Margin: The Journal of Applied Economic Research, Volume 17, Issue 1-2, Page 124-162, February–May 2023.
This article addresses one of the most critical yet overlooked problems of the excessive absence of students in primary grades in India. Considering the intuitive link between students’ attendance and achievements, this article empirically investigates the incidences and causes of chronic absenteeism while examining the variations in the attainment of foundational skills of primary students. Using data from the India Human Development Survey, round II, the authors find a continuous decline in the attainment of foundational skills among students as the absenteeism rate increases from ‘normal’ to ‘chronic’, clearly indicating that attendance works! Further, the logistic regression model shows that poor health conditions of a child, larger school distance, extra school working hours, teaching factors and harsh punishments are among the major contributing factors leading to chronic absence among students. Early attention and strict policy interventions are required due to their direct implications on the cognitive growth of young minds and the quality and productivity of the overall school education.JEL Codes: I21, I24, I28
Heterogeneity in needs and purchases in Australian retirees
Abstract
To plan for retirement, it is important to understand how needs and purchases may change. We use data from a survey of elderly Australians to see how needs and purchases changed in different categories of goods and services. We looked especially at those who had experienced financial or health shocks. Our analysis shows variation in people's experiences, particularly for health costs, which increase with age. Having private health insurance appears to increase the level and volatility of health costs – presumably as a result of out-of-pocket costs. This information can be useful for financial advisors and superannuation trustees.
Emotions and inventor productivity: Evidence from terrorist attacks
Abstract
We examine whether the emotional shocks associated with terrorist attacks affect local inventors' productivity. We find that high-fatality attacks make inventors less innovative, and low-fatality attacks make them more innovative. Inventors living in high risk-taking environments have greater increase in productivity following low-fatality attacks, while less decrease in productivity following high-fatality attacks. Further, the effect of terrorist attacks on inventor productivity comes mainly from exploratory innovation which involves more risks. Inventors affected by high-fatality attacks are also more likely to move to places without any significant terrorist attack history, but there is no such effect for low-fatality attacks.
On the state of financial research: Is it in a silo?
Abstract
This study on the state of financial research analysed the citations made in leading business and economics journals in the period 1997–2020. It found that, contrary to other business fields, and despite citing more references, finance researchers overlooked the fruitful mode of knowledge creation by integrating advances from disciplines other than economics. Additionally, citations in economics became disproportionate to older papers. Furthermore, intradisciplinary citations remained predominantly in the same four journals, although others became prominent. These findings on the state of financial research supplement other issues inhibiting finance knowledge progression and have inferences regarding the training of future scholars.
Management accountants with a growth mindset and changes in the design of costing systems: The role of organisational culture
Abstract
Based on implicit person theories, this paper investigates the relationship between the growth mindset of management accountants and changes in the design of costing systems, as well as the role that organisational culture plays in this relationship. Using survey data from 146 management accountants of manufacturing companies, we find that management accountants who have a growth mindset increase the complexity, inconclusiveness, and functionality of their firm's costing system, compared to those who have a fixed mindset. Additionally, our results show that innovation-oriented culture (a dimension of organisational culture) strengthens the relationship between growth mindset and changes in the design of the costing system.
Does corporate ESG disclosure enhance investor relationship management? Evidence from China
Abstract
This study investigates the enhancing effect of environmental, social, and governance (ESG) disclosure on investor relations management (IRM). The better the ESG disclosure, the higher the level of IRM. furthermore, this enhancement is achieved by reducing information asymmetry, improving information dissemination efficiency, and attracting investors attention, and it is more prominent in a sound institutional environment and a concentrated shareholding structure. Moreover, institutional investors show greater receptivity to ESG-driven IRM compared to individual investors. Finally, we indicate that IRM is enhanced by ESG disclosure, ultimately fostering high-quality corporate development. These findings provide valuable insights for promoting the standardisation of ESG disclosure and optimising IRM practices.
Corporate transparency among government suppliers: Implications for firm valuation
Abstract
Corporate transparency has a positive impact on firm valuation, as predicted by agency theory; however, the transparency of strategically important government suppliers is not rewarded with higher valuations as the market expects politically sensitive firms to be inherently more transparent. The association between transparency and valuation among politically sensitive firms is consistent with the political cost hypothesis. We address endogeneity concerns using propensity score matching, Heckman's self-selection models and entropy balancing. Our findings offer novel insights, suggesting that the influence of transparency on corporate valuation varies with political sensitivity – a significant consideration for both finance professionals and scholars.
