Regression results (moderating effect) 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 | 0.624*** | ||||
| (0.006) | |||||
| LEVTA (Excess of enterprise value over total assets) | 2.207*** | 2.024*** | 2.133*** | 2.207*** | 2.134*** |
| (0.409) | (0.332) | (0.342) | (0.693) | (0.336) | |
| PCDBM (Private credit to deposit money bank as % of GDP) | −0.055*** | −0.022*** | 0.011** | −0.055*** | 0.012** |
| (0.003) | (0.004) | (0.005) | (0.007) | (0.003) | |
| LEVTAPCDBM (LEVTA*PCDBM) | 0.005* | −0.003 | −0.006** | 0.005 | −0.005** |
| (0.003) | (0.003) | (0.003) | (0.006) | (0.001) | |
| LSL (Log of sales) | 2.080*** | 1.893*** | 2.253*** | 2.080*** | 2.255*** |
| (0.051) | (0.082) | (0.117) | (0.117) | (0.114) | |
| MTB (Market-to-book ratio) | −0.326*** | 0.017 | 0.063* | −0.326*** | 0.064** |
| (0.047) | (0.036) | (0.036) | (0.094) | (0.031) | |
| PPETA (Property, plant and equipment, net, scaled by total assets) | 19.940*** | 18.300*** | 17.550*** | 19.940*** | 17.549*** |
| (0.426) | (0.535) | (0.612) | (1.121) | (0.598) | |
| DEPTA (Depreciation to total assets) | 4.465 | −6.488*** | −9.153*** | 4.465 | −9.155*** |
| (2.795) | (2.365) | (2.444) | (5.795) | (2.403) | |
| EBITA (Earnings before interest and tax scaled by total assets) | −11.610*** | −9.982*** | −10.030*** | −11.610*** | −10.029*** |
| (0.582) | (0.434) | (0.442) | (1.095) | (0.425) | |
| Fage (Year of establishment) | 0.006* | 0.005 | 0.095*** | 0.006 | 0.096*** |
| (0.004) | (0.010) | (0.034) | (0.008) | (0.028) | |
| POR (Payout ratio, in %) | −0.053*** | −0.038*** | −0.035*** | −0.053*** | −0.034*** |
| (0.004) | (0.003) | (0.004) | (0.008) | (0.003) | |
| GDPG (Growth rate of GDP, in %) | −0.546*** | −0.308*** | −0.134*** | −0.546*** | −0.136*** |
| (0.054) | (0.036) | (0.039) | (0.074) | (0.035) | |
| INF (Inflation rate, in %) | −0.152* | −0.021 | −0.150*** | −0.152* | −0.148*** |
| (0.083) | (0.053) | (0.057) | (0.092) | (0.050) | |
| INT (Banks' lending rate, in %) | −0.180*** | 0.502*** | 1.565*** | −0.180 | 1.566*** |
| (0.057) | (0.082) | (0.120) | (0.127) | (0.118) | |
| Constant | 13.630*** | 7.602*** | −2.499* | 13.630*** | −2.598** |
| (0.526) | (0.781) | (1.308) | (1.181) | (1.239) | |
| 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 | 4,297 | ||
| Breusch-Pagan LM test (p-value) | 0.000 | ||||
| Hausman test (p-value) | 3.040 | ||||
| Multicollinearity (mean VIF) | 0.000 | ||||
| Heteroscedasticity test (p-value) | 0.000 | ||||
| F-statistics (p-value) | 0.000 | ||||
| AR (2) | 0.207 | ||||
| Hansen test | 0.377 |
| (Pooled OLS) | (RE) | (FE) | (OLS with hetero and serial corr) | Two-step system GMM | |
|---|---|---|---|---|---|
| Variables | TDTA | TDTA | TDTA | TDTA | TDTA |
| L.TDTA | 0.624*** | ||||
| (0.006) | |||||
| LEVTA (Excess of enterprise value over total assets) | 2.207*** | 2.024*** | 2.133*** | 2.207*** | 2.134*** |
| (0.409) | (0.332) | (0.342) | (0.693) | (0.336) | |
| PCDBM (Private credit to deposit money bank as % of GDP) | −0.055*** | −0.022*** | 0.011** | −0.055*** | 0.012** |
| (0.003) | (0.004) | (0.005) | (0.007) | (0.003) | |
| LEVTAPCDBM (LEVTA*PCDBM) | 0.005* | −0.003 | −0.006** | 0.005 | −0.005** |
| (0.003) | (0.003) | (0.003) | (0.006) | (0.001) | |
| LSL (Log of sales) | 2.080*** | 1.893*** | 2.253*** | 2.080*** | 2.255*** |
| (0.051) | (0.082) | (0.117) | (0.117) | (0.114) | |
| MTB (Market-to-book ratio) | −0.326*** | 0.017 | 0.063* | −0.326*** | 0.064** |
| (0.047) | (0.036) | (0.036) | (0.094) | (0.031) | |
| PPETA (Property, plant and equipment, net, scaled by total assets) | 19.940*** | 18.300*** | 17.550*** | 19.940*** | 17.549*** |
| (0.426) | (0.535) | (0.612) | (1.121) | (0.598) | |
| DEPTA (Depreciation to total assets) | 4.465 | −6.488*** | −9.153*** | 4.465 | −9.155*** |
| (2.795) | (2.365) | (2.444) | (5.795) | (2.403) | |
| EBITA (Earnings before interest and tax scaled by total assets) | −11.610*** | −9.982*** | −10.030*** | −11.610*** | −10.029*** |
| (0.582) | (0.434) | (0.442) | (1.095) | (0.425) | |
| Fage (Year of establishment) | 0.006* | 0.005 | 0.095*** | 0.006 | 0.096*** |
| (0.004) | (0.010) | (0.034) | (0.008) | (0.028) | |
| POR (Payout ratio, in %) | −0.053*** | −0.038*** | −0.035*** | −0.053*** | −0.034*** |
| (0.004) | (0.003) | (0.004) | (0.008) | (0.003) | |
| GDPG (Growth rate of GDP, in %) | −0.546*** | −0.308*** | −0.134*** | −0.546*** | −0.136*** |
| (0.054) | (0.036) | (0.039) | (0.074) | (0.035) | |
| INF (Inflation rate, in %) | −0.152* | −0.021 | −0.150*** | −0.152* | −0.148*** |
| (0.083) | (0.053) | (0.057) | (0.092) | (0.050) | |
| INT (Banks' lending rate, in %) | −0.180*** | 0.502*** | 1.565*** | −0.180 | 1.566*** |
| (0.057) | (0.082) | (0.120) | (0.127) | (0.118) | |
| Constant | 13.630*** | 7.602*** | −2.499* | 13.630*** | −2.598** |
| (0.526) | (0.781) | (1.308) | (1.181) | (1.239) | |
| Observations | 38,075 | 38,075 | 38,075 | 38,075 | 38,075 |
| 0.142 | 0.062 | 0.142 | |||
| Number of id | 4,297 | 4,297 | 4,297 | ||
| Breusch-Pagan LM test ( | 0.000 | ||||
| Hausman test ( | 3.040 | ||||
| Multicollinearity (mean VIF) | 0.000 | ||||
| Heteroscedasticity test ( | 0.000 | ||||
| 0.000 | |||||
| AR (2) | 0.207 | ||||
| Hansen test | 0.377 |
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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