Innovation decisions through firm life cycle: A new evidence from emerging markets

Shahzad, Farrukh; Ahmed, M Maqsood; Fareed, Zeeshan; Wang, Zhenkun

doi:10.1016/j.iref.2021.11.009

Cited by 47 publications

(23 citation statements)

References 72 publications

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“…The endogenous growth hypothesis, which contends that technological development boosts a nation’s capacity to replace polluting resources with more environmentally friendly ones, lends credence to this case. According to Shahzad et al ( 2022 ), technological innovation provides a pathway that enables a decrease in EC, an improvement in energy efficiency, and a considerable reduction in carbon emissions. Our findings concur with those of Ibrahim and Vo ( 2021 ), who revealed that innovative technologies improve ecological quality in Big Emerging Market (BEM) countries.…”

Section: Empirical Results and Their Discussionmentioning

confidence: 99%

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Revisiting the nexus between fiscal decentralization and CO2 emissions in South Africa: fresh policy insights

Udeagha

Breitenbach

2023

Financ Innov

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The argument over fiscal decentralization and carbon dioxide emission (CO2) reduction has received much attention. However, evidence to back this claim is limited. Economic theory predicts that fiscal decentralization affects environmental quality, but the specifics of this relationship are still up for debate. Some scholars noted that fiscal decentralization might lead to a race to the top, whereas others contended that it would result in a race to the bottom. In light of the current debates in environmental and development economics, this study aims to provide insight into how this relationship may function in South Africa from 1960 to 2020. In contrast to the existing research, the present study uses a novel dynamic autoregressive distributed lag simulation approach to assess the positive and negative changes in fiscal decentralization, scale effect, technique effect, technological innovation, foreign direct investment, energy consumption, industrial growth, and trade openness on CO2 emissions. The following are the main findings: (i) Fiscal decentralization had a CO2 emission reduction impact in the short and long run, highlighting the presence of the race to the top approach. (ii) Economic growth (as represented by the scale effect) eroded ecological integrity. However, its square (as expressed by technique effect) aided in strengthening ecological protection, validating the environmental Kuznets curve hypothesis. (iii) CO2 emissions were driven by energy utilization, trade openness, industrial value-added, and foreign direct investment, whereas technological innovation boosted ecological integrity. Findings suggest that further fiscal decentralization should be undertaken through further devolution of power to local entities, particularly regarding environmental policy issues, to maintain South Africa’s ecological sustainability. South Africa should also establish policies to improve environmental sustainability by strengthening a lower layer of government and clarifying responsibilities at the national and local levels to fulfill the energy-saving functions of fiscal expenditures.

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Section: Empirical Results and Their Discussionmentioning

confidence: 99%

“…Sixth, TECH is viewed as a critical component in reducing energy usage, improving energy efficiency, and enhancing the ecological environment (Ahmad and Wu 2022;Fareed et al 2022). The use of technological advancement is necessary to enable sustainable industries and enhance the sustainability of the environment.…”

Section: Variables and Data Sourcesmentioning

confidence: 99%

Revisiting the nexus between fiscal decentralization and CO2 emissions in South Africa: fresh policy insights

Udeagha

Breitenbach

2023

Financ Innov

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show abstract

“…The endogenous growth hypothesis, which contends that technological development boosts a nation’s capacity to replace polluting resources with more environmentally friendly ones, lends credence to this. Technology innovation, according to Shahzad et al ( 2022 ), provides a pathway that enables a decrease in energy consumption, an improvement in energy efficiency, and a considerable decrease in carbon emissions. Our findings concur with those of Ibrahim and Vo ( 2021 ), who revealed that ecological quality is improved by innovative technologies in Big Emerging Market (BEM) countries.…”

Section: Empirical Results and Their Discussionmentioning

confidence: 99%

Can fiscal decentralization be the route to the race to zero emissions in South Africa? Fresh policy insights from novel dynamic autoregressive distributed lag simulations approach

