Research background: The heterogeneity in the factors that affect demand for environmental quality implicates a diverse set of policies and actions aimed at achieving cleaner production to address the challenges posed by pollution and damage to the natural environment. Even though this topic has been widely addressed, mainly from the traditional perspective of the Environmental Kuznets Curves hypothesis (EKC), it has been assumed that the environment is a luxury good with an income elasticity greater than unity. However, it has recently been recognized that the relationship between income and demand for cleaner energy may be more complex and that further inquiry may be needed for a better understanding. Purpose of the article: This research work, employing a panel of European countries, offers direct explicit parameters for the elasticity of income-environmental quality demand for Greenhouse Gases (GHG), as well as its relationship with other important factors. It provides quantitative novel insights into the complex relationship between income and the preferences for cleaner energy. Methods: A hierarchical regression equations approach is used to analyze the evolution of the elasticity of income-environmental quality demand with the inclusion of further co-variates that are relevant for the preferences side of the EKC, such as consumption, R+D investment and BERD (Business Enterprise Research and Development). The data for the empirical study comes from a panel of 16 European countries for the period from 2010 to 2020. Findings & value added: The results show robust evidence that the elasticity of environmental quality demand, which although positive and significant, does not exceed one. To obtain an elasticity above unity, two more variables are needed, namely the R+D expenditure of business enterprises and the exposure of citizens to air pollution. These two factors have a similar or even higher effect on the preferences of agents for cleaner energy, which also means that the preferences of the citizens are endogenous to technological development. At the theoretical level, this work shows that the technological and preferences arguments are not substitute explanations of the EKC, but that technological development exerts a positive effect on the preferences of inhabitants, whose demand for environmental quality is heavily conditioned by their capabilities to see pollution, even more than by their income level. This also means that public policies directed to improve environmental awareness should be directed first towards those regions where the exposure of the citizens to pollution is lower.
{"title":"What drives the preferences for cleaner energy? Parametrizing the elasticities of environ-mental quality demand for greenhouse gases","authors":"J. Sánchez García, Emilio Galdeano Gómez","doi":"10.24136/oc.2023.012","DOIUrl":"https://doi.org/10.24136/oc.2023.012","url":null,"abstract":"Research background: The heterogeneity in the factors that affect demand for environmental quality implicates a diverse set of policies and actions aimed at achieving cleaner production to address the challenges posed by pollution and damage to the natural environment. Even though this topic has been widely addressed, mainly from the traditional perspective of the Environmental Kuznets Curves hypothesis (EKC), it has been assumed that the environment is a luxury good with an income elasticity greater than unity. However, it has recently been recognized that the relationship between income and demand for cleaner energy may be more complex and that further inquiry may be needed for a better understanding.\u0000Purpose of the article: This research work, employing a panel of European countries, offers direct explicit parameters for the elasticity of income-environmental quality demand for Greenhouse Gases (GHG), as well as its relationship with other important factors. It provides quantitative novel insights into the complex relationship between income and the preferences for cleaner energy.\u0000Methods: A hierarchical regression equations approach is used to analyze the evolution of the elasticity of income-environmental quality demand with the inclusion of further co-variates that are relevant for the preferences side of the EKC, such as consumption, R+D investment and BERD (Business Enterprise Research and Development). The data for the empirical study comes from a panel of 16 European countries for the period from 2010 to 2020.\u0000Findings & value added: The results show robust evidence that the elasticity of environmental quality demand, which although positive and significant, does not exceed one. To obtain an elasticity above unity, two more variables are needed, namely the R+D expenditure of business enterprises and the exposure of citizens to air pollution. These two factors have a similar or even higher effect on the preferences of agents for cleaner energy, which also means that the preferences of the citizens are endogenous to technological development. At the theoretical level, this work shows that the technological and preferences arguments are not substitute explanations of the EKC, but that technological development exerts a positive effect on the preferences of inhabitants, whose demand for environmental quality is heavily conditioned by their capabilities to see pollution, even more than by their income level. This also means that public policies directed to improve environmental awareness should be directed first towards those regions where the exposure of the citizens to pollution is lower.","PeriodicalId":46112,"journal":{"name":"Oeconomia Copernicana","volume":null,"pages":null},"PeriodicalIF":8.5,"publicationDate":"2023-06-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46184277","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Isidro Peña, Silvia M. Andrade, R. M. Muñoz, I. Martínez
Research background: In 2015, the United Nations (UN) set the 2030 Agenda for Sustainable Development and established 17 Sustainable Development Goals (SDGs) containing the social, economic, and environmental pillars of sustainable development. These focus on governments, society, non-profit organisations, and the private sector. This last pillar plays a key role in the pursuit of these goals, but there remains a lack of knowledge regarding how companies achieve the SDGs. Purpose of the article: Some authors have analysed the effect of companies' adoption of the SDGs on their business performance. However, there is a gap in the analysis of this influence when considering the groups of SDGs. This study examines the level of commitment of a sample of Spanish companies with a grouping of the SDGs and their effects on business results. Methods: We obtained information on companies from the UNGC and developed a panel regression. Findings & value added: We concluded that all the SDGs do not have the same effect on companies that incorporate them into their activities. Although it is possible to make progress in all the SDGs, complementarities and trade-offs influence companies' results. The results obtained in this study incorporate new ideas into this issue and provide a new vision of how companies should incorporate sustainability into their businesses. It is not a question of achieving as many sustainable development goals as possible, but rather of focusing on those that can contribute the most to improving business performance. The clustering of the SDGs that we have undertaken and their subsequent analysis facilitates this work.
