Relationship between working capital management and financial flexibility
| Dependent variable | CCC | WC | ||
|---|---|---|---|---|
| Model | 7 | 8 | 9 | 10 |
| Panel model type | Fixed | Fixed | Fixed | Fixed |
| Const | 343.0236*** (9.7700) | 342.1586*** (9.7143) | 0.4155*** (0.0883) | 0.5164*** (0.0888) |
| FF | −2.9306 (2.1279) | 0.5073*** (0.0150) | ||
| FF1 | −0.2635 (0.5386) | 0.0872*** (0.0035) | ||
| GROW | −15.0731*** (0.9186) | −14.9785*** (0.9160) | −0.0487*** (0.0062) | −0.0622*** (0.0063) |
| CF | −15.8525*** (4.4026) | −19.8008*** (3.3271) | −0.5320*** (0.0315) | 0.0587** (0.0245) |
| SIZE | −29.4172*** (1.1370) | −29.2596*** (1.1250) | −0.0216** (0.0103) | −0.0447*** (0.0103) |
| GDP_GROW | 40.6869*** (3.1279) | 40.8707*** (3.1263) | 0.0937*** (0.0245) | 0.0660*** (0.0247) |
| No. of obs | 109.554 | 109.554 | 110.851 | 110.851 |
| Joint test on named regressors (F test) | 379.25 p < 0.001 | 378.58 p < 0.001 | 291.07 p < 0.001 | 208.94 p < 0.001 |
| Breusch-Pagan test | 199652.80 p < 0.001 | 198481.10 p < 0.001 | 227819.10 p < 0.001 | 221441.00 p < 0.001 |
| Hausman test | 491.12 p < 0.001 | 571.62 p < 0.001 | 148.81 p < 0.001 | 608.51 p < 0.001 |
| SBC | −1250311.71 | −1250317.35 | −150931.64 | −153955.00 |
| AIC | −1108333.22 | −1108338.86 | −8279.13 | −11302.50 |
| HQC | −1151244.27 | −1151249.91 | −51371.20 | −54394.57 |
| Dependent variable | CCC | WC | ||
|---|---|---|---|---|
| Model | 7 | 8 | 9 | 10 |
| Panel model type | Fixed | Fixed | Fixed | Fixed |
| Const | 343.0236*** (9.7700) | 342.1586*** (9.7143) | 0.4155*** (0.0883) | 0.5164*** (0.0888) |
| GROW | −14.9785*** (0.9160) | −0.0487*** (0.0062) | −0.0622*** (0.0063) | |
| CF | −15.8525*** (4.4026) | −19.8008*** (3.3271) | −0.5320*** (0.0315) | 0.0587** (0.0245) |
| SIZE | −29.2596*** (1.1250) | −0.0216** (0.0103) | −0.0447*** (0.0103) | |
| GDP_GROW | 40.6869*** (3.1279) | 40.8707*** (3.1263) | 0.0937*** (0.0245) | 0.0660*** (0.0247) |
| No. of obs | 109.554 | 109.554 | 110.851 | 110.851 |
| Joint test on named regressors ( | 379.25 | 378.58 | 291.07 | 208.94 |
| Breusch-Pagan test | 199652.80 | 198481.10 | 227819.10 | 221441.00 |
| Hausman test | 491.12 | 571.62 | 148.81 | 608.51 |
| SBC | −1250311.71 | −1250317.35 | −150931.64 | −153955.00 |
| AIC | −1108333.22 | −1108338.86 | −8279.13 | −11302.50 |
| HQC | −1151244.27 | −1151249.91 | −51371.20 | −54394.57 |
Note(s): * dependence is significant at the level of 0.1
** dependence is significant at the level of 0.05
*** dependence is significant at the level of 0.01
(standard errors in parentheses)
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