Simultaneous Equation

The evolution of Corporate Social Responsibility (CSR) has transformed its role in business, becoming a critical element of corporate strategy rather than a secondary consideration. This shift underscores a growing recognition of the corporate obligation to tackle societal along with environmental concerns beyond financial returns. In Indian context, CSR has assumed a unique importance with the Companies Act of 2013 implementation, that mandates CSR spending for qualifying businesses. This regulatory approach aims to institutionalize CSR within corporate operations, promoting sustainable development and aligning business objectives with societal impact.
This literature review examines the implications of mandated CSR in India, with a particular focus on its effects on corporate financial performance (FP). Principal inquiries addressed are: (1) How does mandatory CSR spending influence financial outcomes for Indian companies? (2) Do companies treat CSR as a compliance measure or a strategic investment for long-term gains? (3) Which CSR activities have the most significant impact on financial performance? This study also explores factors moderating CSR-FP relationship, that includes industry, company size, along with CSR implementation quality.
Investigation into CSR-FP nexus has yielded mixed outcomes. Some studies point to positive outcomes, suggesting that CSR efforts can enhance brand reputation, foster customer loyalty, and reduce capital costs, thus strengthening financial performance. Conversely, other studies reveal a more complex interaction, where company characteristics and CSR strategies dictate financial impact. In some cases, the pressure to fulfil mandatory CSR requirements may encourage superficial engagement, limiting the social and financial returns of CSR investments.

The relationship between interest rate, real money balances and real output may be explored in an IS-LM framework. The objective of this study is to explore the connection between real interest rate, GDP and real money balances. It also empirically tests for the nature and existence of the IS-LM framework in Ghana. Employing a simple IS-LM framework, the Two Stage Least Squares (TSLS) estimation technique is used for the analysis. The main contribution of this paper is the use of a simultaneous equation framework to investigate interest rate and GDP growth determinants. This is imperative since interest rate is both an explanatory and an explained variable. The results indicated that real money balances exerted a negative but significant influence on real interest rate. The growth rate of GDP had a dominant influence on real interest rate. On the other hand, investment expenditure exerted significant and positive influence on GDP growth. Meanwhile, as informed by economic theory, interest rate changes had a negative and significant influence on GDP growth. The study recommends the role of monetary policy and economic growth in exchange rate management. Also, policy focus should be on interest rate since interest rate is seen in this study as a stronger driver of economic growth in Ghana compared with investment expenditure.

Objective: Economic decisions of depositors and borrowers in the banking industry are made based on the quantity and quality of their information. The information of these banks, including earnings, must have the necessary quality characteristics in order to distribute financial resources among the members of the society in the best way along the decisions of information users. Therefore, the purpose of this study is to investigate the interaction between earning quality and information asymmetry in the banking industry.Method: To achieve the purpose of the research, data of 11 banks listed on the Tehran Stock Exchange and Iran of OTC during a period of 11 years for the years 2007-2018 using the Rah Avard Novin, financial statements and the official site of the Tehran Stock Exchange was collected and analyzed using the structural equation method in the Smart PLS software platform and the two-way Granger causality test. Results: The findings showed that information asymmetry in the b...

Objective: Economic decisions of depositors and borrowers in the banking industry are made based on the quantity and quality of their information. The information of these banks, including earnings, must have the necessary quality characteristics in order to distribute financial resources among the members of the society in the best way along the decisions of information users. Therefore, the purpose of this study is to investigate the interaction between earning quality and information asymmetry in the banking industry.Method: To achieve the purpose of the research, data of 11 banks listed on the Tehran Stock Exchange and Iran of OTC during a period of 11 years for the years 2007-2018 using the Rah Avard Novin, financial statements and the official site of the Tehran Stock Exchange was collected and analyzed using the structural equation method in the Smart PLS software platform and the two-way Granger causality test. Results: The findings showed that information asymmetry in the b...

Purpose Prior studies on corporate social responsibility (CSR) and performance have frequently used unidirectional, single-equation regression although the literature recommends the reciprocal association of CSR with firm performance. This paper aims to elucidate the interactive relationship of CSR spending with financial inclusion (FI) and firm performance. The study also explores the moderating impact of the level of FI on the CSR-firm performance relationship. Design/methodology/approach This study uses a simultaneous equations model to capture the FI, CSR and firm performance relationships and apply a three-stage regression approach and generalised method of moments approach to address possible endogeneity. Findings The results confirm a positive association of CSR spending with performance but a negative relationship of FI with performance. This paper also finds that FI negatively moderates the CSR spending-performance relationship. Practical implications The positive impact of...

Purpose Prior studies on corporate social responsibility (CSR) and performance have frequently used unidirectional, single-equation regression although the literature recommends the reciprocal association of CSR with firm performance. This paper aims to elucidate the interactive relationship of CSR spending with financial inclusion (FI) and firm performance. The study also explores the moderating impact of the level of FI on the CSR-firm performance relationship. Design/methodology/approach This study uses a simultaneous equations model to capture the FI, CSR and firm performance relationships and apply a three-stage regression approach and generalised method of moments approach to address possible endogeneity. Findings The results confirm a positive association of CSR spending with performance but a negative relationship of FI with performance. This paper also finds that FI negatively moderates the CSR spending-performance relationship. Practical implications The positive impact of...

