• Prediction of financial distress for multinational corporations: Panel estimations across countries.

      Apergis, Nicholas; Bhattacharya, Mita; Inekwe, John; University of Piraeus; Monash University; Macquarie University (Taylor & Francis, 2019-03-21)
      This research predicts ex-ante financial distress and analyses the link between financial distress, performance, employment, and research and development (R&D) investment in the case of multinational companies (MNCs). The conditional logit and hazard models are employed to predict financial distress, while a conditional mixed process model is employed to obtain consistent and efficient estimates. Financial distress generates contractions in performance, employment, and R&D investment. Hedging against risk mitigates the effect of financial distress on R&D. Our findings vary across countries, for example, we find MNCs in Canada, Israel and the U.S. benefit from hedging against risk. The findings also indicate that ex-ante financial distress is detrimental to employment for Canada, the U.K., the Netherlands and the U.S. The findings indicate the MNCs play different roles across countries in contributing jobs, investment in R&D during the distress period.
    • Building routines for non-routine events: Supply chain resilience learning mechanisms and their antecedents.

      Scholten, Kirstin; Sharkey Scott, Pamela; Fynes, Brian; University College Dublin; University of Groningen; Dublin City University (Emerald., 2019)
      Organisations must build resilience to be able to deal with disruptions or non-routine events in their supply chains. While learning is implicit in definitions of supply chain resilience, there is little understanding of how exactly organisations can adapt their routines to build resilience. The aim of this study is to address this gap. An in-depth qualitative case study based on 28 interviews across five companies exploring learning to build supply chain resilience. This study uncovers six learning mechanisms and their antecedents that foster supply chain resilience. The learning mechanisms identified suggest that, through knowledge creation within an organisation and knowledge transfer across the supply chain and broader network of stakeholders, operating routines are built and/ or adapted both intentionally and unintentionally during three stages of a supply chain disruption: preparation, response and recovery. This study shows how the impact of a supply chain disruption may be reduced by intentional and unintentional learning in all three disruption phases. By being aware of the antecedents of unintentional learning organisations can more consciously adapt routines. Furthermore, findings highlight the potential value of additional attention to knowledge transfer, particularly in relation to collaborative and vicarious learning across the supply chain and broader network of stakeholders not only in preparation for, but also in response to and recovery from disruptions. This study contributes novel insights about how learning leads both directly and indirectly to the evolution of operating routines that help an organisation and its supply chains to deal with disruptions. Results detail six specific learning mechanisms for knowledge creation and knowledge transfer and their antecedents for building supply chain resilience. In doing so, this study provides new fine grained theoretical insights about how supply chain resilience can be improved through all three phases of a disruption. Propositions are developed for theory development.
    • Are shocks to natural gas consumption temporary or permanent? Evidence from a panel of U.S. states

      Apergis, Nicholas; Loomis, David; Payne, James; University of Piraeus; Illinois State University; Illinois State University (Elsevier, 2010-08)
      This short communication examines whether or not U.S. natural gas consumption follows a stationary process. Unlike previous research that has focused on regional country or industrial sector-based panel studies, this study undertakes a sub-national investigation of natural gas consumption for the 50 U.S. states. Levin et al. (2002), Im et al. (2003), Maddala and Wu (1999), and Hadri (2000) panel unit root and stationarity tests reveal that natural gas consumption is integrated of order one. However, once allowance is made for endogenously determined structural breaks, the Carrion-i-Silvestre et al. (2005), Im et al. (2005), and Westerlund (2005) panel unit root and stationarity tests indicate that natural gas consumption is integrated of order zero. Discussion of the structural breaks is briefly surveyed in relation to the natural gas industry’s response to legislative actions.
    • Food price volatility and macroeconomic factor volatility: 'heat waves' or 'meteor showers'?

      Apergis, Nicholas; Rezitis, Antonios; University of Ioannina; University of Ioannina (Taylor & Francis, 2010-10-06)
      This paper investigates volatility spillover effects between relative food prices and explicit macroeconomic fundamentals, i.e. exchange rates, money balances, inflation, and the deficit to income ratio, through the methodology of GARCH models. The findings showed that significant and positive macroeconomic volatility effects influence the volatility of relative food prices. Moreover, the volatility of relative food prices exerts a positive and statistically significant impact on its own volatility. The results imply that the participation of Greece in EMU will diminish the volatility of those macroeconomic factors, implying lower volatility in food prices and thus higher benefits for both producers and consumers.
    • International technology spillovers, human capital and productivity linkages: evidence from the industrial sector

