scholarly journals Investment Policy and Net Book Value of Quoted Manufacturing Firms: Dynamic Panel Data Evidence From Nigeria

2021 ◽  
Vol 04 (08) ◽  
Author(s):  
Adibe Francis Chikwendu ◽  
Keyword(s):  
Panel Data ◽  
Fixed Effects ◽  
Dynamic Panel Data ◽  
Manufacturing Firms ◽  
Investment Policy ◽  
Portfolio Investment ◽  
Short Term ◽  
Book Value ◽  
Independent Variables

This study examined the relationship between investment policy and dynamic of net book value of quoted manufacturing firms in Nigeria. Panel data of 15 quoted manufacturing firms was collected from the annual reports of the manufacturing firms from 2010-2019. Stock prices of the quoted firms was modeled as the function of short term portfolio investment, subsidiary investment, long term portfolio investment and long term investment. Multiple regressions were formulated. Panel data methodology was employed while the fixed effects model was used as estimation technique at 5% level of significance. Fixed effects, random effects and pooled estimates were tested while the Hausman test was used to determine the best fit. Panel unit roots and panel cointegration analysis were conducted on the study. The study found that the independent variables explained 69.1 percent of the systematic variation in net book value of the quoted manufacturing firms. Long term investment and subsidiary investment have positive relationship with net book value of the quoted manufacturing firms while short term and long-term portfolio investment have negative relationship with net book value of the quoted manufacturing firms while the probability coefficient of the variables informed us that the independent variables are statistically not significant. From the findings, the study conclude that investment policy affect significantly the net book value of the quoted manufacturing firms. It recommends that proper investment analysis should be carried out in appraising short term investment to enhance value of manufacturing firms. There is need for management to integrate the objectives of long term investment with the value objective of Nigeria manufacturing firms.

scholarly journals Capital Investments and Manufacturing Firms’ Performance: Panel-Data Analysis

2020 ◽  
Vol 12 (4) ◽  
pp. 1689 ◽  
Author(s):  
Vanja Grozdić ◽  
Branislav Marić ◽  
Mladen Radišić ◽  
Jarmila Šebestová ◽  
Marcin Lis
Keyword(s):  
Data Analysis ◽  
Firm Performance ◽  
Panel Data ◽  
Fixed Effects ◽  
Panel Data Analysis ◽  
Manufacturing Firms ◽  
Capital Investments ◽  
Short Term ◽  
Term Performance

The main goal of this study was to examine the effects of capital investments on firm performance, using panel-data analysis. For this purpose, financial data were gathered for 60 manufacturing firms based in Serbia, in the period from 2004 to 2016. The main research hypotheses were developed in accordance with the definition, nature, and time aspect of capital investments. Therefore, empirical expectation of this study was that the relationship between capital investments and firm performance should be positive—they probably bring losses to the firm in the short term, but they should increase firm performance in the long term. Finally, the results have indeed shown that capital investments have statistically significant negative effect on the short-term performance, but positive effect on the long-term performance of the analyzed firms, while controlling for time-fixed effects and certain internal factors.

The Role of FDI on Exports Performance: Evidence from the Mexican States

2020 ◽  
pp. 016001762097964
Author(s):  
René Cabral ◽  
Jorge Alberto Alvarado
Keyword(s):  
Panel Data ◽  
Estimation Method ◽  
Dynamic Panel Data ◽  
Border Region ◽  
Long Term Effects ◽  
Short Term ◽  
Dynamic Panel ◽  
Panel Data Methods

This article examines manufacturing export determinants across Mexican states and regions from 2007 to 2015. Paying particular attention to the role of FDI, the analysis considers internal and external determinants of manufacturing exports under static and dynamic panel data methods. Several interesting results were obtained. First, the ratio of manufacturing to total GDP is the most consistent determinant of exports performance, regardless of the estimation method or specification employed. Second, static panel data estimations under GMM techniques suggest different sensitivity to FDI across regions, with the Mexico-U.S. border region observing the most substantial short-term effect of FDI on manufacturing exports. Finally, using dynamic panel data methods, we found significant persistence and similar long-term effects of FDI across most of the regions.

Credit supply and corporate capital structure: evidence from Pakistan

2016 ◽  
Vol 5 (2) ◽  
pp. 250-267 ◽  
Author(s):  
Amjad Iqbal ◽  
Tanveer Ahsan ◽  
Xianzhi Zhang
Keyword(s):  
Panel Data ◽  
Capital Structure ◽  
Dynamic Panel Data ◽  
Manufacturing Firms ◽  
Short Term ◽  
Dynamic Panel ◽  
Content Type ◽  
Corporate Capital ◽  
Credit Supply ◽  
Corporate Capital Structure

