Table 6 Regression results of IFRS 9 and...

Table 6

Regression results of IFRS 9 and corporate cash holdings (sub-sample analysis)

	Firm size (based on total assets)				Firm size (based on total loans disbursed)				Firm age
Variables	CASH_TA	t-statistic	CASH_TA	t-statistic	CASH_TA	t-statistic	CASH_TA	t-statistic	CASH_TA	t-statistic	CASH_TA	t-statistic
IFRS9	−0.023**	[−2.20]	0.006	[0.21]	−0.052***	[−4.35]	−0.037**	[−2.17]	−0.036**	[−2.21]	−0.018	[−1.15]
FIRMSIZE					0.004	[0.27]	0.018	[1.06]	−0.023	[−1.28]	0.017	[0.82]
DEBT	−0.235*	[−1.96]	0.065	[0.80]	0.082	[0.72]	−0.075	[−0.95]	0.196***	[3.81]	0.248***	[4.54]
CAPEX	0.998***	[3.17]	2.939	[1.52]	2.769*	[1.67]	0.425	[1.15]	0.427	[1.21]	−0.184	[−0.09]
LOANS2TA	0.005	[0.62]	0.039	[1.51]					0.078***	[3.66]	0.024	[1.39]
DEPOSIT2TA	−0.102	[−1.06]	−0.034	[−0.67]	−0.014	[−0.15]	0.108***	[4.99]	0	[−0.03]	0.025**	[2.11]
TIER1	0.213	[0.92]	−0.626	[−1.56]	0.053	[0.27]	−0.578*	[−1.97]	0.058	[0.41]	−1.012**	[−2.65]
TIER2	−0.904*	[−1.80]	1.788**	[2.15]	−0.574	[−1.53]	1.444**	[2.21]	0.4	[1.22]	1.073	[1.29]
ROA	−2.928***	[−3.02]	0.641	[0.35]	−0.364	[−0.47]	−0.44	[−0.26]	−1.477	[−1.33]	0.568	[0.57]
GOODWILL	−19.181**	[−2.40]	−6.628	[−1.38]	−13.956***	[−3.84]	0	[0.00]	−7.122***	[−2.68]	0	[0.00]
SIZE_BOARD	0	[−0.40]	−0.003	[−1.31]	−0.003***	[−2.67]	0.002	[1.28]	−0.001	[−0.88]	−0.002	[−1.38]
INDBOD	0.007**	[2.14]	0.007	[0.81]	0.002	[0.47]	0.003	[0.90]	0.003	[0.80]	−0.001	[−0.07]
SIZE_AC	0.003	[0.89]	0.006	[1.42]	0.002	[0.86]	−0.003	[−0.51]	0	[−0.16]	0.006	[1.00]
INDIRAC	0.003	[0.45]	−0.018**	[−2.02]	−0.001	[−0.09]	−0.006	[−0.92]	0.001	[0.18]	−0.002	[−0.34]
DIVIDEND	−0.002	[−0.22]	0.041*	[1.96]	0.019***	[2.65]	−0.017**	[−2.17]	0.005	[0.57]	0.012	[0.92]
OCF	−0.063	[−0.71]	0.279*	[2.01]	0.108	[1.15]	−0.062	[−0.48]	0.002	[0.02]	0.058	[0.31]
LNAGE	−0.001	[−0.19]	0.006	[0.31]	0.008	[0.68]	0.013	[1.10]
ZSCORE	0.042	[0.88]	0.028	[0.35]	−0.104**	[−2.30]	0.183***	[3.31]	−0.015	[−0.32]	−0.096**	[−2.47]
PPE	−0.219	[−0.49]	0.526	[0.47]	0.529	[1.03]	−1.771*	[−1.93]	−0.909*	[−1.79]	1.619***	[3.90]
Year effects	Controlled				Controlled				Controlled
CONSTANT	0.187**	[2.06]	0.003	[0.04]	0.03	[0.11]	−0.36	[−1.12]	0.509	[1.48]	−0.309	[−0.76]
Observations	163		69		148		84		143		89
R-squared	0.25		0.7		0.39		0.67		0.4		0.55
Adj. R-squared	0.13		0.53		0.27		0.55		0.28		0.4