      Apergis, Nicholas; Economidou, Claire; Filippidis, Ioannis; University of Piraeus; University of Utrecht; Aristotelian University of Thessaloniki (Springer, 2009-11)
      The paper estimates an empirical model that is consistent with a variety of Research and Development (R&D)-driven models of growth where technology is transmitted via trade to other industries, both domestically and internationally, by being embodied in differentiated intermediate goods. The evidence is based on data from 21 manufacturing industries in six European Union countries for the period 1980–1997. The contribution of the paper lies in showing how by including human capital in the model and employing suitable econometric procedures the magnitude of R&D spillovers reported in the existing literature can be affected, while pointing to a major role of human capital in economic growth process.
    • The emissions, energy consumption, and growth nexus: Evidence from the commonwealth of independent states

      Apergis, Nicholas; Payne, James; University of Piraeus; Illinois State University (Elsevier, 2010-01)
      This study examines the causal relationship between carbon dioxide emissions, energy consumption, and real output within a panel vector error correction model for eleven countries of the Commonwealth of Independent States over the period 1992–2004. In the long-run, energy consumption has a positive and statistically significant impact on carbon dioxide emissions while real output follows an inverted U-shape pattern associated with the Environmental Kuznets Curve (EKC) hypothesis. The short-run dynamics indicate unidirectional causality from energy consumption and real output, respectively, to carbon dioxide emissions along with bidirectional causality between energy consumption and real output. In the long-run there appears to be bidirectional causality between energy consumption and carbon dioxide emissions.
    • Financial Deepening and Economic Growth Linkages: A Panel Data Analysis

      Apergis, Nicholas; Fillipidis, Ioannis; Economidou, Claire; University of Piraeus; University of Piraeus; University of Utrecht (Springer, 2007-04)
      The paper examines whether a long-run relationship between financial development and economic growth exists employing panel integration and cointegration techniques for a dynamic heterogeneous panel of 15 OECD and 50 non-OECD countries over the period 1975–2000. Three different measures of financial deepening are used to capture the variety of different channels through which financial development can affect growth. Our findings support the existence of a single long-run equilibrium relation between financial deepening, economic growth and a set of control variables. Further, the evidence points to a bi-directional causality between financial deepening and growth.
    • Total Factor Productivity and Monetary Policy: Evidence from Conditional Volatility

      Apergis, Nicholas; Miller, Stephen; University of Piraeus; University of Nevada Las Vegas (Wiley, 2007-08-14)
      This paper empirically assesses whether monetary policy and its volatility affect real economic activity through their effect on the aggregate supply side of the macroeconomy. Analysts typically argue that monetary policy either does not affect the real economy (the classical dichotomy) or only affects the real economy in the short run through aggregate demand (new Keynesian or new classical theories). Real business cycle theorists try to explain the business cycle with supply‐side productivity shocks. We provide some preliminary evidence about how monetary policy and its volatility affect the aggregate supply side of the macroeconomy through their effect on total factor productivity and its volatility. Total factor productivity provides an important measure of supply‐side performance. The results show that monetary policy and its volatility exert a positive and statistically significant effect on the supply side of the macroeconomy. Moreover, the findings buttress the importance of reducing short‐run swings in monetary policy variables as well as support the adoption of an optimal money supply rule. Our results also prove consistent with the effective role of monetary policy during the so‐called ‘Great Moderation’ in US gross domestic product volatility beginning in the early 1980s.
    • Renewable energy consumption and economic growth: Evidence from a panel of OECD countries

      Apergis, Nicholas; Payne, James; University of Piraeus; Illinois State University (Elsevier, 2010-01)
      This study examines the relationship between renewable energy consumption and economic growth for a panel of twenty OECD countries over the period 1985–2005 within a multivariate framework. Given the relatively short span of the time series data, a panel cointegration and error correction model is employed to infer the causal relationship. The heterogeneous panel cointegration test reveals a long-run equilibrium relationship between real GDP, renewable energy consumption, real gross fixed capital formation, and the labor force with the respective coefficients positive and statistically significant. The Granger-causality results indicate bidirectional causality between renewable energy consumption and economic growth in both the short- and long-run.
    • Testing Purchasing Power Parity: results from a new foreign exchange market

