scholarly journals Corporate Default Risk and Environmental Deterioration (International Evidence)

2021 ◽  
Author(s):  
Obaid Ur Rehman ◽  
Xiaoxing Liu
Keyword(s):  
Low Income ◽  
Default Risk ◽  
Negative Impact ◽  
Market Competition ◽  
Preliminary Evidence ◽  
Firm Level ◽  
Corporate Default ◽  
Environmental Deterioration ◽  
Variable Approach ◽  
The Impact

Abstract This study explores the impact of corporate default risk on environmental deterioration in the international context. We find that corporate bankruptcy is positively associated with CO2 emissions and its decomposed components. These findings are reliable in low-income and highly uncertain countries but weak in countries having more market competition. We also find that the negative impact of corporate default risk on environment is more robust in countries with more population density and less forest area thresholds. Using instrumental variable approach, we provide preliminary evidence that firm-level political risk (for U.S. and Canadian firms only) tend to increase corporate default risk leading to degrading environment. Our research will help environmental authorities to consider corporate-default risk as a determinant when formulating environmental-related strategies.

The Impact of the Business Environment on the Formalization of Informal Firms. The Case of Kosovo

Südosteuropa ◽  
2020 ◽  
Vol 68 (4) ◽  
pp. 505-529
Author(s):  
Kujtim Zylfijaj ◽  
Dimitar Nikoloski ◽  
Nadine Tournois
Keyword(s):  
Negative Impact ◽  
Positive Impact ◽  
Business Environment ◽  
Positive Influence ◽  
Policy Implications ◽  
Tax Reforms ◽  
Firm Level ◽  
Characteristics Analysis ◽  
Significant Negative Impact ◽  
The Impact

AbstractThe research presented here investigates the impact of the business environment on the formalization of informal firms, using firm-level data for 243 informal firms in Kosovo. The findings indicate that business-environment variables such as limited access to financing, the cost of financing, the unavailability of subsidies, tax rates, and corruption have a significant negative impact on the formalization of informal firms. In addition, firm-level characteristics analysis suggests that the age of the firm also exercises a significant negative impact, whereas sales volume exerts a significant positive impact on the formalization of informal firms. These findings have important policy implications and suggest that the abolition of barriers preventing access to financing, as well as tax reforms and a consistent struggle against corruption may have a positive influence on the formalization of informal firms. On the other hand, firm owners should consider formalization to be a means to help them have greater opportunities for survival and growth.

Dynamics of affordability and immigration in the Canadian housing market

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Vikkram Singh
Keyword(s):  
Low Income ◽  
Negative Impact ◽  
Policy Formulation ◽  
Housing Affordability ◽  
Immigrant Integration ◽  
Full Time ◽  
Content Type ◽  
Assistance Programs ◽  
Essential Contribution ◽  
The Impact

Purpose This study aims to make two major contributions. First, given the literature gap in housing unaffordability for different immigrant groups in Canada, it makes an essential contribution to the literature. To the best of the knowledge, this study is the first study of its kind to examine housing unaffordability by examining different immigrant groups. Second, differences in unaffordability can help understand the decline in welfare, as it can have financial implications and a negative impact on health outcomes. Third, this study’s findings are valuable for policy formulation to improve immigrant integration and ease the housing unaffordability crisis. Design/methodology/approach This study examines the determinants of housing affordability to investigate differences among various immigrant groups in Canada. A bivariate logit model using public microdata from the Canadian census estimates the determinants of moderate and severe unaffordability. Additionally, the separation of tenants and owners provides insights into the dynamics of unaffordability. The results show significant differences between immigrant groups with higher levels of unaffordability among Asian immigrants. The insights can help devise and implement housing assistance programs to address the challenges arising from the post-COVID-19 pandemic phase. Findings The results indicate that unaffordability declines with increasing age, education and full-time employment. Gender dynamics are evident, with women faring worse than men regarding the likelihood of extreme housing unaffordability. Households face a greater likelihood of unaffordability in more populous provinces and larger census metropolitan areas that struggle with the high cost of living, racial disparities and low income. Immigrants, especially from Asia, Africa and the Middle East, continue to struggle with chronic and severe unaffordability issues. The impact is much more severe for those renting, exemplifying the strain it is taking on the financial health of recent immigrants. Originality/value Given the literature gap in housing unaffordability for different immigrant groups in Canada, it makes an essential contribution to the literature. To the best of the knowledge, this study is the first study of its kind to examine housing unaffordability by examining different immigrant groups.

