scholarly journals Chinese Corporate Debt and Credit Misallocation

2019 ◽  
Vol 18 (1) ◽  
pp. 1-34 ◽  
Author(s):  
Ninghua Zhong ◽  
Mi Xie ◽  
Zhikuo Liu
Keyword(s):  
Large Scale ◽  
Private Firms ◽  
Firm Characteristics ◽  
Aggregate Level ◽  
Huge Amount ◽  
Firm Level ◽  
Leverage Ratio ◽  
State Sector ◽  
Listed Firms ◽  
Level Data

This paper analyzes various data, especially that of 4 million Chinese manufacturing company samples during the period of 1998 to 2013, to present detailed evidence regarding two questions of China's leverage issue. First, where is the leverage? We find that within the 16-year period, most sample firms have been significantly deleveraged, with the average leverage ratio declining from 65 percent in 1998 to 51 percent in 2013. In contrast, only several thousand companies have significantly leveraged, mostly large-scale, state-owned, listed firms. Second, has the change of leverage been supported by the firms’ fundamentals? We find that for private firms, changes of firm characteristics are consistent with their leverage changes, whereas firm-level factors can hardly explain the leverage of state-owned enterprises. We provide further evidence from aggregate-level data, which suggest that the huge amount of credit being allocated to the state sector is the reason for the declining credit efficiency in China.

scholarly journals Political Stability, Firm Characteristics and Performance: Evidence from 6,083 Private Firms in the Middle East

2017 ◽  
Vol 13 (1) ◽  
Author(s):  
Amr Hosny
Keyword(s):  
Middle East ◽  
Political Instability ◽  
Political Stability ◽  
Private Firms ◽  
Firm Characteristics ◽  
Linear Regression Models ◽  
Firm Level ◽  
Level Data ◽  
Negative Effect ◽  
And Performance

AbstractUsing firm-level data from an EBRD/EIB/WB joint survey covering more than 6,000 private firms in eight countries in the Middle East and North Africa, this paper (i) examines the relationship between firm characteristics and their perception of the effect of political instability on their operations and (ii) tests whether political instability has had a negative effect on firm performance. Using ordered and binary probit/logit models, we find that (i) export-oriented and larger-sized firms are more likely to report political instability as a sever obstacle to their operations. Using OLS and an endogenous treatment linear regression models, we find that (ii) the perception of political instability is negatively

scholarly journals Health Insurance Coverage and Firm Performance: Evidence Using Firm Level Data from Vietnam

2018 ◽  
Vol 18 (4) ◽  
Author(s):  
Hiroyuki Yamada ◽  
Tien Manh Vu
Keyword(s):  
Health Insurance ◽  
Firm Performance ◽  
Large Scale ◽  
Manufacturing Sector ◽  
Insurance Coverage ◽  
Health Insurance Coverage ◽  
Positive Health ◽  
Firm Level ◽  
Positive Effects ◽  
Level Data

Abstract In literature, there is limited direct evidence regarding the effect of health insurance coverage on firm performance and worker productivity. We study the impacts of health insurance on medium- and large-scale domestic private firms’ performance and productivity in Vietnam, using a large firm level census dataset. We find statistically, but suggestive, positive health insurance effects on both aggregate profit and profit per worker for both complying and non-complying firms when using the full sample. We further restrict the sample to specific industries. The positive health insurance effects could exist for both complying and non-complying firms in the heavy manufacturing and construction sector, while such positive effects could be only significant for complying firms in the wholesale/retail sectors. We could not find any evidence of positive health insurance effects in the light manufacturing sector. These results imply that the impacts of health insurance could be industry specific.

scholarly journals A Taxonomy of Eco-Innovation Types in SMEs: Exploring Different Firm Profiles in the Canadian Wine Industry

2019 ◽  
Vol 11 (20) ◽  
pp. 5776 ◽  
Author(s):  
David Doloreux ◽  
Luisa Kraft
Keyword(s):  
Wine Industry ◽  
Firm Characteristics ◽  
Firm Level ◽  
Fully Integrated ◽  
Level Data ◽  
Firm Level Data ◽  
Innovation Strategies ◽  
Process Oriented

The paper examines eco-innovation strategies in the Canadian wine industry. It uses firm-level data of 151 wine firms that developed eco-innovations between 2015 and 2017 to build a taxonomy of four eco-innovation strategies: (i) eco-innovation laggers, (ii) product-oriented eco-innovators, (iii) process-oriented eco-innovators, and (iv) fully integrated eco-innovators. We then characterize these eco-innovation strategies with respect to firm-level innovation capabilities, firms’ knowledge openness, and firms’ specific characteristics. The results reveal heterogeneity in eco-innovation strategies and show that these strategies exhibit different configurations of innovation-related conditions and firm characteristics.

