Analysis of Board Size and Firm Performance: Evidence from NSE Companies Using Panel Data Approach

This article seeks to examine the relationship between the board size and firm performance. Existing literature on board size is based on different theories of corporate governance. While agency theory and resource dependency theory suggest that the board size positively affects performance, stewardship theory favours smaller board size and argues that larger board size negatively impacts the firm performance. The present article adds to the empirical literature by employing panel data analysis of 145 non-financial companies listed in the NSE CNX 200 Index of India corresponding to 16 industries. The study is carried out for a period of five years from 2008 to 2012. The firm performance has been measured using Tobin’s Q and the market-to-book value ratio (MBVR) as market-based measures and return on assets (ROA) and return on capital employed (ROCE) as accounting-based measures. The fixed effect model, random effect model and feasible generalised least square (FGLS) regression models are applied to achieve the above-mentioned objectives. The results conclude that the board size has a positive and significant impact on the firm performance.

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A Panel Data Analysis of Globalization, Peace and Stability: Implications for Governance and the Global Knowledge Economy

Journal of Quantitative Methods ◽

10.29145/2020/jqm/040202 ◽

2020 ◽

Vol 4 (2) ◽

pp. 1-1

Author(s):

Ayaz Zafar ◽

Muhammad Tariq Majeed

Keyword(s):

Panel Data ◽

Knowledge Economy ◽

Positive Impact ◽

Panel Data Analysis ◽

Random Effect ◽

Random Effect Model ◽

Fixed Effect Model ◽

Global Knowledge ◽

Data Set ◽

Effect Model

This study attempts to explore the relationship between globalization and the knowledge economy via governance. It intends to explain the channel of their relationship through peace and stability. Knowledge economy pillars (Education and Information and communication technology) are used as the dependent variable and globalization is used as an independent variable. To obtain the objectives of the study, the panel data set of 198 countries is used for the period of 1996-2016. The study has employed econometric techniques of panel data set such as the Fixed Effect Model (FEM), Random Effect Model (REM), and Hausman test. The results reveal that globalization has a significant and positive impact on the knowledge economy. Hence the study recommends that the country should execute such reforms that help enhance the globalization and increase the development of the knowledge economy.

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PENGARUH PROFITABILITAS TERHADAP KEBIJAKAN DIVIDEN DENGAN ANALISA DATA PANEL PADA MULTI-BISNIS DI BURSA EFEK INDONESIA PERIODE 2007-2017

Jurnal Apresiasi Ekonomi ◽

10.31846/jae.v8i1.261 ◽

2020 ◽

Vol 8 (1) ◽

pp. 15-27

Author(s):

Jan Horas Veryady Purba

Keyword(s):

Panel Data ◽

Dividend Policy ◽

Stock Exchange ◽

Panel Data Analysis ◽

Random Effect ◽

Random Effect Model ◽

Fixed Effect Model ◽

Fixed Effect ◽

Dividend Payout ◽

Effect Model

The issue of dividends is very important to show the prospects for the company's growth in the future, and also important in the company's capital structure. Dividend policy can be influenced by profitability and other variables. In this study, profitability is chosen due to its role as main indicator that shows the company's capacity to pay dividends. This study aims to analyze the effect of profitability on dividend policy. The study population is a company listed on the Indonesia Stock Exchange. Purposively selected eight companies that have a good liquidity category. Data for each company is taken from 2007 to 2017. With this data structure, the analysis used is panel data regression analysis. Panel data analysis models include the Common Effect Model (CEM) Fixed Effect Model (FEM) and Random Effect Model (REM). The best model was tested with the Chow test and Hausman Test and obtained The Fixed Effect Model. Dividend policy is measured by the variable dividend payout ratio. The findings in this study conclude that the dividend policy (Dividend Payout Ratio) is influenced by ROE, EPS and NPM, where these independent variables have a positive and significant influence on DPR.

