Table 9 Robustness test (Financial...

Table 9

Robustness test (Financial distress measured through ZM score)

Variables	Model 1	Model 2	Model 3	Model 4
Variables	ZM score	CSR_ratio	ZM score	ZM score
ZM Score (−1)	0.627***		0.631***	0.629***
	(0.030)		(0.030)	(0.030)
CSR_ratio (−1)		0.163***
		(0.027)
CSR_ratio	−0.081***			−0.082*
	(0.064)			(0.064)
CEO_comp		0.029***	−0.028***	−0.022**
		(0.000)	(0.000)	(0.000)
Fsize	0.151**	0.316***	−0.195	−0.196*
	(0.132)	(0.087)	(0.162)	(0.163)
Lev	1.113***	−0.007	1.113***	1.114***
	(0.109)	(0.057)	(0.109)	(0.109)
Tang	−0.0466	−0.294**	0.022	0.043
	(0.236)	(0.122)	(0.237)	(0.237)
Slack	−0.392**	0.268*	−0.367**	−0.389*
	(0.303)	(0.158)	(0.304)	(0.304)
Sgth	−0.005*	0.001	−0.005*	−0.005*
	(0.003)	(0.002)	(0.003)	(0.003)
Constant	−2.145**	2.555***	−2.440**	−2.420**
	(0.918)	(0.589)	(1.086)	(1.089)
Industry FE	Yes	Yes	Yes	Yes
Year FE	Yes	Yes	Yes	Yes
Wald Stat	807.07(0.000)	84.63(0.000)	805.47(0.000)	806.87(0.000)
AR(1)	0.000	0.000	0.000	0.000
AR(2)	0.272	0.315	0.332	0.321
Sargent test (p-value)	0.681	0.596	0.619	0.627
Hansen J-stat (p-value)	0.910	0.913	0.911	0.925

Variables	Model 1	Model 2	Model 3	Model 4
Variables	ZM score	CSR_ratio	ZM score	ZM score
ZM Score (−1)	0.627***		0.631***	0.629***
	(0.030)		(0.030)	(0.030)
CSR_ratio (−1)		0.163***
		(0.027)
CSR_ratio	−0.081***			−0.082*
	(0.064)			(0.064)
CEO_comp		0.029***	−0.028***	−0.022**
		(0.000)	(0.000)	(0.000)
Fsize	0.151**	0.316***	−0.195	−0.196*
	(0.132)	(0.087)	(0.162)	(0.163)
Lev	1.113***	−0.007	1.113***	1.114***
	(0.109)	(0.057)	(0.109)	(0.109)
Tang	−0.0466	−0.294**	0.022	0.043
	(0.236)	(0.122)	(0.237)	(0.237)
Slack	−0.392**	0.268*	−0.367**	−0.389*
	(0.303)	(0.158)	(0.304)	(0.304)
Sgth	−0.005*	0.001	−0.005*	−0.005*
	(0.003)	(0.002)	(0.003)	(0.003)
Constant	−2.145**	2.555***	−2.440**	−2.420**
	(0.918)	(0.589)	(1.086)	(1.089)
Industry FE	Yes	Yes	Yes	Yes
Year FE	Yes	Yes	Yes	Yes
Wald Stat	807.07(0.000)	84.63(0.000)	805.47(0.000)	806.87(0.000)
AR(1)	0.000	0.000	0.000	0.000
AR(2)	0.272	0.315	0.332	0.321
Sargent test (p-value)	0.681	0.596	0.619	0.627
Hansen J-stat (p-value)	0.910	0.913	0.911	0.925

Note(s): Standard errors in parentheses. ***p < 0.01, **p < 0.05, *p < 0.1

Source(s): Author’s own work

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