Table 9

Relation between default risk and productivity

Z-Score(2000)it = β0 + β1 × Z-Score(2000)it-1 + β2 × E.PRODit + β3 × ASS.PRODit + β4 × Leverageit + β5 × Sizeit + β6 × Liquidityit + β7 × Lossit + εit
Dependent variableAltman’s Z-score (2000)
VariableCoefficientst-Statisticsp-ValueSignificance
L10.4148.040.000***
L2−0.053−0.730.466 
E.PROD0.0680.860.388 
ASS.PROD0.6164.070.000***
Leverage−6.632−5.580.000***
Size0.6734.200.000***
Liquidity2.6191.210.228 
Loss−0.292−1.580.115 
Volatility0.0210.020.987 
Ln.AGE0.4148.040.000***
Constant−0.053−0.730.466 
Mean dependent variance 2.841
Source(s): Authors’ own; p-values: ***p < 0.01, **p < 0.05, *p < 0.1 denote significance level at 1%, 5% and 10%, respectively

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