Search results for "Endogeneity"
showing 10 items of 52 documents
Risk committee complexity and liquidity risk in the European banking industry
2021
Abstract The present study aims to investigate how bank governance characteristics are related to liquidity risk by analysing board composition, gender, and the risk committee. A dynamic panel data model is employed on a sample of European banks during the period after the financial crisis (from 2011 to 2017). Furthermore, we collect information about the profiles of the directors on the boards of banks, thereby creating five categories of risk committee members. To address the endogeneity issue, a generalised method of moments two-step estimator is implemented. The findings highlight that the fundamental role of the risk committee adequately shields banks against general liquidity risks. M…
Exporting and innovation performance: analysis of the Annual Small Business Survey in the UK
2011
This paper analyses the determinants of the export propensity of UK small and medium-sized enterprises (SMEs) based on the 2004 Annual Small Business Survey. Particular emphasis is placed upon the relationship between innovation activities (distinguishing product from process innovation) and export performance. In general the data suggest that some 17 per cent of firms within this group sell outside the UK. Businesses that export are also characterized by high levels of innovation activity (43 per cent of exporters innovate in products, 27 per cent innovate in process and 21 per cent innovate in both). When considering product and process innovation independently we find that both impact p…
Am I riskier if I rescue my banks? Beyond the effects of bailouts
2021
Abstract We examine the relationship between bank bailouts and sovereign risk in 35 countries and 19 bailouts from 2005 to 2015. Bailouts negatively affect sovereign ratings, with rating agencies consistently perceiving higher risk when a country’s banking system has been rescued (risk-increasing effect). The increase in public debt as a result of the bank bailouts is the main mechanism through which the risk-increasing effect occurs. Moreover, financial soundness and banking market structure shape the impact of bailouts on sovereign risk. In particular, proactiveness in undertaking public bailouts for banking systems that are largely distressed – that is, risky and low profitable – and hig…
Am I riskier if I rescue my banks? The unintended effects of bailouts
2021
We examine the relationship between bank bailouts and sovereign risk in 35 countries and 19 bailouts during 2005–2015. Bailouts negatively affect sovereign ratings, with rating agencies consistently perceiving higher risk when the country’s banking system has been rescued (risk-increasing effect). Financial soundness and banking market structure shape the impact of bailouts on sovereign risk. In particular, proactiveness in undertaking public bailouts for banking systems that are largely distressed -risky and low profitable- and highly concentrated seems to lead to lower increases in sovereign risk. However, the strength of the connection between the public sector and the banking system nei…
Les déterminants de la complexité des systèmes d’information comptables des dirigeants de PME : contingences culturelles et endogénéité
2018
Le premier objectif est d’étudier le lien entre les dimensions de la culture nationale et la complexité des systèmes d’information comptables (SIC) des dirigeants de PME. Le second est de contribuer au débat sur la présence potentielle de biais d’endogénéité dans les précédentes études réalisées sur le thème. Une régression multiple et un test d’Hausman ont été mobilisés en utilisant les réponses de 276 dirigeants de PME françaises, tunisiennes et syriennes. Les quatre dimensions de la culture proposées par Hofstede sont des déterminants significatifs de la complexité des SIC. Le test d’Hausman révèle que l’existence d’endogénéité est peu plausible.
How costly are debt crises?
2011
The aim of this paper is to assess the short- and medium-term impact of debt crises on GDP. Using an unbalanced panel of 154 countries from 1970 to 2008, the paper shows that debt crises produce significant and long-lasting output losses, reducing output by about 10 percent after eight years. The results also suggest that debt crises tend to be more detrimental than banking and currency crises. The significance of the results is robust to different specifications, identification and endogeneity checks, and datasets.
Economic Returns to Education in France: OLS and Instrumental Variable Estimations
2013
En ligne sur : http://121.52.153.179/JOURNAL/LJE%20VOL%2018-2/Bhatti,%20Bourdon%20and%20Aslam.pdf; International audience; This article estimates the economic returns to schooling as well as analyzing other explanatory factors for the French labor market. It addresses the issue of endogeneity bias and proposes two new instruments for use in the instrumental variable two-stage least squares technique. Our results show that the proposed instruments are relevant and adequate, based on evidence from the available literature. After using the proposed instruments, we find that the OLS coefficients for schooling are biased downwards. Finally, we choose between the two proposed instruments.
Structure and determinants of production in Textile-Clothing-Leather-Skins (TCLS) craft industry in Benin: a study based on investigations of the val…
2014
Lieu et date de la conférence modifiées. Prétoria 31Juillet au 2 Août 2014 (Au lieu de Kigali -Rwanda); International audience; Sustainable economic growth in Benin requires a better understand of the informalsector, which contributes to two-thirds of GDP. Particularly, craft industry and TCLSsubsector is one of informal activity sector to be handled. The objectives of this work wereto identify the structure and factors that determine the production in TCLS craft industry.This study was based on a survey carried out in February 2011 on value creationdata in craft industry of TCLS in Benin. Lack of data induced by informal activities wascircumvented using an imputation method. A Multiple Cor…
Saving Lives at Birth: The Impact of Home Births on Infant Outcomes
2012
Many developed countries have recently experienced sharp increases in home birth rates. This paper investigates the impact of home births on the health of low-risk newborns using data from the Netherlands, the only developed country where home births are widespread. To account for endogeneity in location of birth, we exploit the exogenous variation in distance from a mother’s residence to the closest hospital. We find that giving birth in a hospital leads to substantial reductions in newborn mortality. We provide suggestive evidence that proximity to medical technologies may be an important channel contributing to these health gains.
On Ignoring the Random Effects Assumption in Multilevel Models: Review, Critique, and Recommendations
2019
Entities such as individuals, teams, or organizations can vary systematically from one another. Researchers typically model such data using multilevel models, assuming that the random effects are uncorrelated with the regressors. Violating this testable assumption, which is often ignored, creates an endogeneity problem thus preventing causal interpretations. Focusing on two-level models, we explain how researchers can avoid this problem by including cluster means of the Level 1 explanatory variables as controls; we explain this point conceptually and with a large-scale simulation. We further show why the common practice of centering the predictor variables is mostly unnecessary. Moreover, …