Table 6 Dynamic panel-data estimation,...

Table 6

Dynamic panel-data estimation, two-step robust system GMM

Variables	ROA (model 1)	ROE (model 2)	EPS (model 3)	TOB (model 4)
Lag of ROA, ROE, EPS, TOB	−0.023 ***	0.207 ***	0.203 ***	0.331 ***
Lag of ROA, ROE, EPS, TOB	(0.004)	(0.010)	(0.006)	(0.003)
Equity multiplier	0.064 ***	0.197 ***	0.404 ***	0.101
Equity multiplier	(0.011)	(0.027)	(0.028)	(0.567)
Interest coverage	0.027 ***	0.083 ***	0.889 ***	0.320 ***
Interest coverage	(0.007)	(0.004)	(0.037)	(0.116)
Fixed charge coverage ratio	0.085 ***	0.337 ***	0.660 ***	−0.300 ***
Fixed charge coverage ratio	(0.003)	(0.067)	(0.078)	(0.104)
Degree of financial leverage	−0.046	−0.431 ***	−0.759 ***	0.772 ***
Degree of financial leverage	(0.030)	(0.051)	(0.054)	(0.110)
Debt to EBITDA	0.158 ***	−0.029 ***	−0.120 ***	−0.285 ***
Debt to EBITDA	(0.008)	(0.012)	(0.019)	(0.103)
Capitalization ratio	−0.366 ***	−0.131 ***	−0.256 ***	−0.286 ***
Capitalization ratio	(0.011)	(0.024)	(0.021)	(0.010)
Age	0.023 ***	0.161 ***	0.967 ***	−0.146 ***
Age	(0.016)	(0.020)	(0.219)	(0.067)
Sales growth	0.064 ***	0.173 ***	0.216 ***	0.198 ***
Sales growth	(0.004)	(0.006)	(0.007)	(0.016)
Size of firm	−0.027 ***	−0.126 ***	0.335	0.372 ***
Size of firm	(0.006)	(0.008)	(1.128)	(0.137)
Number of observations	4,900	4,974	4,875	4,974
No. of instruments	185	197	178	222
No. of group	263	263	263	263
Arellano–Bond: AR (1)	0.043	0.006	0.030	0.000
Arellano–Bond: AR (2)	0.812	0.456	0.334	0.564
Sargan test (p-value)	0.346	0.761	0.653	0.228
Hansen test (p-value)	0.234	0.112	0.265	0.123

Variables	ROA (model 1)	ROE (model 2)	EPS (model 3)	TOB (model 4)
Lag of ROA, ROE, EPS, TOB	−0.023 ***	0.207 ***	0.203 ***	0.331 ***
Lag of ROA, ROE, EPS, TOB	(0.004)	(0.010)	(0.006)	(0.003)
Equity multiplier	0.064 ***	0.197 ***	0.404 ***	0.101
Equity multiplier	(0.011)	(0.027)	(0.028)	(0.567)
Interest coverage	0.027 ***	0.083 ***	0.889 ***	0.320 ***
Interest coverage	(0.007)	(0.004)	(0.037)	(0.116)
Fixed charge coverage ratio	0.085 ***	0.337 ***	0.660 ***	−0.300 ***
Fixed charge coverage ratio	(0.003)	(0.067)	(0.078)	(0.104)
Degree of financial leverage	−0.046	−0.431 ***	−0.759 ***	0.772 ***
Degree of financial leverage	(0.030)	(0.051)	(0.054)	(0.110)
Debt to EBITDA	0.158 ***	−0.029 ***	−0.120 ***	−0.285 ***
Debt to EBITDA	(0.008)	(0.012)	(0.019)	(0.103)
Capitalization ratio	−0.366 ***	−0.131 ***	−0.256 ***	−0.286 ***
Capitalization ratio	(0.011)	(0.024)	(0.021)	(0.010)
Age	0.023 ***	0.161 ***	0.967 ***	−0.146 ***
Age	(0.016)	(0.020)	(0.219)	(0.067)
Sales growth	0.064 ***	0.173 ***	0.216 ***	0.198 ***
Sales growth	(0.004)	(0.006)	(0.007)	(0.016)
Size of firm	−0.027 ***	−0.126 ***	0.335	0.372 ***
Size of firm	(0.006)	(0.008)	(1.128)	(0.137)
Number of observations	4,900	4,974	4,875	4,974
No. of instruments	185	197	178	222
No. of group	263	263	263	263
Arellano–Bond: AR (1)	0.043	0.006	0.030	0.000
Arellano–Bond: AR (2)	0.812	0.456	0.334	0.564
Sargan test (p-value)	0.346	0.761	0.653	0.228
Hansen test (p-value)	0.234	0.112	0.265	0.123

Source(s): Authors’ own work

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