ENERGY IN A MODEL OF FIRM ENTRY

2018 ◽  
Vol 24 (2) ◽  
pp. 231-254
Author(s):  
Soma Patra
Keyword(s):  
Negative Impact ◽  
The United States ◽  
Energy Price ◽  
Firm Entry ◽  
Energy Prices ◽  
Dsge Model ◽  
Price Shocks ◽  
Firm Level ◽  
Dynamic Stochastic ◽  
The Impact

Nine out of the last ten recessions in the United States have been preceded by an increase in the price of oil as noted by Hamilton [Palgrave Dictionary of Economics]. Given the small share of energy in gross domestic product this phenomenon is difficult to explain using standard models. In this paper, I show that firm entry can be an important transmission and amplifying channel for energy price shocks. The results from the baseline dynamic stochastic general equilibrium (DSGE) model predict a drop in output that is two times the impact in a model without entry. The model also predicts an increase in energy prices would lead to a decline in real wages, investment, consumption, and return on investment. Additionally, using US firm level data, I demonstrate that a rise in energy prices has a negative impact on firm entry as predicted by the DSGE model. This lends further support toward endogenizing firm entry when analyzing the effects of energy price shocks.

scholarly journals COVID-19 pandemic impact on dentists in Latin America’s epicenter: São-Paulo, Brazil

PLoS ONE ◽  
2021 ◽  
Vol 16 (8) ◽  
pp. e0256092
Author(s):  
Tatiane Fernandes Novaes ◽  
Maisa Camillo Jordão ◽  
Carlos Felipe Bonacina ◽  
André Oswaldo Veronezi ◽  
Carlos Ariel Rodrigues de Araujo ◽  
...  
Keyword(s):  
Health Care ◽  
Low Income ◽  
Health Care Professionals ◽  
Negative Impact ◽  
Sao Paulo ◽  
The State ◽  
Financial Impact ◽  
São Paulo ◽  
Ordinal Logistic Regression Analysis ◽  
The Impact

The state of São Paulo, Brazil, where more than 94.000 dentists are currently registered, has become the epicenter of COVID-19 in Latin America. The aim of this cross-sectional study was to evaluate the impact of COVID-19 pandemic on dentists in this state. A semi-structured questionnaire was sent via e-mail to 93.280 dentists with active registration in the Dental Council of São Paulo (CROSP). The impact of COVID-19 pandemic was assessed through questions related to demographic, socioeconomic, dental practice characteristics and personal protective equipment (PPE) use. Ordinal logistic regression analysis was performed to investigate the association between all the variables (p<0.05). Over 8 days, 2113 responses were received. Only 26.52% of the sample reported a low-income reduction (from 0–10%), while the majority of dentists reported a more negative financial impact, 35.6% with a reduction of more than 50% of their monthly income. Dentists who worked in the private sector and at the capital had a greater financial impact when compared to those of the public sector and countryside of the state (p<0.05). Furthermore, about 83% reported not having received any specific training to control the transmission of coronavirus in the health area. This study provides evidence of the negative impact of the COVID-19 pandemic on the routine of dentists in the state of São Paulo, Brazil. Hopefully, this study will help dental and other health care professionals to better understand the consequences of disease in dental settings and strengthen preparedness throughout the dental health care system.

scholarly journals Impact of COVID-19 on the trade of goods and services in Spain

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Asier Minondo
Keyword(s):  
Negative Impact ◽  
The European Union ◽  
Firm Level ◽  
Health Crisis ◽  
Content Type ◽  
Goods And Services ◽  
Containment Measures ◽  
Trade Of Services ◽  
The Impact

Purpose This paper aims to analyze the impact of COVID-19 on the trade of goods and services in Spain. Design/methodology/approach This paper uses monthly trade data at the product, region and firm level. Findings The COVID-19 crisis has led to the sharpest collapse in the Spanish trade of goods and services in recent decades. The containment measures adopted to arrest the spread of the virus have caused an especially intense fall of trade in services. The large share of transport equipment, capital goods, products that are consumed outdoors (i.e., outdoor goods) and tourism in Spanish exports has made the COVID-19 trade crisis more intense in Spain than in the rest of the European Union. Practical implications The nature of the collapse suggests that trade in goods can recover swiftly when the health crisis ends. However, COVID-19 may have a long-term negative impact on the trade of services that rely on the movement of people. Originality/value It contributes to understand how COVID-19 has affected the trade in goods and services in Spain.

scholarly journals What Happens to the Health of Elderly Parents When Adult Child Migration Splits Households? Evidence from Rural China

2020 ◽  
Vol 17 (5) ◽  
pp. 1609 ◽  
Author(s):  
Tianxiang Li ◽  
Beibei Wu ◽  
Fujin Yi ◽  
Bin Wang ◽  
Tomas Baležentis
Keyword(s):  
Negative Impact ◽  
Rural China ◽  
Adult Child ◽  
Parental Health ◽  
Elderly Parents ◽  
Farm Work ◽  
Left Behind ◽  
Variable Approach ◽  
Child Migration ◽  
The Impact

There is little understanding about the effects of adult child migration on the health of elderly parents left behind in the light of economic contribution and time allocation (farm work and emotional cohesion). Using the pooled data from three latest issues of China Health and Retirement Longitudinal Study (CHARLS) in the rural areas, this study assesses the impact of child migration on parents’ health by employing instrumental variable approach to deal with the endogeneity problem. Overall, the evidence suggests that adult child migration impairs parental health as indicated by lower self-reported health (SRH), body mass index (BMI), physical activity of daily living (PADL), and higher depression score. Moreover, parents who are female, poorly-educated, and living with one adult child at least are the most vulnerable groups in terms of poor health outcomes. The negative impact of farming burden on the health of parents left behind outweighs the positive impact of economic support and emotional cohesion. Thus, child migration exerts a significantly negative impact on parental health. Establishing medical and social security systems for the elderly is important to complement the traditional family support in rural China.

