Moderation roles of financial leverage and annual sales growth
| Parameter | M1: leverage | M2: sales growth | ||
|---|---|---|---|---|
| SRV (1) | ROAV (2) | SRV (3) | ROAV (4) | |
| Intercept | 0.381 | 0.337 | 0.381 | 0.344 |
| EngCEO | −0.012 (−1.18) | −0.012 (−0.92) | 0.008* (1.27) | −0.001 (−0.12) |
| EngCEO*LEV | 0.105*** (2.63) | 0.013** (2.54) | ||
| EngCEO*SalesGrowth | 0.001* (1.23) | 0.061*** (4.89) | ||
| BEng | 0.421*** (2.61) | −0.043** (−2.00) | 0.038** (2.37) | −0.042** (−1.99) |
| BSize | −0.000 (−0.01) | −0.003** (−2.84) | 0.000 (0.00) | −0.003** (−2.43) |
| BInd | 0.000 (0.76) | −0.000*** (−2.84) | 0.000 (0.75) | −0.000*** (−3.10) |
| ROA | −0.113*** (−8.73) | −0.265*** (−14.44) | −0.111*** (−8.54) | −0.274*** (−15.5) |
| FirmSize | −0.013*** (−10.17) | −0.010*** (−5.62) | −0.013*** (−10.16) | −0.011*** (−5.92) |
| Leverage | 0.006 (0.56) | −0.003** (−2.08) | 0.001 (1.39) | −0.002 (−1.33) |
| CAPEX | 0.000 (1.52) | −0.000 (−0.96) | 0.000 (1.41) | −0.000 (−1.05) |
| SalesGrowth | 0.000 (0.05) | 0.018 (1.95) | −0.000 (−0.03) | −0.004 (−0.77) |
| CEOGender | 0.006 (0.73) | 0.012 (1.08) | 0.006 (0.70) | 0.011 (0.97) |
| CEODuality | 0.006 (0.81) | 0.004 (0.43) | 0.006 (0.90) | 0.007 (0.69) |
| Year and industry fixed effects | Yes | Yes | Yes | Yes |
| R-squared | 0.243 | 0.322 | 0.232 | 0.332 |
| Parameter | M1: leverage | M2: sales growth | ||
|---|---|---|---|---|
| 0.381 | 0.337 | 0.381 | 0.344 | |
| −0.012 (−1.18) | −0.012 (−0.92) | 0.008* (1.27) | −0.001 (−0.12) | |
| 0.105*** (2.63) | 0.013** (2.54) | |||
| 0.001* (1.23) | 0.061*** (4.89) | |||
| 0.421*** (2.61) | −0.043** (−2.00) | 0.038** (2.37) | −0.042** (−1.99) | |
| −0.000 (−0.01) | −0.003** (−2.84) | 0.000 (0.00) | −0.003** (−2.43) | |
| 0.000 (0.76) | −0.000*** (−2.84) | 0.000 (0.75) | −0.000*** (−3.10) | |
| −0.113*** (−8.73) | −0.265*** (−14.44) | −0.111*** (−8.54) | −0.274*** (−15.5) | |
| −0.013*** (−10.17) | −0.010*** (−5.62) | −0.013*** (−10.16) | −0.011*** (−5.92) | |
| 0.006 (0.56) | −0.003** (−2.08) | 0.001 (1.39) | −0.002 (−1.33) | |
| 0.000 (1.52) | −0.000 (−0.96) | 0.000 (1.41) | −0.000 (−1.05) | |
| 0.000 (0.05) | 0.018 (1.95) | −0.000 (−0.03) | −0.004 (−0.77) | |
| 0.006 (0.73) | 0.012 (1.08) | 0.006 (0.70) | 0.011 (0.97) | |
| 0.006 (0.81) | 0.004 (0.43) | 0.006 (0.90) | 0.007 (0.69) | |
| Yes | Yes | Yes | Yes | |
| 0.243 | 0.322 | 0.232 | 0.332 | |
Note(s): *, ** and *** indicate statistical significance at 10, 5, and 1% levels, respectively. Variables are as defined in Table 1. t-statistics are reported in parentheses
Source(s): Authors’ own work
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