Regression of FLID
| Variable | Expected sign | (1) | (2) |
|---|---|---|---|
| BSIZE | + | 0.105*** (0.027) | 0.068** (0.033) |
| BINDP | + | 0.259*** (0.082) | 0.104 (0.109) |
| BGDIV | + | −0.119** (0.060) | −0.183** (0.072) |
| ADTAF | + | 0.041** (0.016) | 0.037** (0.015) |
| LEV | + | 0.146*** (0.035) | 0.151*** (0.039) |
| ROA | + | 0.564*** (0.128) | 0.502*** (0.166) |
| FSIZE | − | −0.016** (0.006) | −0.031*** (0.009) |
| LAGE | − | −0.038*** (0.008) | −0.046*** (0.010) |
| Constant | 0.416*** (0.136) | 0.946*** (0.240) | |
| Year dummies? | No | Yes | |
| Industry dummies? | No | Yes | |
| Observations | 138 | 138 | |
| R2 | 28.5% | 59.3% | |
| Adjusted R2 | 24.0% | 51.6% |
| Variable | Expected sign | (1) | (2) |
|---|---|---|---|
| BSIZE | + | 0.105*** (0.027) | 0.068** (0.033) |
| BINDP | + | 0.259*** (0.082) | 0.104 (0.109) |
| BGDIV | + | −0.119** (0.060) | −0.183** (0.072) |
| ADTAF | + | 0.041** (0.016) | 0.037** (0.015) |
| LEV | + | 0.146*** (0.035) | 0.151*** (0.039) |
| ROA | + | 0.564*** (0.128) | 0.502*** (0.166) |
| FSIZE | − | −0.016** (0.006) | −0.031*** (0.009) |
| LAGE | − | −0.038*** (0.008) | −0.046*** (0.010) |
| Constant | 0.416*** (0.136) | 0.946*** (0.240) | |
| Year dummies? | No | Yes | |
| Industry dummies? | No | Yes | |
| Observations | 138 | 138 | |
| 28.5% | 59.3% | ||
| Adjusted | 24.0% | 51.6% |
Note(s): The table exhibits the estimates of FLID. Column 1 reports the coefficients of regression without including the year and industry dummies, whereas column 2 includes both year and industry dummies. Robust standard errors are reported in parentheses. 5 and 1% statistical significance from t-statistic is denoted by ** and ***, respectively