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The Effect of Financial Variables on Systematic Risk in Six Industries in Thailand

ABC Journal of Advanced Research ◽

10.18034/abcjar.v9i2.512 ◽

2020 ◽

Vol 9 (2) ◽

pp. 63-68

Author(s):

Vilayphone Vongphachanh ◽

Khairunisah Ibrahim

Keyword(s):

Firm Growth ◽

Panel Data Analysis ◽

Random Effect ◽

Random Effect Model ◽

Systematic Risk ◽

Fixed Effect Model ◽

Least Square ◽

Financial Variables ◽

Effect Model ◽

Main Factors

Risk is classified into two types which are systematic risk and unsystematic risk. Unsystematic risk is known as a diversifiable risk that can be avoided or managed. On the other hand, systematic risk is the market-related risk which cannot be controlled or diversified away. Between these two types of risks, the systematic risk becomes the major concern of firms and investors as this type of risk cannot be avoided or diversified away, but need to be strategized and managed accordingly. The purpose of this study is to examine the main factors influence on the behavior of systematic risk in six industries of Thailand, the period of study is 15 years from 2002 to 2016 and consist of 372 non-financial listed firms. This study employs the panel data analysis, comprising of the random effect model (REM), fixed effect model (FEM), and pool ordinary least square (POLS). The overall findings show some common financial variables such as financial leverage, liquidity, firm size, firm growth, and profitability are considered as the main factors affecting systematic risk in Thai consumer goods, technology, telecommunication, utilities, and health care. However, Thai consumer service is reported as an insignificant relationship between financial variables and systematic risk. Apart from financial variables, there is an impact of the financial crisis (2009) on systematic risk in all industries. Findings in this study extent in the finance literature on systematic risk, different internal industries may have different factors influencing the behavior of systematic risk.

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ANALISIS PENGARUH UPAH MINIMUM TERHADAP KESEMPATAN KERJA SEKTOR INDUSTRI DENGAN PANEL DATA ANALYSIS

IQTISHODUNA ◽

10.18860/iq.v0i0.314 ◽

2011 ◽

Author(s):

Luthfiya Fathi Pusposari

Keyword(s):

Data Analysis ◽

Panel Data ◽

Panel Data Analysis ◽

Random Effect ◽

Random Effect Model ◽

Control Variable ◽

Industrial Sector ◽

Fixed Effect ◽

Minimum Wages ◽

Effect Model

This study aims to determine the effect of minimum wages and employment of industrial sector in East Java. Researchers include two control variables are GDP as control variable of demand labor and work force as control variable of supply labor by using panel data from all districts and cities in East Java (29 districts and nine cities). Analysis of this study used panel data analysis which consisting of the Common Effect model, Fixed Effect model and Random Effect model, then chosed the most appropriate model. The result of this study show after testing the models, the appropriate model is fixed effect where minimum wages have negative effect of employment in industrial sector in east java.

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Inequality and Economic Growth: An Analysis of 8-Panels

Journal of Economics and Public Finance ◽

10.22158/jepf.v3n2p173 ◽

2017 ◽

Vol 3 (2) ◽

pp. 173

Author(s):

Khadijah A. Idowu ◽

Yusuf Bababtunde Adeneye

Keyword(s):

Economic Growth ◽

Panel Data Analysis ◽

Random Effect ◽

Random Effect Model ◽

Specific Effect ◽

Developed Countries ◽

Fixed Effect Model ◽

Fixed Effect ◽

Effect Model ◽

The World

Purpose: This paper investigates the effects of inequality on economic growth in the world using continental approach.Design/methodology: Gini Coefficient and Gross Domestic Products (GDP) per capita were used to measure inequality and economic growth respectively. The study conducted a panel data analysis of the relationship between inequality and economic growth. The data span from 1991-2015. Five countries were selected each from seven continents and were also pooled together to constitute a single panel for 35 countries, thus establishing 8 panels. The Hausman test was conducted to determine whether a random or fixed effect model best fit pooled countries analysis or not.Findings: Findings revealed that for the developing countries, high income inequality retards economic growth while for the developed countries such as Europe countries; the situation seems to be different. European countries as revealed in the findings showed that developed countries have benefited from inequality which has significantly and positively affected their economic growth. The results for Panel II (Asia countries) and Panel III (Europe countries) are in line with the study of Forbes (2000) and Li and Zou (1998) that documented that inequality boosts economic growth. Importantly, we found that inequality positively affects economic growth for Panels/Continents with fixed effect model while inequality negatively affects economic growth for Panels/Continents with random effect model.Research Limitation: The study did not control for each continent differences. For African countries, weak institutional settings and environment is a key factor contributing to high inequality.Originality: The paper was able to know the specific effect of inequality on economic growth in each continent in the World. This documents continents that have benefited from inequality and those that inequality has greatly affected their economies negatively.

