scispace - formally typeset
Search or ask a question

Showing papers on "Negative relationship published in 2015"


Journal ArticleDOI
TL;DR: In this paper, a strong negative relationship between firm-level capital investment and the aggregate level of uncertainty associated with future policy and regulatory outcomes is found, and the relation between policy uncertainty and capital investment is not uniform in the cross section, being significantly stronger for firms with a higher degree of investment irreversibility and for firms more dependent on government spending.
Abstract: Using the policy uncertainty index of Baker, Bloom, and Davis (2013), we document a strong negative relationship between firm-level capital investment and the aggregate level of uncertainty associated with future policy and regulatory outcomes. More importantly, we find evidence that the relation between policy uncertainty and capital investment is not uniform in the cross section, being significantly stronger for firms with a higher degree of investment irreversibility and for firms which are more dependent on government spending. Our results lend empirical support to the notion that policy uncertainty can depress corporate investment by inducing precautionary delays due to investment irreversibility.

1,164 citations


Journal ArticleDOI
TL;DR: In this article, a news-based index of policy uncertainty was used to find a negative relationship between firm-level capital investment and the aggregate level of uncertainty associated with future policy and regulatory outcomes.
Abstract: Using a news-based index of policy uncertainty, we document a strong negative relationship between firm-level capital investment and the aggregate level of uncertainty associated with future policy and regulatory outcomes. More importantly, we find evidence that the relation between policy uncertainty and capital investment is not uniform in the cross-section, being significantly stronger for firms with a higher degree of investment irreversibility and for firms that are more dependent on government spending. Our results lend empirical support to the notion that policy uncertainty can depress corporate investment by inducing precautionary delays due to investment irreversibility.

721 citations


Journal ArticleDOI
TL;DR: In this article, the authors investigate the long-run relationship between public debt and growth in a large panel of countries, and find some support for a negative relationship and no evidence for a similar, let alone common, debt threshold within countries.

394 citations


Posted Content
TL;DR: In this article, the authors examine the negative relationship between the rate of growth of the financial sector and the growth of total factor productivity and show that financial growth disproportionately harms financially dependent and R&D-intensive industries.
Abstract: In this paper we examine the negative relationship between the rate of growth of the financial sector and the rate of growth of total factor productivity. We begin by showing that by disproportionately benefiting high collateral/low productivity projects, an exogenous increase in finance reduces total factor productivity growth. Then, in a model with skilled workers and endogenous financial sector growth, we establish the possibility of multiple equilibria. In the equilibrium where skilled labour works in finance, the financial sector grows more quickly at the expense of the real economy. We go on to show that consistent with this theory, financial growth disproportionately harms financially dependent and R&D-intensive industries.

240 citations


Journal ArticleDOI
TL;DR: Li et al. as discussed by the authors investigated whether philanthropic giving decisions and amount of charitable giving are related to firms' political connections and ownership type, and found that a significant and positive relationship between political connections, state ownership and the likelihood and extent of firm contributions was found in Chinese firms listed on either the Shenzhen or Shanghai stock exchange between 2004 and 2011.
Abstract: This paper investigates whether philanthropic giving decisions and amount of charitable giving are related to firms’ political connections and ownership type. To this end, Chinese firms listed on either the Shenzhen or Shanghai stock exchange between 2004 and 2011 are examined, where government interference in the business sector is prevalent, state ownership structure is dominant, and corporate political connections prevail. Our analyses show (1) a significant and positive relationship between political connections and the likelihood and extent of firm contributions; (2) a significant and negative relationship between state ownership and extent of firm contributions; and (3) a stronger relationship between political connections and corporate philanthropy in non-state-owned firms. These findings with regard to the relationship between corporate giving, political connections, and ownership type have important implications for understanding corporate giving behavior in China and in emerging markets in general.

225 citations


Journal ArticleDOI
TL;DR: In this article, it is argued that the relationship between family ownership and R&D intensity is likely to be contingent on the way the family has invested its wealth, and that if the overlap between the family's total wealth and single firm equity is low (i.e., the family wealth is just a small part of the total family wealth), then family ownership is positive as the low overlap between family wealth and firm equity reduces the families' loss aversion propensity.