Purpose – The purpose of this paper is to investigate the relevance of credit supply for corporate capital structure decisions of manufacturing firms in Pakistan. Design/methodology/approach – The implicit assumption in much of the work on capital structure is that for a firm, the availability of incremental capital depends solely on its characteristics. However, the capital market frictions suggest that suppliers of credit may also affect firms’ ability to borrow. The authors investigated this intuition by employing dynamic panel data estimators using 8,984 firm-year observations for the period 1990-2010. Findings – The results show that short-term debt is a major source of financing in these firms. Further, credit supply plays a significant role in these firms’ capital structure decisions and hence, they increase their short-term debt (main financing source) with an increase in credit supply in the market while payoff their long-term debt with internal funds. Practical implications – The findings of this study can enhance the practitioners’ and analysts’ understanding of capital structure of manufacturing firms in a bank dominated financial system, like Pakistan. Also, it can provide them more insight in understanding the alternative choices of financing and the reasons why firms prefer one over the other. Originality/value – To the authors’ best knowledge, this is the first study in Pakistan that considers both supply-side as well as demand-side factors of capital structure and applies dynamic panel data techniques.

Determinants of Anthropometric Failure Among Tribal Children Younger than 5 Years of Age in Palghar, Maharashtra, India

2021 ◽  
Vol 42 (1) ◽  
pp. 55-64
Author(s):  
Angeline Jeyakumar ◽  
Swapnil Godbharle ◽  
Bibek Raj Giri
Keyword(s):  
Odds Ratio ◽  
Composite Index ◽  
Z Score ◽  
Short Term ◽  
Cross Sectional Survey ◽  
Crude Odds Ratio ◽  
Cross Sectional ◽  
Independent Variables ◽  
Child Undernutrition

Background: Measuring undernutrition using composite index of anthropometric failure (CIAF) and identifying its determinants in tribal regions is essential to recognize the true burden of undernutrition in these settings. Objective: To determine anthropometric failure and its determinants among tribal children younger than 5 years in Palghar, Maharashtra, India. Methods: A cross-sectional survey employing CIAF was performed in children <5 years to estimate undernutrition in the tribal district of Palghar in Maharashtra, India. Anthropometric measurements, maternal and child characteristics were recorded from 577 mother–child pairs in 9 villages. Results: As per Z score, prevalence of stunting, wasting, and underweight were 48%, 13%, and 43%, respectively. According to CIAF, 66% of children had at least one manifestation of undernutrition and 40% had more than one manifestation of undernutrition. Odds of anthropometric failure were 1.5 times higher among children of mothers who were illiterate (adjusted odds ratio [AOR] =1.57, 95% CI: 1.0-2.3), children who had birth weight >2.5 kg had lesser odds (AOR: 0.63, 95% CI: 0.4-0.9) of anthropometric failure, and children who had initiated early breastfeeding had 1.5 times higher odds of anthropometric failure (crude odds ratio: 1.5, 95% CI: 1.0-2.1). However, when adjusted for other independent variables, the results were not significant. Conclusion: The alarming proportion of anthropometric failure among tribal children calls for urgent short-term interventions to correct undernutrition and long-term interventions to improve maternal literacy and awareness to prevent and manage child undernutrition.

Determinants of total factor productivity in Visegrad Group Nuts-2 regions

2018 ◽  
Vol 68 (1) ◽  
pp. 31-50 ◽  
Author(s):  
Barbara Danska-Borsiak
Keyword(s):  
Panel Data ◽  
Total Factor Productivity ◽  
Latent Variables ◽  
Fixed Effects ◽  
Orthogonal Transformation ◽  
Common Factors ◽  
Dynamic Panel Data ◽  
Factor Productivity ◽  
The Common ◽  
Visegrad Group

This article attempts to estimate the total factor productivity (TFP) for 35 NUTS-2 regions of the Visegrad Group countries and to identify its determinants. The TFP values are estimated on the basis of the Cobb-Douglas production function, with the assumption of regional differences in productivity. The parameters of the productivity function were analysed with panel data, using a fixed effects model. There are many economic variables that influence the TFP level. Some of them are highly correlated, and therefore the factor analysis was applied to extract the common factors – the latent variables that capture the common variance among those observed variables that have similar patterns of responses. This statistical procedure uses an orthogonal transformation to convert a set of observations of possibly correlated variables into a set of values of linearly uncorrelated variables called principal components. Each component is interpreted using the contributions of variables to the respective component. I estimated a dynamic panel data model describing TFP formation by regions. An attempt was made to incorporate the common factors among the model’s explanatory variables. One of them, representing the effects of research activity, proved to be significant.