{"title":"A grouping of the Sustainable Development Goals (SDGs) and their influence on business results: An analysis for Spanish companies","authors":"Isidro Peña, Silvia M. Andrade, R. M. Muñoz, I. Martínez","doi":"10.24136/oc.2023.015","DOIUrl":"https://doi.org/10.24136/oc.2023.015","url":null,"abstract":"Research background: In 2015, the United Nations (UN) set the 2030 Agenda for Sustainable Development and established 17 Sustainable Development Goals (SDGs) containing the social, economic, and environmental pillars of sustainable development. These focus on governments, society, non-profit organisations, and the private sector. This last pillar plays a key role in the pursuit of these goals, but there remains a lack of knowledge regarding how companies achieve the SDGs.\u0000Purpose of the article: Some authors have analysed the effect of companies' adoption of the SDGs on their business performance. However, there is a gap in the analysis of this influence when considering the groups of SDGs. This study examines the level of commitment of a sample of Spanish companies with a grouping of the SDGs and their effects on business results.\u0000Methods: We obtained information on companies from the UNGC and developed a panel regression.\u0000Findings & value added: We concluded that all the SDGs do not have the same effect on companies that incorporate them into their activities. Although it is possible to make progress in all the SDGs, complementarities and trade-offs influence companies' results. The results obtained in this study incorporate new ideas into this issue and provide a new vision of how companies should incorporate sustainability into their businesses. It is not a question of achieving as many sustainable development goals as possible, but rather of focusing on those that can contribute the most to improving business performance. The clustering of the SDGs that we have undertaken and their subsequent analysis facilitates this work.","PeriodicalId":46112,"journal":{"name":"Oeconomia Copernicana","volume":null,"pages":null},"PeriodicalIF":8.5,"publicationDate":"2023-06-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43250741","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Research background: In recent decades, companies have paid increasing attention to corporate social responsibility (CSR) and its related performance. Scandinavian countries lead the world in CSR and sustainability. The good CSR performance of Scandinavian companies has motivated studies on this phenomenon, particularly on the connection between a company's CSR and its performance. One of the most important performance indicators and value drivers is the cost of debt. Purpose of the article: This study assessed the impact of CSR on the cost of debt in Scandinavian public companies. Methods: The research was divided into two stages. In the first stage, Scandinavian public companies were divided into two groups (with and without ESG (environmental, social, governance) disclosure scores) to reveal differences in the cost of debt. In the second stage, a fixed-effects regression model for balanced panel data sets was applied from 2011 to 2020 to assess the impact of ESG and its pillars on the cost of debt. Findings & value added: The results revealed that the cost of debt of companies in Scandinavian countries with ESG disclosure scores was significantly lower. The ESG disclosure scores of these companies have increased significantly over the past 10 years. We found a positive impact of CSR on the cost of debt in Scandinavian public companies. The increase in ESG disclosure and pillar scores reduced the cost of debt. These findings are valuable from a scientific perspective. Scandinavian public companies with ESG scores have higher financial risk, but lower cost of debt. These results support the importance of investors' behavior, information asymmetry, and signaling. The findings have several implications for shareholders, managers and creditors. They suggest that creditors consider ESG disclosures when determining a borrower's creditworthiness. Additionally, it is a message to regulators that the debt market values ESG disclosures.
