firms

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Saumyaranjan Sahoo
Keyword(s):  
Competitive Strategy ◽  
Manufacturing Firms ◽  
Research Approach ◽  
Total Quality ◽  
Strategic Choices ◽  
Competitive Strategies ◽  
Data Set ◽  
Content Type ◽  
Operational Practices ◽  
The Impact

PurposeThe main purpose of this study is to understand how collective operational practices are adapted or stimulated by a firm's competitive strategy.Design/methodology/approachThis study employed a data set drawn from 124 plant managers and directors of Indian manufacturing firms. Multiple regression was used to examine the impact of operational practices of lean, total quality management (TQM) and supply chain management (SCM) within competitive clusters of cost leadership, differentiation and focus strategy.FindingsResults of the study show that the pattern of impact of operational practices on firm's performance varies according to type of the competitive strategy employed. All the three competitive strategy clusters have reported that TQM is the most important trigger for Indian manufacturing firms with relative effect of TQM practices on firm's performance being higher than that of lean and SCM practices.Research limitations/implicationsCross-sectional data from Indian manufacturing firms were used, and it would be interesting to test the analytical framework of the study for more sectors and countries. Future studies can take a longitudinal research approach to strengthen the findings of the study.Practical implicationsThe findings explain how operational practices are aligned with competitive strategies for practitioners so that they can assign limited resources to build diverse operational capabilities based on their strategic choices.Originality/valueAlthough very few classical studies are reported in various contexts involving competitive strategy, operational practices and firm's performance, no existing study focuses on how these three domains are linked together in the context of Indian manufacturing sector.

Adding store to web: migration and synergy effects in multi-channel retailing

2016 ◽  
Vol 44 (6) ◽  
pp. 658-674 ◽  
Author(s):  
Edoardo Fornari ◽  
Daniele Fornari ◽  
Sebastiano Grandi ◽  
Mario Menegatti ◽  
Charles F. Hofacker
Keyword(s):  
Channel Model ◽  
Choice Model ◽  
Consumer Electronics ◽  
Store Brand ◽  
Retail Sales ◽  
Data Set ◽  
Content Type ◽  
Individual Level ◽  
Synergy Effects

Purpose – The purpose of this paper is to investigate the topic of multi-channel retailing. Specifically, the research intends to determine if and to what extent the opening of physical stores by a former web-only retailer reduces or extends overall retail sales, and whether such effects tend to change over time. Empirical analysis focuses on data elaboration from a retailer who has passed from the initial mono-channel model (pure online), to a multi-channel one with the opening of stores. Design/methodology/approach – Through the analysis of an internal data set of a leading consumer electronics retailer applying Probit and Logit estimation techniques, the authors extract information about actual customers’ purchases (or rather retail sales) in three newly opened stores and about online purchases (through an e-commerce web site managed by the same retailer with the same store brand) by people living in the new store service areas before and after the openings. Findings – The paper shows that, for the single customer, the probability of purchasing online is reduced by the store opening in the short term, but tends to increase in the long term. Besides, results indicate that long-term synergy between the two channels depends mainly on indirect influence due to the mere presence of the store brand in the area rather than on the direct experience of shopping in the store. Research limitations/implications – The study highlights that channel portfolio enlargement from mono- to multi-channel retailing tends to activate a sort of life cycle; while in the early phase of store addition web sales tend to be cannibalized because the two channels are perceived as “substitutes” for each other, in the long run migration turns into a synergy effect; different channels tend to interact with and reinforce each other as customer touch points of the same retailer, in an omni-channel perspective. Originality/value – The paper herein presents various original elements concerning types of available data (actual sales rather than consumers’ intentions/perceptions and individual level data rather than aggregate level ones), estimation technique used (binary choice model) and research hypotheses (distinguishing between “direct” and “indirect” synergy effects in multi-channel retailing).

Alcohol-related harms and street service care in entertainment districts

2017 ◽  
Vol 3 (2) ◽  
pp. 142-152 ◽  
Author(s):  
Catherine A. Quinn ◽  
Leanne Hides ◽  
Anna Harding ◽  
Dominique de Andrade ◽  
Hollie Wilson ◽  
...  
Keyword(s):  
Young Adults ◽  
Young People ◽  
Multinomial Logistic Regression ◽  
Alcohol Intoxication ◽  
Control Sample ◽  
Night Time ◽  
Violent Incident ◽  
Content Type ◽  
Factors Associated ◽  
The Impact

