Showing papers on "Negative relationship published in 2021"

Environmental, Social and Governance (ESG) Scores and Financial Performance of Multilatinas: Moderating Effects of Geographic International Diversification and Financial Slack

Abstract: This paper examines whether a firm’s financial performance (FP) is associated with superior environmental, social and governance (ESG) scores in emerging markets of multinationals in Latin America. The study addresses the current research gap on this issue; it develops hypotheses and tests them by applying linear regressions with a data panel drawn from the Thomson Reuters Eikon™ database to analyse data on 104 multinationals from Brazil, Chile, Colombia, Mexico and Peru between 2011 and 2015. The results suggest that the relationship between the ESG score and FP is significantly statistically negative. Furthermore, in examining environmental, social and governance separately to accurately determine each variable’s relationship to multilatinas’ FP, the results reveal a negative relationship. Finally, the empirical analysis provides evidence for a moderating effect of financial slack and geographic international diversification on the relationship between ESG dimensions and firms’ FP. This study furthers understanding of the relationship between ESG dimensions and FP for the Latin American business context.

Age Differences in Stress, Life Changes, and Social Ties During the COVID-19 Pandemic: Implications for Psychological Well-Being.

Abstract: Background and objectives Experiences of the coronavirus disease 2019 (COVID-19) pandemic and its implications for psychological well-being may vary widely across the adult life span. The present study examined age differences in pandemic-related stress and social ties, and links with psychological well-being. Research design and methods Participants included 645 adults (43% women) aged 18-97 (M = 50.8; SD = 17.7) from the May 2020 nationally representative Survey of Consumers. Participants reported the extent to which they felt stress related to the pandemic in the last month, the extent to which their lives had changed due to the pandemic, as well as social isolation, negative relationship quality, positive relationship quality, and frequency of depression, anxiety, and rumination in the past week. Results Results showed that older people reported less pandemic-related stress, less life change, less social isolation, and lower negative relationship quality than younger people. Greater pandemic-related stress, life change, social isolation, and negative relationship quality were associated with poorer psychological well-being. Poorer social ties (i.e., greater social isolation and negative quality) exacerbated the effects of the COVID-19 pandemic (stress, life change) on psychological well-being. Discussion and implications Researchers have indicated that older adults may be more vulnerable to COVID-19 pandemic-related stress and social isolation, but this study indicates that young adults may be relatively more vulnerable. Because isolation and negative relationship quality appear to exacerbate the deleterious effects of the COVID-19 pandemic on psychological well-being, reducing social isolation and negative relations are potential targets for intervention.

Economic policy uncertainty exposure and corporate innovation investment: Evidence from China

Abstract: This study investigates the impact of firms' heterogeneous exposure to economic policy uncertainty (EPU exposure) on corporate innovation investment. The results show that, first, a significant negative relationship exists between EPU exposure and corporate innovation investment, and this result continues to hold after controlling for endogeneity and conducting a series of robustness tests. Second, operational risk and financial distress are the main channels through which EPU exposure affects innovation investment. Third, firm-specific factors, such as government ownership, government subsidies, profitability, R&D personnel level, and sufficiency of net working capital, shape the relationship between EPU exposure and innovation investment. This study contributes new evidence on the impact of EPU exposure on firm behavior in China, where ongoing economic and financial reforms introduce sources of significant uncertainty.

The role of information and communication technologies in mitigating carbon emissions: evidence from panel quantile regression

