Renewable energy, institutional stability, environment and economic growth nexus of D-8 countries

The anthropogenic impact of conventional energy sources encourages the utilization of renewable energy, as it has become a strategic commodity for economic growth. On the other hand, institutional stability is the pre-requisite without which environmental quality cannot be assured and the economy cannot function. However, in recent literature, very little consideration has been given to this important phenomenon. This study is set to analyze the energy-institutional stability-economic growth nexus, as well as the energy-institutional stability-environmental quality nexus, by incorporating the Cobb Douglas production function and the Diet and Rosa environmental function respectively. The sample consists of the D-8 countries and the time period spans 1990 to 2016. To analyze the developed models, Autoregressive Distributive Lag (ARDL), Fully Modified Ordinary Least Square (FMOLS) and Dynamic Ordinary Least Square (DOLS) tests are applied, along with other econometric techniques. The panel ARDL statistics indicate significant cointegration among all variables of both functions, while the FMOLS test reveals that consumption of both nonrenewable and renewable energy has a positive impact on economic growth, as well as on environmental degradation. Further, results indicate that institutional stability is crucial for establishing a nation on a sound footing and protecting environmental quality. Based on these results, the study suggests a blend of both types of energy and a gradual transition toward renewable energy sources, with better implementation of policies and technological advances, to produce, preserve, and transmit renewable energy production

The Impact of Financial, Economic and Environmental Factors on Energy Efficiency, Intensity, and Dependence: The Moderating Role of Governance and Institutional Quality

Economies are under serious pressure to sustain themselves due to globalization, focusing simply on economic growth and operational efficiency will not yield the desired sustainable financial and economic position for economies. Management of energy efficiency and reducing the energy dependence and intensity is the core objective for the economy and achievement of the above objective financial, economic, and environmental factors need to be studied. Economic wellbeing critically depends on the efficient use of energy and which type of governance mechanism is in place will also define the ways toward energy efficiency. A better understanding of the relationship will help the economies to fulfill their energy needs efficiently, realize developmental goals, and overcome environmental issues. This study examines the relationship between financial, economic, and environmental factors with energy efficiency, intensity, and dependency with moderating role of governance including institutional quality and governance index for belt and road initiative countries. The core objective of the study is to analyze which financial, economic, and environmental factors serve well in the management of energy efficiency, intensity, and dependence issues and how various dynamics of governance policies including market structure moderate the above-mentioned relationship. For this secondary data is used from world development indicators, market insiders, and Chicago Board Options Exchange (CBOE) data. This research will help the researchers and practitioners to achieve long-term economic, financial, and environmental sustainability. The proposed model predicts that 0.44% change in Total Factor Energy Productivity measure of Energy Efficiency, 0.03% changes in Energy use/Purchasing Power Parity ratio measure of Energy Intensity, and 9.63% changes in Energy Reserves/Energy Production ratio measure of Energy Dependence. Results also reveal that environmental factors including Rural population, Urbanization, Co2 emission, energy use, and energy production will contribute most to achieving sustainable economic growth

Birds of a Feather Flocking Together: Sustainability of Tax Aggressiveness of Shared Directors from Coercive Isomorphism