146 citations


Journal ArticleDOI
TL;DR: In this paper, the authors analyzed drivers of foreign direct investments (FDI) to West Africa using a panel dataset from 1970 to 2010 and found that the quadratic element of real per capita GDP, domestic investment, trade openness, first year lag of FDI, natural resources (oil and metals) endowment and exports, and monetary integration have positive and significant effect on FDI inflows to West African countries.
Abstract: This paper analyzed drivers of foreign direct investments (FDI) to West Africa using a panel dataset from 1970 to 2010. OLS and GMM techniques are used for the estimations. The main results indicate that there is a U-shaped relationship between economic development and FDI inflows to West Africa. In summary: (i) The quadratic element of real per capita GDP, domestic investment, trade openness, first year lag of FDI, natural resources (oil and metals) endowment and exports, and monetary integration have positive and significant effect on FDI inflows to West Africa; and (ii) there is a negative relationship between FDI inflows to the sub-region and loan component of ODA, economic growth, level of economic development (real GDP per capita), life expectancy, and domestic credit to the private sector.

102 citations


Journal ArticleDOI
TL;DR: Zhang et al. as mentioned in this paper investigated the impact of land-based urbanization on the provision of urban public green spaces, an integrated part of urban infrastructure, using panel data across 285 Chinese prefecture cities from 2002 to 2009.

94 citations


Report SeriesDOI
TL;DR: This paper explored the relationship between skill mismatch and public policies using micro data for 22 OECD countries from the recent OECD Survey of Adult Skills (PIAAC) and found that differences in skill mismatch across countries are related to differences in public policies.
Abstract: This paper explores the relationship between skill mismatch and public policies using micro data for 22 OECD countries from the recent OECD Survey of Adult Skills (PIAAC). Results suggest that differences in skill mismatch across countries are related to differences in public policies. After controlling for individual and job characteristics, well-designed product and labour markets and bankruptcy laws that do not overly penalise business failure are associated with lower skill mismatch. Given the negative relationship between skill mismatch and labour productivity, reducing skill mismatch emerges as a new channel through which well-designed framework policies can boost labour productivity. Skill mismatch is also lower in countries with housing policies that do not impede residential mobility (e.g. transaction costs on buying property and stringent planning regulations). Greater flexibility in wage negotiations and higher participation in lifelong learning as well higher managerial quality are also associated with a better matching of skills to jobs.

91 citations


Journal ArticleDOI
TL;DR: In this article, the authors examined the impact of clean energy on economic growth in Nigeria and concluded that Nigeria has potential of clean energies to be reaped in near future, and further revealed a significant positive relationship between combustible renewables and waste and economic growth.

79 citations


Journal ArticleDOI
TL;DR: In this paper, the authors examined how firm age can affect a firm's perception of obstacles that hamper and delay innovation, and found that firms of different ages are more sensitive to the lack of qualified personnel when initiating an innovative project than when they are already engaged in such activities.
Abstract: This paper examines how firm age can affect a firm's perception of the obstacles (deterring vs. revealed) that hamper and delay innovation. Using a comprehensive panel of Spanish firms for the period 2004-2011, the empirical analysis conducted shows that distinct types of obstacle are perceived differently by firms of different ages. First, a clear-cut negative relationship is identified between firm age and a firm's assessment of both the internal and external shortages of financial resources. Second, young firms seem to be less sensitive to the lack of qualified personnel when initiating an innovative project than when they are already engaged in such activities. By contrast, the attempts of mature firms to engage in innovation activity are significantly affected by the lack of qualified personnel. Finally, mature incumbents appear to attach greater importance to obstacles related to market structure and demand than is the case of firms with less experience.

Journal ArticleDOI
TL;DR: This paper found that societies with long histories of agriculture have less equality in gender roles as a consequence of more patriarchal values and beliefs regarding the proper role of women in society than those without such long histories.
Abstract: This research proposes the hypothesis that societies with long histories of agriculture have less equality in gender roles as a consequence of more patriarchal values and beliefs regarding the proper role of women in society. We test this hypothesis in a world sample of countries, in a sample of European regions, as well as among immigrants and children of immigrants living in the US. This evidence reveals a significant negative relationship between years of agriculture and female labor force participation rates, as well as other measures of equality in contemporary gender roles. This finding is robust to the inclusion of an extensive set of possible confounders, including historical plough-use and the length of the growing season. We argue that two mechanisms can explain the result: (1) societies with longer agricultural histories had a higher level of technological advancement which in the Malthusian Epoch translated into higher fertility and a diminished role for women outside the home; (2) the transition to cereal agriculture led to a division of labor in which women spend more time on processing cereals rather than working in the field.

