Table 5.

Multilevel logistic regression results for firms’ combinations of high and low levels of debt covenant-related APM disclosures (DCD) and efficiency-related APM disclosures (ERD)

DCDHigh&ERDLow itDCDLow&ERDHigh it
VariablesModel 1Model 2Model 3Model 4
H1/H2: LEVERAGEit-12.432*** (0.283)2.590*** (0.297)−1.666*** (0.340)−1.818*** (0.354)
LOSSit-1−0.014 (0.170)0.332 (0.255)0.168 (0.199)−0.182 (0.301)
H3: LEVERAGEit-1 x LOSSit-1−1.588** (0.904)1.741* (1.062)
SIZEit-1−0.201*** (0.062)−0.200*** (0.062)0.029 (0.065)0.026 (0.065)
MARKET-TO-BOOKit-10.028 (0.141)0.024 (0.141)−0.138 (0.164)−0.121 (0.164)
SALES GROWTHit-10.030 (0.079)0.032 (0.079)−0.149 (0.115)−0.155 (0.118)
BIG4it-1−0.182 (0.149)−0.186 (0.149)−0.090 (0.182)−0.086 (0.182)
INSTITUTIONAL INVESTORSit-1−0.395 (0.909)−0.383 (0.901)0.154 (0.768)0.158 (0.770)
FIRM AGEit-10.022 (0.254)0.014 (0.254)−0.480* (0.269)−0.474* (0.269)
LAW AND ENFORCEMENTit0.019 (0.313)0.028 (0.313)0.050 (0.303)0.050 (0.303)
INVESTOR PROTECTIONit0.173 (0.427)0.168 (0.425)−0.041 (0.417)−0.043 (0.417)
Industry fixed effectsIncludedIncludedIncludedIncluded
Year fixed effectsIncludedIncludedIncludedIncluded
Random country effectsIncludedIncludedIncludedIncluded
Random firm effectsIncludedIncludedIncludedIncluded
Constant0.037 (0.970)0.026 (0.968)−1.534 (1.042)−1.545 (1.042)
Number of observations3,6833,6833,6833,683
Wald_Chi2240.97***243.24***224.74***226.98***

Note(s):Table 2 provides the definitions of the variables. ***p < 0.01, **p < 0.05, *p < 0.1 (Standard errors in parentheses)

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