Abstract: The objective of the study is to analyze the dynamic linkages between technology factors and carbon emission in a panel of 26 selected European countries from 2000 to 2017. The results of the panel fixed-effect regression model show the monotonic increasing function between agriculture technology and carbon emissions. In contrast, panel quantile regression confirmed the inverted U-shaped ‘Agriculture Technology Kuznets curve (ATKC)’ of carbon emissions at 30th quantile distribution to 80th quantile distribution with the turning points of 12,60,000 tractors to 9,68,000 tractors, respectively. The results further exhibit the negative relationship between high-technology exports and carbon emissions, as high-technology exports have a positive impact on environmental quality in order to reduce carbon emissions across countries. The relationship between ICT goods exports and carbon emissions is complimentary, while R&D expenditures have a negative relationship with carbon emissions in a given period. The study substantiates the ‘pollution haven hypothesis (PHH)’ that is controlled by trade liberalization policies. The telephone and mobile penetrations have a differential impact on carbon emissions in both of the prescribed statistical techniques, which needs fair economic policies in order to delimit carbon emissions through green ICT infrastructure. The results further exhibit the ‘material footprint’ that is visible at the earlier stages of economic development while it is substantially decreasing at the later stages to verify ‘environmental Kuznets curve (EKC)’ hypothesis with a turning point of US$45,700. Finally, the study shows the positive relationship between industry value-added and carbon emissions that sabotaged the process of green development across countries. The study concludes that green ICT infrastructure is imperative for sustainable production and consumption, and climate change protection with cleaner production techniques and environmental regulations that reshape the international policies towards sustained growth.

Linking Innovative Human Capital, Economic Growth, and CO2 Emissions: An Empirical Study Based on Chinese Provincial Panel Data.

Abstract: To study the economic and environmental effects of human capital, previous studies measure human capital based on education; however, this approach has many shortcomings because not all educated people are innovative human capital. Hence, this study introduces the concept of innovative human capital by developing a new index that measures human capital based on the number of patents every one million R&D staff full-time equivalent. After this, this paper studies the impact of innovative human capital on CO2 emissions in China. The provincial panel data of 30 Chinese provinces from 2003 to 2017 is analyzed using the fixed effect, ordinary least squares, and the system generalized method of moments (SYS-GMM). The analysis revealed that innovative human capital alleviates environmental deterioration in China. The findings unfold the existence of the environmental Kuznets curve (EKC) considering innovative human capital in the model. It implies that Chinese economic development will eventually support environmental sustainability if China continues to develop its innovative human capital. Among the control variables, economic structure, population density, and energy intensity stimulate environmental degradation by increasing CO2 emissions. However, FDI has a negative relationship with CO2 emissions. Lastly, the study proposes comprehensive policies to increase innovative human capital for environmental sustainability.

Factors explaining the fear of being infected with COVID-19.

Abstract: BACKGROUND: The prevalence of COVID-19 has a social and economic impact on people, leaving them distressed and fearful of getting infected. OBJECTIVE: To determine the variables attributable to the fear of contracting COVID-19. DESIGN: This is a quantitative study based on an online cross-sectional self-administered survey in Chile between 10 July 2020 and 10 August 2020. SETTING AND PARTICIPANTS: A sample of 531, comprising over 18-year-old participants from middle- and high-income levels, was selected. OUTCOME MEASURES: Estimations were obtained using a probit regression model with marginal effects. RESULTS: Fear prevailed mainly in women. It has a positive relationship with variables such as chronic illnesses, infectious family or relatives, reduction in economic activity and perception of bad government response to a pandemic. Fear has a negative relationship with knowledge about COVID-19, education level and ageing. Moreover, those who consider socioeconomic impact less important than health care do not fear a COVID-19 infection. DISCUSSIONAND CONCLUSION: The socioeconomic and health aspects help predict fears. Thus, the government should prioritize these variables in implementing policies. The government's credibility and communication systems can also reduce fears of contracting COVID-19. PATIENT OR PUBLIC CONTRIBUTION: A pilot focus group of COVID-19-recuperated individuals and some members of our interest groups were consulted in the design stage of the study; this helped in constructing the survey questions. Additionally, three independent individuals volunteered to read and comment on the draft manuscript.

The potential impact of the COVID-19 pandemic on work from home and employee productivity

Abstract: Purpose: This study aims to test the relationship between work from home (WFH) and employee productivity during the COVID-19 pandemic. This study also examines the moderating role of gender in the relationship between WFH and employee productivity. Design/methodology/approach: A sample of 250 respondents from hospitality, banking and information technology was taken from the National Capital Region and Punjab State of India. The hypotheses were tested using structural equation modeling and multi-group moderation analysis. Findings: The findings provide support for the negative relationship between WFH and employee productivity. This study also provides empirical evidence that gender moderates the relationship between WFH and employee productivity. Originality/value: This study is the first of its kind to test the relationship between WFH and employee productivity during the COVID-19 pandemic. This study contributes to the organizational behavior literature by providing empirical support to the organizational adaptation theory. © 2021, Emerald Publishing Limited.