{"title":"Impact of corporate social responsibility on cost of debt in Scandinavian public companies","authors":"V. Aleknevičienė, Sandra Stralkutė","doi":"10.24136/oc.2023.016","DOIUrl":"https://doi.org/10.24136/oc.2023.016","url":null,"abstract":"Research background: In recent decades, companies have paid increasing attention to corporate social responsibility (CSR) and its related performance. Scandinavian countries lead the world in CSR and sustainability. The good CSR performance of Scandinavian companies has motivated studies on this phenomenon, particularly on the connection between a company's CSR and its performance. One of the most important performance indicators and value drivers is the cost of debt.\u0000Purpose of the article: This study assessed the impact of CSR on the cost of debt in Scandinavian public companies.\u0000Methods: The research was divided into two stages. In the first stage, Scandinavian public companies were divided into two groups (with and without ESG (environmental, social, governance) disclosure scores) to reveal differences in the cost of debt. In the second stage, a fixed-effects regression model for balanced panel data sets was applied from 2011 to 2020 to assess the impact of ESG and its pillars on the cost of debt.\u0000Findings & value added: The results revealed that the cost of debt of companies in Scandinavian countries with ESG disclosure scores was significantly lower. The ESG disclosure scores of these companies have increased significantly over the past 10 years. We found a positive impact of CSR on the cost of debt in Scandinavian public companies. The increase in ESG disclosure and pillar scores reduced the cost of debt. These findings are valuable from a scientific perspective. Scandinavian public companies with ESG scores have higher financial risk, but lower cost of debt. These results support the importance of investors' behavior, information asymmetry, and signaling. The findings have several implications for shareholders, managers and creditors. They suggest that creditors consider ESG disclosures when determining a borrower's creditworthiness. Additionally, it is a message to regulators that the debt market values ESG disclosures.","PeriodicalId":46112,"journal":{"name":"Oeconomia Copernicana","volume":null,"pages":null},"PeriodicalIF":8.5,"publicationDate":"2023-06-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48458840","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
María. J. López-Serrano, Fida Hussain Lakho, S. V. Van Hulle, A. Batlles-delaFuente
Research background: The increasing water demand together with an unceasing production of wastewater worldwide has resulted in a situation where the scarcity and pollution of water resources are jeopardizing and depleting such a vital asset. Purpose of the article: In this context, Nature Based Solutions (NBS) such as Vertical Flow Constructed Wetlands (VFCWs) are key because of their capacity of channelling a waste into a resource. However, and notwithstanding their essential role, their financial benefits too often go unnoticed because of missing research that study them from an economic perspective and this article has covered this existing gap. The objective of this research is to analyse the economic consequences of using VFCW against its traditional alternative through a comprehensive economic assessment. Methods: After doing a Life Cycle Assessment (LCA), a combination of two approaches has been carried out. This research has developed a holistic approach where a Life Cycle Cost Assessment (LCCA) based on a Cost Benefit Analysis (CBA) along with an economic evaluation of cleaning environmental costs have been calculated for two different scenarios. For this monetary analysis, the environmental externalities derived from the use of cleaning the pollution caused by a public water supply and sewerage system and the VFCW have been quantified. Findings & value added: Results conclude that VFCW apart of being a cost-effective and profitable alternative for an investor, it has also valuable benefits for the society in general because of its meaningful and positive externalities and the high removal cost of the environmental pollutants of the traditional water supply and sewage system both contributing directly to the achievement of Sustainable Development Goals (SDGs). Furthermore, 4/5 environmental impacts derived from the use of traditional alternative pollute more than twice as much as the VFCW does. Lastly, the cleaning costs difference between both alternatives is 1,984,335?.
{"title":"Life cycle cost assessment and economic analysis of a decentralized wastewater treatment to achieve water sustainability within the framework of circular economy","authors":"María. J. López-Serrano, Fida Hussain Lakho, S. V. Van Hulle, A. Batlles-delaFuente","doi":"10.24136/oc.2023.003","DOIUrl":"https://doi.org/10.24136/oc.2023.003","url":null,"abstract":"Research background: The increasing water demand together with an unceasing production of wastewater worldwide has resulted in a situation where the scarcity and pollution of water resources are jeopardizing and depleting such a vital asset.\u0000Purpose of the article: In this context, Nature Based Solutions (NBS) such as Vertical Flow Constructed Wetlands (VFCWs) are key because of their capacity of channelling a waste into a resource. However, and notwithstanding their essential role, their financial benefits too often go unnoticed because of missing research that study them from an economic perspective and this article has covered this existing gap. The objective of this research is to analyse the economic consequences of using VFCW against its traditional alternative through a comprehensive economic assessment.\u0000Methods: After doing a Life Cycle Assessment (LCA), a combination of two approaches has been carried out. This research has developed a holistic approach where a Life Cycle Cost Assessment (LCCA) based on a Cost Benefit Analysis (CBA) along with an economic evaluation of cleaning environmental costs have been calculated for two different scenarios. For this monetary analysis, the environmental externalities derived from the use of cleaning the pollution caused by a public water supply and sewerage system and the VFCW have been quantified.\u0000Findings & value added: Results conclude that VFCW apart of being a cost-effective and profitable alternative for an investor, it has also valuable benefits for the society in general because of its meaningful and positive externalities and the high removal cost of the environmental pollutants of the traditional water supply and sewage system both contributing directly to the achievement of Sustainable Development Goals (SDGs). Furthermore, 4/5 environmental impacts derived from the use of traditional alternative pollute more than twice as much as the VFCW does. Lastly, the cleaning costs difference between both alternatives is 1,984,335?.","PeriodicalId":46112,"journal":{"name":"Oeconomia Copernicana","volume":null,"pages":null},"PeriodicalIF":8.5,"publicationDate":"2023-03-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49586872","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Viviane Y. Naimy, R. Khoury, J. Montero, Jana Souk