Purpose Significant alcohol use increases the risk of injuries and violence in young people. The purpose of this paper is to examine factors associated with receiving street service care for alcohol intoxication, alcohol-related injury or violence among young people in a night-time economy (NTE). Design/methodology/approach Participants included 217 young adults, 135 of whom required street service care on a Friday or Saturday evening in an Australian entertainment district. The remaining 88 young adults were a matched control sample. Participants were surveyed and provided a breathalyser sample. A multinomial logistic regression was conducted to examine the relationship between blood alcohol content (BAC) level, subjective intoxication, gender, illicit drug use, age, preloading, total drinks consumed, and the receipt of care for intoxication, injury, or violence. Findings Of those who received care, 70.4 per cent received it for intoxication, 19.3 per cent for injury, and 10.3 per cent following a violent incident. Male gender and high BAC level were associated with receiving support following a violent incident. High-subjective intoxication and female gender were associated with receiving support for injury. Practical implications Results demonstrate the factors associated with receiving street service care for young people in the NTE experiencing non-emergent health needs. Further research is required to examine the impact of such a service on crime, injuries, and frontline service resources. Originality/value This is the first study to examine factors associated with receiving street service care for alcohol intoxication, injury, or violence in a NTE. Results inform policy and practice relating to the provision of street service care in the NTE for non-emergent health problems, and how this interrelates with other frontline services.

Determinants of financial inclusion in rural India: does gender matter?

2020 ◽  
Vol 47 (6) ◽  
pp. 747-767
Author(s):  
Simrit Kaur ◽  
Cheshta Kapuria
Keyword(s):  
General Education ◽  
Multinomial Logistic Regression ◽  
State Level ◽  
Empirical Literature ◽  
Rural India ◽  
Lower Probability ◽  
Data Set ◽  
Content Type ◽  
Female Headed Households ◽  
Institutional Finance

PurposeSince finance is an efficacious instrument for economic development, social inclusion and women empowerment, the present paper examines the determinants of accessing institutional and non-institutional finance across male- and female-headed households in rural India.Design/methodology/approachMultinomial logistic regression is applied for categorizing households' accessing finance in four categories, namely Only Institutional Finance (IF), Only Non-institutional Finance (NIF), Both Sources of Finance (BF) and Neither Source of Finance (N). Both household and state-level determinants have been analysed. Household data set is sourced from the Situation Assessment Survey (NSSO, 70th round) and state-level data sets from Basic Road Statistics 2016, Agricultural Statistics at a Glance 2016, Rainfall Statistics of India 2014, database on Indian Economy RBI and Census 2011. Econometric regressions have been evaluated for female-headed households (FHHs), male-headed households (MHHs) and overall pooled households (HHs).FindingsFour important findings emerge. First, FHHs have a lower probability of accessing IF and a higher probability of accessing NIF vis-a-vis MHHs. Second, in general, education levels, monthly household consumption expenditure, land size holding, irrigated area and penetration of scheduled commercial banks favourably influence FHHs accessing IF. Third, FHHs belonging to socially disadvantaged castes have a lower probability of accessing IF. Fourth, a substantial proportion of FHHs accesses neither IF nor NIF relative to MHHs.Practical implicationsThe paper thoroughly addresses the issue of accessing finance by FHHs and MHHs, which will further assist policymakers in formulating holistic financial policies for rural India.Social implicationsThe paper recommends increasing women's access to financial services as an effective tool for reducing poverty and lowering income inequality in rural India.Originality/valueThis article contributes to the scant empirical literature on finance and gender.

scholarly journals Role of human capital and foreign direct investment in promoting economic growth

2015 ◽  
Vol 42 (2) ◽  
pp. 98-111 ◽  
Author(s):  
Muhammad Azam ◽  
Ather Maqsood Ahmed
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Foreign Direct Investment ◽  
Random Effects ◽  
Direct Investment ◽  
Fixed Effects ◽  
Set Covering ◽  
Data Set ◽  
Content Type ◽  
Education And Health

Purpose – The purpose of this paper is to validate the Endogenous Growth Model by examining the impacts of Human Capital (HK) and Foreign Direct Investment (FDI) on economic growth in ten countries from Commonwealth of Independent States (CIS). Design/methodology/approach – For empirical investigation, a linear regression model based on growth theory and panel data set covering the time-period from 1993 to 2011 are used. Fixed and random effects models are applied. On the basis of the Hausman test, the fixed effects model has been preferred over the random effects model. Findings – The results support the hypothesis of the study by confirming that HK development is critical for economic growth. Similarly, FDI has been found to have a facilitating role in promoting growth in the former Soviet Republics now comprising Central Asian independent economies. This is despite of the fact that there are country-specific differences across CIS. Practical implications – The findings suggest that investment climate in the host countries must be enriched through suitable policies. Improved domestic conditions not only enhance the performance of multinational corporations but also allow host economies to reap greater benefits of FDI inflows. Moreover, the findings demonstrate that investment in both education and health are indispensable. Therefore, improved levels of education and health should be the primary objective running concurrently with other factors in order to stimulate economic growth. Originality/value – The choice of CIS has been made because very little research has been found for the region particularly in the area of economic growth despite strong evidence of commonality in terms of landlocked geographical layout and economic and political structures of these economies. The region has gained importance gradually after independence of these states; and it has started to attract foreign funds in the shape of FDI only recently. Thus, there is a need to evaluate the future prospects pertaining to the importance of FDI and HK on growth performance of these economies and will insistently contribute to the literature.

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