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The debate over the impacts of shareholder value orientation on corporate management has been more intense with the increasing participation of institutional investors in companies' ownership structures. In this context, the purpose of this study is to evaluate the influence of institutional investors' shareholding on the payment of dividends in the oil industry. A regression model was used, estimated with the Generalized Method of Moments. The results indicated that the distribution of dividends is related to the profitability and the leverage of the companies, in addition to the history of distribution to shareholders. In general, the presence of institutional investors did not influence the dividend distribution. However, we observed a large participation of these investors in the ownership structure of companies in the oil and gas sector—the average control of these agents was around 25% in the companies of the sample. This study contributes to the literature regarding the influence of institutional investors on the corporate decisions of nonfinancial companies, being original in the context of the oil industry. [ABSTRACT FROM AUTHOR]

Purpose: The relevance of transparency related to public finances is considered fundamental for good economic policy management. An environment of greater fiscal transparency allows the private sector greater predictability, improving the entrepreneur's decision-making ability. This study empirically analyzes fiscal opacity's effect on business confidence in an emerging economy. Design/methodology/approach: We use monthly data from the Brazilian economy from January 2010 to March 2023. Based on Ordinary Least Squares (OLS) and the Generalized Method of Moments (GMM) regressions, we analyze whether fiscal opacity, measured by the signal-to-noise ratio, affects business confidence. Moreover, to evaluate the duration of a shock transmitted by the fiscal opacity on business confidence, we consider an impulse-response function generated by a Vector Auto-Regressive (VAR). Findings: We found that fiscal opacity resulting from the lack of information to anticipate the budgetary result of the public sector deteriorates business confidence. Practical implications: We present robust empirical evidence that allows us to assume that using a strategy to reduce fiscal opacity through mechanisms that provide reliable economic data and fiscal forecasts is essential for fiscal policy to affect business confidence positively. Reducing fiscal opacity provides greater clarity regarding the budget outcome, reduces economic uncertainty and improves the fiscal policy expectation channel. Originality/value: This paper is the first to analyze how the lack of information for market agents to anticipate the government's budget execution accurately (fiscal opacity) affects business confidence. [ABSTRACT FROM AUTHOR]

Underwriting is crucial for insurers' performance and sustainability, yet empirical evidence on factors influencing its performance has received limited attention. Therefore, this study investigates this phenomenon considering South Africa's life and non-life insurance sectors between 2013–2019. Using the generalized method of moments and the bootstrap quantile regression techniques for analysis, the findings show that insurance size, market share, and investment income significantly and positively impact underwriting performance. However, premium growth weakens the underwriting performance of both sectors. Also, non-life insurance shows a positive relationship for reinsurance, while life insurers present an inverse relationship. Underwriting risk negatively impacts non-life performance across quantiles, while life insurer risk was negative in higher quantiles. More so, initial solvency levels weaken underwriting performance, while extreme increase improves it, implying a direct U-shaped relationship. Hence, highly solvent insurers are more likely to succeed in underwriting operations. Additionally, market share complements return on assets in promoting underwriting performance. Policy recommendations are discussed. [ABSTRACT FROM AUTHOR]

The search for one-step alternatives to the generalized method of moment (GMM) has identified broad classes of potential estimators such as generalized empirical likelihoods (GEL), empirical cressie-read (ECR), exponentially tilted empirical likelihood (ETEL), and minimum discrepancy (MD) estimators. While empirical likelihood (EL) dominates other ECR estimators in terms of higher-order asymptotics, it lacks robustness to model misspecification. ETEL was shown to combine higher-order efficiency and robustness to misspecification but demands strong moment generating function existence conditions. We show, both theoretically and via simulations, how to achieve the same goal under weaker moment existence conditions within the class of MD estimators. [ABSTRACT FROM AUTHOR]

The literature has ignored the mediating role of uncertainty in the link between monetary policy and bank lending. Using data from commercial banks in Vietnam from 2007 to 2019, this article expands the literature stream on monetary policy transmission by investigating the impact of uncertainty on the bank lending channel. We employ the variability of shocks to bank-specific factors to measure banking uncertainty and a set of interest- and money-supply-based instruments to capture monetary indicators. We reveal that bank loan growth may increase in response to monetary expansion when the regulatory authority lowers interest rates or increases liquidity injection. Further analysis shows that this bank lending channel is less effective with increased uncertainty in the banking sector. Our finding firmly holds with the generalized method of moments (GMM) estimator and the least squares dummy variable corrected (LSDVC) technique. [ABSTRACT FROM AUTHOR]

Purpose: This study aims to investigate the relationship between corporate governance characteristics and the financial performance of both Islamic and conventional banks in the context of an emerging market, i.e. Malaysia. Design/methodology/approach: This study includes 300 bank-year observations from Islamic and conventional banks over the period 2010–2021. The dynamic panel model (generalized method of moments [GMM]) was considered the primary estimation model that solves simultaneity, endogeneity and omitted variable problems as most governance variables are endogenous by nature. Hence, static models are considered biased after conducting the DWH test of endogeneity, and considering dynamic panel GMM is valid proven by Sargan and Hensen and first-order (ARI) and second-order (ARII) tests. Findings: Based on the regression results, the authors discovered that board size, female participation in the board and director remuneration have a significant positive impact on bank performance, whereas board meetings have a significant negative impact. Furthermore, the board governance structure of commercial banks is found to be more passive than that of Islamic banks. Practical implications: The study's findings added a new dimension to governance research, which could be a valuable source of knowledge for policymakers, investors and regulators looking to improve existing governance mechanisms for better performance of conventional and Islamic banks. Originality/value: The goal of this study is to add to the existing literature by focusing on the impact of female board participation and other board governance mechanisms in both conventional and Islamic banks on bank performance. [ABSTRACT FROM AUTHOR]

