scholarly journals The impact of firm heterogeneity and awareness in modeling risk propagation on multiplex networks

2020 ◽  
Vol 539 ◽  
pp. 122919 ◽  
Author(s):  
Hui Liu ◽  
Naiding Yang ◽  
Zhao Yang ◽  
Jianhong Lin ◽  
Yanlu Zhang
Keyword(s):  
Firm Heterogeneity ◽  
Multiplex Networks ◽  
The Impact

scholarly journals The Role of Internal Control in Firms’ Coping with the Impact of the COVID-19 Pandemic: Evidence from China

2021 ◽  
Vol 13 (11) ◽  
pp. 6294
Author(s):  
Peiqing Zhu ◽  
Jianbo Song
Keyword(s):  
Internal Control ◽  
Manufacturing Industry ◽  
Firm Heterogeneity ◽  
Negative Impact ◽  
Risk Prevention ◽  
High Tech ◽  
Obvious Effect ◽  
The Difference ◽  
The Impact

Internal control plays a role in risk prevention for firms when dealing with serious emergencies, which ensures the sustainable development of firms during a crisis. Based on the rapid outbreak of COVID-19 in China, this paper empirically tests whether internal control alleviates the negative impact of the pandemic on firm performance. Using a sample of Chinese listed firms from the first quarter of 2019 to the third quarter of 2020 and employing the difference-in-difference (DID) method, we find that the firms with a higher quality of internal control achieve better financial performance during the pandemic period; the more serious the pandemic is, the more obvious effect internal control plays. Furthermore, we consider the industry heterogeneity and firm heterogeneity of the risk resistance effect of internal control. In the manufacturing industry, which is a “disaster zone” of the pandemic, and the non-high-tech industry with a low degree of digitization, internal control can play a more important role in firms’ performance. Moreover, for state-owned enterprises, and firms with strong financing constraints, the role of internal control is more prominent. The above results provide empirical evidence for the risk prevention function of internal control and shed new light on the measures for firms to resist emergencies in the future.

The impact of environmental policies on productivity and market competition

2014 ◽  
Vol 19 (5) ◽  
pp. 548-565 ◽  
Author(s):  
Javad Sadeghzadeh
Keyword(s):  
Firm Heterogeneity ◽  
Market Competition ◽  
Large Body ◽  
Environmental Policies ◽  
Competitive Environment ◽  
Technology Choice ◽  
Abatement Technology ◽  
Productivity Gain ◽  
The Impact ◽  
Reallocation Of Resources

AbstractWhile a large body of the literature on environmental policies has focused on the productivity impacts of regulations, less attention has been given to the link between environmental policies and market competition. In this paper, I develop a tractable model that incorporates variable mark-ups to study how a competitive environment is affected by environmental policies in a market with firm heterogeneity and endogenous abatement technology choice. The findings of this study are consistent with the Porter Hypothesis in the sense that environmental regulations motivate abatement technology adoption and enhance productivity and environmental quality. However, the productivity gain is mainly driven by reallocation of resources across firms rather than the induced abatement technological change. Tougher regulations harm the competitive environment by increasing average prices and market concentration. Social welfare also drops because in the absence of strong competition fewer variates are produced in equilibrium.

Firm heterogeneity and innovation diffusion performance: absorptive capacities

2019 ◽  
Vol 58 (4) ◽  
pp. 725-742 ◽  
Author(s):  
Hongying Wang ◽  
Bing Sun
Keyword(s):  
Innovation Diffusion ◽  
Technological Innovation ◽  
Absorptive Capacity ◽  
Technology Diffusion ◽  
Structural Equation ◽  
Firm Heterogeneity ◽  
Content Type ◽  
Technological Innovation Diffusion ◽  
The Impact ◽  
Positive Effect

