Bamadev Mahapatra and Mohd Irfan
This study aims to examine the asymmetric effects of energy efficiency on employment in India. Instead of relying on partial factor energy efficiency measures, this study uses a…
Abstract
Purpose
This study aims to examine the asymmetric effects of energy efficiency on employment in India. Instead of relying on partial factor energy efficiency measures, this study uses a total factor energy efficiency (TFE) measure to estimate sector-specific energy efficiency for empirical investigation.
Design/methodology/approach
Multi-sectoral panel data for India from 2000 to 2014 are considered for empirical estimation. The sector-specific energy efficiency estimates (using the TFE measure) are estimated in the initial stage using the stochastic frontier approach (SFA). Then the asymmetric effect of energy efficiency on employment is investigated by using a non-linear panel autoregressive distributed lag model.
Findings
The estimates of energy efficiency display that there is not much significant change in the trend of average energy efficiency over the period. The negative and statistically significant value of the error-correction term confirms the existence of asymmetric cointegrating relationship between energy efficiency and employment in India. Moreover, in the empirical findings, the positive and negative shocks in energy efficiency provide a long-run asymmetric and short-run symmetric effect on employment in India.
Originality/value
Rather than depending on the absolute measure of energy efficiency (energy to output ratio), this study estimates the sector-specific energy efficiency for India using panel SFA, which provides a relative measure of energy efficiency. Moreover, to the best of the authors’ knowledge, it is the first empirical study investigating the asymmetric impact of energy efficiency on employment at an aggregate level in developing countries like India. By contrast, previous studies have either concentrated on the symmetric effect of energy efficiency on employment or primarily restricted to developed countries.
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Higher economic growth accompanied by rising energy demand poses severe challenges to the long-term environmental sustainability of E7 economies, including Brazil, China, India…
Abstract
Purpose
Higher economic growth accompanied by rising energy demand poses severe challenges to the long-term environmental sustainability of E7 economies, including Brazil, China, India, Indonesia, Mexico, Russia and Turkey. Thus, this paper explores the influence of foreign direct investment (FDI) inflows on energy diversification for E7 economies.
Design/methodology/approach
The dataset is panel data for emerging seven (E7) economies, covering the period 1992–2017. The empirical investigation relies on econometric techniques: panel cointegration test and panel autoregressive distributed lag model.
Findings
The findings reveal that energy diversification and FDI inflows are cointegrated. In the long run, higher FDI inflows encourage energy diversification, but energy efficiency improvements discourage energy diversification. In the short run, the effects of FDI inflows on energy diversification vary across E7 economies, highlighting the role of country-specific factors in determining the short-run influence of FDI inflows on energy diversification.
Research limitations/implications
The findings suggested that FDI policies should encourage the adoption of nonconventional energy resources to stimulate energy diversification in E7 economies. Besides, better coordination between energy diversification and energy efficiency policies is required in the long run for a successful transition towards low-carbon economy goals.
Originality/value
This study is a unique empirical exercise that uncovers a cointegrating relationship between energy diversification and FDI inflows for E7 economies. Moreover, the analysis provides homogenous long-run and heterogeneous (country-specific) short-run coefficient estimates for the effect of FDI inflows on energy diversification.
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Mohd Irfan, Sarani Saha and Sanjay Kumar Singh
The purpose of this paper is to examine the factors associated with three modes of firms’ exit (voluntary liquidation, involuntary liquidation and acquisition) in a mutually…
Abstract
Purpose
The purpose of this paper is to examine the factors associated with three modes of firms’ exit (voluntary liquidation, involuntary liquidation and acquisition) in a mutually exclusive environment. In particular, three modes of exit are treated as independent events given that different causes and consequences exist for each exit mode. The data set is a panel of 4,408 US manufacturing firms spanning over the period 1976–1995.
Design/methodology/approach
The discrete choice model is used to establish a relationship between modes of exit and a set of explanatory variables, which are specific to the firm, industry and macroeconomic conditions. Use of panel data encourages us to estimate a random effects multinomial logistic regression model, which allows exit modes as mutually exclusive events and at the same time controls the firm-specific unobserved heterogeneity in the sample.
Findings
The analysis suggests that the determinants of voluntary liquidation are age, size, profitability, technology intensity and inflation level. The determinants of involuntary liquidation are size, leverage, profitability and inflation level. For acquisition, determinants are age, size, advertising intensity, Tobin’s q, GDP growth, inflation level and interest rate. The findings suggest that exit modes have a different set of determinants and the scale of effects of some common determinants such as age, size and profitability differs between exit modes.
Research limitations/implications
The analysis presented in this study relies on data from US manufacturing firms only. Thus, there is a need to explore the determinants of exit modes in other countries as well using the proposed econometric model.
Practical implications
The findings presented in this paper are useful for managers and policymakers to design strategies/actions for avoiding particular mode of exit.
