Table 10 Regression results (moderating...

Table 10

Regression results (moderating effect), based on 4,912 non-financial listed companies from 23 developing countries

	(Pooled OLS)	(RE)	(FE)	(OLS with hetero and serial corr)	Two-step system GMM
Variables	TDTA	TDTA	TDTA	TDTA	TDTA
L.TDTA					0.725**ˆ
L.TDTA					(0.007)
LEVTA (Excess of enterprise value over total assets)	1.538***	0.308	0.481**	1.538***	0.482**
LEVTA (Excess of enterprise value over total assets)	(0.221)	(0.226)	(0.241)	(0.525)	(0.237)
PCDBM (Private credit to deposit money bank as % of GDP)	0.034***	0.009	0.074***	0.034***	0.076***
PCDBM (Private credit to deposit money bank as % of GDP)	(0.004)	(0.007)	(0.014)	(0.009)	(0.010)
LEVTAPCDBM (LEVTA*PCDBM)	0.0387***	0.012***	0.006*	0.039***	0.029***
LEVTAPCDBM (LEVTA*PCDBM)	(0.004)	(0.004)	(0.004)	(0.008)	(0.004)
LSL (Log of sales)	2.771***	1.770***	1.265***	2.771***	1.264***
LSL (Log of sales)	(0.067)	(0.099)	(0.120)	(0.178)	(0.116)
MTB (Market-to-book ratio)	0.162***	0.176***	0.184***	0.162	0.187***
MTB (Market-to-book ratio)	(0.048)	(0.037)	(0.038)	(0.108)	(0.031)
PPETA (Property, plant and equipment, net, scaled by total assets)	15.490***	15.300***	14.990***	15.490***	14.991***
	(0.429)	(0.533)	(0.602)	(1.083)	(0.598)
DEPTA (Depreciation to total assets)	7.048**	−0.797	−0.727	7.048	−0.727
DEPTA (Depreciation to total assets)	(3.532)	(3.044)	(3.144)	(7.707)	(3.144)
EBITA (Earnings before interest and tax scaled by total assets)	−47.430***	−26.530***	−23.510***	−47.430***	−23.499***
	(1.163)	(0.885)	(0.904)	(3.413)	(0.899)
Fage (Year of establishment)	−0.050***	−0.048***	−0.080***	−0.050***	−0.083***
Fage (Year of establishment)	(0.004)	(0.009)	(0.016)	(0.011)	(0.009)
POR (Payout ratio, in %)	−0.139***	−0.074***	−0.060***	−0.139***	−0.059***
POR (Payout ratio, in %)	(0.004)	(0.003)	(0.003)	(0.008)	(0.005)
GDPG (Growth rate of GDP, in %)	0.501***	−0.069**	−0.113***	0.501***	−0.109***
GDPG (Growth rate of GDP, in %)	(0.041)	(0.035)	(0.039)	(0.077)	(0.029)
INF (Inflation rate, in %)	0.355***	0.250***	0.236***	0.355***	0.234***
INF (Inflation rate, in %)	(0.029)	(0.020)	(0.021)	(0.047)	(0.018)
INT (Banks' lending rate, in %)	0.296***	0.105***	−0.036	0.296***	−0.042ˆ
INT (Banks' lending rate, in %)	(0.015)	(0.024)	(0.032)	(0.036)	(0.023)
Constant	0.628	11.030***	12.900***	0.628	12.903***
Constant	(0.717)	(1.031)	(1.292)	(1.705)	(1.288)
Observations	43,866	43,866	43,866	43,866	43,866
R-squared	0.165		0.052	0.165
Number of id		4,906	4,906
Breusch–Pagan LM test (p-value)		0.000
Hausman test (p-value)		0.000
Multicollinearity (mean VIF)		2.05
Heteroscedasticity test (p-value)		0.000
F-statistics (p-value)		0.000
AR (2)					0.316
Hansen test					0.471

