Table 4. OLR model: impact of BGD on the...

Table 4.

OLR model: impact of BGD on the credit rating

Variable	Model 2	Standard error
Femaleboard	0.5108***	0.0722
Boardindep	0.1256**	0.0536
Duality	0.4108***	0.1329
Leverage	−0.5314***	0.1058
Interestcoverage	−1.1523***	0.3485
Loss	−0.1361	0.2232
Tangibility	0.3324**	0.1429
ROA	0.1582**	0.0718
Size	3.7386***	0.1688
MtB	0.8690	0.7564
Audit	−0.4434	0.3521
Financial	2.2801***	0.5305
N	5,816
sigma2_u	24.5982

Variable	Model 2	Standard error
Femaleboard	0.5108***	0.0722
Boardindep	0.1256**	0.0536
Duality	0.4108***	0.1329
Leverage	−0.5314***	0.1058
Interestcoverage	−1.1523***	0.3485
Loss	−0.1361	0.2232
Tangibility	0.3324**	0.1429
ROA	0.1582**	0.0718
Size	3.7386***	0.1688
MtB	0.8690	0.7564
Audit	−0.4434	0.3521
Financial	2.2801***	0.5305
N	5,816
sigma2_u	24.5982

Note(s): Determinants of the rating using OLR. The models include year dummies. Significance levels are indicated as follows: ***1 level, **5 level and *10% level

Source(s): Authors’ own work

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