This study aims to investigate the complex relationship between vertical fiscal imbalance, public expenditure structure, and income distribution disparities, with the goal of providing policy insights for achieving shared prosperity. Employing Generalized Method of Moments (GMM) and threshold analysis, the research reveals key findings: (1) an exacerbation of vertical fiscal imbalance significantly widens the urban-rural income gap; (2) public expenditure structure exhibits threshold effects, resulting in non-linear impacts on income disparity; (3) a unique contribution of our study is the identification of varying threshold effects of urban public expenditure on income disparities within rural areas, urban areas, and the gap between them, underscoring the need for targeted fiscal interventions. These findings highlight the critical role of public expenditure in addressing income distribution issues and offer valuable guidance for upcoming fiscal and tax reforms. [ABSTRACT FROM AUTHOR]

This study examines the nexus between ICT diffusion, financial development, industrialization, and economic growth using a novel panel VAR approach in the generalized method of moments (GMM) estimation. Different proxies were used to measure the aforementioned variables, diverging from the commonly used measures in prior literature. Based on panel data covering 45 countries from 2000 to 2018, the empirical results suggest that there is bidirectional causality between ICT diffusion and economic growth, financial development and industrialization, financial development and economic growth, as well as industrialization and economic growth. The findings further provide evidence that financial development, levels of industrialization, and economic growth are not significant or positive predictors of ICT diffusion. The study’s implications for policy are profound, suggesting that SSA governments should adopt a holistic approach to economic policy development, integrating ICT, financial, and industrial policies to harness these interdependencies effectively. [ABSTRACT FROM AUTHOR]

This study contributes to the literature by investigating the intervening role of information and communication technology (ICT) diffusion on insurance and economic growth in Sub-Saharan Africa (SSA). This study uses the generalized method of moments technique based on 36 countries, spanning 2007–2020. First, the empirical findings reveal that insurance penetration (i.e. total, life and nonlife) and ICT diffusion induce economic growth in SSA. Second, the evidence suggests that ICT boosts the role of insurance in affecting economic growth. Third, the individual ICT variables such as fixed broadband, telephone and internet propel the impact of total and life penetration on growth. Additionally, fixed broadband was remarkable in enhancing the effect of nonlife penetration on growth. The findings imply that though insurance enhances economic growth, its impact is more revealing through the intervening role of ICT infrastructure. Therefore, insurers must embrace technology and leverage ICT development to improve their performance on growth. [ABSTRACT FROM AUTHOR]

Purpose: The purpose of this study is to assess the impact of the shadow economy on three sustainable development indicators while considering the moderating effect of the governance quality, and to highlight the non-linearity of the considered relationship. Design/methodology/approach: A sample of 82 countries covering the period from 1996 to 2017. The dynamic first-differenced generalized method of moments (FD-GMM) panel threshold model is implemented to control for non-linearity. Findings: The shadow economy hinders sustainable development in countries with low-governance quality, while the opposite result holds in countries with high-governance quality. The critical thresholds triggering the switch from one regime to another vary across the sustainable development indicators. Boosting growth requires enhancing the legal system and the economic dimension of governance, while promoting environmental quality requires the implementation and enforcement of specific environment-friendly regulations. Originality/value: The study addresses non-linearity and the moderating effect of governance quality. The use of six governance indicators allows to gauge the ability of each governance dimension to curb the negative effects of the shadow economy. Considering the three objectives of sustainable development allows to identify specific policy recommendations for each of them. [ABSTRACT FROM AUTHOR]

This article considers estimation of non‐smooth possibly overidentified non‐parametric estimating equations models with weakly dependent data. The estimators are based on a kernel smoothed version of the generalized empirical likelihood and the generalized method of moments approaches. The article derives the asymptotic normality of both estimators and shows that the proposed local generalized empirical likelihood estimator is more efficient than the local generalized moment estimator unless a two‐step procedure is used. The article also proposes novel tests for the correct specification of the considered model that are shown to have power against local alternatives and are consistent against fixed alternatives. Monte Carlo simulations and an empirical application illustrate the finite sample properties and applicability of the proposed estimators and test statistics. [ABSTRACT FROM AUTHOR]

This study investigates the impact of air pollution on corporate tax avoidance aggressiveness. The results indicate that firms in cities with severe air pollution tend to engage in less tax avoidance activities and pay a higher corporate effective tax rate (ETR). Furthermore, the positive impact of air pollution on corporate ETR is less pronounced for firms with big four auditors and entrenched CEOs. The effect is more noticeable for state-owned firms. These empirical findings are robust to a generalized method of moments test, two-stage least squares tests that use thermal inversions as an instrumental variable, and regression discontinuity tests exploiting the China Huai River policy. This study contends that the stronger governmental tax pressures and external monitoring mechanism associated with highly polluting areas mitigates corporate tax avoidance efforts. In addition, the study's findings are robust to the alternative proxies for air pollution and tax avoidance in the model, and the exclusion of first-tier cities. [ABSTRACT FROM AUTHOR]

This study investigates the impact of corporate governance characteristics on bank financial performance in Gulf Cooperation Council countries. The board characteristics include board size, board independence, board gender diversity, and CEO duality (CEO is also Board Chair), with bank size as the moderating variable. Sixty-six commercial banks from six Gulf Cooperation Council countries—Saudi Arabia, United Arab Emirates, Kuwait, Bahrain, Oman, and Qatar—are examined from 2019 to 2023 using two-stage least squares and generalized method of moments econometric methods. Board size, board independence, and board gender diversity significantly increase return on assets and return on equity. The impact of CEO duality is mixed. The empirical findings show that CEO duality increases return on equity, with a non-significant impact on return on assets. Finally, results show that bank size moderates the impacts of board size, board independence, and gender diversity in boards on the financial performance of banks. Large banks significantly increase return on assets and return on equity due to the board characteristics examined, to a greater extent than small banks. Bank leaders should expand board membership, and add independent directors and women, to improve financial performance. [ABSTRACT FROM AUTHOR]