	(Pooled OLS)	(RE)	(FE)	(OLS with hetero and serial corr)	Two-step system GMM
Variables	TDTA	TDTA	TDTA	TDTA	TDTA
L.TDTA					0.725**ˆ
L.TDTA					(0.007)
LEVTA (Excess of enterprise value over total assets)	1.538***	0.308	0.481**	1.538***	0.482**
LEVTA (Excess of enterprise value over total assets)	(0.221)	(0.226)	(0.241)	(0.525)	(0.237)
PCDBM (Private credit to deposit money bank as % of GDP)	0.034***	0.009	0.074***	0.034***	0.076***
PCDBM (Private credit to deposit money bank as % of GDP)	(0.004)	(0.007)	(0.014)	(0.009)	(0.010)
LEVTAPCDBM (LEVTA*PCDBM)	0.0387***	0.012***	0.006*	0.039***	0.029***
LEVTAPCDBM (LEVTA*PCDBM)	(0.004)	(0.004)	(0.004)	(0.008)	(0.004)
LSL (Log of sales)	2.771***	1.770***	1.265***	2.771***	1.264***
LSL (Log of sales)	(0.067)	(0.099)	(0.120)	(0.178)	(0.116)
MTB (Market-to-book ratio)	0.162***	0.176***	0.184***	0.162	0.187***
MTB (Market-to-book ratio)	(0.048)	(0.037)	(0.038)	(0.108)	(0.031)
PPETA (Property, plant and equipment, net, scaled by total assets)	15.490***	15.300***	14.990***	15.490***	14.991***
	(0.429)	(0.533)	(0.602)	(1.083)	(0.598)
DEPTA (Depreciation to total assets)	7.048**	−0.797	−0.727	7.048	−0.727
DEPTA (Depreciation to total assets)	(3.532)	(3.044)	(3.144)	(7.707)	(3.144)
EBITA (Earnings before interest and tax scaled by total assets)	−47.430***	−26.530***	−23.510***	−47.430***	−23.499***
	(1.163)	(0.885)	(0.904)	(3.413)	(0.899)
Fage (Year of establishment)	−0.050***	−0.048***	−0.080***	−0.050***	−0.083***
Fage (Year of establishment)	(0.004)	(0.009)	(0.016)	(0.011)	(0.009)
POR (Payout ratio, in %)	−0.139***	−0.074***	−0.060***	−0.139***	−0.059***
POR (Payout ratio, in %)	(0.004)	(0.003)	(0.003)	(0.008)	(0.005)
GDPG (Growth rate of GDP, in %)	0.501***	−0.069**	−0.113***	0.501***	−0.109***
GDPG (Growth rate of GDP, in %)	(0.041)	(0.035)	(0.039)	(0.077)	(0.029)
INF (Inflation rate, in %)	0.355***	0.250***	0.236***	0.355***	0.234***
INF (Inflation rate, in %)	(0.029)	(0.020)	(0.021)	(0.047)	(0.018)
INT (Banks' lending rate, in %)	0.296***	0.105***	−0.036	0.296***	−0.042ˆ
INT (Banks' lending rate, in %)	(0.015)	(0.024)	(0.032)	(0.036)	(0.023)
Constant	0.628	11.030***	12.900***	0.628	12.903***
Constant	(0.717)	(1.031)	(1.292)	(1.705)	(1.288)
Observations	43,866	43,866	43,866	43,866	43,866
R-squared	0.165		0.052	0.165
Number of id		4,906	4,906
Breusch–Pagan LM test (p-value)		0.000
Hausman test (p-value)		0.000
Multicollinearity (mean VIF)		2.05
Heteroscedasticity test (p-value)		0.000
F-statistics (p-value)		0.000
AR (2)					0.316
Hansen test					0.471

Note(s): (a) See Table 2 for the definition of variables and measurements. Asterisks indicate significance at 1% (***), 5% (**) and 10% (*)

(b) The standard errors are reported in parenthesis

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

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