	Firm size (based on total assets)				Firm size (based on total loans disbursed)				Firm age
Variables	CASH_TA	t-statistic	CASH_TA	t-statistic	CASH_TA	t-statistic	CASH_TA	t-statistic	CASH_TA	t-statistic	CASH_TA	t-statistic
IFRS9	−0.023**	[−2.20]	0.006	[0.21]	−0.052***	[−4.35]	−0.037**	[−2.17]	−0.036**	[−2.21]	−0.018	[−1.15]
FIRMSIZE					0.004	[0.27]	0.018	[1.06]	−0.023	[−1.28]	0.017	[0.82]
DEBT	−0.235*	[−1.96]	0.065	[0.80]	0.082	[0.72]	−0.075	[−0.95]	0.196***	[3.81]	0.248***	[4.54]
CAPEX	0.998***	[3.17]	2.939	[1.52]	2.769*	[1.67]	0.425	[1.15]	0.427	[1.21]	−0.184	[−0.09]
LOANS2TA	0.005	[0.62]	0.039	[1.51]					0.078***	[3.66]	0.024	[1.39]
DEPOSIT2TA	−0.102	[−1.06]	−0.034	[−0.67]	−0.014	[−0.15]	0.108***	[4.99]	0	[−0.03]	0.025**	[2.11]
TIER1	0.213	[0.92]	−0.626	[−1.56]	0.053	[0.27]	−0.578*	[−1.97]	0.058	[0.41]	−1.012**	[−2.65]
TIER2	−0.904*	[−1.80]	1.788**	[2.15]	−0.574	[−1.53]	1.444**	[2.21]	0.4	[1.22]	1.073	[1.29]
ROA	−2.928***	[−3.02]	0.641	[0.35]	−0.364	[−0.47]	−0.44	[−0.26]	−1.477	[−1.33]	0.568	[0.57]
GOODWILL	−19.181**	[−2.40]	−6.628	[−1.38]	−13.956***	[−3.84]	0	[0.00]	−7.122***	[−2.68]	0	[0.00]
SIZE_BOARD	0	[−0.40]	−0.003	[−1.31]	−0.003***	[−2.67]	0.002	[1.28]	−0.001	[−0.88]	−0.002	[−1.38]
INDBOD	0.007**	[2.14]	0.007	[0.81]	0.002	[0.47]	0.003	[0.90]	0.003	[0.80]	−0.001	[−0.07]
SIZE_AC	0.003	[0.89]	0.006	[1.42]	0.002	[0.86]	−0.003	[−0.51]	0	[−0.16]	0.006	[1.00]
INDIRAC	0.003	[0.45]	−0.018**	[−2.02]	−0.001	[−0.09]	−0.006	[−0.92]	0.001	[0.18]	−0.002	[−0.34]
DIVIDEND	−0.002	[−0.22]	0.041*	[1.96]	0.019***	[2.65]	−0.017**	[−2.17]	0.005	[0.57]	0.012	[0.92]
OCF	−0.063	[−0.71]	0.279*	[2.01]	0.108	[1.15]	−0.062	[−0.48]	0.002	[0.02]	0.058	[0.31]
LNAGE	−0.001	[−0.19]	0.006	[0.31]	0.008	[0.68]	0.013	[1.10]
ZSCORE	0.042	[0.88]	0.028	[0.35]	−0.104**	[−2.30]	0.183***	[3.31]	−0.015	[−0.32]	−0.096**	[−2.47]
PPE	−0.219	[−0.49]	0.526	[0.47]	0.529	[1.03]	−1.771*	[−1.93]	−0.909*	[−1.79]	1.619***	[3.90]
Year effects	Controlled				Controlled				Controlled
CONSTANT	0.187**	[2.06]	0.003	[0.04]	0.03	[0.11]	−0.36	[−1.12]	0.509	[1.48]	−0.309	[−0.76]
Observations	163		69		148		84		143		89
R-squared	0.25		0.7		0.39		0.67		0.4		0.55
Adj. R-squared	0.13		0.53		0.27		0.55		0.28		0.4

Note(s): *, **, and *** indicates coefficients are statistically significant at 10 percent, 5 percent and 1 percent respectively

Source(s): Authors’ own creation

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