Research background: The Brexit referendum had a profound effect on the economic relations between the United Kingdom (UK) and continental Europe. Major economic and financial determinants were affected, including the impact of the GBP/EUR exchange rate volatility on the dynamics of UK exports to the Eurozone. Purpose of the article: This paper seeks to assess the extent to which these dynamics have changed since Brexit and to estimate the magnitude of their impact. Methods: To this end, the volatility behavior of the GBP/EUR exchange rate before and after Brexit is captured using EWMA, GARCH(p,q), and EGARCH(p,q) models for the period of January 1, 2010 to August 31, 2020. The post-Brexit change in the volatility structure of GBP/EUR exchange rates is then tested by including a dummy in the optimal volatility model. Finally, the Autoregressive Distributed Lag (ARDL) Bounds Testing approach is employed to analyze the relationships between exchange rate volatility and exports. Findings & value added: GARCH(1,1) was selected as the winning model and used to examine the volatility structure of the post-Brexit exchange rate, which revealed no significant change. By incorporating a well-grounded proxy for exchange rate volatility into the demand function of exports, and controlling for the industrial production index, terms of trade, and real exchange rate, the analysis showed that exchange rate volatility had a negative impact on export volume to the Eurozone in both the long and short run. Additionally, the industrial production index had a positive effect on export volume in both the long and short run, while an appreciation in the value of the pound relative to the euro adversely affected the competitiveness of UK exports in the Eurozone market in the long run, with no impact in the short run. This paper serves as a benchmark for future studies, as it follows a three-step modeling approach and provides valuable insights into the potential economic and financial consequences a European Union (EU) member state may face should it choose to exit the EU.
{"title":"Post-Brexit exchange rate volatility and its impact on UK exports to eurozone countries: A bounds testing approach","authors":"Viviane Y. Naimy, R. Khoury, J. Montero, Jana Souk","doi":"10.24136/oc.2023.004","DOIUrl":"https://doi.org/10.24136/oc.2023.004","url":null,"abstract":"Research background: The Brexit referendum had a profound effect on the economic relations between the United Kingdom (UK) and continental Europe. Major economic and financial determinants were affected, including the impact of the GBP/EUR exchange rate volatility on the dynamics of UK exports to the Eurozone.\u0000Purpose of the article: This paper seeks to assess the extent to which these dynamics have changed since Brexit and to estimate the magnitude of their impact.\u0000Methods: To this end, the volatility behavior of the GBP/EUR exchange rate before and after Brexit is captured using EWMA, GARCH(p,q), and EGARCH(p,q) models for the period of January 1, 2010 to August 31, 2020. The post-Brexit change in the volatility structure of GBP/EUR exchange rates is then tested by including a dummy in the optimal volatility model. Finally, the Autoregressive Distributed Lag (ARDL) Bounds Testing approach is employed to analyze the relationships between exchange rate volatility and exports.\u0000Findings & value added: GARCH(1,1) was selected as the winning model and used to examine the volatility structure of the post-Brexit exchange rate, which revealed no significant change. By incorporating a well-grounded proxy for exchange rate volatility into the demand function of exports, and controlling for the industrial production index, terms of trade, and real exchange rate, the analysis showed that exchange rate volatility had a negative impact on export volume to the Eurozone in both the long and short run. Additionally, the industrial production index had a positive effect on export volume in both the long and short run, while an appreciation in the value of the pound relative to the euro adversely affected the competitiveness of UK exports in the Eurozone market in the long run, with no impact in the short run. This paper serves as a benchmark for future studies, as it follows a three-step modeling approach and provides valuable insights into the potential economic and financial consequences a European Union (EU) member state may face should it choose to exit the EU.","PeriodicalId":46112,"journal":{"name":"Oeconomia Copernicana","volume":null,"pages":null},"PeriodicalIF":8.5,"publicationDate":"2023-03-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46992033","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Research background: Effective monitoring of financial health is essential in the financial management of enterprises. Early studies to predict corporate bankruptcy were published at the beginning of the last century. The prediction models were developed with a significant delay even among the Visegrad group countries. Purpose of the article: The primary aim of this study is to create a model for predicting bankruptcy based on the financial information of 20,693 enterprises of all sectors that operated in the Visegrad group countries during the post-pandemic period (2020?2021) and identify significant predictors of bankruptcy. To reduce potential losses to shareholders, investors, and business partners brought on by the financial distress of enterprises, it is possible to use multiple discriminant analysis to build individual prediction models for each Visegrad group country and a complex model for the entire Visegrad group. Methods: A bankruptcy prediction model is developed using multiple discriminant analysis. Based on this model, prosperity is assessed using selected corporate financial indicators, which are assigned weights such that the difference between the average value calculated in the group of prosperous and non-prosperous enterprises is as large as possible. Findings & value added: The created models based on 6?14 financial indicators were developed using different predictor combinations and coefficients. For all Visegrad group countries, the best variable with the best discriminating power was the total indebtedness ratio, which was included in each developed model. These findings can be used also in other Central European countries where the economic development is similar to the analyzed countries. However, sufficient discriminant ability is required for the model to be used in practice, especially in the post-pandemic period, when the financial health and stability of enterprises is threatened by macroeconomic development and the performance and prediction ability of current bankruptcy prediction models may have decreased. Based on the results, the developed models have an overall discriminant ability greater than 88%, which may be relevant for academicians to conduct further empirical studies in this field.
