The impact of debt, taxation and financial crisis on earnings management: the case of Greece

The purpose of this study is to empirically investigate the Greek firms’ earnings management policies compared with debt, taxation and the financial crisis. In this paper, we show that existed measures of real earnings management, whether corrected for performance or not, rely crucially on strong assumptions. We provide a novel modeling that permits panel structure so as to correct for heterogeneity across firms while permitting to determine endogenously the number of underlying firm-groups in the data generating process. The empirical results indicate that Greek firms are likely to reduce earnings manipulation activities when they face liquidity risk. Taxation and financial crisis have a negative and positive effect on earnings management, respectively. The effect of debt, taxation and financial crisis on earnings management has never been investigated in Greece. The empirical results offer valuable information to shareholders and investors as they can understand how some main factors, such as debt, taxation and financial crisis, influence firm’s accounting practices

Does R&D, human capital and FDI matter for TFP in OECD countries?

This study investigates the interplay between research and development (R&D), human capital (HC), foreign direct investment (FDI) and total factor productivity (TFP) in OECD countries. We divide the sample into two sub-groups; the European and the non-European states so as to account for underlying country heterogeneity. The analysis follows a panel data approach over the period 1995–2015, taking into account the modelling on non-stationarity, long-run relationships and short-run dynamics with a panel VAR. Both R&D and HC have a positive effect on TFP, whilst FDI has a positive and significant effect only in the case of non-European countries. Moreover, the contribution of R&D is higher than that of HC and FDI in all cases. Thus, based on these findings, policymakers should design and implement policies to increase resources invested in R&D, with a consistent ongoing spending review, to attract foreign direct investment, especially for the majority of the European and some of the non-European countries and to improve education system on a more productive innovation and research base

The efficiency of the tourism industry in Greece during the economic crisis (2008-2016)

This paper investigates the efficiency of the tourism industry in Greek regions during the economic crisis (2008 – 2016). It applies the methodology of stochastic frontier analysis that allows us to estimate the regional efficiency scores and rankings. The results show that the tourism industry in Greece enjoys high average efficiency levels and seems to not fall behind in comparison to its competitors. The regions of South Aegean and Crete are regarded as the leaders in the efficiency ranking. Greece, in order to achieve more economic, social, and cultural benefits from tourism should continue the structural reforms, improving the prospects of the sector. © 2022 The Author(s)

The impact of renewable and non-renewable energy consumption on economic growth: the case of Greece

This study empirically investigates the relationship between renewable and non-renewable energy consumption and economic growth in Greece, using annual data from 1990 to 2016. The results reveal that there is a significant positive long-run effect of both, renewable and non-renewable energy consumption, on economic growth. In the short run, the results are in the same direction. The overall findings imply that renewable and non-renewable energy consumption significantly stimulates economic growth in Greece. Taken into account that renewable energy sources reduce carbon emissions and protect the environment, the expansion of renewable energy consumption with a strategic plan is required. The challenge for policymakers in Greece is to substitute conventional energy fuels with others that produce less pollution and to raise renewable energy sources by keeping a sustainable and long-term growth path. Energy policy should be combined with the implementation of coherent, consistent and sequential renewable energy-enhancing structural reforms. © 2019, © 2019 Informa UK Limited, trading as Taylor & Francis Group

Government Debt and Economic Growth. A Threshold Analysis for Greece

This study addresses the issue of threshold effects between general government debt and economic growth in Greece over the period 1970-2016. Using threshold models, there is evidence in favour of a negative association between general government debt and economic growth. The results indicate that the magnitude of this negative relationship between debt and growth depends on debt regimes. Also, the results seem to suggest that public debt might be associated with lower growth at low and moderate public debt levels. Specifically, at debt levels lower than 23.5 percent of GDP, increases in the general government debt-to-GDP ratio are associated with higher negative effect on economic growth, than at very high debt levels of 109.4 percent of GDP. The overall results could explain why general government debt was a significant drag on economic growth of Greece and that the crisis is far from over as thresholds are still binding. © 2019 Walter de Gruyter GmbH, Berlin/Boston

