Table IV. Correlation matrix of the... | Emerald Publishing

Table IV.

Correlation matrix of the explanatory variables

	BM	FBM	FROE	FRM	BETA	SIZE	MOM	LIQ¹	LIQ²	LIQ³
BM	1.000	0.751**	0.038	0.957**	0.007	−0.062*	0.006	−0.035	−0.034	−0.004
FBM		1.000	0.068**	0.542**	0.008	−0.072**	0.054*	−0.048	−0.044	−0.020
FROE			1.000	0.302**	0.027	0.054*	−0.047	0.027	0.032	0.044
FRM					0.001	−0.054*	−0.018	−0.030	−0.029	0.003
BETA					1.000	0.128**	−0.188**	0.195**	0.180**	0.338**
SIZE						1.000	0.025	0.493**	0.585**	0.507**
MOM							1.000	−0.066**	−0.037	0.013
LIQ¹								1.000	0.843**	0.566**
LIQ²									1.000	0.734**
LIQ³										1.000

	BM	FBM	FROE	FRM	BETA	SIZE	MOM	LIQ¹	LIQ²	LIQ³
BM	1.000	0.751**	0.038	0.957**	0.007	−0.062*	0.006	−0.035	−0.034	−0.004
FBM		1.000	0.068**	0.542**	0.008	−0.072**	0.054*	−0.048	−0.044	−0.020
FROE			1.000	0.302**	0.027	0.054*	−0.047	0.027	0.032	0.044
FRM					0.001	−0.054*	−0.018	−0.030	−0.029	0.003
BETA					1.000	0.128**	−0.188**	0.195**	0.180**	0.338**
SIZE						1.000	0.025	0.493**	0.585**	0.507**
MOM							1.000	−0.066**	−0.037	0.013
LIQ¹								1.000	0.843**	0.566**
LIQ²									1.000	0.734**
LIQ³										1.000

Notes:

Proxies for liquidity: 1 = Trading quantity; 2 = Traded volume; 3 = Negotiability;

*

significant at 1%;

**

significant at 5%