Originality/value
This study provides empirical evidence on the differences in factors associated with exit modes and confirms the existence of mutually exclusive nature of exit modes. Findings suggest that for future empirical studies on firm exit, the exit modes must be treated as a heterogeneous event.
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Mohd Irfan, Sarani Saha and Sanjay Kumar Singh
The purpose of this study is to examine the firms’ determinants of being acquired in Indian manufacturing sector. There is evidence of relationship between likelihood of being…
Abstract
Purpose
The purpose of this study is to examine the firms’ determinants of being acquired in Indian manufacturing sector. There is evidence of relationship between likelihood of being acquired and several firm specific characteristics such as age, size, research and development (R&D), advertising intensity, productivity, leverage, profitability, intangible assets and financial constraints. However, little is known about the association between these characteristics and likelihood of acquisition in Indian manufacturing sector.
Design/methodology/approach
The sample is a panel of 2,189 Indian manufacturing firms spanning almost 10 years (1998-2007). Random effects logistic (REL) regression model is adopted to control the firm specific unobserved heterogeneity in the sample. This is an essential requirement for providing accurate and effective determinants of being acquired.
Findings
Empirical results reveal that the determinants of being acquired in Indian manufacturing sector are age, size, R&D intensity, advertising intensity, productivity and leverage. The findings indicate that increase in firms’ age, size, R&D intensity and advertising intensity increases the likelihood of being acquired. However, increase in productivity and leverage decreases the likelihood of being acquired.
Research limitations/implications
Findings of this study may be useful for potential targets to arrive at more thoughtful assessment of their attractiveness and, accordingly, promote their acquisition as a more efficient mode of exit.
Originality/value
The paper contributes some empirical evidence on the determinants of being acquired in Indian manufacturing sector by using panel data and REL regression model.
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Aparna Krishna, Kulsum Parween and Mohd Irfan
This study aims to argue that responses in economic growth (EG) resulting from positive and negative shocks in energy consumption could be a non-linear phenomenon. Thus, the study…
Abstract
Purpose
This study aims to argue that responses in economic growth (EG) resulting from positive and negative shocks in energy consumption could be a non-linear phenomenon. Thus, the study aims to investigate the existence of non-linear long-run effects of positive and negative shocks in green and conventional energy consumption on EG for China and India. By decomposing energy consumption in positive and negative shocks, the study seeks to determine the distinct impact of positive and negative shocks in energy (conventional and green) consumption on EG of China and India.
Design/methodology/approach
A non-linear autoregressive distributed lag (NARDL) model based on energy-augmented environment Kuznets curve (EKC) framework is used on annual time series covering the period 1965–2021. The study uses a precise econometric methodology, starting with unit root tests to assess stationarity, moving to the estimation of the NARDL model, which resulted in the calculation of long-run coefficients and error correction terms to analyse the rate of adjustment towards equilibrium.
Findings
The empirical findings demonstrate that there exists a non-linear cointegrating relationship among EG, carbon emissions and green and conventional energy consumption for both economies. In the long run, a non-linear impact of green energy consumption (GEC) on EG is evident for China only, whereas non-linear impact of conventional energy consumption (CEC) on EG is visible for both countries.
Practical implications
While China and India prioritise energy diversification by embracing green energy to promote energy security and limit rising carbon emissions, it is interesting to investigate how positive and negative shocks in GEC and CEC have affected their EG. Second, this paper examines the trade-offs between EG and GEC/CEC in China and India, two high-carbon emitters. The disparities in trade-offs may indicate how well each country’s energy policies address increased EG with fewer energy-induced carbon emissions.
Originality/value
This study examines non-linear cointegration among the variables of interest, whereas most prior studies have focused on linear cointegration. The existence of non-linear cointegration may suggest that positive and negative shocks in GEC and CEC can result in non-linear reactions in EG. Thus, it establishes a basis for examining the non-linear long-term effects of GEC and CEC on EG. The research findings indicate significant consequences and necessitate prompt intervention to alleviate the detrimental impacts of shocks in GEC and CEC on EG in China and India and provide several important inputs to address the inherent challenges of energy transition goals.
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Mohd Irfan and Anup Kumar Sharma
A progressive hybrid censoring scheme (PHCS) becomes impractical for ensuring dependable outcomes when there is a low likelihood of encountering a small number of failures prior…
Abstract
Purpose
A progressive hybrid censoring scheme (PHCS) becomes impractical for ensuring dependable outcomes when there is a low likelihood of encountering a small number of failures prior to the predetermined terminal time T. The generalized progressive hybrid censoring scheme (GPHCS) efficiently addresses to overcome the limitation of the PHCS.