The link between energy consumption and environmental pollution.How effective is renewable energyin reducing CO2 emissions? the case of Greece

This paper examines the impact of renewable and non-renewable energy consumption on environmental pollution, proxied by carbon dioxide (CO2) emissions, in Greece over the period 1990-2016. The empirical findings indicate the existence of one cointegration relationship among variables. In the long-run and short-run, renewable energy consumption has a negative effect on CO2 emissions and contributes substantially to the decrease of air pollution. On the other hand, there is a positive long-run and short-run effect of non-renewable energy consumption on CO2 emissions, meaning that environmental pollution is fundamentally caused by the use of non-renewable energy sources. Therefore, Greece should pay great attention to the development of renewable energy sources for addressing energy security, reducing carbon emissions and protecting the environment for future generations, by keeping a sustainable growth path. © 2018, Nova Science Publishers, Inc.. All rights reserved

Interrelationships between tourism, energy, environment and economic growth in Greece

This study empirically investigates the interrelationships between tourism, energy, environment and economic growth in Greece over the period 1989–2018. The results reveal that there is a positive long-run relationship between tourism, investment, energy consumption, environmental pollution and economic growth. Tourism significantly stimulates economic growth in Greece. In addition, tourism has a favourable but not substantial effect on energy consumption and carbon emissions, while energy consumption and economic growth increase environmental pollution. The challenge for policymakers in Greece is to further support the tourism industry and to design and develop policies that aim to coordinate more efficiently tourism, energy, environment and economy, by keeping a sustainable and long-term economic growth path. © 2020, © 2020 Informa UK Limited, trading as Taylor & Francis Group

On the determinants of economic growth: Empirical evidence from the Eurozone countries

This study empirically investigates the causal relationship between economic growth and several factors (investment, human capital, trade openness and public debt) in the Eurozone countries, where imbalances persist several years after the financial crisis. The results reveal a long-run relationship between variables and public debt, as investment, human capital and trade openness positively affect growth. On the other hand, there is a negative long-run effect of public debt on growth. Furthermore, the results indicate that there is long-run unidirectional causality running from investment, trade openness and human capital to growth and bidirectional causality between public debt and growth. The overall results reveal that Eurozone countries should base their growth strategies on fiscal consolidation, increasing exports, correcting the use of public investment and improving the quality of human capital, especially in higher education. © The Author(s) 2020

Does Domestic and Foreign R&D Capital Affect Total Factor Productivity? Evidence from Eurozone Countries

The purpose of this study is to empirically investigate the impact of domestic and foreign R&D capital on TFP in the Eurozone countries over the period 1995–2016. The variations in the TFP level for each country are explained by the changes in both the domestic and foreign R&D capital. Total domestic R&D capital is divided into three sectors, namely business, public and higher education. This specification allows to explore the role of certain variables in the long-run evolution of TFP in Eurozone countries. The results indicate that all variables of R&D capital have a positive contribution to TFP. Foreign R&D capital appears to have higher contribution to the TFP level than domestic R&D capital in all estimations and specifications. The impact of higher education R&D capital is larger than that of the business and public. The estimations are related to the productivity slowdown, especially over the period of economic crisis, and the high degree of differences in income per capita and productivity levels among the Eurozone member states. The results point to the need for policy actions to increase the available domestic R&D capital in all countries and improve the technology diffusion among them within the Eurozone. © 2020, © 2020 Korea International Economic Association

Does research and development expenditure impact innovation? Evidence from the European Union countries

This study empirically investigates the relationship between innovation and Research & Development expenditure in European Union countries over the period 1995–2014. The findings of the empirical analysis show that there is a co-integration relationship between innovation and R&D. The results also reveal the existence of a positive and significant effect of business, public and higher education R&D on innovation. Business R&D is the sector with the highest positive effect on innovation. The results indicate that EU should strengthen the cooperation between business, public and higher education R&D through the encouragement of partnerships between the private sector, R&D and innovation system. © 2019 The Society for Policy Modelin