Journal ArticleDOI
TL;DR: In this paper, the authors analyzed the role of national culture on the CSR and firm performance (CSR-FP) relationship and found that countries with a high assertiveness and gender egalitarianism show a very negative relationship, whereas those with a higher future orientation, institutional collectivism, and a humane orientation reveal a positive correlation.
Abstract: Based on the strong influence that national culture has on corporate social and responsibility (CSR) actions (institutional theory), it is necessary to study how the financial outcomes of CSR actions could be affected by these cultural characteristics. This fact is particularly interesting for managers whose companies operate in different cultures given that they have to deal with this aspect. The aim of this paper is to analyze the moderator role that national culture could have on the CSR and firm performance (CSR-FP) relationship through a meta-analysis, hence helping to clarify the debate existing about this relationship in the literature. The results show that this relationship is greatly affected by national culture. In this sense, countries with a high assertiveness and gender egalitarianism show a very negative relationship. Nevertheless, those with a higher future orientation, institutional collectivism, and a humane orientation reveal a positive correlation which reaches its maximum value in those countries with a high uncertainty avoidance. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment

Posted Content
TL;DR: In this paper, the authors examined the role of the business cycle in divorce and found that a one percentage point increase in the unemployment rate involves almost 0.025 fewer divorces per thousand inhabitants in 29 European countries covering the period from 1991 to 2012.
Abstract: In this paper, we examine the role of the business cycle in divorce. To do so, we use a panel of 29 European countries covering the period from 1991 to 2012. We find the unemployment rate negatively affects the divorce rate, pointing to a pro-cyclical evolution of the divorce rate, even after controlling for socio-economic variables and unobservable characteristics that can vary by country, and/or over time. Results indicate that a one-percentage-point increase in the unemployment rate involves almost 0.025 fewer divorces per thousand inhabitants. The impact is small, representing around 1.2% of the average divorce rate in Europe during the period considered. Supplementary analysis, developed to explore a possible non-linear pattern, confirms a negative relationship between unemployment and divorce in European countries, with the inverse relationship being more pronounced in those countries with higher divorce rates.

Journal ArticleDOI
TL;DR: The authors conducted a cross-national multilevel logistic regression analysis using Eurostat and European Social Survey data of 2008 to investigate the effects of social spending on poverty in urban and non-urban areas.
Abstract: Research has shown that there is a strong negative relationship between social spending and poverty levels. Among urban inequality researchers it is often assumed that, compared with the USA, the welfare state has mitigated social differences explaining lower levels of urban inequality in most European countries. However, research on the role of the welfare state is often conducted on the national level, and is thus unable to draw conclusions on the effects of social spending and redistribution on a lower level, failing to take the within-country variation into account. This study connects welfare state research to urban inequality research by investigating the effects of social spending on poverty in urban and non-urban areas. We have conducted a cross-national multilevel logistic regression analysis using Eurostat and European Social Survey data of 2008. Our findings suggest that the effects of social spending are unequally distributed within countries.

Journal ArticleDOI
TL;DR: In this article, the main driving forces affecting short and long run carbon emissions pattern due to changes in growth, inequality and poverty triangle in Pakistan over the period 1980-2011 by using multivariate cointegration approach.

Journal ArticleDOI
TL;DR: In this article, the authors meta-analyze the relationship between gender diversity and two performance outcomes, namely task performance and contextual performance, and find a significant negative relationship (−− ǫ 0.10) between the two outcomes.
Abstract: The impact of gender diversity on team performance has become a central topic in the field of human resource management for researchers and practitioners alike. Extant research provides conflicting evidence on the relationship between gender diversity and team performance. To resolve these contradictory findings, we meta-analyze the relationship between gender diversity and two performance outcomes, namely task performance and contextual performance. Grounded in categorization-elaboration model, we simultaneously consider the positive and negative aspects of gender diversity. We further examine the effect of cultural context as a moderator on the relationship between gender diversity and team performance. Based on 71 independent samples from 68 studies published between 1996 and 2013, we find a significant negative relationship ( − 0.10) between gender diversity and contextual performance. Additionally, we find that the cultural dimensions gender egalitarianism and collectivism have significant moderating...