Purpose The purpose of this paper is to undertake research on the relationship of firm heterogeneity and innovation diffusion performance, and the role of absorptive capacity in this relationship. Design/methodology/approach Based on the diffusion of innovation theory, enterprise heterogeneity directly affects the evaluation stage (considering whether to adopt it) and the experimental stage (observing whether it is suitable for one’s own situation) of the diffusion process. Therefore, the paper uses a structural equation model to construct the influencing factors model of enterprise heterogeneity on technology diffusion. Furthermore, questionnaires were distributed to 236 enterprises with different scales, nature and location to explore the impact of heterogeneity on technology diffusion with scientific, objective and comprehensive data. Findings Firm heterogeneity has a positive effect on absorptive capacity and absorptive capacity has a positive effect on technological innovation diffusion performance. Thus, absorptive capacity plays an intermediary role in the effect on enterprise heterogeneity and technological innovation diffusion performance. More interestingly, the authors get some results that are not entirely consistent with the theoretical assumptions. Practical implications Firm heterogeneity plays a central role in the process of innovation diffusion. Enterprises should build internal management platforms to enhance cooperation among employees, and establish links with other enterprises for opportunities for win-win cooperation. In addition, enterprises should control the frequency of internal activities, which will undermine the enthusiasm of enterprise members to participate in technology sharing. Originality/value This paper explores the interaction between technology potential, cooperation frequency and absorptive capacity from the perspective of systems theory. The findings enrich the theory of innovation diffusion, and explore the inherent reasons why enterprise heterogeneity affects innovation diffusion. Furthermore, the theory that intra-firm cooperation promotes innovation diffusion is not always correct.

scholarly journals Foreign Direct Investment, Firm Heterogeneity, and Exports: An Analysis of Indian Manufacturing

2018 ◽  
Vol 35 (1) ◽  
pp. 27-51 ◽  
Author(s):  
Maitri Ghosh ◽  
Saikat Sinha Roy
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Multinational Enterprises ◽  
Firm Heterogeneity ◽  
Export Performance ◽  
Sunk Costs ◽  
Performance Estimation ◽  
Firm Level ◽  
Specific Factors ◽  
The Impact

Using firm-level data, this paper investigates whether foreign direct investment and the presence of multinational enterprises explains India's improved export performance during the postreform period. The recent literature stresses that firm heterogeneity gives some firms an edge over others to self-select into export markets. Apart from ownership, this paper considers firm heterogeneity and other firm-specific factors of export performance. Estimation results show that the impact of foreign ownership on export performance does not significantly differ from that of domestic firms across sectors in Indian manufacturing. Rather, firms build their international competitiveness by importing raw materials and foreign technical know-how, and by investing in research and development. Further, firm heterogeneity, measured in terms of sunk costs, significantly impacts firm-level export intensity. The study also reveals that there are ownership-specific factors that determine firm-level exports.

Körperschaftsbesteuerung und Unternehmensverschuldung: Evidenz aus einem Europäischen Firmenpanel / Capital Structure and Corporate Taxation: Empirical Evidence from European Panel Data

2013 ◽  
Vol 233 (2) ◽  
Author(s):  
Matthias Stöckl ◽  
Hannes Winner
Keyword(s):  
Panel Data ◽  
Firm Heterogeneity ◽  
Corporate Taxation ◽  
Dynamic Panel Data ◽  
Marginal Effect ◽  
The European Union ◽  
Legal Form ◽  
Tax Rate ◽  
Long Run ◽  
The Impact

SummaryThis paper analyzes the impact of corporate taxation on a firm’s debt policy. We contribute to the existing literature in two ways: (i) we explicitly model persistence in the debt-to-asset ratio, and (ii) we incorporate firm heterogeneity with respect to firm size and legal form. Empirically, this implies the use of dynamic panel data econometrics.We employ a panel of about 110,000 firms from 22 countries of the European Union between 1999 and 2007. First, we find that capital structures exhibit a substantial degree of persistence over time. Second, and in line with theoretical expectations, we find that the debt ratio is positively affected by the statutory corporate income tax rate. Specifically, we observe a marginal effect of around 0.3 in our baseline specification, translating into a short-run (long-run) elasticity of about 0.2 (0.3-1.5). Finally, our empirical results show that large firms react more sensitively to the incentives of corporate taxation, while this effect is smaller for public limited companies.