Banks have faced increasing attention regarding their ability to balance Corporate Social Responsibility (CSR) initiatives, operational efficiency, and credit risk management, particularly in the wake of global financial challenges. This study examines the interplay between CSR, efficiency, and credit risk in 131 US banks from 2010 to 2018. Using the Choquet integral, two-step Data Envelopment Analysis, and a dynamic panel with the Generalized Method of Moments, the findings reveal a virtuous circle between CSR and credit risk, where CSR enhances credit risk profiles. Similarly, efficiency and risk exhibit mutual reinforcement. However, a vicious circle is identified between CSR and efficiency, indicating trade-offs between CSR objectives and operational efficiency. These insights guide policymakers and bank managers in optimizing this balance. [ABSTRACT FROM AUTHOR]

The paper examines the key determinants of European banks' profitability by analyzing the return on assets (ROA), return on equity (ROE), net interest margin (NIM), and the risk-adjusted measures of profitability, RAROAA and RAROAE, across 34 European countries during the period from 2013 to 2018—a time characterized by economic recovery and significant regulatory reforms, including the implementation of Basel III standards. Using the Generalized Method of Moments (GMM) approach and data of 3076 European banks, the research addresses the complex interplay between internal (bank-specific) factors and external factors, including macroeconomic and industry-specific factors. The results show that profitability is positively associated with a higher capital adequacy, liquidity risk, and income diversification, but not for risk-adjusted profitability ratios. Credit risk, management efficiency, and excessive size have a negative effect on all studied profitability measures. Macroeconomic conditions, in particular, GDP growth and inflation, also have a significant impact on profitability. The findings offer valuable insights for policymakers, regulators, and financial institutions aiming to enhance profitability while maintaining the stability of the European banking sector. [ABSTRACT FROM AUTHOR]

Purpose: Drawing from agency and comprehension theories, this paper aims to examine the influence of annual report readability (ARR) on financial reporting quality (FRQ), with a focus on how information asymmetry moderates this relationship. Design/methodology/approach: The study uses a sample of 467 listed firms in Vietnam from 2015 to 2021. To analyze the relationship between ARR and FRQ, this paper employs a Generalized Method of Moments (GMM) regression, incorporating information asymmetry as a moderating factor. Findings: The research findings show that ARR has a positive and significant impact on the FRQ of Vietnamese-listed firms. This paper also finds that information asymmetry significantly and partially moderates the relationship between ARR and FRQ. Specifically, ARR can help alleviate the level of information asymmetry and contributes to improved FRQ. Practical implications: From a practical perspective, this paper provides empirical evidence for managers, investors and related government departments to evaluate the effects of ARR and offers regulators a method to help improve the transparency of the stock market. More importantly, the results of this study have reference value for scholars and practitioners in developing countries like Vietnam. Originality/value: From a theoretical perspective, our study adds to the growing literature on ARR, expands the scope of ARR research, elaborates on relevant economic consequences of ARR and complements the literature on the determinants of FRQ. [ABSTRACT FROM AUTHOR]

Purpose: This study seeks to analyze the effect of the financial distress costs on small and medium-sized enterprises (SME) rebalancing of short-term and long-term debt ratios. Design/methodology/approach: The authors use the system-generalized method of moments (GMM-sys) to treat data collected for a sample of Portuguese manufacturing SMEs for the period 2011–2017. Findings: Financial distress costs positively impact the speed with which SMEs rebalance their short-term and long-term debt ratios The positive effect of financial distress costs on the speed of adjustment (SOA) is higher for the short-term than for the long-term debt ratio. This result suggests that SMEs seek to overcome quicker the financing imbalance in the short run, probably, due to their dependence on short-term debt. Practical implications: SME owners-managers should seek to rely less on short-term debt to reduce the firm default risk, the financing imbalance and the financial distress costs. Banks should lend long-term loans to SMEs, given that the high financial distress risk of these firms results from their dependence on short-term debt financing. Policymakers should promote SME access to external finance sources with lower transaction costs, to SME rebalance their capital structures. Originality/value: This study analyzes the effect of financial distress costs on the SOA with which SMEs rebalance their capital structure. We estimate the financial distress costs based on a hazard model, to analyze their effect on the SOA toward the target debt ratios. [ABSTRACT FROM AUTHOR]

Purpose: The purpose of this paper is to examine the effect of chief executive officer (CEO) overconfidence on earnings quality and the moderating role of ownership structure as a crucial corporate governance device. Design/methodology/approach: The paper uses the generalized method of moments (GMM) estimation method to test our models on a sample of 335 French companies between 2009 and 2020, i.e. 4,020 observations. Findings: The results show that CEO overconfidence negatively affects earnings quality. This result supports the predictions of behavioral finance theory and suggests that CEO overconfidence is a behavioral bias that affects the quality of earnings. The authors also examined the effect of different types of ownership structures on this relationship. The results show the significant role of controlling shareholders, owner-managers, families and institutional investors in mitigating the negative effect of CEO overconfidence on earnings quality. Research limitations/implications: This paper has some limitations. First, other types of ownership structures could have been analyzed such as state ownership. Second, we ignored the role of the board of directors as an important governance mechanism in controlling overconfident CEOs' actions. Practical implications: Companies should be aware of the potential risks associated with CEO overconfidence, which can compromise the faithful representation of earnings. This highlights the importance of effective monitoring and internal controls to detect and prevent such practices, which involve the role of ownership structure. Originality/value: This paper addresses the effect of CEO overconfidence on earnings quality and provides new evidence on the role of different ownership structure types in shaping this relationship. Additionally, this paper sheds new light on how overconfident CEOs may behave in challenging times. [ABSTRACT FROM AUTHOR]

This paper presents evidence of the impact of AI investment on firm growth and how the relationship is sensitive to labour market conditions. Using the generalized method of moments (GMM) estimation on 1950 unique American firms over 1996–2016, we show that a 10% increase in AI investment leads to an increase in firm growth by 0.04%. However, this result is highly sensitive to labour market conditions, as labour productivity can positively impact firm growth, but labour cost and labour share negatively influence firm growth. These results offer original insights into an essential channel via which investment in AI may mediate firm growth. [ABSTRACT FROM AUTHOR]

