scholarly journals The Consequences of Easy Credit Policy, High Gearing, and Firms’ Profitability in Pakistan’s Textile Sector: A Panel Data Analysis

2012 ◽  
Vol 17 (1) ◽  
pp. 33-44
Author(s):  
Ijaz Hussain
Keyword(s):  
Panel Data ◽  
Negative Impact ◽  
Positive Impact ◽  
Panel Data Analysis ◽  
Capacity Utilization ◽  
Credit Policy ◽  
Explanatory Variables ◽  
Financing Costs ◽  
Asset Turnover ◽  
Textile Sector

This study uses panel data on 75 textile firms for the period 2000–09 to examine the consequences of an easy credit policy followed by high gearing, increased financing costs, and other determinants of corporate profitability. Five out of nine explanatory variables—including gearing, financing costs, inflation, tax provisions, and the industry’s capacity utilization ratio—have a negative impact, while the remaining four variables—working capital management, asset turnover, exports, competitiveness, and devaluation—have a positive impact on firms’ profitability.

scholarly journals Determinants of Basmati Exports from Pakistan: A Panel Data Analysis

2021 ◽  
Vol 3 (1) ◽  
pp. 12-18
Author(s):  
Muhammad Munwar Hayat ◽  
Raheela Khatoon
Keyword(s):  
Panel Data ◽  
Method Of Moments ◽  
Negative Impact ◽  
Positive Impact ◽  
Panel Data Analysis ◽  
Generalized Method Of Moments ◽  
Trading Partner ◽  
Dummy Variable ◽  
Export Competitiveness ◽  
The Impact

This paper aims to estimate the impact of different factors of basmati exports from Pakistan to its trading partner. Results are obtained by using the Generalized Method of Moments (GMM) model and panel data methodology with a sample of 22 countries for the period of 2003-2019. To estimate the impact of different variables on basmati exports Generalized Method of Moments (GMM) model is used on the panel dataset. The results revealed that the inflation rate of Pakistan has a negative and significant effect on the export competitiveness of Pakistani basmati. The exchange rate of Pakistan has a positive and significant impact on the basmati export, the population of Pakistan has a negative and significant impact on basmati export. Basmati production in Pakistan also has a significant and negative impact on basmati export. The Gross Domestic Product (GDP) of Pakistan has a significant and positive impact on the basmati export while the GDP of the trading partner has a significant and negative impact on the basmati export. The dummy variable for joint border also has a positive and significant impact on basmati exports of Pakistan.

scholarly journals A Panel Data Analysis Model to Assess the Impact of Institutional Factors on Crop Diversification of Assam, India

2020 ◽  
Vol 9 (6) ◽  
pp. 167-173
Keyword(s):  
Panel Data ◽  
Negative Impact ◽  
Positive Impact ◽  
Panel Data Analysis ◽  
Value Added ◽  
Institutional Factors ◽  
Macro Level ◽  
Farm Size ◽  
Crop Diversification ◽  
The Impact

The process of crop diversification is generally used in agriculture to mitigate both production and price risk. Crop diversification is a process through which farmers diversify his farm activities from one crop to different value added crops so that he minimizes the existing risk in his farm operation. Most of the studies in literature in context to crop diversification have identified different factors that influence crop diversification in their study area. However, very few studies have attempted to examine the impact of institutional factors on crop diversification at macro level by using district level panel data in Assam. Therefore, this study makes an attempt to examine the impact of institutional factors on crop diversification through panel analysis. To fulfill the objective of this paper secondary data have been collected from different issues of Statistical Hand Book of Assam, assamstate.com, RBI, etc. The overall results of this paper show that institutional factors like farm size have positive impact on crop diversification except institutional credit. Institutional credit has negative impact on crop diversification. This paper will definitely help to bring some policy changes in the macro level to optimize crop diversification in the region.

Examining the FDI–Growth Nexus in BRICS: Panel Data Evidence

2021 ◽  
pp. 001946622110360
Author(s):  
Bashir Ahmad Joo ◽  
Sana Shawl
Keyword(s):  
Economic Growth ◽  
Panel Data ◽  
Direct Investment ◽  
Negative Impact ◽  
Positive Impact ◽  
Fdi Inflows ◽  
Jel Codes ◽  
Explanatory Variables ◽  
Domestic Investments ◽  
The Relationship

The purpose of this article is to examine the relationship between foreign direct investment (FDI) and economic growth in Brazil, Russia, India, China and South Africa (BRICS) economies, which are considered to be the fastest-growing economies and dominant players in the global investment landscape. In order to assess the relationship between the dependent variable (economic growth) and explanatory variables (FDI inflows and other growth determinants), we analyse a 32-year panel data starting from 1987 to 2018 using feasible generalised least squares (FGLS) method. The article found a significant positive FDI impact on economic growth in BRICS. However, exports, human capital and inflation (macroeconomic instability) exert a negative impact on economic growth of BRICS, whereas domestic investments exert a positive impact on growth. JEL Codes: F21, F43, C23, O47

scholarly journals How do Poverty and Income Inequality affect Economic Growth in Developing Countries?

