Table 7.

The moderating effect of financial constraints (H2)

Subsample analysis: partitioned by financially constrained and nonfinancially constrained firms
KZ-Index
High financially constrained subsample (HFC = 1)Nonfinancially constrained subsample (NFC = 0)
DUVOLt+1NCSKEWt+1DUVOLt+1NCSKEWt+1
(1)(2)(3)(4)
Constant0.766 (1.222)−1.898 (−3.158)0.766 (1.222)−1.042 (−1.134)
MAS−0.151 (−0.760)−0.420 (−1.597)−2.127*** (−8.738)−2.360***(−6.818)
SIGMA−30.469*** (−4.379)47.015*** (2.702)18.888 (1.618)49.469** (2.560)
RET−37.18*** (−2.666)−164.11*** (−6.006)5.889 (0.314)−37.971 (−1.222)
SIZE−0.016 (−0.731)0.033 (1.008)−0.099** (−2.936)0.005 (0.105)
ROA0.053 (0.389)−0.283 (−1.292)0.544*** (2.640)0.078 (0.288)
LEV0.786*(3.684)0.609* (1.911)0.406 (1.436)−0.061 (−0.157)
MTB0.038* (1.893)0.022 (0.746)−0.061* (1.881)0.001 (0.018)
Adjusted R20.2180.4180.3100.205
Observation240240240240
Robust standard errorsYesYesYesYes
Year fixed effectYesYesYesYes
Industry fixed effectYesYesYesYes

Notes:

The table exhibits the OLS results for financially constrained (HFC) and nonfinancially constrained subsample (NFC). The significance levels are denoted as *, ** and ***at 10, 5 and 1%, respectively. t-Statistics in parentheses

Source: Authors’ own work

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