The rapid development of digital finance is reshaping the business model of the traditional bank industry and bringing challenges to it as well. Based on an unbalanced panel of data constructed by 36 banks in Malaysia from 2006 to 2020, this study examines the impact of financial technology on banks' stability and efficiency. We find that, compared with Islamic banks, FinTech innovation significantly improves the stability of commercial banks. Additionally, it improves the entire sample banks' efficiency calculated by the data envelopment analysis‐Malmquist method, which can capture the efficiency changes from a dynamic perspective. These baseline results are affirmed by the generalized method of moment approach to mitigate potential endogeneity issues. Furthermore, the impacts of FinTech innovation on banks are heterogeneous. The high‐profit banks enjoy the benefits of improving their stability level from FinTech development. However, for the small‐sized and low‐profit banks, FinTech innovation contributes more to improving their efficiency. Our analysis provides empirical evidence for Malaysia and similar developing countries that are receptive to FinTech development but have relatively less advanced technology infrastructure. It can also shed light on the FinTech investment decisions of bank management. [ABSTRACT FROM AUTHOR]

Purpose: The main goal of this paper is to analyse the impact of political connections and gender diversity shaping Environmental, Social and Governance (ESG) components' effects on the performance of Iberian companies. Design/methodology/approach: To achieve this aim, we have used panel data methodology, specifically the generalized method of moments system estimation method by Arellano and Bond (1991), using data from listed Iberian companies for the period between 2015 and 2020. Findings: Our findings suggest that, although ESG components positively influence company performance, the presence of political connections weakens ESG commitments, compromising ethical standards and suggesting a lack of transparency or inadequate regulations. Our results also highlight that the presence of women on boards of directors has a nuanced impact on firm performance, as measured by the Market-to-Book ratio. While gender diversity interacts with ESG scores, external investors' perceptions may not always reflect immediate performance improvements. Research limitations/implications: This work faces some limitations associated with challenges in securing comprehensive data for all variables, along with the complexity of acquiring information about political connections. Often, we had to rely on multiple sources and cross-reference the data to enhance its reliability. Another limitation for potential consideration or exploration in future research pertains to the omission of distinct industry sectors due to the limited number of companies, particularly notable in the context of Portugal. Originality/value: Although there is a large volume of literature on the relationship between ESG and companies' performance, as far as the authors are aware, this article is original and covers an important gap in the literature when considering political connections and board gender diversity impact on ESG components as determinants of the performance of Iberian companies. [ABSTRACT FROM AUTHOR]

Purpose: This paper aims to examine the impact of bank's capital buffer on return on equity (ROE) in the context of Islamic and conventional banks in GCC countries. Design/methodology/approach: The authors collect data from 83 commercial banks comprising of 49 conventional banks and 34 Islamic banks for the period 2010–2019. The final data set comprises of 744 bank-year observations. The authors apply generalized methods of moments estimation technique and panel least square to analyze the data. Findings: The authors document that Tier-1 capital, total regulatory capital (TRC) and equity to asset ratio (EAR) negatively affect banks' ROE. However, the impact disappears for conventional banks and sustains for Islamic banks if these two clusters of banks are treated separately. Furthermore, the negative impact of equity capital on earning is more pronounced for large and listed commercial banks. Practical implications: Findings of this research imply that Islamic banks in GCC countries has scope to manage equity capital more efficiently. Hence, they should concentrate on using banks equity wisely to successfully compete with the conventional banks. Originality/value: Since the global financial crisis of 2009, Islamic banks of GCC countries have been reporting lower ROE compared to their conventional counterparts. On the other hand, Islamic banks maintain higher level of Tier-1 capital, TRC and EAR. This evidence hypothetically suggests that Islamic banks are overly cautious in managing their capital buffer that results in lower ROE. To the best of the author's/authors' knowledge, no other study in the literature tests this hypothesis in the GCC context. [ABSTRACT FROM AUTHOR]

Purpose: The moderating role of digital services trade restrictiveness to the effects of national intellectual capital on economic growth has been largely ignored in the existing literature. As such, this paper aims to examine how national intellectual capital and digital services trade restrictiveness affect economic growth. In addition, the moderating role of digital services trade restrictiveness in the relationship between national intellectual capital and economic growth is also examined. Design/methodology/approach: In this study, a sample comprising 62 countries worldwide is used. The national intellectual capital for each country is computed using the index of national intellectual capital. Data pertaining to digital services trade restrictiveness are extracted from the digital services trade restrictiveness index (OECD Statistics on International Trade in Services database). To ensure the robustness of the findings, the generalized method of moments (GMM) is used in the analysis. Findings: The findings of this study confirm that national intellectual capital supports economic growth. Accumulating intellectual capital at the national level plays an essential role in supporting economic growth. The authors also find evidence to confirm that digital services trade restrictiveness negatively affects economic growth, particularly for high-income and lower-middle-income countries. Interestingly, digital services trade restrictiveness deteriorates economic growth across countries globally, except for upper-middle-income countries, with a weak effect. The empirical results also confirm that the joint effects between national intellectual capital and digital services trade restrictiveness are negative and significant. As such, findings from our analysis suggest that digital services trade restrictiveness moderates the relationship between national intellectual capital and economic growth. Practical implications: The findings of this study provide valuable implications for policymakers to formulate and implement policies aiming to improve national intellectual capital to support sustainable economic growth. In addition, limiting digital services trade restrictiveness across countries appears to provide both direct and indirect effects in enhancing sustainable economic growth. Originality/value: To the best of the authors' knowledge, this is the first empirical study conducted to examine the moderating role of digital services trade restrictiveness on the national intellectual capital – economic growth nexus. [ABSTRACT FROM AUTHOR]