scholarly journals Exports, Misallocation, and Total Factor Productivity of Furniture Enterprises

2019 ◽  
Vol 11 (18) ◽  
pp. 4892
Author(s):  
Chang Xu ◽  
Jianbing Guo ◽  
Baodong Cheng ◽  
Yu Liu
Keyword(s):  
Total Factor Productivity ◽  
Value Chain ◽  
Fixed Effects ◽  
Negative Impact ◽  
Market Competition ◽  
Fixed Effects Model ◽  
Factor Productivity ◽  
Labor Costs ◽  
Negative Effect ◽  
The Impact

With the increase in labor costs in China and the tremendous changes in the international trade environment, upgrading the total factor productivity of Chinese furniture export enterprises faces a great challenge. Lots of studies have explored the interaction of exports or misallocation on the total factor productivity (TFP) of furniture enterprises, however, there is little knowledge on the impact and interaction of both exports and misallocation on the TFP. Based on panel data of Chinese furniture enterprises, this paper measures the TFP and the distortion of labor and capital resources in Chinese furniture enterprises. A two-way fixed-effects model is used to analyze the impact of exports and misallocation on the TFP of Chinese furniture enterprises. The paper reveals several important findings. First, the TFP of Chinese furniture export enterprises is lower than that of non-export enterprises, this phenomenon is called the “export–productivity paradox”. Chinese furniture export enterprises are processing trade-oriented and labor-intensive enterprises at the low end of the value chain, exports have a negative effect on improving the TFP of furniture enterprises in the short term. Second, the distortion of labor and capital resources in Chinese furniture enterprises promotes improvements to the TFP of furniture enterprises rather than reducing the TFP of furniture enterprises. Last but not the least, we find that misallocation has a positive moderating effect on exports and can weaken the negative impact of exports on TFP by the “forced mechanism”, which is that the higher the distortion of the misallocation, the higher the cost of acquiring capital and labor, and enterprises are forced to enhance their productivity when facing market competition, thus promoting improvements to the TFP of furniture enterprises.

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).

Precarious Childhoods: Childhood Family Income Volatility and Mental Health in Early Adulthood

Social Forces ◽  
2020 ◽  
Vol 99 (2) ◽  
pp. 672-699
Author(s):  
Siwei Cheng ◽  
Kyriaki Kosidou ◽  
Bo Burström ◽  
Charlotte Björkenstam ◽  
Anne R Pebley ◽  
...  
Keyword(s):  
Income Distribution ◽  
Low Income ◽  
Family Income ◽  
Negative Impact ◽  
Early Adulthood ◽  
Mental Wellbeing ◽  
Income Volatility ◽  
Negative Effect ◽  
Low Income Families ◽  
The Impact

Abstract The rise of income volatility in western countries has been extensively documented in the literature, but empirical research has just started to examine how childhood exposure to family income volatility affects subsequent wellbeing. This study takes advantage of several nation-wide, population registers from Sweden with linkages within and across generations to examine the intergenerational impact of childhood family income volatility on psychiatric disorders in early adulthood. In addition to the population-average effects, we also examine the heterogeneity in the impact of family income volatility for families at the top, bottom, and middle of the family income distribution. Our results suggest that after controlling for a set of family- and child-level characteristics, childhood family income volatility has a negative effect on mental wellbeing, and this finding is consistent across a range of psychiatric outcomes. Furthermore, we show that while children from low-income families exhibit the greatest likelihood of psychiatric disorder, children from families in the middle of the income distribution experience the greatest negative impact of income volatility.

Racial and low-income quotas in Brazilian universities: impact on academic performance

2018 ◽  
Vol 45 (1) ◽  
pp. 156-176
Author(s):  
Claudia Bueno Rocha Vidigal
Keyword(s):  
Academic Performance ◽  
Student Performance ◽  
Low Income ◽  
Family Income ◽  
Negative Impact ◽  
Public And Private ◽  
Content Type ◽  
The North ◽  
Significant Difference ◽  
The Impact

Purpose The purpose of this paper is to estimate the impact of racial and low-income quotas on academic performance of students from public and private universities in Brazil. Design/methodology/approach Using propensity score matching applied to student-level data from the National Examination of Student Performance conducted in 2012; this paper identifies the impact of the quota policy on academic performance considering all Brazilian universities. Findings The results indicate that there is no statistically significant difference in academic performance between students admitted under the racial quota and those who had the regular admission (non-quota students). The impact is positive, however, for students from the North region of Brazil and among those with very low family income, whereas a negative impact is observed for those from the Central-West region. In regard to the low-income quota, quota students perform worse than eligible non-quota students as their scores are, on average, 14 percent lower. Similar findings are observed when different subsamples are considered. Originality/value This paper’s main contribution is to provide a broader and more rigorous empirical approach than that presented by the existing literature in order to evaluate the impact of quota policies on academic achievement. Moreover, this study considers all Brazilian institutions whereas previous studies are limited to only one or a few universities.

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