Table 4

The estimation results of the three probit models incorporating the fundamental variables and the ARMS index

Model 1Model 2Model 3
Dependent variable: CRISIS
RETURN−5.451039*** [0.0000]RETURN−5.367026*** [0.0000]RETURN−5.265531*** [0.0000]
LIQUIDITY−0.304371*** [0.0000]LIQUIDITY−0.295701*** [0.0000]LIQUIDITY−0.291344*** [0.0000]
VOLATILITY57.706228*** [0.0000]VOLATILITY57.75562*** [0.0000]VOLATILITY58.45623*** [0.0000]
OPTIMISM*
DUMEXPCT
0.2371369* [0.0711]OPTIMISM*
DUMEXPMT
0.224369* [0.0689]OPTIMISM *DUMEXPLT0.210078** [0.0232]
PESSIMISM*DUMCONTCT0.08845** [0.0412]PESSIMISM *DUMCONTMT0.08297** [0.0403]PESSIMISM *DUMCONTLT0.06468*** [0.0000]
C−3.027103*** [0.0000]C−3.08792*** [0.0000]C−3.14506*** [0.0000]
R2 McFadden0.60R2 McFadden0.59R2 McFadden0.59
LR stat (prob)0.0000LR stat (prob)0.0000LR stat (prob)0.0000

Note(s): Values in brackets correspond to p-values

*, ** and *** imply significance at the 10, 5 and 1 percent levels

Source(s): Authors’ own work

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