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This article investigates the estimation and inference of spatial panel data models in which the regression coefficient vector is a trending function. We use time differences to eliminate the individual effects and employ various GMM estimations for regression coefficients with both linear and quadratic moments. Time trend estimator based on these GMM estimations is also proposed. Monte Carlo experiments show that the finite sample performance of the estimators is satisfactory. As an empirical illustration, we investigate the trending pattern of the spillover effect of air pollution among Chinese cities from 2015 to 2021. [ABSTRACT FROM AUTHOR]

This study employs the Porter hypothesis framework to test the moderating role of production cost in the relationship between resource‐efficiency actions and financial performance for German small and medium‐sized enterprises (SMEs). For this purpose, we employ the 2012, 2018, and 2021 Flash Eurobarometer surveys to analyze how consistently SMEs adopt resource‐efficiency actions, and the impact of these actions on their performance and costs. We also conduct a generalized method of moments regression analysis (GMM). Among the seven resource‐efficiency actions proposed, saving water had a significant positive (negative) influence on financial performance in 2012, 2021, and (2018). Saving energy and using renewable energy had a positive and significant (insignificant) effect on financial performance in 2018, 2021, and (2012). Finally, selling scrap material to other companies had a positive and significant impact in all years. Furthermore, increased production costs negatively moderate the relationship between eco‐efficiency action scores and financial performance. The results indicate that the "strong" version of the Porter hypothesis is not supported: It only holds when the implementation of eco‐efficiency actions reduces production costs and increases financial performance. [ABSTRACT FROM AUTHOR]

This paper gives insight into innovative facilities' role in the effect of economic freedom on inclusive finance in sub‐Saharan Africa (SSA) using data from 2008 to 2020. After using the generalized method of moment for the analysis, the study concluded that improving economic freedom promotes financial inclusion while expanding innovative facilities in SSA inhibits inclusive finance. The study also discovered that innovative facilities improve the impact of economic freedom on inclusive finance in SSA and subsequently diminish the effect of economic freedom on inclusive finance after certain thresholds (mobile usage 100.75, internet usage 34.1064, fixed broadband usage not applicable, telephone usage 13.3494, and innovative facility index 1.5619). Hence, policymakers are advised to increase freedom in SSA economies to boost financial inclusion by ensuring the bureaucracy for establishing financial institutions is minimized and institutions that ensure property rights and free will are instituted to encourage people to participate in financial services. When it comes to using innovative facilities to enhance freedom‐induced inclusivity in finance, technical and financial knowledge should be enhanced in addition to lowering the cost of using innovative facilities to access financial services in order to eliminate the threshold levels at which innovative facilities reduce inclusive finance SSA. [ABSTRACT FROM AUTHOR]

Amidst COVID-19 related confinement measures, economies worldwide have transitioned to online platforms, making ICT essential for sustaining economic activities. This study investigates the role of ICT in mitigating the negative economic impact of the COVID-19 pandemic. We employed a comprehensive ICT index developed by UNCTAD, including indicators such as fixed broadband, mobile phone subscriptions, and secure internet servers, using data from 100 countries between 2017 and 2022. Utilizing Generalized Method of Moments (GMM) estimation to address endogeneity, our analysis reveals that a percentage increase in COVID-19 cases and deaths led to declines in GDP growth by 0.67 and 0.87 percentage points, respectively. However, ICT significantly alleviated the adverse economic effects of the pandemic. The negative impact was more severe in developing countries, where ICT played a crucial role in mitigation. These findings suggest important policy implications, highlighting the need for increased ICT investment and capacity building to enhance economic resilience against future crises. Highlights: ICT significantly mitigated the negative economic impact of COVID-19, especially in developing countries. Countries with better ICT infrastructure transitioned more smoothly to online work and services during the pandemic. Investments in ICT, such as broadband and mobile networks, are crucial to improving economic resilience during future crises. [ABSTRACT FROM AUTHOR]

This study investigates the optimal mortgage level and examines the impact of urbanization on the risk of excessive mortgage loan in China's housing markets. We propose a new model to theoretically derive and measure both the optimal mortgage level and the degree of urbanization across different regions of China. The paper tests two hypotheses: first, whether urbanization directly increases the risk of excess mortgages, and second, whether urbanization indirectly contributes to this risk through its effect on housing prices. Using a fixed-effects model for panel data analysis, the generalized method of moments (GMM), and monthly data from 25 regional provinces in China spanning from 2007 to 2019, our results provide strong evidence in support of these hypotheses. The impact of urbanization varies across regions, suggesting that distinct policy interventions may be needed for different regional housing markets. [ABSTRACT FROM AUTHOR]

This study examined the impact of financial expansion, natural resources, gross domestic savings, and foreign direct investment on economic development in Pakistan, using annual data spanning from 1970 to 2020. We utilized the three regression techniques including Generalized Method of Moments (GMM), Cointegrating Regression analysis (FMOLS, DOLS, and CCR), and dynamic Autoregressive Distributed Lag (ARDL) to uncover the determinants influence on economic progress. The GMM technique findings reveal that natural resources and foreign direct investment have positively influenced the economic progress. Financial expansion and gross domestic savings both have a detrimental effect on Pakistan's economic growth. Moving on to the effects of FMOLS, DOLS, and CCR, the natural resources and foreign direct investment favourably affected the Pakistan's economic growth, whereas financial expansion and gross domestic savings adversely influenced the economic growth. Furthermore, the outcomes of dynamic symmetric (ARDL) approach in the short-run and long-run show that FDI and financial expansion have a negative impact on economic development, whereas natural resources and gross domestic savings have a favourable impact. In order to attain long-lasting and sustainable economic growth, it is crucial for the government to implement inventive policies and regulations that promote financial supply-side reform and enable various financial development initiatives. [ABSTRACT FROM AUTHOR]

