Table 5 Capital structure determinants...

Table 5

Capital structure determinants in the UK before, during and after the subprime crisis

	1999-2007				2008-2010				2011-2019
	TDB	LTDB	TDM	LTDM	TDB	LTDB	TDM	LTDM	TDB	LTDB	TDM	LTDM
PROFIT	−0.2903^a	−0.1458	−0.2215^a	−0.1172^c	−0.3914^a	−0.2180	−0.4892^a	−0.2585^c	−0.8436^a	−0.6752^a	−0.4204^a	−0.2913^a
PROFIT	(0.0023)	(0.0715)	(0.0014)	(0.0934)	(0.0007)	(0.1237)	(0.0075)	(0.0622)	(0.0000)	(0.0000)	(0.0000)	(0.0014)
lnASSET	−0.0196	−0.0032	−0.0037	0.0019	0.0189	0.0128	0.1124^b	0.0081	0.0310^a	0.0454 ^a	0.0073	0.0029
lnASSET	(0.1270)	(0.7425)	(0.6331)	(0.7923)	(0.1709)	(0.3549)	(0.0397)	(0.3840)	(0.0013)	(0.0029)	(0.3654)	(0.6693)
M/B	0.0043	−0.0087	−0.0292^a	−0.0275^a	−0.0281^a	−0.0359^a	−0.0303^b	−0.0466^a	0.0343	0.0283^a	−0.0042	−0.0060
M/B	(0.5211)	(0.2615)	(0.0000)	(0.0000)	(0.0064)	(0.0050)	(0.0271)	(0.0002)	(0.0007)	(0.0060)	(0.3872)	(0.2698)
lnAGE	−0.0020	−0.0043	−0.0273	−0.0051	−0.0155	−0.0265	−0.3725^a	−0.0084	−0.0093	−0.0828^b	0.0098	−0.0230
lnAGE	(0.9685)	(0.7799)	(0.2643)	(0.5723)	(0.5315)	(0.2755)	(0.0088)	(0.6037)	(0.6694)	(0.0175)	(0.7725)	(0.3660)
TANG	0.1541^b	0.1021	0.1941^a	0.1598^a	0.0508	0.1444	0.0730	0.1574^b	0.0936	−0.0043	0.1143	0.0740
TANG	(0.0150)	(0.0574)	(0.0010)	(0.0003)	(0.5596)	(0.1248)	(0.6666)	(0.0245)	(0.3477)	(0.9808)	(0.1391)	(0.3340)
NDTS	0.0833	0.0694	−0.0865	−0.1247	0.1730	−0.2733	0.3924	0.0210	1.0901^a	0.8832^a	0.4804^a	0.2903
NDTS	(0.5539)	(0.6371)	(0.4686)	(0.3318)	(0.5429)	(0.4308)	(0.2996)	(0.9478)	(0.0000)	(0.0017)	(0.0094)	(0.1342)
RND	−0.3810	−0.6623	−0.0298	−0.1327	−0.4395	−0.0579	0.0687	0.1809	−0.8367^a	−0.8859	−0.8041^c	−0.6672
RND	(0.5299)	(0.0597)	(0.9411)	(0.5476)	(0.5893)	(0.9449)	(0.9774)	(0.7592)	(0.0000)	(0.1266)	(0.0963)	(0.1204)
CPX	−0.0854	−0.2642	−0.0906	−0.2393^b	0.2946	−0.4308	0.1830	−0.4516	−0.0703	0.2823	0.0764	0.1814
CPX	(0.5036)	(0.0321)	(0.4007)	(0.0263)	(0.2250)	(0.1466)	(0.5946)	(0.1135)	(0.7231)	(0.1694)	(0.5258)	(0.1353)
CONSTANT	0.4682^a	0.2573	0.3241^a	0.1463	0.0893	0.1860	0.1257	0.1435	−0.1952	−0.1305	0.0111	0.1826^b
CONSTANT	(0.0003)	(0.0847)	(0.0012)	(0.1832)	(0.6758)	(0.3894)	(0.8570)	(0.3324)	(0.3236)	(0.3537)	(0.9144)	(0.0315)
Robust std. error	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Model chi-square, P value		25.7395		118.157	35.1053	23.3626		35.7448	288.932
Model chi-square, P value		(0.0012)		(0.0000)	(0.0000)	(0.0029)		(0.0000)	(0.0000)
Overall R-squared		0.1674		0.3986	0.1907	0.2002		0.3627	0.1730
LSDV R-squared	0.8268		0.8551				0.9381			0.8420	0.8705	0.8779
Within R-squared	0.0809		0.2987				0.3305			0.0852	0.1603	0.1140

