Appendix B: Using Simulations to Examine Assumptions of OLS Regression

2019 ◽  
pp. 383-388 ◽  
Keyword(s):  
Ols Regression

Government failures and non-performing loans in European countries: a spatial approach

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ferdinando Ofria ◽  
Massimo Mucciardi
Keyword(s):  
Public Debt ◽  
Geographically Weighted Regression ◽  
European Countries ◽  
Weighted Regression ◽  
Second Step ◽  
Ols Regression ◽  
Content Type ◽  
The Impact ◽  
The Relationship ◽  
The Eu

PurposeThe purpose is to analyze the spatially varying impacts of corruption and public debt as % of GDP (proxies of government failures) on non-performing loans (NPLs) in European countries; comparing two periods: one prior to the crisis of 2007 and another one after that. The authors first modeled the NPLs with an ordinary lest square (OLS) regression and found clear evidence of spatial instability in the distribution of the residuals. As a second step, the authors utilized the geographically weighted regression (GWR) to explore regional variations in the relationship between NPLs and the proxies of “Government failures”.Design/methodology/approachThe authors first modeled the NPL with an OLS regression and found clear evidence of spatial instability in the distribution of the residuals. As a second step, the author utilized the Geographically Weighted Regression (GWR) (Fotheringham et al., 2002) to explore regional variations in the relationship between NPLs and proxies of “Government failures” (corruption and public debt as % of GDP).FindingsThe results confirm that corruption and public debt as % of GDP, after the crisis of 2007, have affected significantly on NPLs of the EU countries and the following countries neighboring the EU: Switzerland, Iceland, Norway, Montenegro, and Turkey.Originality/valueIn a spatial prospective, unprecedented in the literature, this research focused on the impact of corruption and public debt as % of GDP on NPLs in European countries. The positive correlation, as expected, between public debt and NPLs highlights that fiscal problems in Eurozone countries have led to an important rise of problem loans. The impact of institutional corruption on NPLs reports that the higher the corruption, the higher is the level of NPLs.

Determinants of liquidity in Malaysian SMEs: a quantile regression approach

2018 ◽  
Vol 67 (9) ◽  
pp. 1566-1584 ◽  
Author(s):  
Shaista Wasiuzzaman
Keyword(s):  
Regression Analysis ◽  
Quantile Regression ◽  
Emerging Market ◽  
Developed Countries ◽  
Data Availability ◽  
Firm Level ◽  
Liquidity Management ◽  
Ols Regression ◽  
Content Type ◽  
Quantile Regression Analysis

PurposeThe management of liquidity has always been seen as a critical but often ignored issue in finance. Despite the abundance of studies on liquidity management, these studies mainly focus on developed countries and on large firms. Liquidity is critical for the small firm but studies on liquidity management in small and medium enterprises (SMEs) are lacking. The purpose of this paper is to examine the firm-level determinants of liquidity of SMEs in Malaysia.Design/methodology/approachData are collected for a total of 986 small firms in Malaysia from 2011 to 2014, resulting in a total of 2,683 observations. Firm-specific variables and the effect of the economy are considered as the possible determinants of liquidity. Ordinary least squares (OLS) regression analysis with standard errors adjusted for firm-level clustering and quantile regression analysis are used for this purpose.FindingsAnalysis using OLS regression technique indicates that a firm’s profitability, its growth, asset tangibility, size, age and firm status are significant factors in influencing its liquidity decision. Leverage and economic condition are not found to have any significant influence on liquidity. However, quantile regression analysis provides a different picture especially for SMEs with liquidity at the quantile levels ofθ=0.10 and 0.90. Atθ=0.10, only profitability, tangibility and firm status are significant, while atθ=0.90, tangibility, size, firm status and, to some extent, age are significant in influencing liquidity levels.Originality/valueTo the author’s knowledge, this is the first study analyzing the liquidity decision of SMEs in an emerging market such as Malaysia. Most studies on liquidity management of SMEs are focused on developed countries due to data availability but these studies are also only a handful. Additionally, this study uses quantile regression analysis which highlights the need to analyze financial decisions at different levels rather than at the aggregate level as done in OLS regression analysis.

scholarly journals How price moderates assessments of coffee quality across profiles of gender and experience

2016 ◽  
Vol 47 (1) ◽  
pp. 49-60
Author(s):  
D. Priilaid ◽  
B. Horwitz
Keyword(s):  
Regression Models ◽  
Potential Cost ◽  
Ols Regression ◽  
Price Effects ◽  
Experienced Male ◽  
The Impact ◽  
Experienced Female ◽  
Method Show ◽  
Overlapping Bands

Proceeding from studies that identify the extrinsic price cue as a mediator between a product’s perceived and intrinsic merit, we report on a blind-versus-sighted coffee tasting experiment conducted to determine the impact of the price-cue across coffee-user categories of gender and relative experience. Seven instant coffees were tasted by 100 subjects producing 700 paired blind and sighted tastings. Aggregating the data, OLS regression models were run to estimate price-effects across discrete and overlapping bands of gender and self-confessed expertise (non-expert and expert). Our analysis reveals the extent to which price-effects demean a coffee’s intrinsic merit during sighted tastings, with experienced male coffee drinkers most especially susceptible to price persuasion, and less experienced female drinkers the least. Thus our paper introduces a cheap and affective means of testing for such cue-effects. Neuromarketing styles of testing are usually cumbersome, expensive and difficult to scale. The method show-cased here offers a meaningful alternative. These findings uphold the view that the price cue remains a critical tool in the marketing of coffee; most notably because of its potential cost-free contribution to the ramping of experienced pleasure without any augmentation of quality. Further implications are explored.

scholarly journals Are Entrepreneurs More Likely to Be Obese?

