scholarly journals Profitability and Its Determinants in Turkish Manufacturing Industry: Evidence from a Dynamic Panel Model

2017 ◽  
Vol 9 (8) ◽  
pp. 66 ◽  
Author(s):  
Ozcan Isik ◽  
Umit Firat Tasgin
Keyword(s):  
Economic Growth ◽  
Firm Size ◽  
Financial Risk ◽  
Manufacturing Industry ◽  
Stock Exchange ◽  
Dynamic Panel Data ◽  
Working Capital ◽  
Dynamic Panel ◽  
Dynamic Panel Model ◽  
Panel Model

Our paper empirically analyses the factors that determine the profitability of 120 manufacturing firms listed in Borsa Istanbul Stock Exchange during the period 2005-2012. Estimation results from dynamic panel data model taking into account the endogeneity of variables indicate that lagged profitability, firm size, financial risk, R&D costs, net working capital, and economic growth are the most important variables affecting firm profitability. More specifically, profitability is positively and significantly affected by past profitability, firm size in terms of total sales, net working capital, and economic growth. On the other hand, R&D costs and financial risk have a dampening effect on the profitability.

scholarly journals Economic Diversity and the Resource Curse: A Dynamic Panel Model

2018 ◽  
Author(s):  
Fred Olayele ◽  
Kwok Soo
Keyword(s):  
Economic Growth ◽  
Resource Curse ◽  
Dynamic Panel Data ◽  
Policy Implications ◽  
Panel Data Models ◽  
Dynamic Panel ◽  
Dynamic Panel Model ◽  
Economic Diversity ◽  
Panel Model ◽  
The Impact

This paper contributes to the debate on the impact of economic diversity and the resource curse on economic growth. We use dynamic panel data models on data on Canadian and US sub-national jurisdictions. We find evidence for a positive relationship between diversity and growth. Based on the Krugman Specialization Index, our analysis shows that the required threshold for not having the resource curse is 0.209. Above this threshold, the marginal contribution of natural resources to economic growth is lower for a more diversified regional economy than a less diversified one. We highlight the policy implications of these findings.

scholarly journals Non-linear response of firm investment to q: Evidence from Greek listed firms

2019 ◽  
Vol 9 (1) ◽  
pp. 53-63 ◽  
Author(s):  
Christos Kallandranis
Keyword(s):  
Stock Exchange ◽  
Adjustment Costs ◽  
Firm Investment ◽  
Dynamic Panel ◽  
Dynamic Panel Model ◽  
Listed Firms ◽  
Panel Model ◽  
Multiple Regimes ◽  
Athens Stock Exchange ◽  
The Relationship

A dynamic-panel model is applied in order to empirically investigate the relationship between business fixed investment and Tobin’s q for the firms listed in the Athens Stock Exchange (ASE). In particular, we search for non-linearities in the underlying relationship between investment and fundamentals, consistent with the presence of multiple regimes. The empirical results support a discontinuity identifying two-regimes: (a) wherein the first (for values of q below a certain threshold) investment is inelastic to q, while in the second it exhibits a positive relationship, and b) a further non-linearity expressed in a concavity of the investment- q relationship implying that for the segment where investment reacts to fundamentals positively, it does so at a decreasing rate evidence which is consistent with the presence of non-convexities in adjustment costs

COVID-19-induced Returns, Attention, Sentiments and Social Isolation: Evidence from Dynamic Panel Model

2021 ◽  
pp. 097215092199617
Author(s):  
Farzan Yahya ◽  
Zhang Shaohua ◽  
Ulfat Abbas ◽  
Muhammad Waqas
Keyword(s):  
Stock Returns ◽  
Social Isolation ◽  
Stock Exchange ◽  
Investor Sentiment ◽  
Good News ◽  
Dynamic Panel ◽  
Investor Attention ◽  
Dynamic Panel Model ◽  
Panel Model ◽  
Investor Sentiments