Evaluating the Large-Scale Mining Fiscal Regime in the Philippines

2019 ◽  
Vol 40 (1-2) ◽  
pp. 32-68
Author(s):  
Cielo Magno ◽  
Ricardo Rafael S. Guzman
Keyword(s):  
Large Scale ◽  
Private Investment ◽  
The Philippines ◽  
Firm Level ◽  
Unique Challenge ◽  
Resource Rent ◽  
Level Data ◽  
Tax Regimes ◽  
Fiscal Regime ◽  
Tax Payments

Abstract Economies that derive substantial government revenues from natural resources face the unique challenge of implementing fiscal regimes that deliver a fair share of rents without discouraging private investment in extractive sectors. However, designing progressive and non-distortionary fiscal tools requires an evaluation of the current fiscal regime and the extent to which it captures the resource rent – the surplus return above the value of capital, labor, and opportunity costs incurred to exploit the resource. To evaluate the efficiency of the Philippines’ fiscal regime, we compare the resource rent to government revenues from mining activity. Then, we estimate the effective tax rates under the current fiscal regime and other combinations of fiscal tools. First, we look at aggregated tax payments of all large-scale mining companies over a ten-year period and compare them with the estimated resource rent. Second, we model the different tax regimes using firm-level data from a nickel mine. We propose a fiscal regime for the mining sector in the Philippines that is least distortionary while appropriate given the country’s regulatory context and administrative capacity.

Accounting conservatism and money laundering risk

2020 ◽  
Vol 33 (2) ◽  
pp. 343-361
Author(s):  
Meysam Bolgorian ◽  
Ali Mayeli
Keyword(s):  
Money Laundering ◽  
Stock Exchange ◽  
Risk Measure ◽  
Negative Relationship ◽  
Accounting Conservatism ◽  
Firm Characteristics ◽  
Firm Level ◽  
Content Type ◽  
Listed Firms ◽  
Specific Effects

Purpose This paper aims to investigate the relationship between accounting conservatism and money laundering risk. For this goal, the authors construct an index for measuring money laundering risk at the firm level for Iranian listed firms in the Tehran Stock Exchange. Design/methodology/approach In this study, the authors use a sample of 924 firm-year observation of Iranian listed firms for the period of 2012-2017. The authors use three approaches for testing our prediction that more conservative firms are less likely to be involved in money laundering activities. A balanced panel regression model has been used for testing the prediction. Findings The paper results suggest that there is a negative relationship between conditional conservatism and money laundering risk. Furthermore, the authors have shown that the result is robust to controlling for different firm characteristics variables and also industry specific effects. Research limitations/implications Further research in other financial markets is needed to confirm the results generally. Practical implications The evidence in this paper indicates that the degree of accounting conservatism contains important information which can be used by the investors and regulators for managing and controlling the risk of money laundering in the firms. Originality/value By constructing a money laundering risk measure at the firm level for the first time, the authors provide evidence on relationship between conservatism and money laundering risk in Iran.

Gender discrimination and firms’ profit: evidence from Brazil

2016 ◽  
Vol 43 (5) ◽  
pp. 801-814 ◽  
Author(s):  
Wenjun Liu ◽  
Tomokazu Nomura ◽  
Shoji Nishijima
Keyword(s):  
Labour Market ◽  
Gender Discrimination ◽  
Firm Characteristics ◽  
Firm Level ◽  
Productivity Shocks ◽  
Content Type ◽  
Discrimination Model ◽  
Level Data ◽  
Female Employees ◽  
Positive Effect

Purpose This paper investigates discrimination against women within the Brazilian labour market using firm-level data from the World Bank Investment Climate Survey. The purpose of this paper is to determine whether the female employees in the Brazilian labour market are paid less than their productivity warrants due to the existence of discrimination. Design/methodology/approach Based on employer discrimination model proposed by Becker (1971) that considered the proportion of female employees as a proxy for the extent of discrimination, the authors estimate the profit function using OLS analysis, and regress it on the proportion of female employees and other firm characteristics. To address the endogeneity problem caused by unobservable productivity shocks, the authors employed the methods proposed by Olley and Pakes (1996) and Levinsohn and Petrin (2003), respectively. Findings The results indicate that the proportion of female employees has positive effect on firms’ profit in 2002, but has no effect in 2007. This finding gives evidence of the existence of discrimination against female employees within the Brazilian labour market in the early 2000s, while the gender discrimination was reduced overtime. Originality/value This paper’s main contribution is to provide an approach that differs from that of previous research to determine whether discrimination exists within the Brazilian labour market. This paper also provides policy insights for Brazilian labour market.