This study examines the effects of corporate governance mechanisms on emission scores. Furthermore, it evaluates the moderating effect of environmental innovation activities on the association between corporate governance mechanisms and emission performance. The sample consists of 122 Malaysian companies in several sectors. Data were extracted exclusively from the Refinitiv Eikon database for the period 2016–2023. This study adopted a panel data approach with a fixed-effect estimation, fixed effect with the Driscoll–Kraay standard error, and a generalized method of moments. The findings reveal that audit expertise, audit independence, board expertise, and board-specific skills have a statistically significant negative impact on emission performance. Furthermore, the results show that environmental innovation has no substantial moderating effect on the links between audit committee characteristics and emission performance. However, environmental innovation moderates the association between board attendance, gender diversity, and emission performance. This study makes several valuable contributions to the existing body of literature. Our study offers a distinct and thorough assessment of board and audit committee characteristics and environmental innovation, setting it apart from the previous research conducted in Malaysia. [ABSTRACT FROM AUTHOR]

This research examines the relationship between a green economy—defined as an economy that promotes sustainable development through low-carbon, resource-efficient, and socially inclusive practices—and food safety across 37 African countries from 2005 to 2020. Drawing on data from the Food and Agricultural Organization (FAO), the Country Policy and Institutional Assessment (CPIA), and World Development Indicators, this study employs the generalized method of moments (GMM) approach to address endogeneity issues inherent in economic analyses. The findings indicate that a shift toward a greener economy significantly enhances food safety, with each one-point improvement in green economic indicators associated with a 0.24% increase in food safety levels. This underscores that as African economies reduce carbon footprints and adopt sustainable agricultural practices, they experience fewer food safety challenges, largely due to improved environmental health and reduced biodiversity loss. The study concludes that prioritizing green economic growth is essential for environmental sustainability and the agricultural sector's stability. These insights emphasize the need for policymakers and stakeholders to implement green economy strategies that enhance both ecological resilience and food security, ultimately improving health and livelihood outcomes in African communities. This study stands apart from existing literature by uniquely focusing on the relationship between the green economy and food safety within the African context, which remains underexplored despite the continent's pressing environmental and food security challenges. Utilizing a dynamic panel Generalized Method of Moments (GMM) model, the research rigorously addresses endogeneity concerns to provide robust insights into how environmental management and other green economy policies influence food safety outcomes across 37 African nations. This methodological approach enables more accurate capture of temporal dynamics and causal relationships, offering policymakers context-specific, evidence-based recommendations tailored to Africa's socio-economic and ecological realities. [ABSTRACT FROM AUTHOR]

In this paper, we study the second and third order cumulants of bilinear models with regime changes according to a Markov chain (MS−BL for short). We provide conditions for the existence of a strictly stationary solution in $ L_{2} $ L2 , which are intricately linked to the transition matrix of the chain. Furthermore, we propose a technical approach for determining the covariance function, surprisingly aligning with that of MS−ARMA models. More precisely, we establish the covariance (unconditional) structure and other essential properties of some simple $ MS- $ MS− supdiagonal (MS−SBL) and $ MS- $ MS− diagonal (MS−DBL) bilinear models. We observe that the second-order structure of MS−SBL (resp. MS−DBL) is similar to that of weak white noise (resp. $ MS-MA\left (1\right ) $ MS−MA(1) model). On the other hand, the second-order structure of the squared version of the MS−SBL (resp. MS−DBL) is identified as an $ MS-ARMA\left ( 2,1\right ) $ MS−ARMA(2,1) (resp. $ AR\left ( 1\right ) $ AR(1) ) model when the chain is independent. This finding provides an alternative technique for distinguishing these models from their linear representations through the squared processes. After deriving explicit expressions for certain cumulants of the MS−BL process, we apply a Generalized Method of Moments (GMM) procedure to estimate the model's parameters. Finally, we present numerical experiments on simulated data and an empirical application on real data to illustrate the theoretical results and demonstrate the applicability of the proposed estimation method. [ABSTRACT FROM AUTHOR]

This study examines the impact of corporate governance and economic policy uncertainty on financial performance in non-financial firms in three emerging Asian economies: Pakistan, China, and Malaysia. The study analyzed 400 non-financial firms listed on these countries' stock markets for ten years (2012–2021). Data on corporate governance, financial performance, and CSR scores were obtained from DataStream. The study used regression analysis and the generalized method of moments (GMM) for its robustness analysis. Our findings show that all attributes of corporate governance practices have a significant positive impact on return on assets, except for the existence of an audit board committee for all selected economies. Moreover, corporate governance practices have a significant positive relationship with return on equity. However, in the case of earnings per share (EPS), all attributes have a significant positive relationship except board size with earnings per share. Economic policy uncertainty significantly moderates corporate governance practices and financial performance of organizations belonging to Asian economies. This study advocated the implications for the government and policymakers to improve corporate governance practices, especially during periods of high economic uncertainty. [ABSTRACT FROM AUTHOR]

In multiple heterogeneous networks, developing a model that considers both individual and shared structures is crucial for improving estimation efficiency and interpretability. In this paper, we introduce a semi-parametric individual network autoregressive model. We allow autoregression and regression coefficients to vary across networks with subgroup structure, and integrate both covariates and node relationships into network dependence using a single-index structure with unknown links. To estimate all individual and commonly shared parameters and functions, we introduce a novel penalized semiparametric approach based on the generalized method of moments. Theoretically, our proposed semiparametric estimator for heterogeneous networks exhibits estimation and selection consistency under regular conditions. Numerical experiments are conducted to illustrate the effectiveness of the proposed estimator. The proposed method is applied to analyze patient distribution in hospitals to further demonstrate its utility. [ABSTRACT FROM AUTHOR]

