Table 9 Regression results based on...

Table 9

Regression results based on 4,303 nonfinancial listed companies from 9 developed countries

	(Pooled OLS)	(RE)	(FE)	(OLS with hetero and serial corr.)	Two-step System GMM
Variables	TDTA	TDTA	TDTA	TDTA	TDTA
L.TDTA					0.639***
L.TDTA					(0.009)
LEVTA (Excess of enterprise value over total assets)	2.865***	1.614***	1.447***	2.865***	1.450***
LEVTA (Excess of enterprise value over total assets)	(0.110)	(0.095)	(0.100)	(0.198)	(0.099)
PCDBM (Private credit by deposit money bank as % of GDP)	−0.056***	−0.022***	0.011**	−0.056***	0.012**
PCDBM (Private credit by deposit money bank as % of GDP)	(0.003)	(0.003)	(0.005)	(0.007)	(0.003)
LSL (Log of sales)	2.080***	1.896***	2.257***	2.080***	2.260***
LSL (Log of sales)	(0.051)	(0.082)	(0.117)	(0.117)	(0.115)
MTB (Market-to-book ratio)	−0.323***	0.0157	0.0597	−0.323***	0.0600**
MTB (Market-to-book ratio)	(0.045)	(0.035)	(0.036)	(0.094)	(0.006)
PPETA (Property, plant and equipment, net, scaled by total assets)	19.930***	18.310***	17.550***	19.930***	17.552***
	(0.426)	(0.535)	(0.612)	(1.121)	(0.609)
DEPTA (Depreciation to total assets)	4.498	6.483***	9.134***	4.498	9.136***
DEPTA (Depreciation to total assets)	(2.795)	(2.365)	(2.444)	(5.794)	(2.439)
EBITA (Earnings before interest and tax to total assets)	−11.580***	−9.992***	−10.040***	−11.580***	−9.041***
EBITA (Earnings before interest and tax to total assets)	(0.581)	(0.433)	(0.442)	(1.094)	(0.438)
Fage (Year of establishment)	0.006	0.005	0.095***	0.006	0.096***
Fage (Year of establishment)	(0.004)	(0.009)	(0.034)	(0.008)	(0.029)
POR (Payout ratio)	−0.053***	−0.038***	−0.035***	−0.053***	−0.037***
POR (Payout ratio)	(0.004)	(0.003)	(0.004)	(0.008)	(0.002)
GDPG (Growth rate of GDP)	−0.547***	−0.308***	−0.135***	−0.547***	−0.137***
GDPG (Growth rate of GDP)	(0.054)	(0.036)	(0.039)	(0.074)	(0.032)
INF (Inflation rate)	0.137*	0.028	0.159***	0.137	0.161***
INF (Inflation rate)	(0.083)	(0.053)	(0.057)	(0.092)	(0.053)
INT (Banks' lending rate)	−0.182***	0.496***	1.544***	−0.182	1.545***
INT (Banks' lending rate)	(0.057)	(0.082)	(0.119)	(0.127)	(0.114)
Constant	13.680***	7.553***	2.512*	13.680***	2.514*
Constant	(0.525)	(0.780)	(1.308)	(1.173)	(1.301)
Observations	38,075	38,075	38,075	38,075	38,075
R-squared	0.142		0.062	0.142
Number of id		4,297	4,297
Breusch–Pagan LM test		(0.000)
Hausman test			(0.000)
Multicollinearity (VIF)			1.50
Heteroscedasticity (χ² stat)			(0.000)
Serial correlation (F-stat)			(0.000)
AR (2)					0.219
Hansen test					0.382

	(Pooled OLS)	(RE)	(FE)	(OLS with hetero and serial corr.)	Two-stepSystem GMM
Variables	TDTA	TDTA	TDTA	TDTA	TDTA
L.TDTA					0.639***
L.TDTA					(0.009)
LEVTA (Excess of enterprise value over total assets)	2.865***	1.614***	1.447***	2.865***	1.450***
LEVTA (Excess of enterprise value over total assets)	(0.110)	(0.095)	(0.100)	(0.198)	(0.099)
PCDBM (Private credit by deposit money bank as % of GDP)	−0.056***	−0.022***	0.011**	−0.056***	0.012**
PCDBM (Private credit by deposit money bank as % of GDP)	(0.003)	(0.003)	(0.005)	(0.007)	(0.003)
LSL (Log of sales)	2.080***	1.896***	2.257***	2.080***	2.260***
LSL (Log of sales)	(0.051)	(0.082)	(0.117)	(0.117)	(0.115)
MTB (Market-to-book ratio)	−0.323***	0.0157	0.0597	−0.323***	0.0600**
MTB (Market-to-book ratio)	(0.045)	(0.035)	(0.036)	(0.094)	(0.006)
PPETA (Property, plant and equipment, net, scaled by total assets)	19.930***	18.310***	17.550***	19.930***	17.552***
	(0.426)	(0.535)	(0.612)	(1.121)	(0.609)
DEPTA (Depreciation to total assets)	4.498	6.483***	9.134***	4.498	9.136***
DEPTA (Depreciation to total assets)	(2.795)	(2.365)	(2.444)	(5.794)	(2.439)
EBITA (Earnings before interest and tax to total assets)	−11.580***	−9.992***	−10.040***	−11.580***	−9.041***
EBITA (Earnings before interest and tax to total assets)	(0.581)	(0.433)	(0.442)	(1.094)	(0.438)
Fage (Year of establishment)	0.006	0.005	0.095***	0.006	0.096***
Fage (Year of establishment)	(0.004)	(0.009)	(0.034)	(0.008)	(0.029)
POR (Payout ratio)	−0.053***	−0.038***	−0.035***	−0.053***	−0.037***
POR (Payout ratio)	(0.004)	(0.003)	(0.004)	(0.008)	(0.002)
GDPG (Growth rate of GDP)	−0.547***	−0.308***	−0.135***	−0.547***	−0.137***
GDPG (Growth rate of GDP)	(0.054)	(0.036)	(0.039)	(0.074)	(0.032)
INF (Inflation rate)	0.137*	0.028	0.159***	0.137	0.161***
INF (Inflation rate)	(0.083)	(0.053)	(0.057)	(0.092)	(0.053)
INT (Banks' lending rate)	−0.182***	0.496***	1.544***	−0.182	1.545***
INT (Banks' lending rate)	(0.057)	(0.082)	(0.119)	(0.127)	(0.114)
Constant	13.680***	7.553***	2.512*	13.680***	2.514*
Constant	(0.525)	(0.780)	(1.308)	(1.173)	(1.301)
Observations	38,075	38,075	38,075	38,075	38,075
R-squared	0.142		0.062	0.142
Number of id		4,297	4,297
Breusch–Pagan LM test		(0.000)
Hausman test			(0.000)
Multicollinearity (VIF)			1.50
Heteroscedasticity (χ² stat)			(0.000)
Serial correlation (F-stat)			(0.000)
AR (2)					0.219
Hansen test					0.382

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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