The determinants of profitability in Sharia-compliant corporations: evidence from Jordan

2019 ◽  
Vol 10 (4) ◽  
pp. 546-564 ◽  
Author(s):  
Nizar Mohammad Alsharari ◽  
Turki Raji Alhmoud
Keyword(s):  
Panel Data ◽  
Voluntary Disclosure ◽  
Fixed Effects ◽  
Management Style ◽  
Least Square ◽  
Return On Assets ◽  
Content Type ◽  
Return On Equity ◽  
Independent Variables ◽  
Internal And External Factors

Purpose The purpose of this paper is to examine the determinants of profitability of 28 Sharia-compliant corporations in Jordan over the three-year period of 2013-2015. Design/methodology/approach The two-stage least square (2SLS) regression analysis with fixed effects was conducted using two measures of profitability, namely: return on assets and return on equity. The empirical data were collected from 28 Sharia-compliant corporations in Jordan over the study period. A variety of internal and external factors was used to determine profitability. Findings In general, this analysis of the determinants of profitability for Sharia-compliant corporations confirmed previous findings. Regression findings revealed that previous year profitability, debt ratio, organizational structure, the size of the audit firm and voluntary disclosure to be important determinants of profitability of Sharia-compliant corporations in Jordan from 2013 to 2015. The independent variables of firm size, ownership ratio greater than 5%, liquidity ratio, percentage of non-Jordanian ownership or the age of the firm were not found to significantly influence the profitability of the corporations studied. Research limitations/implications The authors determined that the independent variables selected, with few exceptions, behaved according to expectations. Moreover, the current literature on the influence of management on performance, and thus, profitability, does not consider the philosophy under which business is conducted (a limitation with respect to the type of business conducted). For example, Sharia-compliant and non-Sharia-compliant firms operate under different sets of principles and rules. This variance in business philosophies may have an important bearing on management style, an aspect that has been neglected in the organizational management literature. The panel data from a three-year period was insufficient to validate the consistency of the results; future researchers may increase the length of the study periods to confirm results and increase the robustness of the data collection method. Practical implications The findings from the study have implications that may be functional for businesses, investors and policymakers in their focus on the Sharia-compliant business sector in Jordan. The factors influencing profitability may inform the setting of regulatory policy designed to stabilize and sustain the performance of Sharia-compliant corporations more broadly. Originality/value This study contributes to the growing body of literature on Islamic finance, and can be considered one of a very few that have examined the internal and external determinants of the profitability of Sharia-compliant corporations in a developing country such as Jordan, using panel data.

scholarly journals Bias correction methods for dynamic panel data models with fixed effects

2017 ◽  
Vol 6 (2) ◽  
pp. 58
Author(s):  
Mohamed Abonazel
Keyword(s):  
Panel Data ◽  
Fixed Effects ◽  
Generalized Method Of Moments ◽  
Dynamic Panel Data ◽  
Estimation Methods ◽  
Time Dimension ◽  
Dynamic Panel ◽  
Cross Sectional ◽  
Cross Sectional Dimension ◽  
Ls Estimator

This paper considers the estimation methods for dynamic panel data (DPD) models with fixed effects, which suggested in econometric literature, such as least squares (LS) and generalized method of moments (GMM). These methods obtain biased estimators for DPD models. The LS estimator is inconsistent when the time dimension (T) is short regardless of the cross-sectional dimension (N). Although consistent estimates can be obtained by GMM procedures, the inconsistent LS estimator has a relatively low variance and hence can lead to an estimator with lower root mean square error after the bias is removed. Therefore, we discuss in this paper the different methods to correct the bias of LS and GMM estimations. The analytical expressions for the asymptotic biases of the LS and GMM estimators have been presented for large N and finite T. Finally; we display new estimators that presented by Youssef and Abonazel [40] as more efficient estimators than the conventional estimators.

scholarly journals Substitute or complement? The use of trade credit as a financing source among SMEs

2017 ◽  
Vol 40 (1) ◽  
pp. 10-27 ◽  
Author(s):  
Darush Yazdanfar ◽  
Peter Öhman
Keyword(s):  
Fixed Effects ◽  
Trade Credit ◽  
Generalized Method Of Moments ◽  
Short Term ◽  
Content Type ◽  
System Models ◽  
Accounts Payable ◽  
Short And Long Term ◽  
Retained Earnings

Purpose This study aims to investigate trade credit as a financing source among small- and medium-sized enterprises (SMEs), particularly the influence of short-term debt, long-term debt and profitability on the use of such credit. Design/methodology/approach Ordinary least squares (OLS), fixed-effects and generalized method of moments (GMM) system models were used to analyze a large cross-sectional panel data set of 15,897 Swedish SMEs in five industry sectors for the 2009-2012 period. Findings The study provides empirical evidence that long-term debt and profitability each significantly and negatively influence trade credit (i.e. accounts payable) and that short-term debt positively influences trade credit. Notably, while trade credit seems to complement other short-term debt, it replaces long-term debt. Moreover, firm size in terms of sales is positively related and firm age is negatively related to accounts payable. Industry affiliation is another significant explanatory variable. Practical implications The results provide debt holders, potential investors, policymakers and academic researchers with insights into the relationship between trade credit demand, on the one hand, and external financing (i.e. short- and long-term debt) and internal retained earnings (i.e. profit), on the other. From a manager’s perspective, the findings may be important for decision-making regarding trade credit use. Originality/value When investigating trade credit determinants, the literature has seldom distinguished between short- and long-term debt and considered that they may influence the use of trade credit in different ways. The present study adds to the literature by using OLS, fixed-effects and GMM system models to analyze a large cross-sectoral sample in a high-tax country where both bank loans and trade credit are considered important financing instruments.

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