Table 1 Probit and logit regression...

Table 1

Probit and logit regression results of EPU impact on debt (Debt FF1) and cash (Cash FF1) flexibility before and during COVID-19

	Probit Modelling				Logit Modelling
	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)
Variable	Pre-Covid	During Covid	Pre-Covid	During Covid	Pre-Covid	During Covid	Pre-Covid	During Covid
	FF1	FF1	Cash FF1	Cash FF1	FF1	FF1	Cash FF1	Cash FF1
EPU	0.00898^*	0.00405	−0.00741^*	0.0181^***	0.0173^*	0.00692	−0.0121^*	0.0314^***
EPU	(0.04)	(0.17)	(0.04)	(0.00)	(0.03)	(0.17)	(0.05)	(0.00)
Firm Size	0.349^***	0.139	0.788^***	0.838^***	0.629^***	0.229	1.342^***	1.416^***
Firm Size	(0.00)	(0.12)	(0.00)	(0.00)	(0.00)	(0.13)	(0.00)	(0.00)
MTB	−0.0470	−0.0358	−0.00312	−0.0244	−0.0819	−0.0598	−0.00656	−0.0402
MTB	(0.07)	(0.10)	(0.65)	(0.26)	(0.08)	(0.13)	(0.56)	(0.27)
Maturity	−0.341^*	−0.570^**	0.146	0.236	−0.631^*	−0.945^**	0.269	0.416
Maturity	(0.02)	(0.01)	(0.26)	(0.33)	(0.02)	(0.01)	(0.22)	(0.31)
Tangibility	0.280	−0.177	0.0877	−0.529	0.523	−0.307	0.0757	−0.919
Tangibility	(0.21)	(0.49)	(0.62)	(0.06)	(0.21)	(0.49)	(0.80)	(0.06)
NDTS	14.10	23.12	23.19^**	29.68^*	26.67	37.22	39.88^**	49.38^*
NDTS	(0.19)	(0.06)	(0.01)	(0.02)	(0.18)	(0.07)	(0.01)	(0.02)
E.Sales	0.216	0.0396	−0.0385	0.0242	0.436	0.0676	−0.0910	0.0295
E.Sales	(0.44)	(0.36)	(0.86)	(0.60)	(0.40)	(0.35)	(0.80)	(0.71)
NWC.TA	0.754	−0.342	0.890^*	0.171	1.179	−0.643	1.476^*	0.356
NWC.TA	(0.15)	(0.55)	(0.05)	(0.77)	(0.22)	(0.51)	(0.05)	(0.72)
RE.TE	0.0545^*	0.0488	−0.00328	0.0466	0.0961^*	0.0807	−0.00460	0.0768
RE.TE	(0.04)	(0.15)	(0.84)	(0.16)	(0.04)	(0.15)	(0.86)	(0.18)
Firm Age	0.00125	−0.00136	0.00368	0.00166	0.00210	−0.00220	0.00876^*	0.00271
Firm Age	(0.53)	(0.57)	(0.08)	(0.56)	(0.55)	(0.59)	(0.03)	(0.58)
Constant	−4.442^***	−1.564^*	−5.541^***	−8.173^***	−7.980^***	−2.577^*	−9.537^***	−13.88^***
Constant	(0.00)	(0.03)	(0.00)	(0.00)	(0.00)	(0.03)	(0.00)	(0.00)
N	663	351	663	351	663	351	663	351
Pseudo R²	0.0611	0.0501	0.1806	0.2728	0.0599	0.0497	0.1821	0.2726
Wald χ²	32.85	20.23	163.5	126.5	32.23	20.06	164.9	126.4
p	0.000289	0.0271	0.0000	0.0000	0.000367	0.0287	0.0000	0.0000

	Probit Modelling				Logit Modelling
	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)
Variable	Pre-Covid	During Covid	Pre-Covid	During Covid	Pre-Covid	During Covid	Pre-Covid	During Covid
	FF1	FF1	Cash FF1	Cash FF1	FF1	FF1	Cash FF1	Cash FF1
EPU	0.00898^*	0.00405	−0.00741^*	0.0181^***	0.0173^*	0.00692	−0.0121^*	0.0314^***
EPU	(0.04)	(0.17)	(0.04)	(0.00)	(0.03)	(0.17)	(0.05)	(0.00)
Firm Size	0.349^***	0.139	0.788^***	0.838^***	0.629^***	0.229	1.342^***	1.416^***
Firm Size	(0.00)	(0.12)	(0.00)	(0.00)	(0.00)	(0.13)	(0.00)	(0.00)
MTB	−0.0470	−0.0358	−0.00312	−0.0244	−0.0819	−0.0598	−0.00656	−0.0402
MTB	(0.07)	(0.10)	(0.65)	(0.26)	(0.08)	(0.13)	(0.56)	(0.27)
Maturity	−0.341^*	−0.570^**	0.146	0.236	−0.631^*	−0.945^**	0.269	0.416
Maturity	(0.02)	(0.01)	(0.26)	(0.33)	(0.02)	(0.01)	(0.22)	(0.31)
Tangibility	0.280	−0.177	0.0877	−0.529	0.523	−0.307	0.0757	−0.919
Tangibility	(0.21)	(0.49)	(0.62)	(0.06)	(0.21)	(0.49)	(0.80)	(0.06)
NDTS	14.10	23.12	23.19^**	29.68^*	26.67	37.22	39.88^**	49.38^*
NDTS	(0.19)	(0.06)	(0.01)	(0.02)	(0.18)	(0.07)	(0.01)	(0.02)
E.Sales	0.216	0.0396	−0.0385	0.0242	0.436	0.0676	−0.0910	0.0295
E.Sales	(0.44)	(0.36)	(0.86)	(0.60)	(0.40)	(0.35)	(0.80)	(0.71)
NWC.TA	0.754	−0.342	0.890^*	0.171	1.179	−0.643	1.476^*	0.356
NWC.TA	(0.15)	(0.55)	(0.05)	(0.77)	(0.22)	(0.51)	(0.05)	(0.72)
RE.TE	0.0545^*	0.0488	−0.00328	0.0466	0.0961^*	0.0807	−0.00460	0.0768
RE.TE	(0.04)	(0.15)	(0.84)	(0.16)	(0.04)	(0.15)	(0.86)	(0.18)
Firm Age	0.00125	−0.00136	0.00368	0.00166	0.00210	−0.00220	0.00876^*	0.00271
Firm Age	(0.53)	(0.57)	(0.08)	(0.56)	(0.55)	(0.59)	(0.03)	(0.58)
Constant	−4.442^***	−1.564^*	−5.541^***	−8.173^***	−7.980^***	−2.577^*	−9.537^***	−13.88^***
Constant	(0.00)	(0.03)	(0.00)	(0.00)	(0.00)	(0.03)	(0.00)	(0.00)
N	663	351	663	351	663	351	663	351
Pseudo R²	0.0611	0.0501	0.1806	0.2728	0.0599	0.0497	0.1821	0.2726
Wald χ²	32.85	20.23	163.5	126.5	32.23	20.06	164.9	126.4
p	0.000289	0.0271	0.0000	0.0000	0.000367	0.0287	0.0000	0.0000

Note(s): p-values in parentheses * p < 0.05, **p < 0.01, ***p < 0.001. Refer Appendix 1 for variable definition

Source(s): Authors' own work

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