Design/methodology/approach
In this article, estimation of model parameter, survival and hazard rate of the Unit-Lindley distribution (ULD), when sample comes from the GPHCS, have been taken into account. The maximum likelihood estimator has been derived using Newton–Raphson iterative procedures. Approximate confidence intervals of the model parameter and their arbitrary functions are established by the Fisher information matrix. Bayesian estimation procedures have been derived using Metropolis–Hastings algorithm under squared error loss function. Convergence of Markov chain Monte Carlo (MCMC) samples has been examined. Various optimality criteria have been considered. An extensive Monte Carlo simulation analysis has been shown to compare and validating of the proposed estimation techniques.
Findings
The Bayesian MCMC approach to estimate the model parameters and reliability characteristics of the generalized progressive hybrid censored data of ULD is recommended. The authors anticipate that health data analysts and reliability professionals will get benefit from the findings and approaches presented in this study.
Originality/value
The ULD has a broad range of practical utility, making it a problem to estimate the model parameters as well as reliability characteristics and the significance of the GPHCS also encourage the authors to consider the present estimation problem because it has not previously been discussed in the literature.
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Godfred Kesse Oppong, Jamini Kanta Pattanayak and Mohd. Irfan
The purpose of this paper is to empirically investigate the effect of intellectual capital (IC) efficiency on changes in the productivity of insurance companies in Ghana.
Abstract
Purpose
The purpose of this paper is to empirically investigate the effect of intellectual capital (IC) efficiency on changes in the productivity of insurance companies in Ghana.
Design/methodology/approach
Using a panel of 33 insurance companies from 2008 to 2016, the study applied Value Added Intellectual Coefficients model as a measure of IC efficiency, whilst Malmquist Productivity Index is employed to capture changes in the productivity of insurance companies. In estimating the effects of IC on productivity, System Generalised Method of Moment (GMM) is applied because of its power over endogeneity and heteroscedasticity.
Findings
Robust empirical findings on productivity analysis showed that improvements in insurer’s productivity were experienced in three year intervals out of the overall studied year. In addition, panel regression results revealed that IC along with human capital and capital employed significantly affect the productivity of insurance companies.
Research limitations/implications
The generalisability of the study findings could be questioned because it is limited to insurance firms operating in Ghana; some firms were omitted due to mergers and acquisition that reduced the final sample. Yet, the findings facilitate the validation of IC concept and, hence, informs manager/policy makers on IC utilisation as a source of competitive edge.
Practical implications
Having robust empirical findings, the study expands on the existing literature by unveiling the dynamic nature of IC relationship and productivity. The findings also serve as a benchmark for managers/policymakers in insurance companies to increase the operational efficiency by investing in IC, which will help guarantee improve returns on generated premiums.
Originality/value
Although a few studies have investigated the effect of IC in Ghana, this study is the first to examine the dynamic relationship between IC and changes in productivity in a Ghanaian context.
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Norsafiah Norazman, Adi Irfan Che-Ani, Afifuddin Husairi Mat Jusoh Hussain and Wan Norisma Wan Ismail
The existing concept in the building rating scheme especially in developing countries was more focused on the environment, economic, social and culture. The new approach of the…
Abstract
Purpose
The existing concept in the building rating scheme especially in developing countries was more focused on the environment, economic, social and culture. The new approach of the classroom condition index (CCI) assessment scheme has its uniqueness in environmental and social aspects because of high building performance in secondary school buildings. The requirements set by the Ministry of Education Malaysia include providing a conducive learning environment, especially for students who are considered as the main users of classrooms in school buildings. Currently, the school administration needs to manually record the condition of the classroom to increase its comfort level. The lack of a structured scheme for classroom assessment makes it difficult for school administration to focus on the overall classroom condition (physical environmental aspect) in the school building. The purpose of this study is to develop a framework for classroom conditions by proposing a CCI assessment scheme for a secondary school building in Malaysia.
Design/methodology/approach
Mixed methods were used to carry out the study. The first stage of this study concentrates on developing a system for CCI that relates to physical elements in the classroom. This is done by reviewing the literature on the classroom physical performance, as well as a comparison between several building rating systems locally and abroad. The structure of the proposed CCI scheme is grouped into four main themes, namely, space management quality (SMQ), building condition (BC), indoor environmental quality (IEQ) and teaching and learning quality (TLQ). In addition, there are 12 categories and 23 indicators listed under this theme. The second stage focuses on formulating assessment categories with their relevant performance indicators. This phase undergoes a validation process by conducting a survey (questionnaire) toward the classroom’s main users, which are students and teachers. This is to ensure the accuracy of classroom conditions in the school building. A semi-structured interview was also conducted among building experts. They are building surveyors, building engineers, building designers and building performance experts to support the main findings in the second stage. Relative importance (RI) index approach has been applied to show the indicators weighting and ranking are used as data collections method by using Statistical Package of Social Science software to examine the RI of each category and indicator, respectively.
