Table 10

The effect of financial constraints

Dependent variable(1)(2)(3)(4)
Ln (1 + dividend)Dividend payout ratioLn (1 + dividend)Dividend payout ratio
High Financial Constraint × BioRegulation−0.6279***−0.1065**  
(0.1649)(0.0494)  
High Financial Constraint−0.0586***−0.0199***  
(0.0222)(0.0053)  
High WW Index × BioRegulation  −0.3155**−0.7505***
  (0.1420)(0.1845)
High WW Index  0.2497***−0.0249
  (0.0200)(0.0289)
BioRegulation−0.07440.0244−0.1891***−0.5581***
(0.1472)(0.0449)(0.0923)(0.1278)
PPE to Assets1.6426***0.1244***1.6284***0.1189
(0.0703)(0.0164)(0.0701)(0.0839)
CAPEX Ratio−0.6393***−0.1219***−0.6689***−0.1070
(0.1723)(0.0240)(0.1731)(0.0867)
Leverage−0.6446***0.0113−0.6459***0.0610
(0.0645)(0.0144)(0.0640)(0.0672)
ROA1.9361***0.2578***1.9186***0.4025**
(0.1520)(0.0291)(0.1529)(0.1955)
Firm Size0.6889***0.0186***0.6720***0.0101
(0.0091)(0.0020)(0.0090)(0.0117)
Market to Book Equity−0.0004***−0.0002*−0.0004***−0.0008
(0.0001)(0.0000)(0.0001)(0.0008)
Cash Flow to Assets−0.2799***0.0758***−0.1763**0.0225
(0.0808)(0.0178)(0.0853)(0.1326)
Net Working Capital−0.6212***−0.0039−0.5901***0.0046
(0.0759)(0.0187)(0.0755)(0.1095)
Constant−3.4800***−0.0092−3.5482***−0.0299**
(0.0680)(0.0149)(0.0674)(0.0038)
Observations30,65230,62530,65230,625
Adjusted R-squared0.43440.10270.43720.1018
Year FEYESYESYESYES
Industry FEYESYESYESYES

Note(s): This table shows result for effect of financial constraints. Ln (1 + Dividend) is the dependent variable in specifications 1 and 3, and Dividend Payout Ratio is the dependent variable in specifications 2 and 4. Year and industry fixed effects are taken into account in all specifications.  Appendix Table A1 provides an explanation of each variable. Robust standard errors, clustered at the firm level, are in parentheses. Significance at the 1%, 5%, and 10% levels is denoted by the symbols ***, **, and *, respectively

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