{"title":"Bankruptcy prediction in the post-pandemic period: A case study of Visegrad Group countries","authors":"K. Valaskova, Dominika Gajdosikova, J. Bélas","doi":"10.24136/oc.2023.007","DOIUrl":"https://doi.org/10.24136/oc.2023.007","url":null,"abstract":"Research background: Effective monitoring of financial health is essential in the financial management of enterprises. Early studies to predict corporate bankruptcy were published at the beginning of the last century. The prediction models were developed with a significant delay even among the Visegrad group countries.\u0000Purpose of the article: The primary aim of this study is to create a model for predicting bankruptcy based on the financial information of 20,693 enterprises of all sectors that operated in the Visegrad group countries during the post-pandemic period (2020?2021) and identify significant predictors of bankruptcy. To reduce potential losses to shareholders, investors, and business partners brought on by the financial distress of enterprises, it is possible to use multiple discriminant analysis to build individual prediction models for each Visegrad group country and a complex model for the entire Visegrad group.\u0000Methods: A bankruptcy prediction model is developed using multiple discriminant analysis. Based on this model, prosperity is assessed using selected corporate financial indicators, which are assigned weights such that the difference between the average value calculated in the group of prosperous and non-prosperous enterprises is as large as possible.\u0000Findings & value added: The created models based on 6?14 financial indicators were developed using different predictor combinations and coefficients. For all Visegrad group countries, the best variable with the best discriminating power was the total indebtedness ratio, which was included in each developed model. These findings can be used also in other Central European countries where the economic development is similar to the analyzed countries. However, sufficient discriminant ability is required for the model to be used in practice, especially in the post-pandemic period, when the financial health and stability of enterprises is threatened by macroeconomic development and the performance and prediction ability of current bankruptcy prediction models may have decreased. Based on the results, the developed models have an overall discriminant ability greater than 88%, which may be relevant for academicians to conduct further empirical studies in this field.","PeriodicalId":46112,"journal":{"name":"Oeconomia Copernicana","volume":null,"pages":null},"PeriodicalIF":8.5,"publicationDate":"2023-03-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42660526","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
María D. Illescas-Manzano, S. Martínez-Puertas, G. Marín-Carrillo, M. B. Marín-Carrillo
Research background: The effects of locating next to other establishments of equivalent activity is a decision with serious and far-reaching implications, not only from the point of view of location decisions but also with regard to competitive strategy, pricing, or promotion decisions. The literature provides evidence of the negative effects of being proximate to competitors (erosion of market share), but there are also benefits associated with the increased attraction of demand (attraction effect). This phenomenon is of particular interest in the case of hospitality, where hotel concentrations can be found around certain tourism resources, and is a crucial factor in hoteliers' decisions as they evaluate these contradictory effects. Purpose of the article: Drawing from the relevance that the confrontation between agglomeration and competition has in the hotel industry, our study aims to examine if this confrontation can be driven by geographical location and how both vertical and horizontal differentiation factors can unbalance it. Methods: Based on the use of geographical information systems and the estimation of a geographically weighted regression model with a wide dataset that includes 3,153 European hotels located in Spain, France and the United Kingdom. Findings & value added: We extend agglomeration and competition theoretical bodies related to location decisions by providing new findings about their simultaneous effect. Specifically, this study contributes to filling the gap regarding their combined effects on pricing and the conditions under which one prevails over the other. Results show that the role of geographical location and a hotel?s online reputation are more decisive differentiation factors than hotel category when explaining the asymmetry of the effects of agglomeration and competition.