Objective: Economic decisions of depositors and borrowers in the banking industry are made based on the quantity and quality of their information. The information of these banks, including earnings, must have the necessary quality characteristics in order to distribute financial resources among the members of the society in the best way along the decisions of information users. Therefore, the purpose of this study is to investigate the interaction between earning quality and information asymmetry in the banking industry.Method: To achieve the purpose of the research, data of 11 banks listed on the Tehran Stock Exchange and Iran of OTC during a period of 11 years for the years 2007-2018 using the Rah Avard Novin, financial statements and the official site of the Tehran Stock Exchange was collected and analyzed using the structural equation method in the Smart PLS software platform and the two-way Granger causality test. Results: The findings showed that information asymmetry in the b...

In the Marina Baja region there is a tradition of fierce competition for water resources which necessitates the regulation of institutions in order to satisfy the interests of the different water users. The management of the water resources in this region is based on the water exchange between the different users with no legal modification of the water concessions. This situation requires continuous negotiation in order to maintain the balance between urban, tourism and the agricultural demand. In this article we define, describe and analyse the equilibrium model for water resources of the Marina Baja District using a simultaneous equations model (SEM). We analyse variables that influence the water management model through a simultaneous relationship between the above-mentioned demands in the region of the Marina Baja, using a methodology that directly links urban and irrigation demands and makes them relevant to one another from a socioeconomic point of view. Keywords Integrated water resource management • Urban demand • Agricultural demand • Competence of uses • Simultaneous equation model

Objective: Accounting information in financial markets is as a basis for deciding on the optimal allocation of limited financial resources. Also it is performance appraisal and the perspective of cash flows of investments or loans granted by the organization. Economic decisions of depositors and borrowers in the banking industry are made based on the quantity and quality of their information. The information of these banks, including earnings, must have the necessary quality characteristics in order to distribute financial resources among the members of the society in the best way along the decisions of information users. This can lead to an improvement in the economy and the growth of the banking system. Therefore, the purpose of this study is to investigate the interaction between earning quality and information asymmetry in the banking industry. Method: To achieve the purpose of the research, data of 11 banks listed on the Tehran Stock Exchange (TSE) and Iran of OTC during a period of 11 years for the years 2007-2018 using the Rah Avard Novin, financial statements and the official site of the Tehran Stock Exchange was collected and analyzed using the structural equation method (SEM) and the two-way Granger causality test. Results: The findings showed that information asymmetry in the banking industry is high and their earning quality is low. Information asymmetry has a negative effect on earning quality. On the other hand, if the quality of earning is low, it will increase information asymmetry. As a result, earnings quality also has a negative effect on information asymmetry. Finally, bilaterally, these two variables are the cause and effect of each other and have interaction. The most important risk of the banking industry is their credit risk, which is due to the increase in debt to banks' capital. Another point is that most of the assets of banks are receivables from the provision of facilities, but depending on the steps through which the repayment of receivables, policies and regulatory tools can be repaid can lead to instability of banks.

In the Marina Baja region there is a tradition of fierce competition for water resources which necessitates the regulation of institutions in order to satisfy the interests of the different water users. The management of the water resources in this region is based on the water exchange between the different users with no legal modification of the water concessions. This situation requires continuous negotiation in order to maintain the balance between urban, tourism and the agricultural demand. In this article we define, describe and analyse the equilibrium model for water resources of the Marina Baja District using a simultaneous equations model (SEM). We analyse variables that influence the water management model through a simultaneous relationship between the above-mentioned demands in the region of the Marina Baja, using a methodology that directly links urban and irrigation demands and makes them relevant to one another from a socioeconomic point of view.

Using information on a basic or "lifeline" level of domestic water use obtained from a water demand function based on a StoneeGeary utility function, a minimum water threshold of 128 m 3 per household per year was estimated in a sample of municipalities in Southern Spain. As a second objective, water affordability indexes were then calculated that relate the cost of such lifeline to average municipal income levels. The analysis of the factors behind the differences in that ratio across Andalusian municipalities shows that the relative cost of purchasing the lifeline appears inversely related to average income levels, revealing an element of regressivity in the component of water tariffs affecting the least superfluous part of the household's consumption. The main policy recommendation would involve redesigning water tariffs in order to improve access for lower income households to an amount of water sufficient to cover their basic needs. The proposed methodology could be applied to other geographical areas, both from developed and from developing countries, in order to analyze the degree of progressivity of the water tariffs currently in effect and in order to guide the design of more equitable regulatory policies.

Abstract In the Marina Baja region there is a tradition of fierce competition for water resources which necessitates the regulation of institutions in order to satisfy the interests of the different water users. The management of the water resources in
this region is based on the water exchange between the different users with no legal modification of the water concessions. This situation requires continuous negotiation in order to maintain the balance between urban, tourism and the agricultural demand. In this article we define, describe and analyse the equilibrium model for water resources of the Marina Baja District using a simultaneous equations model (SEM). We analyse variables that influence the water management model through a simultaneous relationship between the above-mentioned demands in the region
of the Marina Baja, using a methodology that directly links urban and irrigation demands and makes them relevant to one another from a socioeconomic point of view.
Keywords Integrated water resource management · Urban demand ·Agricultural demand · Competence of uses · Simultaneous equation model

The study analyzes variables that influence the water management model based on a simultaneous relationship between competing demands in the Marina Baja of Alicante, using a methodology that directly links together urban and irrigation demands, making them relevant to each other from a socioeconomic point of view.
The paper identifies the relevant variables of this model and the agent behaviour in a closed and joint system. It also aims to demonstrate that by considering water demands for different yet
simultaneous uses and regarding clean and reclaimed waters as integrated resources, the system could remain in equilibrium without external water supplies.
Keywords: simultaneous equation model; urban demand; agricultural demand; competition of uses; Spain