      Apergis, Nicholas; University of Ioannina (Taylor & Francis, 2010-10-06)
      This study examines whether the Purchasing Power Parity hypothesis holds in the foreign exchange market of Armenia, following the initiation of an independent foreign exchange market, after the country seceded from the Soviet Union and the rouble zone in 1993. OLS and highly efficient unit root tests provide results suggesting that PPP fails to hold both in the short-run and in the long-run, respectively. In addition, variance decompositions justify - in terms of the Balassa-Samuelson effect - why in the long-run the PPP is rejected by identifying real shocks as the main determinant of the Dram real exchange rate.
    • FINANCIAL STRUCTURE AND INDUSTRIAL STRUCTURE

      Apergis, Nicholas; Antzoulatos, Angelos; Tsoumas, Chris; University of Piraeus; University of Piraeus; University of Piraeus (Wiley, 2010-10-12)
      This paper explores the relationship between financial structure and industrial structure in a panel cointegration framework, using annual data for 29 countries and 28 industrial sectors for the period 1990–2001. The results indicate that financial structure is to a significant extent related to industrial structure in the long run, yet their relationship is partly consistent with the industrial sectors' technological orientation postulated by the theoretical literature. It is in line, however, with the so‐called ‘financial services view’ that stresses the importance of a well developed financial system for growth, irrespective of its structure. In addition, the results indicate that financial structure does not seem to play a role in a sector’s performance relative to GDP.
    • Integration properties of disaggregated solar, geothermal and biomass energy consumption in the U.S.

      Apergis, Nicholas; Tsoumas, Chris; University of Piraeus; University of Piraeus (Elsevier, 2011-09)
      This paper investigates the integration properties of disaggregated solar, geothermal and biomass energy consumption in the U.S. The analysis is performed for the 1989–2009 period and covers all sectors which use these types of energy, i.e., transportation, residence, industrial, electric power and commercial. The results suggest that there are differences in the order of integration depending on both the type of energy and the sector involved. Moreover, the inclusion of structural breaks traced from the regulatory changes for these energy types seem to affect the order of integration for each series.
    • Innovation, Technology Transfer and Labor Productivity Linkages: Evidence from a Panel of Manufacturing Industries

      Apergis, Nicholas; Economidou, Claire; Fillipidis, Ioannis; University of Piraeus; University of Utrecht; Aristotelian University of Thessaloniki (Springer, 2008-10)
      The paper explores the linkages between labour productivity, innovation and technology spillovers in a panel of manufacturing industries. The roles of R&D, human capital and international trade are considered in stimulating innovation and/or facilitating technology transfer. Using panel-based unit root tests and cointegration analysis, the results indicate the existence of a single long-run equilibrium relation between labour productivity, innovation and technology transfer. Further, R&D, trade and human capital have statistically and, especially the latter, quantitatively important effects on labour productivity both directly via innovation and indirectly as they enhance technology diffusion.
    • CO2 emissions, energy usage, and output in Central America

      Apergis, Nicholas; Payne, James; University of Piraeus; Illinois State University (Elsevier, 2009-08)
      This study extends the recent work of Ang (2007) [Ang, J.B., 2007. CO2 emissions, energy consumption, and output in France. Energy Policy 35, 4772–4778] in examining the causal relationship between carbon dioxide emissions, energy consumption, and output within a panel vector error correction model for six Central American countries over the period 1971–2004. In long-run equilibrium energy consumption has a positive and statistically significant impact on emissions while real output exhibits the inverted U-shape pattern associated with the Environmental Kuznets Curve (EKC) hypothesis. The short-run dynamics indicate unidirectional causality from energy consumption and real output, respectively, to emissions along with bidirectional causality between energy consumption and real output. In the long-run there appears to be bidirectional causality between energy consumption and emissions.
    • On the causal dynamics between emissions, nuclear energy, renewable energy, and economic growth

      Apergis, Nicholas; Payne, James; Menyah, Kojo; Wolde-Rufael, Yemane; University of Piraeus; Illinois State University; London Metropolitan University; Private (Elsevier, 2010-09-15)
      This paper examines the causal relationship between CO2 emissions, nuclear energy consumption, renewable energy consumption, and economic growth for a group of 19 developed and developing countries for the period 1984–2007 using a panel error correction model. The long-run estimates indicate that there is a statistically significant negative association between nuclear energy consumption and emissions, but a statistically significant positive relationship between emissions and renewable energy consumption. The results from the panel Granger causality tests suggest that in the short-run nuclear energy consumption plays an important role in reducing CO2 emissions whereas renewable energy consumption does not contribute to reductions in emissions. This may be due to the lack of adequate storage technology to overcome intermittent supply problems as a result electricity producers have to rely on emission generating energy sources to meet peak load demand.
    • Accounting information and excess stock returns: the role of the cost of capital – new evidence from US firm-level data

