Investment-cash flow sensitivities, credit rationing and financing constraints

The controversy over whether investment-cash flow sensitivity is a good indicator of financing constraints is still unresolved. We tackle it from several different angles and cross-validate our analysis with both balance sheet and qualitative data on self-declared credit rationing and financing constraints. Our qualitative information shows that (self-declared) credit rationing is (weakly) related to both traditional a priori factors – such as firm size, age and location – and lenders’ rational decisions based on their credit risk models. We use our qualitative information on firms that were denied credit to provide evidence relevant to the investment-cash flow sensitivity debate. Our results show that self-declared credit rationing significantly discriminates between firms that do and do not have such sensitivity, whereas a priori criteria do not. The same result does not apply when we consider the wider group of financially constrained firms (which do not seem to have a higher investment-cash flow sensitivity), which supports the more recent empirical evidence in this direction.financing constraints; credit rationing; investment/cash flow sensitivity

Bank relationships and firms’ financial performance: the Italian experience

We examine the connection between the number of bank relationships and firms’ performance using a unique data set on Italian small firms for which banks are a major source of financing. Our evidence indicates that return on equity and return on assets decrease as the number of bank relationships increases, the effects being stronger for small firms than for large firms. We also find that the ratio of interest expense to assets increases as the number of relationships increases. Particularly for small firms, these results are consistent with finding that suggest that having fewer bank relationships reduces the information asymmetries and agency problems and outweighs the hold-up problems.bank relationships; small business lending; firms’ performance

Bank relationships and small firms’ financial performance

We examine the relationship between the number of bank relationships and firms’ performance, evaluating possible differential effects related to firms’ size. Our sample of firms from Italy includes many small firms, 99 percent of which are not listed and for which bank debt is a major source of financing. In the sample, 4 percent of the firms have a single bank relationship, and 66 percent of them have five or fewer relationships. We find that return on equity and return on assets decrease as the number of bank relationships increases, with a stronger relationship for small firms than for large firms. We also find that interest expense over assets increases as the number of relationships increases. Particularly for small firms, our results are consistent with analyses indicating that fewer bank relationships reduce information asymmetries and agency problems, which outweigh negative effects connected to holdup problems.

Pollution and economic growth: a maximum likelihood estimation of environmental Kuznets curve

As in Brock and Taylor (2011) in this paper we consider the importance of the relationship between the Environmental Kuznets Curve (EKC) Literature and the Economic Growth Theories. To address this issue we construct country production functions that directly incorporate CO2 emissions as input and estimate them using Stochastic Frontiers. This approach differs from that of Brock and Taylor (2011) but is similar to the one followed by Koop (1998). By introducing the environmental “bads” directly in the production function, we can analyse their contribution to total output growth. We highlight an important contribution of CO2 emissions to growth and find out that the EKC seems not to hold, at least for most countries

Pollution and economic growth: a maximum likelihood estimation of environmental Kuznets curve

As in Brock and Taylor (2011) in this paper we consider the importance of the relationship between the Environmental Kuznets Curve (EKC) Literature and the Economic Growth Theories. To address this issue we construct country production functions that directly incorporate CO2 emissions as input and estimate them using Stochastic Frontiers. This approach differs from that of Brock and Taylor (2011) but is similar to the one followed by Koop (1998). By introducing the environmental “bads” directly in the production function, we can analyse their contribution to total output growth. We highlight an important contribution of CO2 emissions to growth and find out that the EKC seems not to hold, at least for most countries

Teachers during the COVID-19 Era: The Mediation Role Played by Mentalizing Ability on the Relationship between Depressive Symptoms, Anxious Trait, and Job Burnout

Background: The COVID-19 outbreak caused severe changes in school activities over the past two years. Teachers underwent a re-planning of their teaching approaches, shifting from face-to-face teaching formats to remote ones. These challenges resulted in high levels of burnout. The identification of risk/protective factors contributing to burnout is crucial in order to inform intervention programs. Thus, we hypothesized a mediation role of teachers’ mentalizing ability (processing of emotions, a component of mentalized affectivity) on the relationship between depression, anxiety, and depersonalization (burnout dimension). Two reverse models were computed. Job satisfaction, teachers’ age and gender, school grade, and length of teaching experience served as covariates. Methods: 466 (M(sd) = 46.2 (10.4) years) online questionnaires were completed by Italian teachers of primary (n = 204) and middle (n = 242) schools. Measures of burnout, depression, anxiety, and mentalization were administered. Results: The findings corroborated our hypotheses: in all models, processing emotions served as a mediator on the relationship between depression, anxiety, and depersonalization, and on the reciprocal one. Job satisfaction positively impacted processing emotion, and negatively impacted depression and depersonalization; women teachers reported high levels of the anxious trait. Conclusions: Overall, it can be concluded that the ability to mentalize has a beneficial impact on teachers’ well-being. Policymaking, clinical, and research implications were discussed

Local or national environmental spending in Italy: a stochastic frontier analysis

The design of environmental spending at the national or local level stands on the concept of subsidiarity and on the theory of fiscal federalism. The main question is, so forth, studying when centralization of a public economic function, such as the protection of the environment, is welfare improving. Using the stochastic frontier approach (SFA) on a panel of Italian regional data, this paper tries to test this issue, highlighting contrasting results. It seems in fact that, if Italy changes its administrative structure from a centralized to a decentralized government, and gives to local levels more autonomy in choosing how to spend public money, it is not certain if regional economic performance can improve

Internalizing and externalizing symptoms in children during the COVID-19 pandemic: a systematic mixed studies review

Introduction: Given the vulnerability of children during the COVID-19 pandemic, paying close attention to their wellbeing at the time is warranted. The present protocol-based systematic mixed-studies review examines papers published during 2020–2022, focusing on the impact of the COVID-19 pandemic on children's internalizing/externalizing symptoms and the determinants thereof. Method: PROSPERO: CRD42022385284. Five databases were searched and the PRISMA diagram was applied. The inclusion criteria were: papers published in English in peer-reviewed journals; papers published between January 2020 and October 2022 involving children aged 5–13 years; qualitative, quantitative, and mixed studies. The standardized Mixed Method Appraisal Tool protocol was used to appraise the quality of the studies. Results: Thirty-four studies involving 40,976 participants in total were analyzed. Their principal characteristics were tabulated. The results showed that children's internalizing/externalizing symptoms increased during the pandemic, largely as a result of disengagement from play activities and excessive use of the internet. Girls showed more internalizing symptoms and boys more externalizing symptoms. Distress was the strongest parental factor mediating children's internalizing/externalizing symptoms. The quality of the studies was appraised as low (n = 12), medium (n = 12), and high (n = 10). Conclusion: Gender-based interventions should be designed for children and parents. The studies reviewed were cross-sectional, so long-term patterns and outcomes could not be predicted. Future researchers might consider a longitudinal approach to determine the long-term effects of the pandemic on children's internalizing and externalizing symptoms