{"title":"Dynamics of agglomeration and competition in the hotel industry: A geographically weighted regression analysis based on an analytical hierarchy process and geographic information systems (GIS) data","authors":"María D. Illescas-Manzano, S. Martínez-Puertas, G. Marín-Carrillo, M. B. Marín-Carrillo","doi":"10.24136/oc.2023.006","DOIUrl":"https://doi.org/10.24136/oc.2023.006","url":null,"abstract":"Research background: The effects of locating next to other establishments of equivalent activity is a decision with serious and far-reaching implications, not only from the point of view of location decisions but also with regard to competitive strategy, pricing, or promotion decisions. The literature provides evidence of the negative effects of being proximate to competitors (erosion of market share), but there are also benefits associated with the increased attraction of demand (attraction effect). This phenomenon is of particular interest in the case of hospitality, where hotel concentrations can be found around certain tourism resources, and is a crucial factor in hoteliers' decisions as they evaluate these contradictory effects.\u0000Purpose of the article: Drawing from the relevance that the confrontation between agglomeration and competition has in the hotel industry, our study aims to examine if this confrontation can be driven by geographical location and how both vertical and horizontal differentiation factors can unbalance it.\u0000Methods: Based on the use of geographical information systems and the estimation of a geographically weighted regression model with a wide dataset that includes 3,153 European hotels located in Spain, France and the United Kingdom.\u0000Findings & value added: We extend agglomeration and competition theoretical bodies related to location decisions by providing new findings about their simultaneous effect. Specifically, this study contributes to filling the gap regarding their combined effects on pricing and the conditions under which one prevails over the other. Results show that the role of geographical location and a hotel?s online reputation are more decisive differentiation factors than hotel category when explaining the asymmetry of the effects of agglomeration and competition.","PeriodicalId":46112,"journal":{"name":"Oeconomia Copernicana","volume":null,"pages":null},"PeriodicalIF":8.5,"publicationDate":"2023-03-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47783174","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Research background: Peer effects, in which individuals learn and imitate their peers? behaviors, have been widely recognized in different contexts. Particularly, with increasingly fierce competition, firms can no longer make financial decisions in isolation when facing terrible external operational environments. In contrast, observing peers? actions in corporate policies can help reveal intentions regarding what peers are doing, which is vital for policymakers and financial managers. Studies on the existence of capital structure peer effects in the Chinese context have been conducted, but the mechanisms of peer effects are still ambiguous at present. Purpose of the article: This study aims to examine peer effects in capital structure and discover the mechanisms in the Chinese context. Understanding the mechanisms behind peer effects can help scholars and policymakers obtain more insights into the working mechanisms of peer effects. Furthermore, how the industry- and firm-specific characteristics affect peer effects and the selection of mechanisms should be analyzed. Methods: Using the fixed effects model (industry effect and year effect) and propensity score matching (PSM), as well as market leverage and heterogeneous stock shocks, we investigate peer effects, the mechanisms, and the effects of specific factors from industries and firms based on the sample of Chinese non-financial A-share listed firms on the Shanghai and Shenzhen stock markets from 2014 to 2021. Findings & value added: Study results show that peer effects exist in the corporate capital structure in the Chinese capital markets. Unlike previous studies, this analysis captures three mechanisms: the industrial average, industrial leaders, and industrial-similar firms. The intensity of peer effects and selection of mechanisms are influenced by both industry-specific characteristics (the degree of industrial competition and financing constraints) and firm-specific characteristics (firm size and market share).
{"title":"Peer effects and the mechanisms in corporate capital structure: Evidence from Chinese listed firms","authors":"Jiali Liu, Xinran Xie, Duan Yu, Liang Tang","doi":"10.24136/oc.2023.008","DOIUrl":"https://doi.org/10.24136/oc.2023.008","url":null,"abstract":"Research background: Peer effects, in which individuals learn and imitate their peers? behaviors, have been widely recognized in different contexts. Particularly, with increasingly fierce competition, firms can no longer make financial decisions in isolation when facing terrible external operational environments. In contrast, observing peers? actions in corporate policies can help reveal intentions regarding what peers are doing, which is vital for policymakers and financial managers. Studies on the existence of capital structure peer effects in the Chinese context have been conducted, but the mechanisms of peer effects are still ambiguous at present.\u0000Purpose of the article: This study aims to examine peer effects in capital structure and discover the mechanisms in the Chinese context. Understanding the mechanisms behind peer effects can help scholars and policymakers obtain more insights into the working mechanisms of peer effects. Furthermore, how the industry- and firm-specific characteristics affect peer effects and the selection of mechanisms should be analyzed.\u0000Methods: Using the fixed effects model (industry effect and year effect) and propensity score matching (PSM), as well as market leverage and heterogeneous stock shocks, we investigate peer effects, the mechanisms, and the effects of specific factors from industries and firms based on the sample of Chinese non-financial A-share listed firms on the Shanghai and Shenzhen stock markets from 2014 to 2021.