Foreign divestment and insolvency risk
| Distance to default | Credit default swap spread | |||||
|---|---|---|---|---|---|---|
| DD | DD | DD | CDS | CDS | CDS | |
| Variable | model (1) | model (2) | model (3) | model (4) | model (5) | model (6) |
| FD | −0.044** (−2.148) | −0.049** (−2.174) | −0.043* (−1.863) | 0.016*** (2.757) | 0.017*** (2.772) | 0.017*** (2.844) |
| Size | 0.054 (1.184) | 0.011 (0.213) | −0.385* (−1.736) | 0.025 (1.619) | 0.028 (1.609) | 0.131* (1.761) |
| ROA | 0.069*** (4.161) | 0.062*** (3.747) | 0.028* (1.854) | −0.025*** (−4.017) | −0.023*** (−3.668) | −0.011* (−1.754) |
| Leverage | −6.153*** (−8.012) | −6.825*** (−8.802) | −4.594*** (−5.523) | 1.821*** (8.234) | 1.904*** (7.924) | 1.036*** (3.301) |
| Liquidity | 0.142 (0.237) | 0.804 (0.631) | 0.168 (0.973) | −0.455 (−1.121) | ||
| Tangibility | −0.760 (−1.164) | 0.006 (0.005) | 0.361* (1.806) | 0.330 (0.748) | ||
| Int_experience | 0.006* (1.877) | 0.003 (0.705) | −0.001 (−1.264) | 0.000 (0.156) | ||
| Constant | 4.060*** (4.947) | 5.036*** (5.309) | 6.293* (1.875) | 2.238*** (8.265) | 2.023*** (6.732) | 1.027 (0.962) |
| Observations | 656 | 625 | 625 | 667 | 635 | 635 |
| R-squared | 0.508 | 0.522 | 0.704 | 0.387 | 0.394 | 0.601 |
| Compno | 119 | 108 | 108 | 123 | 111 | 111 |
| Year FE | YES | YES | YES | YES | YES | YES |
| Firm FE | NO | NO | YES | NO | NO | YES |
| Country FE | YES | YES | YES | YES | YES | YES |
| Distance to default | Credit default swap spread | |||||
|---|---|---|---|---|---|---|
| Variable | model (1) | model (2) | model (3) | model (4) | model (5) | model (6) |
| −0.044 | −0.049 | −0.043 | 0.016 | 0.017 | 0.017 | |
| Size | 0.054 (1.184) | 0.011 (0.213) | −0.385 | 0.025 (1.619) | 0.028 (1.609) | 0.131 |
| 0.069 | 0.062 | 0.028 | −0.025 | −0.023 | −0.011 | |
| Leverage | −6.153 | −6.825 | −4.594 | 1.821 | 1.904 | 1.036 |
| Liquidity | 0.142 (0.237) | 0.804 (0.631) | 0.168 (0.973) | −0.455 (−1.121) | ||
| Tangibility | −0.760 (−1.164) | 0.006 (0.005) | 0.361 | 0.330 (0.748) | ||
| Int_experience | 0.006 | 0.003 (0.705) | −0.001 (−1.264) | 0.000 (0.156) | ||
| Constant | 4.060 | 5.036 | 6.293 | 2.238 | 2.023 | 1.027 (0.962) |
| Observations | 656 | 625 | 625 | 667 | 635 | 635 |
| R-squared | 0.508 | 0.522 | 0.704 | 0.387 | 0.394 | 0.601 |
| Compno | 119 | 108 | 108 | 123 | 111 | 111 |
| Year | ||||||
| Firm | ||||||
| Country | ||||||
The table reports the estimates of Six alternative versions of the following panel regression specification:
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