      Apergis, Nicholas; Artikis, George; Eleftheriou, Sofia; Sorros, John; University of Piraeus; University of Piraeus; University of Piraeus; University of Piraeus (Taylor & Francis, 2011-10-20)
      The goal of this article is to investigate the impact of accounting information on the cost of capital as well as how the latter influences excess returns. The analysis has certain novelties: first, it extends prior works by investigating how certain components of accounting information affect stock returns through its direct effect on the cost of capital by incorporating influential components of accounting information; second, it makes use of a sample of 330 US manufacturing firms spanning the period 1990Q1 to 2009Q2, while it makes use, for the first time in this literature, of the methodology of panel cointegration. The empirical findings display that accounting information affects directly the firm's cost of capital. This, in turn, tends to exert a negative effect on the firm's excess stock returns, an empirical documentation not captured in case researchers attempt to directly link the cost of capital and excess stock returns.
    • On the causal dynamics between renewable and non-renewable energy consumption and economic growth in developed and developing countries

      Apergis, Nicholas; Payne, James; University of Piraeus; University of South Florida Polytechnic (Springer, 2011-11)
      This study extends recent work on the relationship between renewable and non-renewable energy consumption and economic growth to the case of developed and developing countries over the period 1990–2007. Heterogeneous panel cointegration procedures show a long-run equilibrium relationship between real GDP, renewable energy consumption, non-renewable energy consumption, real gross fixed capital formation, and the labor force with the respective coefficient estimates positive and statistically significant for developed and developing country panels. The results from the panel error correction models reveal bidirectional causality between renewable and non-renewable energy consumption and economic growth in the short- and long-run for each country panel.
    • Coal consumption and economic growth: Evidence from a panel of OECD countries

      Apergis, Nicholas; Payne, James; University of Piraeus; Illinois State University (Elsevier, 2010-03)
      This study examines the relationship between coal consumption and economic growth for 25 OECD countries within a multivariate panel framework over period 1980–2005. The Larsson et al. (2001) panel cointegration test indicates there is a long-run equilibrium relationship between real GDP, coal consumption, real gross fixed capital formation, and the labor force. The respective coefficients for real gross fixed capital formation and the labor force are positive and statistically significant whereas the coefficient for coal consumption is negative and statistically significant. The results of the panel vector error correction model reveal bidirectional causality between coal consumption and economic growth in both the short- and long-run; however, the bidirectional causality in the short-run is negative.
    • Live free or bribe: On the causal dynamics between economic freedom and corruption in U.S. states

      Apergis, Nicholas; Dincer, Oguzhan; Payne, James; University of Piraeus; Illinois State University; University of South Florida Polytechnic (Elsevier, 2012-06)
      We investigate the relationship between economic freedom and corruption using data from U.S. states covering almost a quarter of a century. Our study advances the existing literature on several fronts. First, instead of using subjective cross-country corruption indices assembled by various investment risk services, we use a more objective measure of corruption: the number of government officials convicted in a state for crimes related to corruption. Second, unlike previous studies, we exploit both time series and cross-sectional variation in the data in the estimation of a panel error correction model. The panel error correction model results show that in the long-run economic freedom, per capita income, and education have a negative and statistically significant impact on corruption whereas income inequality has a positive and statistically significant impact. The causality tests associated with the panel error correction model reveal bidirectional causality between economic freedom and corruption in both the short-run and long-run.
    • Convergence in U.S. house prices by state: evidence from the club convergence and clustering procedure

      Apergis, Nicholas; Payne, James; University of Piraeus; University of South Florida Polytechnic (Springer, 2012-07)
      This study examines the convergence of U.S. house prices by state over the quarterly period 1975:1 to 2010:4 through the club convergence and clustering procedure of Phillips and Sul (Econometrica 75:1771–1855, 2007). The results indicate the presence of three convergence clubs with the first convergence club consisting of 29 states inclusive of the entire BEA regions of the Mideast, New England, and Rocky Mountain as well as several states from the other BEA regions. The second convergence club consists of 19 states primarily in the Southeast and Plains regions along with a few states from the Far West, Southwest, and Great Lakes regions. The third convergence club comprises two states in the Southeast region (Arkansas and Mississippi).