Journal Article
TL;DR: In this article, the authors employed error correction model and Johasen cointegration test to determine both the short run and long run relationships among the variables employed in the study.
Abstract: The rate of unemployment has risen in the last decade in most of the sub-Saharan African countries. The situation in Nigeria is rapid population growth with low level of employment rate. The theoretical proposition of the Okun’s law is that a negative relationship exists between unemployment rate and economic growth. This study intends to test the validity of Okun’s law in Nigeria. In order to examine the relationship between unemployment rate and economic growth, Error Correction Model (ECM) and Johasen cointegration test were employed to determine both the short run and long run relationships among the variables employed in the study. Empirical findings show that there is both the short and the long run relationship between unemployment rate and output growth in Nigeria. Hence, there is need to incorporate fiscal measures and increase the attraction of foreign direct investment (FDI) to reduce the high rate of unemployment in the country. Keywords : Unemployment, economic growth, Okun’s law, cointegration, error correction model. JEL Classification: B22, E24, F43, J64

Journal ArticleDOI
TL;DR: This paper derived a global measure of wealth inequality from Forbes magazine's listing of billionaires and compared its effect on growth to the effects of income inequality and poverty, finding that wealth inequality has a negative relationship with economic growth, but when controlling for the fact that some billionaires acquired wealth through political connections, the relationship between politically connected wealth inequality and economic growth is negative.

Journal ArticleDOI
TL;DR: The GMM results show that population density has a negative relationship with the all four financial indicators; however, in case of M2, this relationship is insignificant to explain their result, while the remaining relationship is less elastic with the three financial indicators in a country.
Abstract: Environmental quality indicators are crucial for re- sponsive and cost-effective policies. The objective of the study is to examine the relationship between environmental quality indicators and financial development in Malaysia. For this purpose, the number of environmental quality indicators has been used, i.e., air pollution measured by carbon dioxide emis- sions, population density per square kilometer of land area, agricultural production measured by cereal production and live- stock production, and energy resources considered by energy use and fossil fuel energy consumption, which placed an impact on the financial development of the country. The study used four main financial indicators, i.e., broad money supply (M2), domestic credit provided by the financial sector (DCFS), do- mestic credit to the private sector (DCPC), and inflation (CPI), which each financial indicator separately estimated with the environmental quality indicators, over a period of 1975-2013. The study used the generalized method of moments (GMM) technique to minimize the simultaneity from the model. The results show that carbon dioxide emissions exert the positive correlation with the M2, DCFC, and DCPC, while there is a negative correlation with the CPI. However, these results have been evaporated from the GMM estimates, where carbon emis- sions have no significant relationship with any of the four financial indicators in Malaysia. The GMM results show that population density has a negative relationship with the all four financial indicators; however, in case of M2, this relationship is insignificant to explain their result. Cereal production has a positive relationship with the DCPC, while there is a negative relationship with the CPI. Livestock production exerts the pos- itive relationship with the all four financial indicators; however, this relationship with the CPI has a more elastic relationship, while the remaining relationship is less elastic with the three financial indicators in a country. Energy resources comprise energy use and fossil fuel energy consumption, both have distinct results with the financial indicators, as energy demand have a positive and significant relationship with the DCFC, DCPC, and CPI, while fossil fuel energy consumption have a negative relationship with these three financial indicators. The results of the study are of value to both environmentalists and policy makers.

Journal ArticleDOI
TL;DR: In this paper, the authors developed theory to explain how the quality of a nation's legal system and the level of political hazards affect venture capital (VC) investment strategies in developing countries and found a negative relationship between investment size and the political hazards risk and that larger investments are associated with ventures operating in lower quality legal systems.

Journal ArticleDOI
TL;DR: In this article, the authors investigate the determinants of innovation performance in firms and investigate the relationship between several constructs that are innovation strategy, formal structure, customer and supplier relationships, innovation culture, and technological capabilities and innovation performance.

Journal ArticleDOI
TL;DR: In this article, the authors investigated the determinants of profitability for industrial firms in Oman and found a positive and statistical significant relationship between profitability, the firm size, growth, fixed assets and working capital.
Abstract: This study investigates the determinants of profitability for industrial firms in Oman. Therefore, a sample of 17 industrial companies listed on Muscat securities market covering the period from 2006 till 2013 is utilized. Results from the panel ordinary least squares model reveal a positive and statistical significant relationship between profitability, the firm size, growth, fixed assets and working capital. On the other hand, the average tax rate and the financial leverage variables show a negative relationship with profitability. However, this relationship is significant only for the financial leverage variable. The study concludes that large growing firms with efficiently managed assets improve revenue and ultimately enhance profitability.

Journal ArticleDOI
TL;DR: The results support a negative relationship between managerial ownership and dividends when managerial ownership is at relatively low levels, but this negative relationship turns into a positive one at very high levels of managerial ownership.