The effect of institutional investors’ distraction on firms’ corporate social responsibility engagement: evidence from China

Abstract: To investigate the impact of institutional investors on firms’ corporate social responsibility (CSR) engagement while controlling for possible endogeneity concerns, we study how Chinese listed firms adjust their CSR decisions when their institutional investors are distracted by exogenous attention-grabbing events and thus are inattentive. With a sample of Chinese listed firms from 2009 to 2017, we find a significant and robust negative relationship between institutional investor inattention and firms’ CSR engagement. This negative relationship is more pronounced for firms with more principal–agent problems and/or weaker corporate governances and is more attributable to the inattention of institutional investors with more monitoring incentives. These findings suggest that managers are less motivated to engage in CSR when they are less monitored by institutional investors, indicating that CSR is beneficial to shareholders of Chinese listed firms. Our findings also indicate that the positive impact of institutional investors on CSR may be constrained by their limited attention.

Trade facilitation and environmental quality: empirical evidence from some selected African countries

Abstract: The growing trend of economic integration and globalization has made the need to harmonize cross-border trade and their associated procedures among trading countries, inevitable. Nonetheless, there is an emerging debate about the environmental consequences of engaging in trade interactions among the policymakers, trade pundits and researchers alike. To this end, this study examines whether Africa’s inefficient trade facilitation procedures hold plausible explanations for her coincidental low incidence of carbon emissions. The empirical evidence is based on both Pooled Ordinary Least Squares (POLS) and Two-Step System Generalized Method of Moments (Sys-GMM) on six components of trade facilitation (costs, documents and time required to import and export) vis-a-vis the environmental measures including carbon emissions (CO2), and nitrous oxides (N2O) on a panel of 48 African countries over the period spanning, 2005–2014. While the choice of the former estimator is chiefly influenced by the need to have a baseline model on the one hand, the choice of the latter is motivated by the need to account for econometric concerns including endogeneity, reverse causality and simultaneity bias, respectively, on the other hand. The main finding from the study reveals a significant negative relationship between trade facilitation and environmental pollution captured. On the policy perspective, determining the threshold levels of trade procedural measures is necessary for achieving effective regulation of inflow of carbon–embodied goods and services into an already environmentally lax continent.

Influence of tourism, governance, and foreign direct investment on energy consumption and CO2 emissions: a panel analysis of Muslim countries

Abstract: The empirical linkages from tourism, governance, and FDI have been quantified on CO2 emission and energy use over 2002-2014 for a panel of 13 Muslim countries. To this end, we have examined the data for cross-sectional dependence (CD) and panel heterogeneity and employed panel algorithms, which account for both CD and panel heterogeneity. The results from Pedroni, Westerlund, and Kao tests supported the existence of a cointegration association between the chosen variables. In the CO2 model, we observed that tourism positively, and governance negatively, influences the CO2 emission. However, in the case of the energy model, the results of tourism pose a negative relationship, and governance indicates a positive relationship with energy use. The results supported the pollution haven phenomenon, finance, and energy triggered pollution in the study area. Further, the research supported a two-way causality between tourism and CO2, where there is a unilateral causality from governance to CO2. Similarly, a unidirectional causality was obtained from energy towards tourism. Lastly, the key policy recommendations based on the outcomes of the study are encouraging clean energy investment, enhancing good governance, and sustainable tourism development for improving environmental quality.

Investigating the relationship between working capital management and business performance: evidence from the 2008 financial crisis of EU-28

