Correlation analysis
| Variables | FSIZE | LIQ | LVR | TOBINQ | MVA | ROA | ROCE | ROE |
|---|---|---|---|---|---|---|---|---|
| FSIZE | 1 | |||||||
| LIQ | 0.01*** | 1 | ||||||
| LVR | −0.12** | −0.01 | 1 | |||||
| TQ | −0.11*** | −0.05*** | 0.28*** | 1 | ||||
| MVA | −0.04 | 0.11*** | −0.03 | 0.33*** | 1 | |||
| ROA | −0.11*** | −0.07* | −0.08** | 0.51*** | 0.23*** | 1 | ||
| ROCE | −0.02 | −0.04 | −0.06 | 0.23*** | 0.10*** | 0.58*** | 1 | |
| ROE | 0.03 | −0.03 | −0.04 | 0.26*** | 0.07* | 0.45*** | 0.54*** | 1 |
| Variables | FSIZE | LIQ | LVR | TOBINQ | MVA | ROA | ROCE | ROE |
|---|---|---|---|---|---|---|---|---|
| 1 | ||||||||
| 0.01*** | 1 | |||||||
| −0.12** | −0.01 | 1 | ||||||
| −0.11*** | −0.05*** | 0.28*** | 1 | |||||
| −0.04 | 0.11*** | −0.03 | 0.33*** | 1 | ||||
| −0.11*** | −0.07* | −0.08** | 0.51*** | 0.23*** | 1 | |||
| −0.02 | −0.04 | −0.06 | 0.23*** | 0.10*** | 0.58*** | 1 | ||
| 0.03 | −0.03 | −0.04 | 0.26*** | 0.07* | 0.45*** | 0.54*** | 1 |
Notes:
1- LEV is leverage, ROE is return on equity, TQ is Tobin-Q, LIQ is liquidity, ROCE is return on capital employed, ROA is return on assets, FSIZE is firm size and MVA is market value added; ***, ** and *indicate at 1, 5 and 10% level of significance respectively