Table 7

Relationship between default risk and productivity

Z-Score(2000)it = β0 + β1 × E.PRODit + β2 × ASS.PRODit + β3 × Leverageit + β4 × Sizeit + β5 × Liquidityit + β6 × Lossit + εit
Dependent variableAltman’s Z-score (2000)
VariableCoefficientst-Statisticsp-valueSignificance
E.PROD−0.051−1.080.282 
ASS.PROD0.6166.400.000***
Leverage−2.974−6.010.000***
Size0.7327.550.000***
Liquidity2.3981.600.111 
Loss−0.006−0.040.966 
Constant−1.389−2.000.046**
Mean dependent variance2.725 SD dependent variance3.775
R-squared0.286 Number of obs.2,510
F-test51.216 Prob > F0.000
Akaike crit. (AIC)9269.397 Bayesian crit. (BIC)9304.365
Source(s): Authors’ own; p-values: ***p < 0.01, **p < 0.05 denote significance level at 1% and 5% respectively

or Create an Account

Close subscription notice
Close access options