Estimating dynamic Panel data. A practical approach to perform long panels.

Lillo, Romilio Labra; Torrecillas, Celia

doi:10.15446/rce.v41n1.61885

Cited by 96 publications

(37 citation statements)

References 26 publications

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“…Endogeneity may result from measurement errors, simultaneity, or omitted variables. In this case, regression using ordinary least squares (OLS) is not adequate and other models must be employed to correct it (Labra & Torrecillas, 2014). Based on previous studies, some authors have argued that endogeneity is a typical problem in panel models that should be corrected (Espinosa et al, 2012;Margaritis & Psillaki, 2010;Phuong & Bich, 2017;Rajan & Zingales, 1995).…”

Section: Sample Variables and Data Collectionmentioning

confidence: 99%

Capital structure and performance in Latin American companies

Mardones

Cuneo

2019

Economic Research-Ekonomska Istraživanja

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The purpose of this study is to explain the financial performance of companies in Latin America through the lens of capital structure and ownership structure. We perform a quantitative analysis of companies in Brazil, Chile, Mexico, and Peru using a panel data method. To avoid endogeneity problems, instrumental variables, generalised method of moments models, and panels with random effects are employed. The data cover the period 2000 to 2015. We find a positive relationship between financial performance, growth, and size of the company. However, there are mixed results for short-and long-term financial leverage, as well as for company liquidity. With respect to the ownership structure of Chilean companies, a positive effect is observed for the first major shareholder with financial performance. In general, our results are in line with those of previous studies. However, the existence of mixed results between companies and countries makes for an interesting and novel conclusion.

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Section: Sample Variables and Data Collectionmentioning

confidence: 99%

Capital structure and performance in Latin American companies

Mardones

Cuneo

2019

Economic Research-Ekonomska Istraživanja

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“…Further, the Difference GMM have choice to do analysis through two options i.e., One step GMM and Two step GMM, depending on the homoscedasticity or hetrocedasticity of the weighting matrix. Academic Literature reveals that two step GMM method is more effective with use of hetrocedastic weighting matrix in the analysis (Labra and Torrecillas 2018). Another issue related with dynamic panel model is the presence of over-identification problem that can be effectively checked by Sargan & Hansen tests.…”

Section: Empirical Methods and Modelmentioning

confidence: 99%

The Effects of Regulatory Capital Requirements and Ownership Structure on Bank Lending in Emerging Asian Markets

Akhtar

Kayani

Yousaf

2019

JRFM

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This study examines the impact of regulatory capital requirements and ownership structure on bank lending in Emerging Asian Markets. The findings of the study imply that banks with excess capital are less affected by capital constraints and enjoy opportunities to extend their credit portfolios. The monitory policy indicator has the expected negative and significant impact on bank lending. In case of well-capitalized banks, the interaction between the excess capital and monetary policy indicator has a significant positive relation with bank lending, which means that banks with excess capital have capability to raise uninsured financing and shield their loan portfolios as compared to less-capitalized banks that reduce their lending in the period of monetary tightening. In the case of bank ownership structure, banks with excess capital ratios and ownership concentration lead towards an increase in lending activity. The findings also show that well-capitalized banks with managerial ownership tend to reduce lending which validates agency theory of corporate governance.

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“…The empirical results in Columns 7, 8, and 9 in Table 5 align with the basic models and previous empirical findings. To identify the exogenous instrumental variables, we performed the Sargan-Hansen overidentifying restriction test, following Labra and Torrecillas [50], who state that the p-value of Hansen's J between 0.05 and 0.80 means the test's asymptotic properties have been applied. The Hanson's J p-value for overall foreign institutional ownership, foreign institutional pressure-resistant, and foreign institutional pressure-sensitive investors is 0.33, 0.19, and 0.48, respectively, indicating the validity of instruments and the consistency of estimates.…”

Section: Robustness Checkmentioning

confidence: 99%

Does Foreign Institutional Equity Participation Instigate Sustainable Corporate Investment Efficiency? Evidence from Emerging Economies

2021

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This study examines the impact of overall foreign institutional equity participation and its two types—foreign institutional pressure-resistant and pressure-sensitive—on firm sustainable investment efficiency for non-financial listed domestic firms of three emerging economies over the period of 2009–2018, using an unbalanced panel of 733 firms with 4468 firm-year observations. It also investigates the impact of varying levels of foreign equity participation on investment efficiency. We used the regression estimation technique with robust standard errors clustered at the firm level. We also used the second-stage instrumental variable (IV) method to control potential endogeneity. Empirical findings reveal that overall foreign institutional equity participation and foreign institutional pressure-resistant ownership have a positive and significant impact on corporate investment efficiency, whereas foreign institutional pressure-sensitive ownership has a positive but insignificant impact. When we divided the overall institutional foreign equity ownership and its two types into five levels, we found a positive and significant impact of overall foreign institutional ownership at all levels. The foreign institutional pressure-resistant ownership has a positive and significant impact on investment efficiency when it is greater than 10%. However, we found a weak relationship of foreign institutional pressure-sensitive equity ownership with investment efficiency at all varying levels of investments. These results are robust when we controlled for endogeneity. Our results have implications for policymakers, regulators, academicians, and potential foreign equity participants. These results can be generalized to those emerging economies that have the potentials for attracting foreign equity inflows.

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Estimating dynamic Panel data. A practical approach to perform long panels.

Cited by 96 publications

References 26 publications

Capital structure and performance in Latin American companies

Capital structure and performance in Latin American companies

The Effects of Regulatory Capital Requirements and Ownership Structure on Bank Lending in Emerging Asian Markets

Does Foreign Institutional Equity Participation Instigate Sustainable Corporate Investment Efficiency? Evidence from Emerging Economies

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