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PENGARUH BELANJA PEMERINTAH PUSAT TERHADAP PENERIMAAN NEGARA BUKAN PAJAK PADA KEMENTERIAN NEGARA/LEMBAGA PERIODE 2012-2017

Indonesian Treasury Review Jurnal Perbendaharaan Keuangan Negara dan Kebijakan Publik ◽

10.33105/itrev.v6i3.343 ◽

2021 ◽

Vol 6 (3) ◽

pp. 227-245

Author(s):

Puji Wibowo ◽

Yoopi Abimanyu ◽

Heri Syafardi ◽

Muhadi Prabowo ◽

Iin Indrawati

Keyword(s):

Panel Data ◽

Central Government ◽

Panel Data Analysis ◽

Random Effect ◽

Random Effect Model ◽

Tax Revenue ◽

Purposive Sampling ◽

Goods And Services ◽

Effect Model ◽

The Impact

Various studies evaluate the impact of budget on government revenue at sub national levels. There are few empirical findings that show how central government budget may influence federal revenue collected by ministries. This study aims to investigate the budget impact of non tax revenue across Indonesian line ministries/agencies in the 2012-2017 period prior to the implementation of Act 9 Year 2018 concerning Non Tax Revenue. By using purposive sampling method, we found there were 24 government institutions observed in this study. We conducted granger causality and panel data analysis by adopting random effect model to examine the effect of goods and services expenditure, capital expenditure, and employee expenditure on non-tax revenue. It is concluded that only government spending on goods and services significantly affects on non-tax revenue performance, while the two other variables have no impacts. Abstrak Sejumlah riset telah dilakukan untuk menguji pengaruh anggaran belanja terhadap pendapatan pemerintah pada level pemerintahan daerah. Sampai saat masih sedikit bukti yang mengungkapkan adanya pengaruh alokasi anggaran belanja pemerintah pusat terhadap pendapatan yang diperoleh Kementerian Negara/Lembaga (K/L). Riset ini bertujuan untuk mengungkapkan pengaruh alokasi anggaran terhadap realisasi Penerimaan Negara Bukan Pajak (PNBP) pada K/L selama periode 2012-2017, sebelum pemberlakuan UU Nomor 9 Tahun 2018 tentang Penerimaan Negara Bukan Pajak. Metode pengambilan sampel yang digunakan adalah purposive sampling, diperoleh 24 instansi pemerintah sebagai objek penelitian. Dengan menggunakan analisis granger dan panel data dengan pendekatan random effect model, penelitian ini menguji pengaruh belanja barang, belanja modal, dan belanja pegawai terhadap kinerja PNBP. Hasil studi ini menyimpulkan bahwa belanja barang berpengaruh signifikan terhadap capaian realisasi PNBP pada K/L, sementara kedua variabel belanja yang lain tidak berdampak signifikan

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The Effect of Audit Quality on Firm Performance: A Panel Data Approach

International Journal of Accounting and Financial Reporting ◽

10.5296/ijafr.v9i1.14163 ◽

2019 ◽

Vol 9 (1) ◽

pp. 229 ◽

Cited By ~ 1

Author(s):

May M. Elewa ◽

Rasha El-Haddad

Keyword(s):

Firm Performance ◽

Panel Data ◽

Audit Quality ◽

Panel Data Analysis ◽

Random Effect ◽

Random Effect Model ◽

Auditor Independence ◽

Return On Equity ◽

Financial Firms ◽

Big 4

This study attempts to examine the effect of audit quality on firm performance. It uses financial statements of non-financial firms listed as EGX 100. The population studied consists of thirty non-financial firms. The study covers a five year period 2010-2014. It applies panel data analysis. Independent Variables are Auditor Experience (measured by Big-4) and Auditor Independence (measured by auditor Rotation ROT). Dependent Variables are Return on Assets ROA and Return on Equity ROE. In accordance with the Random Effect Model results, BIG 4 and ROT have an insignificant impact on the ROA and ROE of the firm. External and internal financial statement users may benefit from the study only when dealing with high-profit firms.