2021 ◽  
Vol 4 (2) ◽  
pp. 547-558
Author(s):  
Hamza Saleem ◽  
Fatima Farooq ◽  
Muhammad Aurmaghan
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Panel Data ◽  
Income Inequality ◽  
Negative Impact ◽  
Positive Impact ◽  
Development Indicators ◽  
The Relationship ◽  
Positive Effect ◽  
World Development

The major objective of this research is to examine the relationship between poverty, income inequality and economic growth from some selected developing countries. This study uses panel data for the period of 2002-2015. All the data is taken from world development indicators (WDI). To find out the results, we have used Hausman test an econometrics technique for panel data in this research. The results of the study indicate that poverty and income inequality have a negative impact on economic growth on the other hand Gross capital formation, labor force, total population and government consumption and expenditure have a positive impact on economic growth. The result tells us that changes in these variables have a significant and positive effect on the dependent variable. To achieve the goal of economic growth developing countries should reduce poverty and take meaningful steps to overcome the problem of inequality in the society which can be very helpful in achieving the goal of economic growth.

scholarly journals An Analysis of Host Country Characteristics that Determine FDI in Developing Countries: Recent Panel Data Evidence

2009 ◽  
Vol 14 (2) ◽  
pp. 71-96 ◽  
Author(s):  
Muhammad Tariq Majeed ◽  
Eatzaz Ahmad
Keyword(s):  
Developing Countries ◽  
Panel Data ◽  
Multinational Corporations ◽  
Host Country ◽  
Negative Impact ◽  
Positive Impact ◽  
Negative Effects ◽  
Host Countries ◽  
Country Characteristics ◽  
General Method Of Moments

This paper analyzes a range of host country characteristics that determine foreign direct investment (FDI) flows to developing countries, using panel data on 72 countries for the period 1970-2008. Keeping in view the endogeneity problem of the chosen host country’s characteristics, the model is estimated using the General Method of Moments (GMM) technique. The analysis shows that gross domestic product (GDP), economic growth, and per capita income positively affect FDI—a result consistent with the market-seeking behavior of multinational corporations (MNCs). Furthermore, we find that remittances have a significant and positive impact on FDI. On the other hand, inflation and the balance of payments deficit have negative effects on FDI. MNCs are attracted to host countries that are outward looking and follow trade-promoting policies. This is confirmed by the positive effect of openness on FDI flows to developing countries. The study also finds that the effect of military expenditures on FDI is negative and significant. Finally, our analysis finds that the real exchange rate has a significantly negative impact on FDI.

scholarly journals What Drives Bank Profitability? A Panel Data Analysis of Commercial Banks in Bangladesh

2021 ◽  
Vol 10 (2) ◽  
pp. 96-110
Author(s):  
Rana-Al-Mosharrafa ◽  
Md. Shahidul Islam
Keyword(s):  
Negative Impact ◽  
Positive Impact ◽  
Panel Data Analysis ◽  
Mediation Effect ◽  
Industry Concentration ◽  
Equation Modeling ◽  
Bank Profitability ◽  
Macroeconomic Variables ◽  
Significant Negative Impact ◽  
The Impact

Bank profitability plays a significant role in the growth and development of an emerging economy. The purpose of the study was to examine the impact of bank characteristics, industry concentration and macroeconomics variables on commercial bank profitability in Bangladesh from 2007-2017. Bank profitability is proxied by return on assets (ROA), return on equity (ROE) and net interest margin (NIM). The study is based on secondary data and Hausman test has been performed using STATA software in favor of fixed effect modeling. Panel regressions shows that cost efficiency has significant negative impact on ROA and NIM. The positive impact of loan to deposit ratio with ROA suggests that efficient fund management including investment and assessed expenditure should be emphasized. Bank size has significant negative impact on all the measures of profitability, which indicates that monopolistic competition will reduce banking profit. Credit risk has significant positive impacts on ROE. Industry concentration measured by CR3 is positively related with ROE and has significant negative relation with bank profitability (ROA). Among macroeconomic variables inflation has significant positive and bank spread has significant negative impact on ROE. The coefficients of all the macroeconomic variables have been found to be significantly related to bank profitability while measured by NIM. Our study recommends further research with other explanatory variables such as, corporate governance, corporate social responsibility (CSR) and deposit insurance to accelerate the model and construct the econometric model by using structural equation modeling, mediation effect modeling etc.

scholarly journals PRACTICING FRS AND AUDIT QUALITY SUPPORT FINANCIAL SUCCESS OF CONSTRUCTION FIRMS IN MALAYSIA

2016 ◽  
Vol 1 (1) ◽  
Author(s):  
Chia Hua Sim ◽  
Daw Tin Hla ◽  
Abu Hassan Md.Isa
Keyword(s):  
Firm Performance ◽  
Panel Data ◽  
Financial Reporting ◽  
Audit Quality ◽  
Positive Impact ◽  
Panel Data Analysis ◽  
Financial Success ◽  
Reporting Standard ◽  
Construction Firms ◽  
The Impact