This article develops a dynamic panel model to examine the association among coronavirus outbreak, investor attention, social isolation, investor sentiments and stock returns in the German Stock exchange. The results of the two-step GMM estimator show a significant effect of coronavirus disease 2019 (COVID-19) cases on the Frankfurt Stock Exchange after controlling for calendar anomalies, meteorological conditions, country-specific factors and oil returns. Results also show that a higher level of stock returns during social isolation (lockdown period) is explained by investor attention to buy underpriced stocks. Thus, temporary social isolation enhances an investor’s ability to make better investment decisions. Investor sentiment indicators (momentum and liquidity) are also positively associated with the stock return and partially mediate the COVID-returns link, but they have no direct effect on investor attention. The stock market attracts investor attention under good news shocks (recovered cases) when investor sentiments are optimistic. Our results are robust across the transparency level of firms and their size.

scholarly journals DETERMINANT OF BANK RUNS IN INDONESIA: BAD LUCK OR FUNDAMENTAL?

2011 ◽  
Vol 14 (1) ◽  
pp. 51-73
Author(s):  
Iskandar Simorangkir
Keyword(s):  
Economic Growth ◽  
Banking Crisis ◽  
Jel Classification ◽  
Bank Runs ◽  
Bank Performance ◽  
Estimation Result ◽  
Dynamic Panel ◽  
Full Sample ◽  
Dynamic Panel Model ◽  
Panel Model

This paper examine the determinant of bank runs in Indonesia that includes economic fundamental,bank performance, and self-fulfilling prophecy factors for all banks either in full sample periods between years 1990 - 2005 or in banking crisis periods between years 1997 - 1998. The bank runs determinant uses dynamic panel model from Arrelano-Bond. Estimation result shows that self-fulfilling prophecy, bank monetary performance which is rentability and fixed credit ratio and macroeconomic condition which is economic growth, inflation and real exchange rate influence bank runs in Indonesia. Bank runs determinant in banking crisis between year 1997 - 1998 also shows a result that is not really different from bank runs determinant during full sample periods between years 1990 - 2005.JEL Classification: C29, C33, G21Key Words: Bank runs, Banking Crisis, Arrelano Bond Dynamic Panel

scholarly journals Determinants of the effective tax burden of companies in the Telecommunications activities in the Republic of Croatia

2021 ◽  
Vol 24 (2) ◽  
pp. 59-76
Author(s):  
Marijana Bubanić ◽  
Hrvoje Šimović
Keyword(s):  
Stock Exchange ◽  
Evaluation Model ◽  
Time Interval ◽  
Tax Burden ◽  
Economic Cycle ◽  
Dynamic Panel ◽  
Dynamic Panel Model ◽  
Panel Model ◽  
Dynamic Panel Analysis ◽  
The Republic

Abstract The aim of this paper is to identify the determinants of the effective tax burden of companies in the activity division Telecommunication in the Republic of Croatia. The research covers the time interval from 2008 to 2017. Dynamic panel analysis was used to conduct the research. Microeconomic data were obtained from the databases of the Financial Agency, and macroeconomic data from the Central Bureau of Statistics. The results indicate that the effective tax burden of companies in the activity division Telecommunication is affected by the effective tax burden from the previous period, company size, leverage, inventory intensity, profitability and economic cycle. While capital and labour intensity didn`t prove statistically significant. The main limitations of the research lie in the impossibility of generalizing the stated results to all companies from the observed activity, using only one evaluation model, and being a cabinet-type research, without confirmation of the results obtained by companies. The research received several scientific contributions: this is the first study of the determinants of the effective tax burden conducted in the Republic of Croatia; the research covers an entire activity whit different companies sizes, and not as in most previous research, which mainly include only large companies listed on the stock exchange; unlike previous studies that used a balanced sample, and in most cases static panel models, this study used an unbalanced sample and a dynamic panel model.