	1999-2007				2008-2010				2011-2019
	TDB	LTDB	TDM	LTDM	TDB	LTDB	TDM	LTDM	TDB	LTDB	TDM	LTDM
PROFIT	−0.2903^a	−0.1458	−0.2215^a	−0.1172^c	−0.3914^a	−0.2180	−0.4892^a	−0.2585^c	−0.8436^a	−0.6752^a	−0.4204^a	−0.2913^a
PROFIT	(0.0023)	(0.0715)	(0.0014)	(0.0934)	(0.0007)	(0.1237)	(0.0075)	(0.0622)	(0.0000)	(0.0000)	(0.0000)	(0.0014)
lnASSET	−0.0196	−0.0032	−0.0037	0.0019	0.0189	0.0128	0.1124^b	0.0081	0.0310^a	0.0454 ^a	0.0073	0.0029
lnASSET	(0.1270)	(0.7425)	(0.6331)	(0.7923)	(0.1709)	(0.3549)	(0.0397)	(0.3840)	(0.0013)	(0.0029)	(0.3654)	(0.6693)
M/B	0.0043	−0.0087	−0.0292^a	−0.0275^a	−0.0281^a	−0.0359^a	−0.0303^b	−0.0466^a	0.0343	0.0283^a	−0.0042	−0.0060
M/B	(0.5211)	(0.2615)	(0.0000)	(0.0000)	(0.0064)	(0.0050)	(0.0271)	(0.0002)	(0.0007)	(0.0060)	(0.3872)	(0.2698)
lnAGE	−0.0020	−0.0043	−0.0273	−0.0051	−0.0155	−0.0265	−0.3725^a	−0.0084	−0.0093	−0.0828^b	0.0098	−0.0230
lnAGE	(0.9685)	(0.7799)	(0.2643)	(0.5723)	(0.5315)	(0.2755)	(0.0088)	(0.6037)	(0.6694)	(0.0175)	(0.7725)	(0.3660)
TANG	0.1541^b	0.1021	0.1941^a	0.1598^a	0.0508	0.1444	0.0730	0.1574^b	0.0936	−0.0043	0.1143	0.0740
TANG	(0.0150)	(0.0574)	(0.0010)	(0.0003)	(0.5596)	(0.1248)	(0.6666)	(0.0245)	(0.3477)	(0.9808)	(0.1391)	(0.3340)
NDTS	0.0833	0.0694	−0.0865	−0.1247	0.1730	−0.2733	0.3924	0.0210	1.0901^a	0.8832^a	0.4804^a	0.2903
NDTS	(0.5539)	(0.6371)	(0.4686)	(0.3318)	(0.5429)	(0.4308)	(0.2996)	(0.9478)	(0.0000)	(0.0017)	(0.0094)	(0.1342)
RND	−0.3810	−0.6623	−0.0298	−0.1327	−0.4395	−0.0579	0.0687	0.1809	−0.8367^a	−0.8859	−0.8041^c	−0.6672
RND	(0.5299)	(0.0597)	(0.9411)	(0.5476)	(0.5893)	(0.9449)	(0.9774)	(0.7592)	(0.0000)	(0.1266)	(0.0963)	(0.1204)
CPX	−0.0854	−0.2642	−0.0906	−0.2393^b	0.2946	−0.4308	0.1830	−0.4516	−0.0703	0.2823	0.0764	0.1814
CPX	(0.5036)	(0.0321)	(0.4007)	(0.0263)	(0.2250)	(0.1466)	(0.5946)	(0.1135)	(0.7231)	(0.1694)	(0.5258)	(0.1353)
CONSTANT	0.4682^a	0.2573	0.3241^a	0.1463	0.0893	0.1860	0.1257	0.1435	−0.1952	−0.1305	0.0111	0.1826^b
CONSTANT	(0.0003)	(0.0847)	(0.0012)	(0.1832)	(0.6758)	(0.3894)	(0.8570)	(0.3324)	(0.3236)	(0.3537)	(0.9144)	(0.0315)
Robust std. error	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Model chi-square, P value		25.7395		118.157	35.1053	23.3626		35.7448	288.932
Model chi-square, P value		(0.0012)		(0.0000)	(0.0000)	(0.0029)		(0.0000)	(0.0000)
Overall R-squared		0.1674		0.3986	0.1907	0.2002		0.3627	0.1730
LSDV R-squared	0.8268		0.8551				0.9381			0.8420	0.8705	0.8779
Within R-squared	0.0809		0.2987				0.3305			0.0852	0.1603	0.1140

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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