Abstract: This study examines the relationship between working capital management and business performance.,The relationship between the working capital management and business performance is examined using panel data analysis for a sample of EU-28 listed firms for the period from 2003 to 2012. To examine this relationship, an ordinary least squares (OLS) regression model is used to analyze the data obtained from the sample. The dependent variable consists of three measurements, namely return on asset (ROA), return on equity (ROE) and earnings before interest and taxes margin (EBITM), which are used as proxies for accounting-based measures of performance.,The authors examined the aforementioned relationship during the 2008 financial crisis. The OLS regression analysis suggests that there is a negative relationship between gross working capital and business performance for code law countries. The results also show that liquidity measures estimated by current ratio have a statistically significant impact on business performance indicated by ROA for all EU countries. The 2008 financial crisis had a significantly negative impact on ROA. Additionally, the findings regarding financial inclusion show a negative relationship between gross working capital and business performance among EU and other performer countries.,Overall, the empirical findings are consistent with Afrifa's (2016), who suggests that cash flow should increase investment in working capital to improve performance indicated by EBITM for old EU members.,While many empirical studies investigate the relationship between working capital and firm profitability, most do not consider the impact of the 2008 financial crisis apart from Tsurate (2019). The authors examine whether legal origins are important determinants of working capital management policies and business performance. Thus, empirically, the code law countries have a negative relationship between gross working capital, business performance and EBITM.

The role of work–life balance and autonomy in the relationship between commuting, employee commitment and well-being

Abstract: Commuting can be tiring and stressful. An unavoidable part of life for many people, it is almost always associated with negative outcomes. This study examined the implications of commuting time for the commitment and well-being of employees. This paper uses ‘conservation of resources’ theory and job demands–resources approaches to argue that employees with long commutes will be less committed and experience lower well-being. These effects are also expected to be mediated by the work–life balance of the employees and interact with the level of autonomy they perceive themselves to have. Data from the fifth European Working Conditions Survey indicate that there is a negative relationship between commuting time, commitment and well-being. Results also suggest that work–life balance mediates part of these relationships and, finally, that autonomy can act as a buffer against the effects of commuting time on both commitment and well-being.

Productivity and Firm Exit during the COVID-19 Crisis

Abstract: This paper examines whether the economic crisis induced by the COVID-19 pandemic exhibits a Schumpeterian “cleansing” of less productive firms. Using firm-level data for 31 economies, the study finds that less productive firms have a higher probability of permanently closing during the crisis, suggesting that the process of cleansing out unproductive arrangements may be at work. The paper also uncovers a strong and negative relationship between firm exit and innovation and digital presence, especially for small firms, confirming the relevance of the ability to adapt to market conditions as a determinant of firm survival. Finally, the study finds evidence of a negative relationship between firm exit and a burdensome business environment, as well as between firm exit and age.

Sustainable development and financial institutions: Do banks' environmental policies influence customer deposits?

Abstract: This paper investigates the relationship between the environmental policies taken by financial institutions and the choice of depositors on where to save their money. Prior research has shown that increases in the number of customers making deposits are driven by bank pricing policy and switching costs for depositors. By employing a dynamic panel data model, this study empirically tests how environmental performance influences the depositors' choice on where to put their money in a sample of worldwide financial institutions from 2011 to 2018. The main results suggest that there is a negative relationship between banks' environmental performance and customers' deposits. Furthermore, the banks that are the best at managing carbon emissions and at pursuing sustainable development pay lower interest rates on customer deposits.

Carbon emission effect of renewable energy utilization, fiscal development, and foreign direct investment in South Africa

Abstract: In recent times, the persistent global environmental challenges have paved the way for the underpinning of climate change within the perspective of financial performance. Given this motivation, the current study further examines the interaction of foreign direct investment, fiscal development, renewable energy usage, economic growth, and CO2 outrush of South Africa (1970 to 2014). The unit root test of Zivot-Andrews and augmented Dickey-Fuller (ADF), vector autoregressive (VAR), and Pesaran ARDL (autoregressive distributed lag bounds) approach were employed in the data analysis. The existence of a statistically significant correlation among the series was detected by the Johansen multivariate cointegration in long term and subsequently by the long run coefficient of the vector error correction model test result. Furthermore, in the long run, significant positive correlation existed among renewable energy, GDP (economic growth), development in finance (FD), and CO2 outrush. While in the short run, GDP and development in finance have a statistically positive correlation with outrush of CO2; renewable energy consumption exerts a negative relationship on CO2 in the short run. The Granger causality results show overall causality among the series; proof of bidirectional stimulus running from renewable energy to economic growth; foreign direct investment to trade; and also one causality direction running among the other variables. The policy twist is that the implementation of energy efficiency programs currently pursued by the South African government to enhance renewable energy consumption should be facilitated with more determination. In addition, the government and policymakers should thrive to align these energy efficiency programs with other macroeconomic and financial variables such as foreign direct investment (FDI), fiscal development, and trade openness to achieve minimum CO2 outrush level in South Africa, thus yielding environmental sustainability.

