Table 2 Correlation analysis of sample...

Table 2

Correlation analysis of sample firm-years of firm value, disclosed derivatives (ZAR) amounts and other firm characteristics

		Derivatives total	Derivatives binary	Total assets	ROA	Interest cover	Leverage debt/Assets	Current ratio	Dividend yield	Tobin's Q	R&D/Sales	Foreign sales/sales
Derivatives total	Pearson correlation	1
Derivatives total	N	783
Derivatives binary	Pearson correlation		1
Derivatives binary	N		2,535
Total assets	Pearson correlation	0.586**	0.485**	1
Total assets	N	783	2,265	2,398
ROA	Pearson correlation	−0.083*	0.008	−0.022	1
ROA	N	765	2,192	2,316	2,316
Interest cover	Pearson correlation	−0.115**	−0.011	−0.053**	0.301**	1
Interest cover	N	783	2,535	2,398	2,316	2,730
Leverage Debt/Assets	Pearson correlation	0.003	0.219**	0.058**	−0.089**	0.101**	1
Leverage Debt/Assets	N	783	2,535	2,398	2,316	2,730	2,730
Current ratio	Pearson correlation	−0.110**	−0.143**	−0.133**	0.102**	0.179**	−0.400**	1
Current ratio	N	783	2,245	2,377	2,297	2,377	2,377	2,377
Dividend yield	Pearson correlation	−0.131**	0.270**	−0.163**	0.184**	0.105**	−0.057*	0.168**	1
Dividend yield	N	607	2,535	1,546	1,537	1,552	1,552	1,546	1,552
Tobin's Q	Pearson correlation	0.043	0.046*	0.061**	0.431**	0.264**	0.081**	−0.088**	−0.060*	1
Tobin's Q	N	744	2,110	2,226	2,203	2,227	2,227	2,207	1,543	2,227
RD/Sales	Pearson correlation	0.109	0.194**	0.066	−0.038	0.130**	−0.011	0.030	0.088	0.107*	1
RD/Sales	N	200	2,535	415	406	415	415	415	304	396	415
Foreign sales/Sales	Pearson correlation	0.278**	0.376**	0.347**	−0.183**	0.009	−0.102**	0.119**	−0.032	−0.192**	0.107	1
Foreign sales/Sales	N	495	2,535	973	955	973	973	973	788	934	262	973

		Derivatives total	Derivatives binary	Total assets	ROA	Interest cover	Leverage debt/Assets	Current ratio	Dividend yield	Tobin's Q	R&D/Sales	Foreign sales/sales
Derivatives total	Pearson correlation	1
Derivatives total	N	783
Derivatives binary	Pearson correlation		1
Derivatives binary	N		2,535
Total assets	Pearson correlation	0.586**	0.485**	1
Total assets	N	783	2,265	2,398
ROA	Pearson correlation	−0.083*	0.008	−0.022	1
ROA	N	765	2,192	2,316	2,316
Interest cover	Pearson correlation	−0.115**	−0.011	−0.053**	0.301**	1
Interest cover	N	783	2,535	2,398	2,316	2,730
Leverage Debt/Assets	Pearson correlation	0.003	0.219**	0.058**	−0.089**	0.101**	1
Leverage Debt/Assets	N	783	2,535	2,398	2,316	2,730	2,730
Current ratio	Pearson correlation	−0.110**	−0.143**	−0.133**	0.102**	0.179**	−0.400**	1
Current ratio	N	783	2,245	2,377	2,297	2,377	2,377	2,377
Dividend yield	Pearson correlation	−0.131**	0.270**	−0.163**	0.184**	0.105**	−0.057*	0.168**	1
Dividend yield	N	607	2,535	1,546	1,537	1,552	1,552	1,546	1,552
Tobin's Q	Pearson correlation	0.043	0.046*	0.061**	0.431**	0.264**	0.081**	−0.088**	−0.060*	1
Tobin's Q	N	744	2,110	2,226	2,203	2,227	2,227	2,207	1,543	2,227
RD/Sales	Pearson correlation	0.109	0.194**	0.066	−0.038	0.130**	−0.011	0.030	0.088	0.107*	1
RD/Sales	N	200	2,535	415	406	415	415	415	304	396	415
Foreign sales/Sales	Pearson correlation	0.278**	0.376**	0.347**	−0.183**	0.009	−0.102**	0.119**	−0.032	−0.192**	0.107	1
Foreign sales/Sales	N	495	2,535	973	955	973	973	973	788	934	262	973

Note(s): ** Significant at the 1% level (using two-tailed significance), * Significant at the 5% level (using two-tailed significance)

Key to variables in Table 2: R&D/SALES=Ratio of research and development costs divided by sales; ROA = Return on assets

Source(s): Own compilation

Sharing Unavailable