scholarly journals Misallocation in Open Economy

2021 ◽  
Vol 2021 (004) ◽  
pp. 1-38
Author(s):  
Maria D. Tito ◽  
◽  
Ruoying Wang ◽  
Keyword(s):  
Open Economy ◽  
Firm Heterogeneity ◽  
Empirical Relationship ◽  
Selection Effect ◽  
National Bureau ◽  
Firm Level ◽  
Labor Reallocation ◽  
Trade Shocks ◽  
Labor Inputs ◽  
The Impact

This paper estimates the impact of reducing export and import tariffs on firm input choices. In presence of borrowing constraints, lower export tariffs facilitate the reallocation of capital and labor inputs across firms, while a decline in import tariffs either tightens import competition or increases the availability of imported inputs; all three mechanisms suggest that a higher degree of openness should be associated with lower misallocation. To analyze the empirical relationship between openness and input misallocation, we draw on the annual surveys conducted by the Chinese National Bureau of Statistics (NBS) between 1998 and 2007. From the surveys, we con- struct firm-level measures of input misallocation that control for firm heterogeneity; we identify shocks to openness using industry tariff levels and firm trade shares. We find that firm facing higher tariffs in either import or export markets make less optimal input choices. We further decompose our analysis between input and output tariffs: our results suggest that the labor reallocation mainly occurs because of lower input tariffs, while the selection effect induced by changes in output tariffs does not necessarily cause more distorted firms to exit and, therefore, tends to have an insignificant effect on input allocation. Finally, we calculate the contribution of tariff changes towards aggregate misallocation and productivity: our results indicate that the impact of firm-level tariff reductions on aggregate misallocation and productivity was marginal in our sample period, but the presence of sizeable interactions between trade shocks and mis- allocation at the sector level suggests that our result should be interpreted as a lower bound of the overall effect.

scholarly journals Role of Time Scales in the Coupled Epidemic-Opinion Dynamics on Multiplex Networks

Entropy ◽  
2022 ◽  
Vol 24 (1) ◽  
pp. 105
Author(s):  
Robert Jankowski ◽  
Anna Chmiel
Keyword(s):  
Dynamic Model ◽  
Crucial Role ◽  
Opinion Dynamics ◽  
Point Of View ◽  
Entire System ◽  
Epidemic Spreading ◽  
Multiplex Networks ◽  
The Impact ◽  
Opinion Dynamic

Modelling the epidemic’s spread on multiplex networks, considering complex human behaviours, has recently gained the attention of many scientists. In this work, we study the interplay between epidemic spreading and opinion dynamics on multiplex networks. An agent in the epidemic layer could remain in one of five distinct states, resulting in the SIRQD model. The agent’s attitude towards respecting the restrictions of the pandemic plays a crucial role in its prevalence. In our model, the agent’s point of view could be altered by either conformism mechanism, social pressure, or independent actions. As the underlying opinion model, we leverage the q-voter model. The entire system constitutes a coupled opinion–dynamic model where two distinct processes occur. The question arises of how to properly align these dynamics, i.e., whether they should possess equal or disparate timescales. This paper highlights the impact of different timescales of opinion dynamics on epidemic spreading, focusing on the time and the infection’s peak.

scholarly journals Credit Supply and Monetary Policy: Identifying the Bank Balance-Sheet Channel with Loan Applications

2012 ◽  
Vol 102 (5) ◽  
pp. 2301-2326 ◽  
Author(s):  
Gabriel Jiménez ◽  
Steven Ongena ◽  
José-Luis Peydró ◽  
Jesús Saurina
Keyword(s):  
Monetary Policy ◽  
Firm Heterogeneity ◽  
Supply And Demand ◽  
Balance Sheet ◽  
Economic Conditions ◽  
Balance Sheet Channel ◽  
Loan Demand ◽  
Loan Supply ◽  
Credit Restriction ◽  
The Impact

We analyze the impact of monetary policy on the supply of bank credit. Monetary policy affects both loan supply and demand, thus making identification a steep challenge. We therefore analyze a novel, supervisory dataset with loan applications from Spain. Accounting for time-varying firm heterogeneity in loan demand, we find that tighter monetary and worse economic conditions substantially reduce loan granting, especially from banks with lower capital or liquidity ratios; responding to applications for the same loan, weak banks are less likely to grant the loan. Finally, firms cannot offset the resultant credit restriction by applying to other banks. (JEL E32, E44, E52, G21, G32)

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