Table IV.

Impact of loss aversion of investors on the economic performance of US companies

H1 results
Panel Model (1): ROAi,t=α0+β1SIZEi,t+β2MCAPi,t+β3LAi,t+εi,t
VariablesIndustry sector (N = 3,708)Service sector (N = 3,069)Both sectors (N = 6,777)
Intercept p-value0.0467*** (0.0003)0.0315*** (0.0000)0.0472*** (0.0000)
SIZE p-value−0.0155*** (0.0000)0.0641*** (0.0000)−0.0313*** (0.0000)
MCAP p-value0.00017* (0.0773)−0.00035** (0.0184)0.00075*** (0.0000)
LA p-value−0.00115*** (0.0012)−0.00014*** (0.0005)−0.00028*** (0.0024)
R2 (%) (Adjusted R2 )95.23 (95.11)54.10 (52.91)88.96 (88.68)
F-value p-value45.448*** (0.0000)31.125*** (0.0000)75.180*** (0.0000)
χ2p-value82.930*** (0.0000)35.932*** (0.0089)111.58*** (0.0000)

Note: *, ** and *** indicate statistical significance at the 1%, 5% and 10% levels of confidence, respectively.

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