Probit regressions
| Variables | Expected sign | REG1 | REG2 | REG3 | REG4 |
|---|---|---|---|---|---|
| EPS | + | 0.00136 (1.50) | 0.00137 (1.50) | 0.00132 (1.35) | 0.00131 (1.35) |
| Lag Dep | + | 1.836*** (72.75) | 1.848*** (71.91) | 1.356*** (46.21) | 1.378*** (46.18) |
| TAX2 (1989-1992) | + | –0.266*** (–4.10) | –0.194*** (–2.93) | ||
| TAX3 (1993) | + | 0.183** (2.10) | 0.157* (1.72) | ||
| TAX4 (1994-1995) | – | 0.0495 (0.70) | 0.102 (1.38) | ||
| TAX5 (1996-2011) | + | –0.260*** (–4.61) | –0.0617 (–1.00) | ||
| TAX2 × EPS (1989-1992) | + | 0.00203 (1.63) | 0.00122 (0.97) | 0.00134 (1.01) | 0.000343 (0.25) |
| TAX3 × EPS (1993) | + | 0.0106*** (3.26) | 0.0106*** (3.27) | 0.00779** (2.40) | 0.00781** (2.42) |
| TAX4 × EPS (1994-1995) | – | –0.000817 (–0.48) | 0.000595 (0.34) | –0.00267 (–1.39) | –0.00119 (–0.61) |
| TAX5 × EPS (1996-2011) | + | 0.00257** (2.48) | 0.00278*** (2.68) | 0.00256** (2.26) | 0.00274** (2.41) |
| COMMON | – | –0.00690 (–0.27) | –0.00173 (–0.07) | –0.133*** (–4.35) | –0.139*** (–4.54) |
| STAT | – | –0.150*** (–3.25) | –0.203*** (–4.31) | –0.665*** (–6.60) | –0.721*** (–7.02) |
| IOEC | + | 1.652*** (20.29) | 1.763*** (21.63) | 1.806*** (18.44) | 1.885*** (19.32) |
| GOV | + | 0.334*** (6.58) | 0.514*** (9.38) | 0.586*** (7.78) | 0.717*** (8.99) |
| GOV × EPS | + | 0.0628*** (3.13) | 0.0625*** (3.10) | 0.0551*** (2.60) | 0.0566*** (2.62) |
| N | 16,099 | 16,099 | 14,534 | 14,534 | |
| Pseudo R2 (%) | 41 | 42 | 45 | 46 | |
| Chi2 | 9,209.9 | 9,439.8 | 9,025.0 | 9,208.9 | |
| Year effect | No | Yes | No | Yes | |
| Industry effect | Yes | Yes | – | – |
| Variables | Expected sign | REG1 | REG2 | REG3 | REG4 |
|---|---|---|---|---|---|
| EPS | + | 0.00136 (1.50) | 0.00137 (1.50) | 0.00132 (1.35) | 0.00131 (1.35) |
| Lag Dep | + | 1.836 | 1.848 | 1.356 | 1.378 |
| TAX2 (1989-1992) | + | –0.266 | –0.194 | ||
| TAX3 (1993) | + | 0.183 | 0.157* (1.72) | ||
| TAX4 (1994-1995) | – | 0.0495 (0.70) | 0.102 (1.38) | ||
| TAX5 (1996-2011) | + | –0.260 | –0.0617 (–1.00) | ||
| TAX2 × EPS (1989-1992) | + | 0.00203 (1.63) | 0.00122 (0.97) | 0.00134 (1.01) | 0.000343 (0.25) |
| TAX3 × EPS (1993) | + | 0.0106 | 0.0106 | 0.00779 | 0.00781 |
| TAX4 × EPS (1994-1995) | – | –0.000817 (–0.48) | 0.000595 (0.34) | –0.00267 (–1.39) | –0.00119 (–0.61) |
| TAX5 × EPS (1996-2011) | + | 0.00257 | 0.00278 | 0.00256 | 0.00274 |
| COMMON | – | –0.00690 (–0.27) | –0.00173 (–0.07) | –0.133 | –0.139 |
| STAT | – | –0.150 | –0.203 | –0.665 | –0.721 |
| IOEC | + | 1.652 | 1.763 | 1.806 | 1.885 |
| GOV | + | 0.334 | 0.514 | 0.586 | 0.717 |
| GOV × EPS | + | 0.0628 | 0.0625 | 0.0551 | 0.0566 |
| 16,099 | 16,099 | 14,534 | 14,534 | ||
| Pseudo | 41 | 42 | 45 | 46 | |
| Chi2 | 9,209.9 | 9,439.8 | 9,025.0 | 9,208.9 | |
| Year effect | No | Yes | No | Yes | |
| Industry effect | Yes | Yes | – | – |
Notes:
This table presents the results for probit regressions with grouped data (pooled) and fixed effects, for the dependent variable DPS. This variable assumes value “1” if the company paid dividends and “0” otherwise. Regressions REG1 and REG2 represent grouped data (pooled), and regressions REG3 and REG4 represent the fixed effects. We used dummy variables for each year (for regressions without the variable TAXk) and industry (not for fixed effects) to capture these effects. The coefficients are shown for each variable, and t statistics follow in brackets.
,
and * represent the levels of statistical significance at 1, 5 and 10%, respectively
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