Udeagha

Breitenbach

2023

Environ Sci Pollut Res

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There has been a plethora of debate on the link between fiscal decentralization and a drop in carbon dioxide (CO 2 ) emissions, even though the evidence supporting this assertion is relatively sparse. Although the precise nature of this relationship is still up for discussion, economic hypothesis postulates that fiscal decentralization has an impact on environmental sustainability. Some researchers claim that fiscal decentralization could potentially result in a race to the top, while some believe it would lead to a race to the bottom. This analysis intends to shed light on the precise processes by which this connection may work in South Africa between 1960 and 2020 in light of current discussions in environmental and development economics. In contrary to previous studies, this paper employs a cutting-edge dynamic autoregressive distributed lag simulations methodology to evaluate the positive and negative variations in fiscal decentralization on CO 2 emissions. Our findings demonstrate the prevalence of the race to the top strategy by illustrating how fiscal decentralization has a bearing on CO 2 emissions reduction in the short and long terms. In accordance with the findings, greater fiscal decentralization should be implemented through the transfer of more powers to regional authorities, especially in the realm of environmental legislation considerations, in a bid to preserve South Africa’s environmental integrity. By establishing a lower tier of government and defining roles at the federal and provincial divisions, South Africa could adopt strategies to improve green environment in an effort to fulfill the energy-saving tasks of fiscal expenditures.

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“…Following the model suggested by Dickinson (2011) for measuring firm's life cycle with cash flow statement approach, this model has two main benefits: First, it contains more information regarding firm activities compared with other models that depend on one measurement for life cycle such as firm's age and retained earnings. Second, it discloses the actual position of different phases of firm's life (Shahzad et al 2022). It is a robust tool that has applications in analysis, and it was adopted in previous studies (e.g., Abbas et al 2018;Mangoting and Onggarra, 2019;Irawan and Afif, 2020).…”

Section: -2-1-2 Firm Life Cyclementioning

confidence: 99%

أثر التجنب الضریبی ودورة حیاة الشركة على الاحتفاظ بالنقدیة: دلیل من سوق الأوراق المالیة المصری(باللغة الانجلیزیة)

الداوایاتی¹

2022

مجلة الاسکندریة للبحوث المحاسبیة

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This research aims to investigate the impact of tax avoidance and firm life cycle on cash holdings for a sample of 126 non-financials companies listed on the Egyptian stock market with 711 observations for the period 2012 -2019. Tax avoidance, the first independent variable is measured by two proxies: the current effective tax rate (ETR), and book tax difference ratio (BTD). For the second independent variable, firm's life cycle, the cash flow approach is used to capture the five stages of the life cycle. Turning to the cash holdings as the dependent variable, two indicators are used. The first main indicator is Ln cash ratio calculated by taking the natural logarithm of cash and cash equivalents to total assets. The second indicator is used in the robustness test, which is calculated as the natural logarithm of cash and cash equivalents divided by total assets minus cash and cash equivalents. The results elaborated that there is a significant negative relationship between tax avoidance measured by the two proxies and cash holdings measured by the two indicators. Additionally, the findings displayed that the introduction stage of the firm's life cycle has a significant negative impact on cash holdings and a significant positive effect of shake-out stage on cash holdings while there is no relationship between the growth, mature and decline stages and cash holdings. The statistical tests are repeated for all variables using the second indicator of cash holding and the same results are obtained. Beyond these tests, for more analysis the research sample is divided into five subsamples presented the five stages of firm's life cycle. The results showed that higher negative impact of tax avoidance on cash holdings lies in the shake-out and the decline stages. On the other side, no impact of tax avoidance on cash holdings in the remaining stages.

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Innovation decisions through firm life cycle: A new evidence from emerging markets

Cited by 47 publications

References 72 publications

Revisiting the nexus between fiscal decentralization and CO2 emissions in South Africa: fresh policy insights

Revisiting the nexus between fiscal decentralization and CO2 emissions in South Africa: fresh policy insights

Can fiscal decentralization be the route to the race to zero emissions in South Africa? Fresh policy insights from novel dynamic autoregressive distributed lag simulations approach

أثر التجنب الضریبی ودورة حیاة الشركة على الاحتفاظ بالنقدیة: دلیل من سوق الأوراق المالیة المصری(باللغة الانجلیزیة)

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