Table 8 Regression results based on...

Table 8

Regression results based on 4,912 nonfinancial listed firms from 23 developing countries

Variables	(Pooled OLS)	(RE)	(FE)	(OLS with hetero and serial corr.)	Two-step system GMM
Variables	TDTA	TDTA	TDTA	TDTA	TDTA
L.TDTA					0.736***
L.TDTA					(0.012)
LEVTA (Excess of enterprise value over total assets)	0.479***	0.551***	0.637***	0.579**	0.638***
LEVTA (Excess of enterprise value over total assets)	(0.111)	(0.10)	(0.109)	(0.284)	(0.107)
PCDBM (Private credit by deposit money bank as % of GDP)	0.024***	0.006	0.074***	0.024***	0.075***
PCDBM (Private credit by deposit money bank as % of GDP)	(0.004)	(0.007)	(0.014)	(0.009)	(0.012)
LSL (Log of sales)	2.780***	1.782***	1.273***	2.780***	1.275***
LSL (Log of sales)	(0.067)	(0.098)	(0.120)	(0.179)	(0.118)
MTB (Market-to-book ratio)	0.181***	0.176***	0.184***	0.181*	0.185***
MTB (Market-to-book ratio)	(0.048)	(0.037)	(0.038)	(0.109)	(0.037)
PPETA (Property, plant and equipment, net, scaled by total assets)	15.550***	15.310***	14.990***	15.550***	14.992***
	(0.430)	(0.533)	(0.602)	(1.084)	(0.599)
DEPTA (Depreciation to total assets)	7.080**	−1.012	−0.852	7.080	−0.853
DEPTA (Depreciation to total assets)	(3.536)	(3.043)	(3.144)	(7.747)	(3.139)
EBITA (Earnings before interest and tax to total assets)	−47.200***	−26.530***	−23.520***	−47.200***	−23.518***
EBITA (Earnings before interest and tax to total assets)	(1.165)	(0.885)	(0.904)	(3.431)	(0.899)
Fage (Year of establishment)	−0.052***	−0.048***	−0.081***	−0.052***	−0.083***
Fage (Year of establishment)	(0.004)	(0.009)	(0.016)	(0.011)	(0.013)
POR (Payout ratio)	−0.137***	−0.073***	−0.060***	−0.137***	−0.061***
POR (Payout ratio)	(0.004)	(0.003)	(0.003)	(0.008)	(0.001)
GDPG (Growth rate of GDP)	0.485***	−0.075**	−0.115***	0.485***	−0.117***
GDPG (Growth rate of GDP)	(0.041)	(0.035)	(0.039)	(0.077)	(0.034)
INF (Inflation rate)	0.369***	0.252***	0.236***	0.369***	0.239***
INF (Inflation rate)	(0.029)	(0.020)	(0.021)	(0.047)	(0.019)
INT (Banks' lending rate)	0.294***	0.104***	−0.0368	0.294***	−0.039
INT (Banks' lending rate)	(0.015)	(0.024)	(0.032)	(0.035)	(0.028)
Constant	1.014	11.120***	12.940***	1.014	12.938**
Constant	(0.716)	(1.032)	(1.292)	(1.700)	(1.290)
Observations	43,866	43,866	43,866	43,866	43,866
R-squared	0.163		0.052	0.163
Number of id		4,906	4,906
Breusch–Pagan LM test		(0.000)
Hausman test			(0.000)
Multicollinearity (VIF)			1.25
Heteroscedasticity (χ² stat)			(0.000)
Serial correlation (F-stat)			(0.000)
AR (2)					0.235
Hansen test					0.493

Variables	(Pooled OLS)	(RE)	(FE)	(OLS with hetero and serial corr.)	Two-step system GMM
Variables	TDTA	TDTA	TDTA	TDTA	TDTA
L.TDTA					0.736***
L.TDTA					(0.012)
LEVTA (Excess of enterprise value over total assets)	0.479***	0.551***	0.637***	0.579**	0.638***
LEVTA (Excess of enterprise value over total assets)	(0.111)	(0.10)	(0.109)	(0.284)	(0.107)
PCDBM (Private credit by deposit money bank as % of GDP)	0.024***	0.006	0.074***	0.024***	0.075***
PCDBM (Private credit by deposit money bank as % of GDP)	(0.004)	(0.007)	(0.014)	(0.009)	(0.012)
LSL (Log of sales)	2.780***	1.782***	1.273***	2.780***	1.275***
LSL (Log of sales)	(0.067)	(0.098)	(0.120)	(0.179)	(0.118)
MTB (Market-to-book ratio)	0.181***	0.176***	0.184***	0.181*	0.185***
MTB (Market-to-book ratio)	(0.048)	(0.037)	(0.038)	(0.109)	(0.037)
PPETA (Property, plant and equipment, net, scaled by total assets)	15.550***	15.310***	14.990***	15.550***	14.992***
	(0.430)	(0.533)	(0.602)	(1.084)	(0.599)
DEPTA (Depreciation to total assets)	7.080**	−1.012	−0.852	7.080	−0.853
DEPTA (Depreciation to total assets)	(3.536)	(3.043)	(3.144)	(7.747)	(3.139)
EBITA (Earnings before interest and tax to total assets)	−47.200***	−26.530***	−23.520***	−47.200***	−23.518***
EBITA (Earnings before interest and tax to total assets)	(1.165)	(0.885)	(0.904)	(3.431)	(0.899)
Fage (Year of establishment)	−0.052***	−0.048***	−0.081***	−0.052***	−0.083***
Fage (Year of establishment)	(0.004)	(0.009)	(0.016)	(0.011)	(0.013)
POR (Payout ratio)	−0.137***	−0.073***	−0.060***	−0.137***	−0.061***
POR (Payout ratio)	(0.004)	(0.003)	(0.003)	(0.008)	(0.001)
GDPG (Growth rate of GDP)	0.485***	−0.075**	−0.115***	0.485***	−0.117***
GDPG (Growth rate of GDP)	(0.041)	(0.035)	(0.039)	(0.077)	(0.034)
INF (Inflation rate)	0.369***	0.252***	0.236***	0.369***	0.239***
INF (Inflation rate)	(0.029)	(0.020)	(0.021)	(0.047)	(0.019)
INT (Banks' lending rate)	0.294***	0.104***	−0.0368	0.294***	−0.039
INT (Banks' lending rate)	(0.015)	(0.024)	(0.032)	(0.035)	(0.028)
Constant	1.014	11.120***	12.940***	1.014	12.938**
Constant	(0.716)	(1.032)	(1.292)	(1.700)	(1.290)
Observations	43,866	43,866	43,866	43,866	43,866
R-squared	0.163		0.052	0.163
Number of id		4,906	4,906
Breusch–Pagan LM test		(0.000)
Hausman test			(0.000)
Multicollinearity (VIF)			1.25
Heteroscedasticity (χ² stat)			(0.000)
Serial correlation (F-stat)			(0.000)
AR (2)					0.235
Hansen test					0.493

Note(s): (a) See Table 1 for the definition of variables and measurements. Asterisks indicate significance at 1 (***), 5 (**) and 10% (*)

(b) The standard errors are reported in parentheses

Source(s): Table by Thakur and modified by Matemilola

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