scholarly journals Debt Overhang, Gazelles’ Growth, and Fiscal Policy: A Note from the Quantile Regression Approach

2021 ◽  
Vol 13 (18) ◽  
pp. 10457
Author(s):  
Sorin Gabriel Anton ◽  
Mihaela Onofrei ◽  
Emilia Gogu ◽  
Bogdan Constantin Neculau ◽  
Florin Mihai
Keyword(s):  
Fiscal Policy ◽  
Quantile Regression ◽  
Firm Growth ◽  
Tax Rates ◽  
Lower Growth ◽  
Effective Tax Rates ◽  
Debt Overhang ◽  
Regression Approach ◽  
Negative Effect ◽  
The Impact

The paper aims to examine the relationship between leverage and firm growth and the impact of fiscal policy on this relationship using a panel data quantile regression approach. Employing a sample of gazelles from emerging Europe for the 2006–2014 period, we find that debt overhang negatively affects firm growth only for the lower growth quantiles. In addition, we found that the negative effect is higher for the gazelles located in countries with lower corporate income effective tax rates. However, for the higher growth quantiles, the impact of debt on firm growth is positive and statistically significant. Our results reconcile the mixed results of the previous studies and have practical implications for financing strategies in emerging markets.

scholarly journals Environmental, Social, Governance Risk and Corporate Sustainable Growth Nexus: Quantile Regression Approach

2021 ◽  
Vol 18 (20) ◽  
pp. 10865
Author(s):  
Xiaodong Teng ◽  
Yanzhi Wang ◽  
Aiguo Wang ◽  
Bao-Guang Chang ◽  
Kun-Shan Wu
Keyword(s):  
Quantile Regression ◽  
Negative Relationship ◽  
Ordinary Least Squares ◽  
Sustainable Growth ◽  
Detailed Knowledge ◽  
Course Of Action ◽  
Regression Approach ◽  
Negative Effect ◽  
Sustainable Growth Rate ◽  
The Impact

Despite a huge body of literature revealing that the effect of environmental, social and governance (ESG) scores on a firms' financial performance and value, it lacks the empirical research on the nexus between corporate sustainable growth and ESG risk in the existing research. The paper aims to examine the nexus between ESG risk and corporate sustainable growth. This study utilizes a quantile regression approach to explore how ESG risk affects corporate sustainable growth (proxied by sustainable growth rate, SGR). The ordinary least squares estimation results confirm that ESG significantly negatively affects corporate sustainable growth. The quantile regression results reveal ESG risk has a significant negative effect on corporate sustainable growth in the upper quantiles of SGR, but not in the lower and median quantiles. The results show that the impact of ESG risk on the corporate sustainable growth is asymmetric and affected by the distribution of SGR. Furthermore, the research results identify that the negative relationship between ESG risk and corporate sustainable growth is particularly apparent for firms in environmentally sensitive industries. This study greatly contributes to existing literature, as with this detailed knowledge, managers can make decisions based on these associations and identify the most lucrative course of action.

scholarly journals Examining the Impact of Innovation Forms on Sustainable Economic Performance: The Influence of Family Management

2019 ◽  
Vol 11 (21) ◽  
pp. 6132 ◽  
Author(s):  
Rubén Martínez-Alonso ◽  
María J. Martínez-Romero ◽  
Alfonso A. Rojo-Ramírez
Keyword(s):  
Family Involvement ◽  
Economic Performance ◽  
Firm Growth ◽  
Process Innovation ◽  
Family Management ◽  
Sustained Competitive Advantage ◽  
Negative Effect ◽  
Family Involvement In Management ◽  
The Impact ◽  
Positive Effect

The aim of this research is to explore the effect that innovation, as a potential source of sustained competitive advantage and firm growth, has on the achievement of sustainable economic performance. In particular, this paper empirically examines the influence of four innovation forms (intramural R&D, extramural R&D, product innovation, and process innovation) on firms’ sustainable economic performance, considering the moderating effect of family involvement in management. To test the hypotheses, random-effects regression analyses are applied to a longitudinal sample of 598 Spanish private manufacturing firms throughout the 2006–2015 period. The results show a negative effect of intramural and extramural R&D on sustainable economic performance and a positive effect of process innovation on sustainable economic performance. Moreover, a reinforced relationship between process innovation and sustainable economic performance is also revealed when family involvement in management acts as a moderator. The findings make several contributions to research and practice.

scholarly journals Determinants of household income of micro-finance women participants: a quantile regression approach

2020 ◽  
Vol 1 (1) ◽  
pp. 63-74
Author(s):  
Jarita Duasa ◽  
Nur Hidayah Zainal
Keyword(s):  
Quantile Regression ◽  
Capita Income ◽  
Per Capita Income ◽  
Content Type ◽  
Income Distributions ◽  
Asset Value ◽  
Regression Approach ◽  
Convenience Sampling ◽  
Per Capita ◽  
The Impact

Purpose The purpose of this study is to adopt quantile regression to investigate the impact of several factors on per capita income of participants of micro-financing scheme (Amanah Ikhtiar Malaysia [AIM]), who are mostly women at different point on the income distributions. Design/methodology/approach This study uses data collected from a survey on respondents who are the participants of AIM program using convenience sampling in Perak and Kelantan. Findings The empirical results show that the value of asset, value of loan, household size, ratio of spending to income and dummy state are consistently giving similar impacts on per capita income of participants at different quantiles. Originality/value However, age negatively and significantly affects per capita income only at middle and lower quantiles but not at higher quantile of per capita income.