Journal ArticleDOI
TL;DR: In this paper, the authors explored the relationship between several types of diversity in board composition (gender diversity, age diversity, and proportion of employee directors) and the probability and intensity of environmental benefits of innovation.
Abstract: This article aims at providing a better understanding of the link between board diversity and environmental innovation In this perspective, we explore the relationship between several types of diversity in board composition (gender diversity, age diversity, and proportion of employee directors) and the probability and intensity of environmental benefits of innovation, from a sample of 142 French innovative firms based on data from French Community Innovation Survey (CIS) in 2008 Data from board composition have been drawn from annual reports Our results show significant evidence of a positive relationship between environmental innovation and gender diversity as well as a positive relationship between environmental innovation and age diversity, and a negative relationship with the proportion of employee directors These findings provide discussions for the impact of diversity in board composition on environmental benefits of innovation

Journal ArticleDOI
TL;DR: In this article, the authors investigated the negative Islamic effect on the cross-sectional expected returns of Saudi common stocks and found that there is a negative relationship between Saudi Islamic firms and average stock returns.
Abstract: This paper investigates the Islamic-effect in a cross-sectional stock return framework, and we believe this is the first paper that investigates the Islamic-effect in such a context. We test for the existence of an Islamic-effect by looking at differences in stock returns between Islamic and conventional firms in Saudi Arabia from January 2003 to April 2011. Results indicate that there is a negative relationship between Saudi Islamic firms and average stock returns. We refer to this negative relationship as the “negative Islamic-effect.” We extend our results by using a time-series regression approach to show that the negative Islamic effect is, in fact, a common, systematic, and undiversifiable risk factor that affects the cross-sectional expected returns of Saudi common stocks. The results indicate that the Islamic risk factor (CMI) captures strong common variation in Saudi stock returns, regardless of other risk factors that are included in the model. Our findings suggest that using a four-factor model that controls for the market, size, book-to-market, and Islamic effects is more appropriate than using a single or three-factor model in Islamic finance applications, and this result has important implications for the growing Islamic finance industry around the world.

Journal ArticleDOI
TL;DR: In this article, the authors make use of secondary statistics on tourism and wind turbine locations at the level of German municipalities to confirm a negative relation between wind turbines around municipalities and tourism demand for municipalities not located near the coast.

Journal ArticleDOI
TL;DR: In this paper, the authors investigate the impact of perceived external prestige on turnover intentions among retail employees in India and explore the mediating effect of affective commitment on the relationship between external prestige and turnover intentions.
Abstract: Purpose – The purpose of this paper is to investigate the impact of perceived external prestige on turnover intentions among retail employees in India. Moreover, this study aims to explore the mediating effect of affective commitment on the relationship between perceived external prestige and turnover intentions. Design/methodology/approach – This study is quantitative in nature. The data for the present study were collected from 186 employees working in various retail stores. Existing, established scales were used to measure the research constructs. Findings – The results of the study indicate a negative relationship between perceived external prestige and turnover intentions. A negative relationship was observed between affective commitment and turnover intentions. Moreover, affective commitment was observed to partially mediate the relationship between perceived external prestige and turnover intentions. Practical implications – This study provides valuable insights into understanding the significance ...

Journal ArticleDOI
TL;DR: In this article, the authors investigate the long-run relationship between pollution, institutions, and economic growth, considering as variables carbon dioxide emissions, rule of law, and income, and find that higher income implies stronger rule-of-law and vice versa.
Abstract: The links between pollution, institutions, and economic growth may be not so univocal as argued in the literature, as these factors may influence each other since some reverse causality may exist between them. The understanding of this relationship is important for identifying appropriate policies for sustainable development. We investigate the long-run relationship between pollution, institutions, and economic growth, considering as variables carbon dioxide emissions, rule of law, and income. The model offers an analysis of causality direction using a panel-VAR approach for the period 1996–2010 for 33 high-income countries that include advanced, emerging, and former-transition economies. The results demonstrate a positive reverse causality relationship between the rule of law and income, indicating that higher income implies stronger rule of law and vice versa. The rule of law is found to have a negative relationship with pollution, confirming that the enforcement of rules is “a conditio sine qua non” to control emissions. No causality relationship is found for pollution and income that can be due to the different stages of economic development of emerging, former-transition, and developed economies, implying heterogeneity in their environmental protection policies. We argue that the rule of law matters both for economic growth and environment, working as a go-between and creating a win–win situation, where stronger institutions increase the levels of income and vice versa. In order to enhance sustainable development, a policy maker should allocate additional resources for both monitoring the application of the rule of law and its enforcement.

Journal ArticleDOI
TL;DR: In this paper, the authors examined multiple factors such as education, unemployment, poverty and economic growth which contributed to the rate of crimes in Pakistan during the period of 1972-2011 and found a positive relationship between crime rates and unemployment rate in Pakistan.