The purpose of the study is to examine the sustainability of the tax aggressiveness of shared directors from coercive isomorphism and whether social networks of directors have an impact on their tax aggressiveness. Specifically, the study intends to examine how tax knowledge diffuses across firms and how this knowledge diffusion affects connected firms. To test the constructed hypothesis, the panel logistic regression model is estimated using a firm-level panel dataset for the US and Pakistan to analyze cross-country differences, as the USA holds more legislation and effective governance mechanisms. The study covers the period of 2007–2019. The data required for the empirical analysis was collected from the Thompson Reuters database. The results of panel logistic regression show a significant relationship between tax aggressiveness and director’s connections, suggesting that information diffuses by board interlocks. Specifically, the estimates suggest that there is a positive and significant influence of connected directors on the probability that the tax aggressiveness spreads through coercive isomorphism, inferring that the sustainability of the tax aggressiveness of shared directors from coercive isomorphism is strong. Findings reveal that Pakistani firms, when compared to the USA, are more likely involved in tax aggression because of fewer legislations and tax reforms. The results also reveal that coercive isomorphism significantly mediates the relationship between board interlocks and tax aggressiveness. These findings provide valuable insights into detecting the tax aggressiveness of firms and the channels through which this spread. The study contributes to the scarce research on the impact of board interlocks on tax aggressiveness and the influence of coercive isomorphism on these impacts. This study can help tax authorities in identifying tax-saving strategies through connected directors. Secondly, this study provides empirical evidence to support the diffusion of information regarding tax aggression and provides mechanisms with which to detect tax aggression. Third, our choice of empirical context also helps us contribute to the management practice of firms. CEOs and boards should be wary of interlocks with organizations, lest they inadvertently become reticent and hence prove to be of no good

Birds of a Feather Flocking Together: Sustainability of Tax Aggressiveness of Shared Directors from Coercive Isomorphism

The purpose of the study is to examine the sustainability of the tax aggressiveness of shared directors from coercive isomorphism and whether social networks of directors have an impact on their tax aggressiveness. Specifically, the study intends to examine how tax knowledge diffuses across firms and how this knowledge diffusion affects connected firms. To test the constructed hypothesis, the panel logistic regression model is estimated using a firm-level panel dataset for the US and Pakistan to analyze cross-country differences, as the USA holds more legislation and effective governance mechanisms. The study covers the period of 2007–2019. The data required for the empirical analysis was collected from the Thompson Reuters database. The results of panel logistic regression show a significant relationship between tax aggressiveness and director’s connections, suggesting that information diffuses by board interlocks. Specifically, the estimates suggest that there is a positive and significant influence of connected directors on the probability that the tax aggressiveness spreads through coercive isomorphism, inferring that the sustainability of the tax aggressiveness of shared directors from coercive isomorphism is strong. Findings reveal that Pakistani firms, when compared to the USA, are more likely involved in tax aggression because of fewer legislations and tax reforms. The results also reveal that coercive isomorphism significantly mediates the relationship between board interlocks and tax aggressiveness. These findings provide valuable insights into detecting the tax aggressiveness of firms and the channels through which this spread. The study contributes to the scarce research on the impact of board interlocks on tax aggressiveness and the influence of coercive isomorphism on these impacts. This study can help tax authorities in identifying tax-saving strategies through connected directors. Secondly, this study provides empirical evidence to support the diffusion of information regarding tax aggression and provides mechanisms with which to detect tax aggression. Third, our choice of empirical context also helps us contribute to the management practice of firms. CEOs and boards should be wary of interlocks with organizations, lest they inadvertently become reticent and hence prove to be of no good

Impact of Unemployment and Governance on Poverty in Pakistan: a Fresh Insight from Non-linear ARDL Co-integration Approach

2020 International Management Institute, New Delhi. This article aims to give a fresh insight into the non-linear relationship between unemployment, governance, and poverty in Pakistan. For the purpose, the study utilizes data from 1984 to 2016 by employing a nonlinear ARDL co-integration approach. The findings provide an insight that poverty responds asymmetrically due to positive or negative shocks in unemployment and governance. Moreover, the results suggest that applying linear models on poverty modelling may mislead the inference. The findings of the study imply that the policymakers and academicians must consider nonlinear behaviour of poverty for better policymaking

Impact of Unemployment and Governance on Poverty in Pakistan: A Fresh Insight from Non-linear ARDL Co-integration Approach

This article aims to give a fresh insight into the non-linear relationship between unemployment, governance, and poverty in Pakistan. For the purpose, the study utilizes data from 1984 to 2016 by employing a nonlinear ARDL co-integration approach. The findings provide an insight that poverty responds asymmetrically due to positive or negative shocks in unemployment and governance. Moreover, the results suggest that applying linear models on poverty modelling may mislead the inference. The findings of the study imply that the policymakers and academicians must consider nonlinear behaviour of poverty for better policymaking