\u0000Findings & value added: Study results show that peer effects exist in the corporate capital structure in the Chinese capital markets. Unlike previous studies, this analysis captures three mechanisms: the industrial average, industrial leaders, and industrial-similar firms. The intensity of peer effects and selection of mechanisms are influenced by both industry-specific characteristics (the degree of industrial competition and financing constraints) and firm-specific characteristics (firm size and market share).","PeriodicalId":46112,"journal":{"name":"Oeconomia Copernicana","volume":null,"pages":null},"PeriodicalIF":8.5,"publicationDate":"2023-03-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43310891","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Research background: Sustainable development of the modern world represents an opportunity to preserve economic growth and technological progress, as well as social development, without limiting the possibilities of this development for past generations. The directions of this development are included in the 17 goals and 169 tasks of the 2030 Agenda for Sustainable Development. The achievement of these goals and the implementation of the adopted tasks is a huge challenge for individual countries and regions. This also applies to the European Union (EU), where economic development is closely linked to environmental protection and social inclusion. Of key importance in this context is Objective 9 of Agenda 2030, and thus its level of implementation in the EU-27 countries is the aim of the research presented in this paper. Purpose of the article: The research involved assessing the level of EU countries in terms of building stable infrastructure, promoting sustainable industrialization and fostering innovation, i.e., the main areas of Goal 9 of Agenda 2030. Methods: The assessment was based on the EU?27 countries' sustainable development index (SDG9) determined with the use of 14 indicators characterizing these areas between 2015?2020. The basis of the developed methodology was a multi criteria decision making approach (MCDM methods). TOPSIS, WASPAS and EDAS methods were used to determine the sustainability index, and the Entropy, CRITIC and standard deviation (SD) methods were used to determine weights for the adopted indicators. In addition, the use of the Spearman's and Kendall's Tau non-parametric tests enabled the analysis of the relationship between the SDG9 index and the basic economic, environmental and energy parameters, as well as the digitalization of the countries under study. Findings & value added: The results show that the EU?27 countries vary widely in terms of implementing Sustainable Development Goal 9 of Agenda 2030 over the analyzed period. Now, the most advanced in this respect are Denmark, Germany, Luxembourg, the Netherlands, Finland, and Sweden. By contrast, substantial problems are found in Bulgaria, Greece, Portugal, and Lithuania. The results also provide an opportunity to trace changes in the value of the designated index in individual countries, and in groups of countries of the "old" and "new" EU. These results significantly enrich the knowledge of the effectiveness of implementing Goal 9 of Agenda 2030 in the EU?27 countries and the relationship between the development of individual countries and sustainable development economy. These findings can also be used to create new EU?27 strategies for sustainable and solidarity-based development of the whole EU. In addition, the results can be helpful to decision-makers as they highlight important indicators related to innovation, industrialization and infrastructure that should be considered when formulating a country's sustainable development strategy. The added value of th
{"title":"The level of implementing sustainable development goal \"Industry, innovation and infra-structure\" of Agenda 2030 in the European Union countries: Application of MCDM methods","authors":"Jarosław Brodny, M. Tutak","doi":"10.24136/oc.2023.002","DOIUrl":"https://doi.org/10.24136/oc.2023.002","url":null,"abstract":"Research background: Sustainable development of the modern world represents an opportunity to preserve economic growth and technological progress, as well as social development, without limiting the possibilities of this development for past generations. The directions of this development are included in the 17 goals and 169 tasks of the 2030 Agenda for Sustainable Development. The achievement of these goals and the implementation of the adopted tasks is a huge challenge for individual countries and regions. This also applies to the European Union (EU), where economic development is closely linked to environmental protection and social inclusion. Of key importance in this context is Objective 9 of Agenda 2030, and thus its level of implementation in the EU-27 countries is the aim of the research presented in this paper.\u0000Purpose of the article: The research involved assessing the level of EU countries in terms of building stable infrastructure, promoting sustainable industrialization and fostering innovation, i.e., the main areas of Goal 9 of Agenda 2030.\u0000Methods: The assessment was based on the EU?27 countries' sustainable development index (SDG9) determined with the use of 14 indicators characterizing these areas between 2015?2020. The basis of the developed methodology was a multi criteria decision making approach (MCDM methods). TOPSIS, WASPAS and EDAS methods were used to determine the sustainability index, and the Entropy, CRITIC and standard deviation (SD) methods were used to determine weights for the adopted indicators. In addition, the use of the Spearman's and Kendall's Tau non-parametric tests enabled the analysis of the relationship between the SDG9 index and the basic economic, environmental and energy parameters, as well as the digitalization of the countries under study.