scholarly journals DO FUNDAMENTALS DRIVE RELATIVE VALUATION? EVIDENCE FROM GLOBAL STOCK MARKET INDICES

2020 ◽  
pp. 2050002
Author(s):  
KOMLA AGUDZE ◽  
OYAKHILOME IBHAGUI
Keyword(s):  
Stock Market ◽  
Emerging Markets ◽  
Aggregate Level ◽  
Listed Firms ◽  
Level Data ◽  
Relative Valuation ◽  
Global Stock ◽  
Dynamic Link

In this paper, we use aggregate-level data from global, developed and emerging markets to empirically examine how fundamentals of publicly listed firms drive their relative valuation multiples. First, we find that, in each market, there is a dynamic link between fundamentals and relative valuation: relative valuation multiples are negatively linked to their past, suggesting that overvalued markets, based on high relative valuation multiples, often experience corrections that subsequently lower their relative valuation multiples, making them less overvalued, fairly valued or even undervalued, compared with previous periods. Secondly, we document that fundamentals do indeed have significant effects on relative valuation multiples. This reveals that fundamentals are an important driver of relative valuation multiples at the aggregate level in the stock market. Hence, practitioners should not ignore outlook for relative valuation multiples of aggregate stock market that is deduced from fundamentals.

Identifying territory-linked family business groups: a methodological proposal

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Aitor Garmendia-Lazcano ◽  
Cristina Iturrioz-Landart ◽  
Cristina Aragon-Amonarriz
Keyword(s):  
Family Business ◽  
Large Scale ◽  
Business Groups ◽  
Political Support ◽  
Territorial Development ◽  
Firm Level ◽  
Data Set ◽  
Content Type ◽  
Listed Firms ◽  
Family Business Groups

PurposeThe purpose of this paper is to design a methodology to identify territory-linked family business groups (TLFBGs) in order to overcome the methodological challenges and ease studies about family business groups' (FBGs) impact on territories.Design/methodology/approachThe paper applied an algorithm to a data set of firms located in Gipuzkoa that were registered in the SABI database in 2018.FindingsThe paper defined a new construct, TLFBGs, and proposed a methodology that automatized the identification of TLFBGs by a seven-stage algorithm that was intended to be applicable to any firm-level economic and financial data set, including all registered firms and not only listed firms.Practical implicationsTLFBGs unveil the real relevance that family businesses have in the territorial development, encouraging the political support to family business. Additionally, the methodology provided allows understanding growth processes of family business.Originality/valueThe paper defines a new construct, TLFBGs, that highlights both the underexplored links existing between family and territory and between family and business groups, providing the process and criteria to capture it. The paper opens up large-scale empirical research on the social (and economic) influence of TLFBGs in territorial development.

scholarly journals Foreign Direct Investment and the Survival of Domestic Private Firms in Viet Nam

2014 ◽  
Vol 31 (1) ◽  
pp. 53-91 ◽  
Author(s):  
Ari Kokko ◽  
Tran Toan Thang
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Private Firms ◽  
Viet Nam ◽  
Firm Level ◽  
Level Data ◽  
Vertical Fdi ◽  
Negative Effect ◽  
The Impact ◽  
Local Firms

Foreign direct investment (FDI) may benefit local firms in the host country through various kinds of spillovers, but it may also raise competition and result in the crowding out of domestic firms. Using detailed firm-level data for the period 2001–2008, this paper examines the aggregate effect of FDI on the survival of domestic private firms in Viet Nam. We estimate the impact of both horizontal and vertical FDI and explore how the presence of state-owned enterprises (SOEs) influences the exit hazard for private firms. The results suggest that horizontal and upstream FDI raise the exit hazard significantly, while downstream FDI may reduce the hazard. The presence of SOEs has a direct negative effect on the survival odds of local private firms in the same industry, but there is also an indirect impact on the exit hazard from FDI. Local firms are more vulnerable to foreign entry in sectors with high SOE shares. Looking at the net effects of FDI during the period 2001–2008, we find that results vary between sectors and over time but that the overall impact has been surprising small. The paper also discusses policy conclusions and implications for empirical analyses of spillovers from FDI.

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