Huber regression (HR) is a popular flexible alternative to the least squares regression when the error follows a heavy-tailed distribution. We propose a new method called the enveloped Huber regression (EHR) by considering the envelope assumption that there exists some subspace of the predictors that has no association with the response, which is referred to as the immaterial part. More efficient estimation is achieved via the removal of the immaterial part. Different from the envelope least squares (ENV) model whose estimation is based on maximum normal likelihood, the estimation of the EHR model is through Generalized Method of Moments. The asymptotic normality of the EHR estimator is established, and it is shown that EHR is more efficient than HR. Moreover, EHR is more efficient than ENV when the error distribution is heavy-tailed, while maintaining a small efficiency loss when the error distribution is normal. Moreover, our theory also covers the heteroscedastic case in which the error may depend on the covariates. The envelope dimension in EHR is a tuning parameter to be determined by the data in practice. We further propose a novel generalized information criterion (GIC) for dimension selection and establish its consistency. Extensive simulation studies confirm the messages from our theory. EHR is further illustrated on a real dataset. for this article are available online. [ABSTRACT FROM AUTHOR]

• This paper investigates the impact of urban-rural electricity gap on human development index. • Urban-rural electricity gap significantly reduces human development index. • The nexus between urban-rural electricity gap and human development index is closer in low-income countries. • Urban-rural electricity gap directly affects three dimensions of human development index. • Urban-rural electricity inequality gap affects human development index by enlarging income inequality and deteriorating energy poverty. Based on the Instrumental Variables - Generalized Method of Moments (IV-GMM) model, this paper explores the relationship, heterogeneity, and mechanisms between the urban-rural electricity gap and the human development index for 176 countries during 2000–2020. The key findings are as follows: (1) Urban-rural electricity gap is harmful to the improvement of the human development index; an enlarged gap in electricity accessibility between urban and rural is detrimental to sustainable human development. (2) Urban-rural electricity gap is more harmful to the increase of human development index in low-income countries and low governance efficiency countries. Also, the heterogeneity exists in different quantiles, and their nexus is closer in countries with lower levels of human development index. (3) Income inequality and energy poverty act as mechanisms, which means that the urban-rural electricity gap inhibits the human development index by exacerbating income inequality and energy poverty. [ABSTRACT FROM AUTHOR]

This research examines the impact of policy-related risk (geopolitical risk, economic uncertainty, and political risk) on export performance. The data we used came from 16 leading economies between 1998 and 2022. We used fixed effect, two-stage least squares (2SLS), and generalized method of moments (GMM) regression analyses to see how different types of policy-related risk affect exports. The results show that geopolitical risk and economic policy uncertainty have a negative impact on export performance, while political stability has a positive effect. We divided the countries into East and West, developing and developed countries, and the results show different efficiency but the same impact on East and West. However, the result of developed and developing countries has a variation in the effect of geopolitical risk on exports; in developed countries, the geopolitical risk has a negative insignificant effect, while in developing countries, it has a significantly negative impact. The study contributes to the literature by providing a regional perspective on the influence of policy-related risks on export performance, offering valuable insights for policymakers and firms seeking to navigate the complexities of global trade amidst uncertainty. [ABSTRACT FROM AUTHOR]

This study investigates the influence of corporate governance mechanisms on debt service obligations within the context of 34 automobile companies listed on the Tokyo Stock Exchange from 2006 to 2021, utilizing a purposive sampling approach. Employing a range of statistical models including the random effect model, fixed effect model, and the generalized method of moments (GMM), the study yields several key findings. Firstly, it reveals a significant and positive correlation between the presence of independent board members and the debt service obligations of Japanese automobile firms. Secondly, a noteworthy negative association is uncovered when the CEO holds a dual role, impacting debt service obligations negatively. Thirdly, the inclusion of non-executive board members on corporate boards is found to be linked to a significant and adverse effect on debt service obligations among these firms. Finally, the study underscores the positive impact of board members' knowledge, skills, and the frequency of meetings on the debt service obligations of automobile companies in Japan. [ABSTRACT FROM AUTHOR]

This study examines the effects of liquidity, profitability, firm size, tangibility, and growth on the capital structure of consumer goods and industrial sector companies listed on the Indonesia Stock Exchange (IDX) from 2016 to 2022. Using the Generalized Method of Moments (GMM) in Eviews 12SV, 45 companies were analyzed based on purposive sampling. Results show tangibility and liquidity negatively influence capital structure, as firms with higher tangible assets and liquidity prefer internal financing. Conversely, firm size, profitability, and growth positively impact capital structure, with larger, more profitable firms adopting higher leverage due to increased access to external funding. This highlights the dynamic interplay of financial factors in shaping corporate capital structures. [ABSTRACT FROM AUTHOR]

This paper focuses on analyzing the impact of the shadow economy on economic growth in ASEAN countries. In particular, the authors examine the role of institutional quality in the effects of the shadow economy on economic growth, which means that this study is different from previous studies. The data sample was collected in 10 ASEAN countries (Brunei Darussalam, Indonesia, Cambodia, Lao PDR, Myanmar, Malaysia, the Philippines, Singapore, Thailand, and Vietnam) from 2002 to 2019. Regarding the analytical method, the authors used a combination of threshold effects and the system - GMM (Generalized Method of Moments) method. The estimation results show a threshold value of institutional quality (λ = 21.23%). Accordingly, shadow economy negatively affects economic growth. This shows that improving institutional quality can help ASEAN countries limit the negative impact of the shadow economy on economic growth. In addition, the authors also find a positive effect of the control variables, such as government expenditure, foreign direct investment, and population growth, on economic growth. These research results are empirical evidence in ASEAN countries; thus, the findings in this study have important implications for ASEAN countries and other countries with similar characteristics. [ABSTRACT FROM AUTHOR]