\u0000Findings & value added: The results show that the EU?27 countries vary widely in terms of implementing Sustainable Development Goal 9 of Agenda 2030 over the analyzed period. Now, the most advanced in this respect are Denmark, Germany, Luxembourg, the Netherlands, Finland, and Sweden. By contrast, substantial problems are found in Bulgaria, Greece, Portugal, and Lithuania. The results also provide an opportunity to trace changes in the value of the designated index in individual countries, and in groups of countries of the \"old\" and \"new\" EU. These results significantly enrich the knowledge of the effectiveness of implementing Goal 9 of Agenda 2030 in the EU?27 countries and the relationship between the development of individual countries and sustainable development economy. These findings can also be used to create new EU?27 strategies for sustainable and solidarity-based development of the whole EU. In addition, the results can be helpful to decision-makers as they highlight important indicators related to innovation, industrialization and infrastructure that should be considered when formulating a country's sustainable development strategy. The added value of th","PeriodicalId":46112,"journal":{"name":"Oeconomia Copernicana","volume":null,"pages":null},"PeriodicalIF":8.5,"publicationDate":"2023-03-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47122210","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Research background: The lack of financial resources of small and medium enterprises (SMEs) make them face high financial risk. Their entrepreneurial abilities that belong to Resource-based View (RBV), such as innovativeness and competitiveness, might reduce SMEs? financial risk because those entrepreneurial abilities increase the financial performance of businesses. Purpose of the article: This paper aims to investigate the effects of the innovativeness and competitiveness of SMEs on their financial concerns based on financial risk, including bankruptcy, financial performance, and financial risk management. Methods: The authors use a method of data analysis and synthesis, including advanced knowledge and digital processing of background studies. This paper examines 1221 SMEs from the Czech Republic, Slovakia, and Hungary. Those firms are chosen by random sampling method from Cribis and the Budapest Chamber of Commerce databases. Then the researchers directed an online questionnaire to collect the research data from the randomly selected firms. The researchers use Ordinal Logistic Regression Test for analysis purposes. Findings & value added: This paper's results indicate that SMEs' competitiveness does not impact SMEs? bankruptcy prediction, financial performance, or financial risk management. On the other hand, while more innovative SMEs are less likely to face bankruptcy issues than less innovative SMEs, less innovative SMEs indicate better financial performance than their more innovative counterparts. Since this paper focuses on the influences of intangible assets of SMEs (such as characteristics based on RBV and Entrepreneurial Orientation) on their tangible assets (financial performance etc.) and puts emphasis on this fact from an International perspective, this paper makes a significant contribution to the literature. Furthermore, analyzing multiple relationships between SMEs? different entrepreneurial characteristics and various financial risk concerns is another important fact that might draw prospective readers? attention.
{"title":"The impacts of innovative and competitive abilities of SMEs on their different financial risk concerns: System approach","authors":"M. Civelek, V. Krajčík, V. Fialova","doi":"10.24136/oc.2023.009","DOIUrl":"https://doi.org/10.24136/oc.2023.009","url":null,"abstract":"Research background: The lack of financial resources of small and medium enterprises (SMEs) make them face high financial risk. Their entrepreneurial abilities that belong to Resource-based View (RBV), such as innovativeness and competitiveness, might reduce SMEs? financial risk because those entrepreneurial abilities increase the financial performance of businesses.\u0000Purpose of the article: This paper aims to investigate the effects of the innovativeness and competitiveness of SMEs on their financial concerns based on financial risk, including bankruptcy, financial performance, and financial risk management.\u0000Methods: The authors use a method of data analysis and synthesis, including advanced knowledge and digital processing of background studies. This paper examines 1221 SMEs from the Czech Republic, Slovakia, and Hungary. Those firms are chosen by random sampling method from Cribis and the Budapest Chamber of Commerce databases. Then the researchers directed an online questionnaire to collect the research data from the randomly selected firms. The researchers use Ordinal Logistic Regression Test for analysis purposes.\u0000Findings & value added: This paper's results indicate that SMEs' competitiveness does not impact SMEs? bankruptcy prediction, financial performance, or financial risk management. On the other hand, while more innovative SMEs are less likely to face bankruptcy issues than less innovative SMEs, less innovative SMEs indicate better financial performance than their more innovative counterparts. Since this paper focuses on the influences of intangible assets of SMEs (such as characteristics based on RBV and Entrepreneurial Orientation) on their tangible assets (financial performance etc.) and puts emphasis on this fact from an International perspective, this paper makes a significant contribution to the literature. Furthermore, analyzing multiple relationships between SMEs? different entrepreneurial characteristics and various financial risk concerns is another important fact that might draw prospective readers? attention.","PeriodicalId":46112,"journal":{"name":"Oeconomia Copernicana","volume":null,"pages":null},"PeriodicalIF":8.5,"publicationDate":"2023-03-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48476645","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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