Table 4 Capital structure determinants...

Table 4

Capital structure determinants in the UK before (1990-2007) and after the subprime crisis started (2008-2019)

	Before financial crisis				After financial crisis
	TDB	LTDB	TDM	LTDM	TDB	LTDB	TDM	LTDM
PROFIT	−0.3742^a	−0.0994	−0.2538^a	−0.0376	−0.6849^a	−0.4878^a	−0.4658^a	−0.3239^a
PROFIT	(0.000)	(0.209)	(0.000)	(0.498)	(0.000)	(0.000)	(0.000)	(0.000)
lnASSET	0.0224^a	0.0236^a	0.00002	0.0023	0.0210^b	0.0135	0.0003	0.0011
lnASSET	(0.000)	(0.000)	(0.997)	(0.688)	(0.020)	(0.116)	(0.958)	(0.903)
M/B	−0.0149^b	−0.0263^a	−0.0396^a	−0.0379^a	0.0176^b	0.0138^b	−0.0113^b	−0.0097^b
M/B	(0.031)	(0.000)	(0.000)	(0.000)	(0.013)	(0.039)	(0.026)	(0.040)
lnAGE	−0.0129	−0.0120	−0.0667^a	−0.0729^a	−0.0147	−0.0323^c	−0.0174	−0.0604^a
lnAGE	(0.283)	(0.282)	(0.000)	(0.000)	(0.451)	(0.083)	(0.163)	(0.008)
TANG	0.0566	0.0583	0.1100^a	0.1052^a	0.0471	0.0309	0.1335^a	0.0568
TANG	(0.149)	(0.119)	(0.001)	(0.001)	(0.385)	(0.548)	(0.000)	(0.213)
NDTS	0.5076^a	0.2363	0.0566	−0.1091	0.8549^a	0.5193^b	0.4315^a	0.2468^c
NDTS	(0.001)	(0.106)	(0.593)	(0.294)	(0.000)	(0.012)	(0.006)	(0.098)
RND	−0.2853	−0.1299	−0.1788	−0.0408	−0.8803^b	−0.8049^b	−0.6258^a	−0.9161^b
RND	(0.312)	(0.631)	(0.402)	(0.845)	(0.011)	(0.016)	(0.005)	(0.044)
CPX	0.0099	−0.0399	−0.0571	−0.0417	0.0554	0.0838	0.0271	0.1319
CPX	(0.924)	(0.694)	(0.4400)	(0.565)	(0.761)	(0.623)	(0.833)	(0.280)
_CONSTANT	0.00004	−0.0769	0.4372^a	0.3557^a	−0.0017	0.1362	0.2449^a	0.3808^a
_CONSTANT	(0.993)	(0.357)	(0.000)	(0.000)	(0.990)	(0.298)	(0.008)	(0.001)
Robust std. error	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Wald chi-square and p > chi-square	57.54	45.16			58.46	34.87	149.79
Wald chi-square and p > chi-square	(0.000)	(0.000)			(0.000)	(0.000)	(0.000)
Model F and p > F			8.50	5.75				10.67
Model F and p > F			(0.000)	(0.000)				(0.000)
Overall R-squared	0.1668	0.1689	0.1191	0.0826	0.1563	0.1040	0.3097	0.1355
Within R-squared	0.0855	0.0590	0.3207	0.2421	0.1064	0.0611	0.2218	0.1763
Between R-squared	0.2578	0.2915	0.1658	0.1311	0.1914	0.1595	0.4370	0.2195

	Before financial crisis				After financial crisis
	TDB	LTDB	TDM	LTDM	TDB	LTDB	TDM	LTDM
PROFIT	−0.3742^a	−0.0994	−0.2538^a	−0.0376	−0.6849^a	−0.4878^a	−0.4658^a	−0.3239^a
PROFIT	(0.000)	(0.209)	(0.000)	(0.498)	(0.000)	(0.000)	(0.000)	(0.000)
lnASSET	0.0224^a	0.0236^a	0.00002	0.0023	0.0210^b	0.0135	0.0003	0.0011
lnASSET	(0.000)	(0.000)	(0.997)	(0.688)	(0.020)	(0.116)	(0.958)	(0.903)
M/B	−0.0149^b	−0.0263^a	−0.0396^a	−0.0379^a	0.0176^b	0.0138^b	−0.0113^b	−0.0097^b
M/B	(0.031)	(0.000)	(0.000)	(0.000)	(0.013)	(0.039)	(0.026)	(0.040)
lnAGE	−0.0129	−0.0120	−0.0667^a	−0.0729^a	−0.0147	−0.0323^c	−0.0174	−0.0604^a
lnAGE	(0.283)	(0.282)	(0.000)	(0.000)	(0.451)	(0.083)	(0.163)	(0.008)
TANG	0.0566	0.0583	0.1100^a	0.1052^a	0.0471	0.0309	0.1335^a	0.0568
TANG	(0.149)	(0.119)	(0.001)	(0.001)	(0.385)	(0.548)	(0.000)	(0.213)
NDTS	0.5076^a	0.2363	0.0566	−0.1091	0.8549^a	0.5193^b	0.4315^a	0.2468^c
NDTS	(0.001)	(0.106)	(0.593)	(0.294)	(0.000)	(0.012)	(0.006)	(0.098)
RND	−0.2853	−0.1299	−0.1788	−0.0408	−0.8803^b	−0.8049^b	−0.6258^a	−0.9161^b
RND	(0.312)	(0.631)	(0.402)	(0.845)	(0.011)	(0.016)	(0.005)	(0.044)
CPX	0.0099	−0.0399	−0.0571	−0.0417	0.0554	0.0838	0.0271	0.1319
CPX	(0.924)	(0.694)	(0.4400)	(0.565)	(0.761)	(0.623)	(0.833)	(0.280)
_CONSTANT	0.00004	−0.0769	0.4372^a	0.3557^a	−0.0017	0.1362	0.2449^a	0.3808^a
_CONSTANT	(0.993)	(0.357)	(0.000)	(0.000)	(0.990)	(0.298)	(0.008)	(0.001)
Robust std. error	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Wald chi-square and p > chi-square	57.54	45.16			58.46	34.87	149.79
Wald chi-square and p > chi-square	(0.000)	(0.000)			(0.000)	(0.000)	(0.000)
Model F and p > F			8.50	5.75				10.67
Model F and p > F			(0.000)	(0.000)				(0.000)
Overall R-squared	0.1668	0.1689	0.1191	0.0826	0.1563	0.1040	0.3097	0.1355
Within R-squared	0.0855	0.0590	0.3207	0.2421	0.1064	0.0611	0.2218	0.1763
Between R-squared	0.2578	0.2915	0.1658	0.1311	0.1914	0.1595	0.4370	0.2195

Note(s): ^a denotes significance at 1% level; ^b denotes significance at 5%; ^c indicates significance at 10%

Source(s): Authors’ own work

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