This study tests institutional quality and the growth-finance' four-contexts hypotheses by investigating the nexus between institutional quality and capital market relative to labour market growth in seven selected sub-Sahara Africa's capital market economies comprising Nigeria, South-Africa, Mauritius, Kenya, Ghana, Cote d'Ivoire and Zimbabwe. Overtime, the dearth of long-term capital and high unemployment have been inimical to well-being of these economies. Perhaps, given the weakness of the market-mechanism in efficient resource allocation in developing economies, the neo-classists theorized integrated institutional-qualities into market reforms and freedom for capacity as probable antidote to market economic philosophy. The study applied pooled mean group and generalized method of moment techniques to data obtained from the World Bank Indicators from 1990 to 2020. It establishes that capital market, proxied by market capitalization induces employment generation while quality of institution exacerbates unemployment. The interaction between institutional quality and market capitalization however significantly reduces unemployment, which suggests that quality institution may be helpful impact to unemployment reduction. The study thus affirms institutional quality hypothesis and finance led growth theory. The paper recommends market freedom, Governments and Securities and Exchange Commissions should deeply liberalize the capital markets for higher citizens' inclusion towards industrial funding and high-quality job creation; listing requirement should be eased; capital tradepoints established in semi-urban centers for market deepening and liquidity. [ABSTRACT FROM AUTHOR]

Purpose: This study aims to examine the association between chief executive officers' (CEOs) characteristics and sell-side analysts' recommendations. Design/methodology/approach: This study uses a sample of firms listed on the London Stock Exchange and uses two databases, Capital IQ and BoardEx to study the above relationship. A variety of regression analyses are used in the empirical models, including ordinary least squares, fixed effect, random effect, Tobit, Logit and generalized method of moments. Findings: The authors find that firms with CEOs who had a wider network size and firms with foreign CEOs receive favorable investment recommendations. Further, firms with CEOs who have more time to retire are more likely to receive favorable investment recommendations. However, the authors find that firms with CEOs with more qualifications receive unfavorable recommendations and female CEOs are not affecting investment recommendations. Originality/value: Ultimately, this study demonstrates the importance of CEO characteristics for sell-side analysts who play an important role in the stock markets. [ABSTRACT FROM AUTHOR]

Purpose: This study aims to determine the effect of board gender diversity on cyber security disclosure (CSD) in the banking sector of Indonesia as a developing country that adheres to a two-tier system. Design/methodology/approach: This study uses a panel data of 47 banks listed on the Indonesia Stock Exchange from 2014 to 2021. The board gender diversity is measured by three proxies, the proportion of women on the board, BLAU Index value and the critical mass of women. The authors used generalized method of moments estimation to eliminate the simultaneous equation bias. Findings: The results show that the women board of commissioners increases CSD, and the women of board of directors/top management team were significantly negative for CSD. Research limitations/implications: First, this research was only conducted in the banking sector. The results cannot be generalized to non-financial companies. Second, there is no measurement of the quality of the board from the level of education, experience, expertise and other characteristics of diversity such as age, nationality and religion. Practical implications: The study has revealed the need for the government's role in providing oversight of the presence of women on the board so that banks fully comply with Indonesia Financial Services Authority regulations. Banks should also actively launch policies regarding the presence of women on the board to give a positive effect to stakeholders that women play an important role in decision making. Banks must also adjust the composition of female commissioners with a threshold of two people to maximize their function as supervisors. Originality/value: This is the first research conducted on the banking sector in Indonesia as a developing country that adheres to a two-tier system. The results of this study provide evidence that patriarchal culture is still dominant in Indonesia. [ABSTRACT FROM AUTHOR]

Agricultural science and technological innovation (ASTI) provides important opportunities to enhance agricultural welfare. Based on comparative advantage, value chain, and resource dependence theories, this study employed a variety of econometric models, including fixed effects (FEs), panel-corrected standard errors (PCSEs), feasible generalized least squares (FGLSs), and the systematic generalized method of moments (SYS-GMM), to investigate the impacts of ASTI on farmers' income using data from a panel of 31 Chinese provinces spanning from 2012 to 2021. Our results reveal that ASTI contributes significantly positively to income growth, but its effects are not uniform: the central and western regions benefit more from ASTI compared to the eastern region. Moreover, as the level of ASTI increases, its positive impact on income growth diminishes. However, regions with higher levels of rural human capital—measured by educational attainment and skills—experience a more pronounced amplification of ASTI's benefits on income. Additionally, aging populations in both urban and rural areas initially enhance the influence of ASTI on farmers' income, but this effect diminishes as demographic gaps widen. [ABSTRACT FROM AUTHOR]

This study investigates the influence of corporate board attributes, such as board size, board independence, board meeting frequency, female representation on board, and audit committee size, on tax avoidance. Moreover, the study also explores the moderating role of institutional ownership on these relationships. We use sample of non‐financial firms listed on Pakistan Stock Exchange over the period 2013–2020. Using the framework of agency theory, we report that board size, board independence, board meetings, gender diversity, and audit committees are associated with lower tax avoidance, and the presence of institutional ownership further strengthens these relationship. To test the hypotheses, ordinary least squares regression analysis is applied and robustness is ensured through by employing Generalized method of moments estimation. Overall, our study offers novel insights into the positive implication of board attributes on tax avoidance, particularly within the framework of institutional ownership settings. [ABSTRACT FROM AUTHOR]

This paper seeks to examine the extent to which environmental, social, and governance (ESG) disclosure affects capital structure and cost of capital for non-financial Fortune 500 firms. With a sample period from 2007 to 2022 and a system (Generalized Method of Moments) GMM estimation method, we investigate the linkage between ESG disclosure scores and both leverage and the weighted average cost of capital (WACC). Thus, we find that firms with stronger ESG performance have higher ESG disclosure and lower leverage ratios and WACC, highlighting that firms with good ESG outcomes have better equity financing facilities and are perceived to be less risky. We also find the moderation effect where the effects of ESG disclosure depend on the level of ESG disclosure. The empirical results thus show that the environmental and social factors have significant influences on leverage and WACC than the governance factors. Furthermore, we show that firm size affects these relationships in that larger firms are more affected by the variables. These findings extend the literature on ESG, and provide relevant information for corporate financial managers, investors, and policymakers about the financial effects of ESG disclosure. This paper therefore provides evidence of the relevance of ESG factors in decisions on capital structure and cost of capital especially for large firms. [ABSTRACT FROM AUTHOR]