Prior research findings on the effect of financial reporting and audit quality on firm performance were mixed. The current study therefore, sought to examine the impact of audit quality and FRS practices of firms on their financial success. Samples firms listed on Malaysian stock market were selected from the construction sector for the period of 2010 to 2013. Data was collected from the published annual reports and notes to the financial statements. To assess the level of compliance with the regulations and provisions of the Financial Reporting Standard (FRS) in Malaysia, content analysis was carried out. Firm’s engagement with established audit firm is used as a proxy for audit quality, and return on assets is used as a measure of firm performance. Panel data analysis was employed in analysing the data and testing the stated hypotheses. The use of panel data reveals that practices of FRS by firms is significantly and positively related to their financial performance. The results also indicate that audit quality has a significant positive impact on business financial success. The study therefore recommends that the management of listed construction firms improve their practices of FRS and employ the service of established audit firms in support of financial success. Regular training may be organised to provide construction companies with practical guide for better compliance with the FRS in Malaysia.  

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

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.

scholarly journals The Impact of Corporate Social Responsibility on the Financial Performance of Listed Companies in Thailand

2021 ◽  
Vol 13 (16) ◽  
pp. 8920
Author(s):  
Muttanachai Suttipun ◽  
Pankaewta Lakkanawanit ◽  
Trairong Swatdikun ◽  
Wilawan Dungtripop
Keyword(s):  
Financial Performance ◽  
Negative Impact ◽  
Positive Impact ◽  
Stock Exchange ◽  
Panel Data Analysis ◽  
Descriptive Analysis ◽  
Listed Companies ◽  
Annual Reports ◽  
Corporate Social ◽  
The Impact

This study aims to: (1) investigate the amount of corporate social and environmental responsibility (CSR) spending, awards, and activities of listed companies in the Stock Exchange of Thailand (SET) and in the Market for Alternative Investment (MAI); (2) test the impact of CSR spending, awards, and financial performance activities; and (3) examine the amount of CSR spending, awards, and activities between companies with and without a CSR committee. The sample included all the listed companies in the resource industry from the SET and the MAI. The data were collected from the companies’ annual reports from 2015 to 2019. Descriptive analysis, an independent-sample t-test, a correlation matrix, and an unbalanced panel data analysis were used to analyze the data. The average level of spending per activity was 2.2964 million baht. There were, on average, 2.1741 awards and 11.4178 activities during the studied period. Moreover, there was a significant negative impact of CSR spending, and a positive impact of CSR awards and activities, on corporate financial performance. Finally, there was a significantly different amount of CSR spending, awards, and activities between the companies with and without a CSR committee. The findings of this study demonstrate that legitimacy theory can be used to explain the benefit of CSR to Thai-listed companies, although CSR is still a voluntary corporate responsibility in Thailand.

scholarly journals Spillover Effect Penanaman Modal Asing terhadap Output Perusahaan Domestik Indonesia 2007-2013

2020 ◽  
Vol 1 (2) ◽  
pp. 85
Author(s):  
Samuel Kharis Harianto ◽  
Suyanto Suyanto ◽  
Sugeng Hariadi
Keyword(s):  
Panel Data ◽  
Foreign Investment ◽  
Productivity Growth ◽  
Manufacturing Industry ◽  
Positive Impact ◽  
Panel Data Analysis ◽  
Spillover Effect ◽  
Annual Survey ◽  
Data Survey ◽  
Medium Enterprises

Abstract—This study aims to analyze Foreign Investment which gives spillover impact on productivity growth of Indonesian manufacturing industry companies in 2007-2013. This study applies the application of quantitative analysis, using the data of the Annual Survey of Large and Medium Enterprises of the Central Statistics Agency of Indonesia (BPS). The data was processed by applying the method of panel data analysis and OLS regression. This research shows that PMA holistically gives a positive impact and gives different impacts to manufacturing industry sub-sector. With different findings, in each sector, different regulations related to PMA in Indonesian manufacturing industry are needed. Keywords: foreign investment, spillover, productivity, manufacturing industry.   Abstrak—Penelitian ini bertujuan untuk menganalisis Penanaman Modal Asing (PMA) yang memberikan dampak spillover pada pertumbuhan produktivitas perusahaan- perusahaan industri manufaktur Indonesia periode 2007-2013. Dalam penelitian ini diterapkan pengaplikasian analisis kuantitatif dengan menggunakan data Survey Tahunan Perusahaan Besar dan Menengah Badan Pusat Statistika Indonesia (BPS). Data diolah dengan menerapkan metode analisis panel data dan regresi OLS. Hasil penelitian dengan menggunakan analisis data panel menunjukkan bahwa PMA memberikan dampak positif secara menyeluruh dan memberikan dampak yang berbeda-beda terhadap subsektor industri manufaktur. Dengan hasil temuan yang berbeda di setiap sektornya, maka diperlukan adanya kebijakan yang berbeda pula terkait peraturan PMA di industri manufaktur Indonesia. Kata kunci: penanaman modal asing, spillover, produktivitas, industri manufaktur

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