TINDAKAN PERATAAN LABA PADA PERUSAHAAN YANG TERDAFTAR DI BURSA EFEK INDONESIA

2012 ◽  
Vol 8 (2) ◽  
pp. 139
Author(s):  
Astuti Yuli Setyani ◽  
Rikha Liffa
Keyword(s):  
Firm Size ◽  
Financial Risk ◽  
Manufacturing Industry ◽  
Stock Exchange ◽  
Income Smoothing ◽  
Financial Risks ◽  
Public Ownership ◽  
Ownership Type ◽  
Industry Type ◽  
Analysis Technique

This study aimed to examine the effect of public ownership structure, industry type, firm size, profitability and financial risks affecting the income smoothing. Sample used in this study were 107 companies included in the manufacturing industry, financial institutions and real estate, and properties listed on Indonesia Stock Exchange in 2005-2009. The data analysis technique that used is logistic regression. The results obtained from this study showed that the profitability and financial risk affects the income smoothing, while the structure of public ownership, type of industry and firm size has no effect.Keywords: profitability, financial risk, income smoothing

scholarly journals Insurance Development and Economic Growth

2019 ◽  
Vol 1 (2) ◽  
Author(s):  
HuiShan Lee
Keyword(s):  
Economic Growth ◽  
Gdp Per Capita ◽  
Dynamic Panel ◽  
Income Levels ◽  
Dynamic Panel Model ◽  
Insurance Sector ◽  
Panel Model ◽  
Per Capita ◽  
The Relationship ◽  
Insurance Development

This study aims to investigate the effect of continent and initial GDP per capita level of a country on the relationship between insurance activities and economic growth. This study considers panel data consists of 123 countries from 1967 to 2014. Both static panel model and dynamic panel model are used to evaluate the effect of both continent and initial GDP per capita level of a country to the economic growth. The findings show significant causal relationship between insurance development and economic growth. However, the relationship is varied in different countries due to different initial income levels and locations. The effect of insurance development on economic growth of a country is indirect because it depends on the performance of the investment of insurers. Therefore, policymakers should consider their own country’s special characteristics when formulating a policy. Policymakers should clearly understand the nature of their insurance sector such as interconnectedness between financial sector and insurance sector, whether to promote insurance sector to grow their economy. By understanding the effect of continent and the initial GDP per capita level, policymakers could formulate and implement more effective policies on their country’s insurance sector to ensure the prosperity of the country’s economic growth.

scholarly journals Corporate Ownership and Firm Value: A Gmm-Based Dynamic Panel Data Approach

2020 ◽  
Author(s):  
KRISHNA DAYAL PANDEY ◽  
TARAK NATH SAHU
Keyword(s):  
Panel Data ◽  
Firm Value ◽  
Stock Exchange ◽  
Joint Effect ◽  
Dynamic Panel Data ◽  
Ownership Concentration ◽  
Corporate Ownership ◽  
Minority Shareholders ◽  
Dynamic Panel ◽  
Dynamic Panel Model

Abstract To establish the relationship between corporate ownership and firm value, static as well as Arellano-Bond dynamic panel model based on Generalised Method of Moments (GMM) are applied on a set of panel data consisting 112 Indian manufacturing firms listed in BSE 200 Index of Bombay Stock Exchange for the period of 2011-18. A significant and positive effect of domestic promoters, foreign promoters and institutional ownership on Tobin’s Q is established. Regarding ownership concentration, a U-shaped relationship between ownership of large shareholders and ownership of largest shareholder and firm value is evidenced. At lower level of concentration, the effect on firm value is found to be negative indicating joint effect of ‘expropriation of minority shareholders’ and ‘misaligned interests’ of majority owners with the firm. For ownership concentration by large owners and the largest one owner, the effect on firm value is found to be positive after a threshold of 70 and 52 percent respectively. This signifies improved alignment of interests and efficient monitoring of managerial opportunistic behaviour and dismantling of owners-managers agency problem at higher level of concentration. Stricter external regulatory mechanism is suggested as a complimentary force to internal governance to ensure protection of minority shareholders’ interest and improved firm valuation.

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