Determinants of corporate effective tax rates: evidence from the euro area

2020 ◽  
Vol 33 (3/4) ◽  
pp. 427-444
Author(s):  
Antonio Barbera ◽  
Paloma Merello ◽  
Rafael Molina
Keyword(s):  
Euro Area ◽  
Listed Companies ◽  
Tax Rates ◽  
Effective Tax Rates ◽  
Content Type ◽  
Individual Analysis ◽  
The Individual ◽  
The Impact ◽  
Generalized Moments ◽  
Positive Effect

PurposeThe purpose of this paper is to investigate the effect of the determinants of corporate effective tax rates (ETR) of listed companies in euro area.Design/methodology/approachWith a large and recent panel of 2,870 listed companies for the period 2005–2016, the authors use the generalized moments method (GMM) to estimate global models for three groups of countries and specific models for six selected countries: Germany, Spain, France, Italy, Belgium and Greece.FindingsThe results confirm that ETR have different determinants depending on the countries analyzed. There is a significantly positive relationship with leverage and negative with size and financial profitability. However, economic profitability shows a statistically positive effect in the new members, but negative effect on old ones. In the individual analysis, Germany and Spain maintain this negative association with return on assets (ROA), but Belgium and Greece show a positive effect. The effect of the economic cycle shows statistically relevant, negatively in Germany but positively in Belgium and Greece.Originality/valueThis paper makes a novel contribution to the current debate on the need for harmonization of corporate income tax in the European Union (EU). For the first time, the group of countries whose common currency is the euro is considered with a great level of detail. In addition, the impact derived from the enlargement of the euro area and the individual analysis of the main countries is included. The European authorities must take into account the specific differences found in the ETR determinants because it hinders to take measures that limit tax competition.

The Impact of Headquarter and Subsidiary Locations on Multinationals’ Effective Tax Rates

2014 ◽  
Vol 28 (1) ◽  
pp. 33-62 ◽  
Author(s):  
Kevin S. Markle ◽  
Douglas A. Shackelford
Keyword(s):  
Tax Rates ◽  
Effective Tax Rates ◽  
The Impact

An empirical investigation of the influence of municipal fiscal policy on firm growth

2016 ◽  
Vol 34 (8) ◽  
pp. 1825-1842 ◽  
Author(s):  
Philippe Van Cauwenberge ◽  
Peter Beyne ◽  
Heidi Vander Bauwhede
Keyword(s):  
Fiscal Policy ◽  
Firm Growth ◽  
Municipal Government ◽  
Academic Research ◽  
Economic Effects ◽  
Added Value ◽  
Financial Reports ◽  
Municipal Governments ◽  
Economic Significance ◽  
The Impact

Over the last decades, many countries experienced a trend towards fiscal decentralisation, with the result that municipal governments have a largely increased degree of autonomy with respect to their fiscal policy. This shift has not been matched however with a change in the focus of the academic research on the economic effects of public finance, which is still predominantly conducted at the national and regional level. In this paper, we study the impact of municipal government taxation and spending on the growth rate of firms. We explore a panel dataset which combines detailed information from the financial accounts of Flemish municipalities with the financial reports of the firms located in those municipalities. Our analysis of data from close to 70,000 firms in 308 municipalities for the period 2004–2013 indicates that municipal fiscal policy has a statistically significant effect on firm added value growth and employment growth. No statistically significant effect was found on asset growth. Overall, the economic significance of municipal fiscal policy turns out to be small and is, for instance, not able to outweigh the effects of the recent financial crisis.

scholarly journals Will Problems Arise When Banks are Exempted from Thin Capitalization Regulation?

2018 ◽  
Vol 14 (3) ◽  
pp. 157-167
Author(s):  
Arfah Habib Saragih
Keyword(s):  
Fixed Effects ◽  
Quantitative Method ◽  
Tax Avoidance ◽  
Tax Rates ◽  
Effective Tax Rate ◽  
Effective Tax Rates ◽  
Tax Rate ◽  
Negative Effect ◽  
Thin Capitalization ◽  
Unbalanced Panel Data

This research was intended to provide empirical evidences that the exemption of banks from Minister of Finance Decree Number 169/PMK.010/2015 did not raise any significant problem on banks tax avoidance which was measured by effective tax rates. Quantitative method was used in this study by conducting regression-fixed effects method on unbalanced panel data. This study found that thin capitalization in banks did not impact effective tax rates significantly. Present research also found that the banks size and profitability were other determinants of the level of tax avoidance in the banks sample. Bank size and profitability had a significant and negative effect on effective tax rate.

scholarly journals Capital Structure and Bank Profitability in Vietnam: A Quantile Regression Approach

2020 ◽  
Vol 13 (8) ◽  
pp. 168 ◽  
Author(s):  
Tu D. Q. Le ◽  
Dat T. Nguyen
Keyword(s):  
Capital Structure ◽  
Quantile Regression ◽  
Banking System ◽  
Capital Requirements ◽  
Bank Capital ◽  
Bank Profitability ◽  
Continuous Increase ◽  
Regression Approach ◽  
The Impact ◽  
Quantile Regression Method

We empirically investigate the impact of capital structure on bank profitability using a quantile regression method in the Vietnamese banking system during 2007–2019. Our results suggest that the nonlinear relationship between capitalization and bank profitability is only significant at the 90th quantile. This is the first study to conclude that the turning point of capital ratio increases throughout the profitability distribution. Our findings thus suggest that a continuous increase in bank capital requirements does not necessarily result in higher bank profitability.

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