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Estimasi Fixed Effect Model dari Likuiditas Aset, Financial Leverage dan Likuiditas Saham di Indonesia

Jurnal Benefita ◽

10.22216/jbe.v4i3.3932 ◽

2019 ◽

Vol 4 (3) ◽

pp. 412

Author(s):

Irdha Yusra ◽

Awidi Mulfita

Keyword(s):

Panel Data ◽

Random Effect ◽

Random Effect Model ◽

Fixed Effect Model ◽

Fixed Effect ◽

Financial Leverage ◽

Stock Liquidity ◽

Common Effect ◽

Effect Model ◽

Asset Liquidity

In investing, investors don’t assess the expected return, but also liquidity in shares. Because the aspect of liquidity is very important for investors to decide which stocks are attractive investments. This study aims to examine the effect of asset liquidity and financial leverage on stock liquidity. The population is all companies which are listed in Indonesia Stock Exchange in 2013-2017 periods. The sampling technique uses a purposive sampling method with predetermined criteria and obtained a sample of 58 companies with 290 observations. The data of the financial statement of the companies has been obtained from the official website of IDX. The analytical method used is regression analysis of panel data with the help of application E-Views 8. Panel data regression can be estimated using three models, namely Common Effect Model (CEM), Fixed Effect Model (FEM), and Random Effect Model (REM). From the results of the estimation model, it is found that FEM is the best model in this study. Furthermore, the results of the study show that asset liquidity has a positive and not significant effect on stock liquidity, while financial leverage has a negative and significant effect on stock liquidity.Dalam berinvestasi, investor tidak hanya menilai dari return yang diharapkan, namun juga likuiditas pada saham. Karena aspek likuiditas sangat penting bagi investor untuk memutuskan mana saham yang menarik investasi. Penelitian ini bertujuan untuk menguji pengaruh likuiditas aset dan financial leverage terhadap likuiditas saham. Populasi dalam penelitian ini adalah perusahaan yang terdaftar di Bursa Efek Indonesia (BEI) periode 2013-2017. Teknik pengambilan sampel menggunakan metode purposive sampling dengan kriteria yang telah ditentukan dan diperoleh sampel sebanyak 58 perusahaan. Data laporan keuangan diperoleh dari website resmi BEI. Metode analisis yang dipakai adalah analisis regresi data panel dengan bantuan aplikasi E-Views 8. Regresi data panel dapat diestimasi menggunakan tiga model, yaitu Common Effect Model (CEM), Fixed Effect Model (FEM), dan Random Effect Model (REM). Untuk mendapatkan model terbaik digunakan uji lanjut, yaitu Uji Chow dan Uji Hausman. Dari hasil estimasi model diperoleh bahwa FEM sebagai model terbaik dalam penelitian ini. Lebih lanjut, hasil penelitian menemukan bahwa likuiditas aset berpengaruh positif dan tidak signifikan terhadap likuiditas saham, sedangkan financial leverage berpengaruh negatif dan signifikan terhadap likuiditas saham.