Impact of stock market, renewable energy consumption and urbanization on environmental degradation: new evidence from BRICS countries.

Abstract: This study examines links between Morgan and Stanley capital Investment (MSCI), foreign direct investment (FDI), renewable energy, urbanization, and trade openness on environmental degradation in (Brazil, Russia, India, China, South Africa) BRICS countries. In this study, generalized method of moment (GMM) estimation is applied on a data set ranging from 1993 to 2018. Results illustrate that stock market index price (MSCI) has negative relationship on CO2 emissions in India, China, Russia, and South Africa and has positive relationship in Brazil. One possible reason for this is strong environmental regulations and their enforcement by Brazilian government. The study also finds that trade openness, FDI, and urbanization have a significant positive relationship on environmental degradation. The impact of stock market development on environmental degradation varies among BRICS countries. Our outcomes have significant policy implications. For example, the policy makers have to initiate effective strategies to promote the renewable energy sources to meet the increasing demand for energy by replacing the use of conventional energy such as coal, gas, and oil. This will help to reduce the CO2 emissions from fossil fuel and ensure sustainable stock market development in the BRICS nations. BRICS countries who have taken the initiative and formulated policies for businesses to conserve the environment play a positive role compared to those who do not.

Corporate Governance, Risk Management, and Bank Performance: Does Type of Ownership Matter?

Abstract: This research explains the correlation between corporate governance, risk management, bank performance, and ownership structure. The research has used a set of independent variables related to revelation and precision. The data from 39 banks working in Pakistan have been used for the time period of 2010 to 2015. Two variables are used for risk management including VAR (Value At Risk) and CAR (Capital Adequacy Ratio). Family ownership, managerial ownership, and ownership concentration are used as instrumental variables for ownership structure. Board independence, the board size, CEO, and audit committee are used as proxy variables for corporate governance, whereas, dummy variables are used for bank performance. The results indicate that three types of bank ownerships are the same; therefore, they cannot affect VAR type of bank ownership and compare as a whole with risk management. The regression consequences display that family ownership has an unconstructive outcome on VAR and CAR that show a negative association between the variables. While managerial ownership and concentration ownership show a positive association between VAR and CAR. The results indicate that board size and audit committee has a negative effect on VAR and CAR that means there is a negative relationship between the variables, whereas board size and CEO have a positive relationship with VAR and CAR. Firm size, firm profitability, and growth opportunities represent a variety of bank performance. The results reveal that firm size, firm profitability and growth opportunities have a positive effect on CAR and VAR. The results also indicate that corporate governance has a positive effect on bank performance that means if a bank can adopt good corporate governance rules, the performance will be excellent. The result emphasizes that risk management has a positive correlation with bank performance that means if a bank manages risk, the performance of that bank will be increased. But in Pakistan, the rules and regulations are the same for all types of banks including private, public, and foreign, therefore, the ownership structures of all banks are the same.

Delayed Time-to-Degree and Post-college Earnings

Abstract: Increasingly, undergraduates take more than 4 years to complete a baccalaureate, a situation widely perceived as a waste of time and money, for students, their families, and taxpayers. We first identify several phenomena that result in a longer time to degree and document the frequency of such delays. Then, using nationally representative data from the Baccalaureate & Beyond 1993–2003 surveys, we estimate the relationship between delayed time-to-degree and later employment and postcollege earnings, using negative binomial hurdle models. We find that delayed time-to-degree is not related to employment chances but is associated with lower post-college earnings: averaging 8–15%, depending on the length of delay. This average disadvantage is in line with signaling theory. The unique contribution of this study is its thorough analysis of different types of delay, as caused by stopping out and employment. Contrary to the popular assumption that delay is a waste of college resources or a student’s time, we find that delayed graduation in combination with working full-time during college has no negative relationship to post-college earnings. We discuss the time-investment trade-offs and the implications for the applicability of human capital theory to college graduation delays.