PurposeWith high public debts and suffering economies after the COVID-19 pandemic, governments will look for ways to promote recovery. Literature substantially reports on the favorable macroeconomic impact of the healthcare sector.Design/methodology/approachThe authors use data on 19 European countries. Over 30 variables are analyzed to find factors that foster or suppress the economic impact of the healthcare sector. The economic impact is thereby expressed through five types of total multipliers, acting as dependent variables. The authors estimate multiple econometric models.FindingsThe results indicate factors that intensify or reduce the economic impact of the healthcare sector as they cause the value of one or more economic multipliers to augment or to diminish. Positive effects are expected from the growth of public funds' share in total healthcare expenditure leading to a higher output, income and value-added multipliers. The import multiplier diminishes when expenditure on healthcare as percent of GDP rises. On the other hand, rising expenditure on pharmaceuticals in the share of healthcare expenditure lowers the output multiplier. Rising GDP per capita and higher healthcare systems' technical efficiency cause the employment multiplier to lower.Originality/valuePolicymakers can strengthen the economic impact of the healthcare sector on the national economy. This could be achieved by stimulating factors, being identified in our study. Strengthening the economic impact of the healthcare sector is especially welcomed when fostering economic recovery is needed.
Prior research, investigating the absolute performance of multiples as well as the relative superiority of different types of multiples, yields contradictory results that might be attributed to varying peer pool settings. This paper emphasizes on the technology sector and extends existing research, in its entirety being limited to trading multiples on listed companies, to transaction multiples on private firms. Employing a set of 22,967 observations on private market transactions of technology firms collected from 2000 until 2018, I examine the systematic impact of peer pooling on (i) the relative superiority of cross-sectoral multiples, (ii) the absolute superiority of sectoral multiples and, (iii) the absolute superiority of cross-sectoral multiples being segmented by various country-specific high-tech indicators. The multiples employed capture both, enterprise value and equity value multiples. The performance of the multiples in the various peer pool settings is evaluated according to bias as well as accuracy, utilizing the standard holdout routine on the transactions. The results indicate that (i) contradictory results in prior research on multiple's bias may be strongly attributed to the varying peer pools employed, (ii) the enterprise value to total assets multiple clearly dominates across all peer pools on a cross-sectoral basis, indicating that contradictory results on multiple's accuracy may not be attributed to the varying peer pools employed and, (iii) the performance of sectoral multiples depends on the value driver employed, showing only a weak relationship with the peer pool setting. Therefore, valuation analysts are recommended to utilize larger peer pools when employing cross-sectoral multiples, to emphasize on the enterprise value to total assets multiple, to further break down the high-tech sector into sub-sectors and, to employ sectoral multiples or multiples segmented according to country-specific high-tech indicators alternately.
Non-financial reporting as established through the NFRD (2014/95/EU) has become a core element of the EU Commission’s ambitions to transform the European economy towards more sustainability. To address the increased criticism which meets the current reporting requirements, the EU Commission initiated the development of a new set of European Sustainability Reporting Standards, followed by issuing the proposal for a new directive to supersede the NFRD. This paper analyzed these proposals in the light of previous findings from academia and corporate practice, contributing to an ex-ante impact assessment. As a result, it shows that improving completeness, comparability and reliability are the two main goals of the EU Commission. However, many of the new proposed requirements are excessive and raise fundamental questions concerning acceptable levels of administrative burden for companies as well as necessary conceptual fundaments for a reporting framework.
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