Findings
The findings show that prominent RI and balanced weights are formed from these four main themes. They are SMQ (19.9%), BC (26.6%), IEQ (33.2%) and TLQ (20.3%). The outcome of this study will contribute to a detailed assessment scheme for CCI at the secondary school building. The contribution of the CCI Assessment Scheme is more comprehensive and holistic than the conventional assessment process for BCs. It focuses specifically on classroom space as it is the most important area to achieve a high level of comfort comparing to other spaces in the school building. This holistic approach encompasses all types of classrooms. The concept of one tool fits all is seen as no longer a relevant adaptation in this context. This proposed tool is to be used only for the classroom (as the name CCI implies) and it cannot be used for the other types of spaces, for instance, teacher room, library, meeting room, toilet, canteen and, etc. This is because different spaces represent different physical indicators to be classified. This, in turn, contributes to a conducive learning environment for students in the school.
Originality/value
This paper provides the current information, knowledge and findings related to the classroom physical indicators in developing the assessment scheme for the classroom environment. It will assist both technical and non-technical experts to clarify the current condition of classroom physical performance that ideally may affect the students’ learning environment. The novelty of CCI development is not only on the adopted method but it also includes the ideas on next generation model of rating system that ideally need specific indicators and weighting to be generated into an intelligent computerized system.
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The purpose of this paper is to examine the impact of recent civil justice reforms in five jurisdictions including Singapore, Malaysia, Hong Kong, the UK and Canada on the…
Abstract
Purpose
The purpose of this paper is to examine the impact of recent civil justice reforms in five jurisdictions including Singapore, Malaysia, Hong Kong, the UK and Canada on the resolution of civil and commercial disputes.
Design/methodology/approach
The study, drawing on a comparative cross‐jurisdictional methodology, reviews the scope and nature of such reforms and examines lessons learned regarding implementation.
Findings
The findings of the research indicate that such reforms are most effective where regular evaluation to fine‐tune mediation rules occurs concurrently and in conjunction with the implementation of such reforms.
Research limitations/implications
The limitation of this research is that it is confined to already existing court case statistics, judicial commentaries and reviews of the five selected jurisdictions.
Practical implications
The practical implications of the study find that in general, civil justice reforms have made some progress in achieving the aims of encouraging cost‐effective, expeditious and amicable case handling within the civil justice system.
Originality/value
The paper contributes to a global analysis of effective approaches to civil justice reform and in particular reforms in mediated case handling.
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Farizah Sulong, Michael M. Dent, Norhayati Mohd Alwi and Maliah Sulaiman
Integrated Case Study, Advanced Management Accounting, Environmental Management Accounting (EMA), Human Resource Management.
Abstract
Subject area
Integrated Case Study, Advanced Management Accounting, Environmental Management Accounting (EMA), Human Resource Management.
Study level/applicability
This case is designed for undergraduate students in accounting, business or human resource management programmes.
Case overview
The case is about Irfan, a former Production Manager in Omicron, a small and medium-sized enterprise in Selangor, Malaysia, manufacturing automotive metal parts. Irfan is truly enthusiastic for environmental and cost-reduction tools and wishes to pursue it further to his best possible. The case presents Irfan facing the dilemma of how to align his passion for these tools to his future career choice. He is faced with three options – to remain in Omicron, to accept a job offer in another company or to establish his own consultancy firm. The case highlights the heavy involvement of Irfan in the implementation of a new environmental tool, Material Flow Cost Accounting (MFCA) in Omicron, and all the tasks, activities, benefits and challenges encountered. Being at the ground with the implementation and outputs achieved, Irfan is excited about MFCA and wants to continue with it, due to the rich and valuable experience gained from its implementation and its potential for future savings. However, he does not seem to observe a similar excitement among the higher management. The case details an example of the implementation of MFCA for one of Omicron’s products and other relevant information that could serve as a guidance to any future implementation either in Omicron, the new company or even his own company. The case also provides details about Omicron and how Irfan regard Omicron as his second family to hint a strong pulling factor for Irfan to remain in Omicron, hence providing the extra weight on the dilemma he faces.
Expected learning outcomes
In the process of assessing a career choice dilemma for a middle-level manager, students are expected to analyse the three career options available to this middle manager, whose dilemma also relates to his passion of pursuing environment-related and cost-reduction tools. Where the environment is concerned, some parties need extra persuasion to pursue it and this also triggers the middle-manager’s dilemma. This case is intended to provide a tool to enable students to review and discuss matters, such as overcoming obstacles of pursuing environmental-related initiatives and progressing a mid-life career that provides self-fulfilment financially, emotionally and mentally. Among the theories and concepts referred include diffusion of innovations theory, EMA concepts and Hofstede’s cultural dimensions.
Supplementary materials
Teaching Notes are available for educators only.
Subject code
CSS 1: Accounting and Finance.