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Pengaruh Variabel Ekonomi Makro terhadap Yield Spread Negara-negara di Asia Timur, Amerika Latin, dan Karibian

Indonesian Treasury Review Jurnal Perbendaharaan Keuangan Negara dan Kebijakan Publik ◽

10.33105/itrev.v3i1.24 ◽

2018 ◽

Vol 3 (1) ◽

pp. 61-67

Author(s):

Irwan Diko Purba

Keyword(s):

Random Effect ◽

Random Effect Model ◽

Fixed Effect Model ◽

Least Square ◽

Real Effective Exchange Rate ◽

Yield Spread ◽

Macroeconomic Variables ◽

Effect Model ◽

Effective Exchange ◽

Effective Exchange Rate

A country’s credit worthiness decided by macroeconomic factors. This research aims to examine the impact of macroeconomic and external factor on yield spread of East Asia, Latin America, and Caribbean countries. Macroeconomic variables used in this research are classified as macroeconomic variables that influence liquidity and solvency, and macroeconomic variables that influence macroeconomic fundamental. This research is conducted by using quarterly yield spread data of 11 countries from 2000Q1 to 2015Q4 and analyzed panel data regression using Pooled Least Square (PLS), Fixed Effect Model (FEM) and Random Effect Model (REM). Study results show that macroeconomic variables that have impact on yield spread are external debt to GDP ratio, fiscal balance to GDP ratio, amortization to international reserve ratio, current account to GDP ratio, real effective exchange rate, and GDP per capita growth. External factors that have impact on yield spread are US Treasury Bond 10 year yield and Volatility Index. Abstrak Kelayakan utang (credit worthiness) sebuah negara ditentukan dari kondisi ekonomi makro negara tersebut dan faktor eksternal. Penelitian ini bertujuan untuk menguji pengaruh faktor ekonomi makro serta faktor eksternal terhadap yield spread negara-negara di Asia Timur, Amerika Latin dan Karibian. Variabel ekonomi makro yang digunakan dalam penelitian ini digolongkan dalam dua kelompok yakni yang memengaruhi likuiditas dan solvensi serta yang memengaruhi fundamental ekonomi makro. Penelitian dilakukan dengan menggunakan yield spread triwulanan dari 11 negara untuk periode 2000Q1:2015Q4 dan analisis regresi data panel menggunakan Pooled Least Square (PLS), Fixed Effect Model (FEM) dan Random Effect Model (REM). Hasil penelitian menunjukkan bahwa variabel ekonomi makro yang memengaruhi yield spread adalah rasio utang luar negeri terhadap PDB, rasio keseimbangan anggaran fiskal terhadap PDB, rasio amortisasi terhadap cadangan devisa, rasio transaksi berjalan terhadap PDB, nilai tukar riil (real effective exchange rate) dan pertumbuhan PDB per kapita. Faktor eksternal yang memengaruhi yield spread adalah yield US Treasury 10 tahun dan Volatility Index (VIX).

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GREEN GROWTH: IMPORTANT DETERMINANTS

The Singapore Economic Review ◽

10.1142/s0217590815500149 ◽

2015 ◽

Vol 60 (02) ◽

pp. 1550014 ◽

Cited By ~ 5

Author(s):

GHULAM SAMAD ◽

RABIA MANZOOR

Keyword(s):

Time Series Data ◽

Random Effect ◽

Random Effect Model ◽

Developed Countries ◽

Fixed Effect Model ◽

Least Square ◽

Series Data ◽

Market Size ◽

Green Growth ◽

Effect Model

We discuss the important determinants requires to develop green patents, which eventually reinforce green growth. The theoretical framework examined four elements, the enforcement of intellectual property rights (IPRs), research and development (R&D) expenditures, market size and environmental taxations. We empirically test the green patent data to test the interrelationship of green patents representing the green innovations and IPR, R&D expenditures, market size and environmental taxations. Keeping in view the availability of the data we studied 11 developed countries, which are Austria, Australia, Canada, France, Japan, Finland, Germany, Sweden, U.K and U.S. The panel data can better handled the technological change rather than the pure cross section or pure time series data. Therefore, this study used the Pooled Least Square estimation techniques like Fixed Effect Model (FEM) and random effect model (REM) for both balance period of 1995–2010 and unbalanced period from 1995–2010. We only interpreted the balance period results depicting the enforcement of IPRs has negative and significant impact on green patents while the R&D expenditures, market size and environmental taxations has positive and significant impact on the green patents e.g. development of green innovations. We believe that the enforcement of explanatory variables will eventually acquire green growth.

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