Optimal capital structure with supplier market power
Abstract
We use a real-option model to study the effect of input supplier's market power on a firm's capital structure, and identify the Nash equilibrium outcome (firm's investment and financing policies and its supplier's pricing policy). When its supplier has market power, the firm will reduce leverage ratio and delay investment. This can help explain why observed leverage ratios are lower than in traditional capital-structure models (without supplier market power). Firm value can be increased by the vertical acquisition of the supplier, which would also result in a higher leverage ratio. This helps explain the observed increase in leverage ratios after acquisitions.
Assessing Technical Efficiency of Cooperative Vis-à-Vis Private Dairy Plants in Andhra Pradesh, India: A Stochastic Frontier Analysis
The Indian Economic Journal, Ahead of Print.
This study aims to determine the levels of production efficiencies and their determinants across India’s private and cooperative structures. Stochastic frontier modelling of a panel data sample comprising 14 plants (7 cooperatives and 7 private) in Andhra Pradesh for six years from 2013 to 2019 was considered. The production inefficiencies obtained are then modelled based on the ownership status and percentage of female employment to identify if these affect the variations in the scores. The results observed the presence of production inefficiencies under both structures, but the production efficiency was observed to rise over the period, that is, reducing inefficiencies. The results revealed a marginal but significant efficiency advantage of the cooperative plants over the private plants. The mean technical efficiency of all the firms was observed at 0.69, that of the cooperatives at 0.72 for and that of the private dairies at 0.66. This implies that the average efficiencies can be improved by 0.31 using the existing resources. The cooperative ownership of the plant and greater female employment rate was found to enhance production efficiency. The results can significantly impact policy design for both the state government and private entities. The observed advantage of cooperative ownership and greater female employment rates in enhancing production efficiency could guide policy decisions related to ownership structures and workforce diversity.JEL Codes: C5, C880, Q1, L2
This study aims to determine the levels of production efficiencies and their determinants across India’s private and cooperative structures. Stochastic frontier modelling of a panel data sample comprising 14 plants (7 cooperatives and 7 private) in Andhra Pradesh for six years from 2013 to 2019 was considered. The production inefficiencies obtained are then modelled based on the ownership status and percentage of female employment to identify if these affect the variations in the scores. The results observed the presence of production inefficiencies under both structures, but the production efficiency was observed to rise over the period, that is, reducing inefficiencies. The results revealed a marginal but significant efficiency advantage of the cooperative plants over the private plants. The mean technical efficiency of all the firms was observed at 0.69, that of the cooperatives at 0.72 for and that of the private dairies at 0.66. This implies that the average efficiencies can be improved by 0.31 using the existing resources. The cooperative ownership of the plant and greater female employment rate was found to enhance production efficiency. The results can significantly impact policy design for both the state government and private entities. The observed advantage of cooperative ownership and greater female employment rates in enhancing production efficiency could guide policy decisions related to ownership structures and workforce diversity.JEL Codes: C5, C880, Q1, L2
Demand for Maternal Health Inputs in Eastern States of India
The Indian Economic Journal, Ahead of Print.
Using NFHS-4 data, this study explores the determinants of maternal health care programmes for eastern states of India, which include prenatal care and hospital delivery. To reduce unobserved heterogeneity in the analysis, we employed the Full Information Likelihood Method, also known as the Joint Estimation Technique, in conjunction with individual probit models. Like other studies, we found place of residence, wealth, caste, religion and level of education as significant contributor for demand for both services. But, unlike earlier studies, we found that women’s age increases the use of prenatal care and hospital delivery, and the child’s birth order influences getting prenatal care. To increase the utilisation of maternal health care services, we recommend investing in health infrastructure, increasing the Janani Suraksha Yojana (JSY) subsidy amount and coverage of the Janani Shishu Suraksha Karyakram (JSSK) scheme, and promoting awareness about various government programmes among women through the Accredited Social Health Activists (ASHAs).JEL Codes: I140, I150, I180, O150
Using NFHS-4 data, this study explores the determinants of maternal health care programmes for eastern states of India, which include prenatal care and hospital delivery. To reduce unobserved heterogeneity in the analysis, we employed the Full Information Likelihood Method, also known as the Joint Estimation Technique, in conjunction with individual probit models. Like other studies, we found place of residence, wealth, caste, religion and level of education as significant contributor for demand for both services. But, unlike earlier studies, we found that women’s age increases the use of prenatal care and hospital delivery, and the child’s birth order influences getting prenatal care. To increase the utilisation of maternal health care services, we recommend investing in health infrastructure, increasing the Janani Suraksha Yojana (JSY) subsidy amount and coverage of the Janani Shishu Suraksha Karyakram (JSSK) scheme, and promoting awareness about various government programmes among women through the Accredited Social Health Activists (ASHAs).JEL Codes: I140, I150, I180, O150