2021 ◽  
Author(s):  
Yibing Wang ◽  
Xueling Qu ◽  
Haitao Wang
Keyword(s):  
Regression Models ◽  
Longitudinal Survey ◽  
Health Interventions ◽  
Health Departments ◽  
Entrepreneurial Success ◽  
Obesity Risk ◽  
Mcmc Method ◽  
Bayesian Mcmc ◽  
Ols Regression ◽  
National Health Care

Background: Entrepreneurs not only promote a nation’s economic growth but also increase employment. The risk of obesity among entrepreneurs may bring heavy economic burdens not only to the entrepreneurs but also to the national health care system. We aimed to examine the association between entrepreneurship and the risk of obesity. Methods: We utilized data from the 2015 Harmonized China Health and Retirement Longitudinal Survey, including 2,802 individuals aged between 45 and 65 with complete data. This study used BMI (Body Mass Index) (kg/m2 ) as an indicator of obesity risk. Entrepreneurs were defined as those respondents who run their own businesses as main jobs. We used multivariate OLS regression models and Bayesian Markov Chain Monte Carlo (MCMC) method to examine the link of entrepreneurship and obesity risk. Results: The multivariate OLS regression results showed that entrepreneurship was positively associated with BMI (P<0.01). The Bayesian MCMC results indicated that the posterior mean was (0.597, 90% HPD CI: 0.319, 0.897), demonstrating that entrepreneurship was indeed significantly positively associated with the risk of obesity. Conclusion: Being an entrepreneur is positively associated with the risk of obesity. As obesity can cause diseases such as hypertension, diabetes, coronary heart disease and stroke, the health departments should take necessary health interventions to prevent entrepreneurs from being obese in order to increase their entrepreneurial success.

The Role of Foreign, Family Ownership and Audit Committee in Evaluating the Company as a Going Concern: Evidence from Jordan

2014 ◽  
Vol 1 (1) ◽  
pp. 329 ◽  
Author(s):  
Bilal Nayef Zureigat ◽  
Faudziah Hanim Fadzil ◽  
Syed Soffian Syed Ismail
Keyword(s):  
Corporate Governance ◽  
Significant Relationship ◽  
Audit Committee ◽  
Listed Companies ◽  
Foreign Ownership ◽  
Family Ownership ◽  
Ols Regression ◽  
Going Concern ◽  
Relationship Of

This study discusses the association between foreign, family ownership and audit committee on the going concern evaluation among Jordanian listed companies for the years 2011 and 2012. The data reveal through using OLS regression that there is a negative and not significant relationship between foreign ownership and going concern evaluation, while a negative significant relationship with family ownership. In addition, this study also finds a positive and significant relationship of audit committee with the going concern evaluation.The results alsoshow that most of the Jordanian companies have violated some of Corporate Governance requirements. For instance, approximately 43% of Jordanian firms did not have an audit committee. This study shows valuable insights to the understanding of factors that may affect going concern evaluation among Jordanian firms. Therefore, the findings of this study provide important conclusions for investors, regulators and policymakers and academics to shed the light on the mechanisms that ensure the continuity of companies.

IPO valuation using the price-multiple methods: evidence from Malaysia

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Chui Zi Ong ◽  
Rasidah Mohd-Rashid ◽  
Kamarun Nisham Taufil-Mohd
Keyword(s):  
Initial Public Offerings ◽  
Stock Exchange ◽  
Least Square ◽  
Multiple Methods ◽  
Cross Sectional ◽  
Ols Regression ◽  
Content Type ◽  
Public Offerings ◽  
Ordinary Least Square ◽  
Valuation Method

Purpose This study aims to investigate the valuation accuracy of Malaysian initial public offerings (IPOs) by using price-multiple methods. Design/methodology/approach Cross-sectional data including 467 IPOs listed on the Malaysian stock exchange were used for the period of 2000–2017. This study used univariate ordinary least square (OLS) regression to analyse the relationship between IPOs’ price-multiples and comparable firms’ price-multiples. The test of valuation accuracy was conducted via computing valuation errors by segregating the sample into two groups: fixed-price IPOs and book-built IPOs. Furthermore, multiple OLS regression was used to examine the influence of IPO valuation on underpricing. Findings The findings of the results suggested that IPOs price-to-earnings (P/E), price-to-book (P/B) and price-to-sales (P/S) multiples were positively related to the median P/E, P/B and P/S multiples of five comparable firms matched by industry and revenues. The P/S multiple was shown to be the most significant valuation method, specifically in book-built IPOs. The findings indicated that those firms that had a lower valuation in comparison to the comparable firms were inclined to underprice their IPOs to allure investors to subscribe IPOs. In addition, book-built IPOs that had fair valuations were inclined to generate higher initial returns for investors. Practical implications The findings of this study observed implications for underwriters in avoiding the mis-valuation issue by considering the book-building mechanism. Originality/value This study attempted to explore the suitability of the valuation method to value IPOs in Malaysia.

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