Table 8.

Moderating effect of financial constraints before and during covid-19

Pre-covid-19 (2018–2019)During covid-19 (2020–2021)
High financially constrained subsample (HFC = 1)Nonfinancially constrained subsample (NFC = 0)High financially constrained subsample (HFC = 1)Nonfinancially constrained subsample (NFC = 0)
DUVOLt+1NCSKEWt+1DUVOLt+1NCSKEWt+1DUVOLt+1NCSKEWt+1DUVOLt+1NCSKEWt+1
(1)(2)(3)(4)(5)(6)(7)(8)
Constant−1.167 (−2.313)−1.594 (−1.985)−0.215 (−0.263)−1.476 (−1.198)0.962 (1.652)−3.228 (−3.617)1.617 (1.490)−0.567 (−0.387)
MAS−0.172 (−0.562)−0.385 (−0.868)−1.936*** (−5.330)−1.892*** (−3.568)−0.365 (−1.371)−0.596 (−1.549)−2.278*** (−6.610)−2.546*** (−5.201)
SIGMA7.559 (0.733)69.916*** (4.12)29.993*(1.724)29.701 (1.155)−53.515*** (−5.327)43.064** (2.845)21.832 (1.015)89.539*** (−2.382)
RET16.466 (1.079)−78.779*** (−3.459)18.852 (0.767)12.775 (0.433)−79.667*** (−3.808)−201.389*** (−6.155)−35.760 (−0.940)−122.778*** (−2.900)
SIZE0.027 (0.983)−0.040 (−1.014)−0.068* (−1.661)0.031 (0.492)−0.038 (−1.091)0.133*** (2.811)−0.132** (−2.168)−0.018 (−0.250)
ROA0.027 (0.159)0.246 (0.919)0.511** (2.002)−0.183 (−0.518)0.089 (0.385)−0.923*** (−3.201)0.783** (2.037)0.689 (1.573)
LEV0.386 (1.454)1.155*** (2.862)0.699* (1.882)0.787 (1.537)0.890** (3.091)0.138 (0.338)−0.014 (−0.034)−1.381*** (−2.553)
MTB0.037 (1.692)0.025 (0.846)−0.037 (−0.809)0.026 (0.466)0.027 (0.870)0.023 (0.569)−0.114**(−2.569)−0.049 (−0.978)
Adjusted R20.0060.3750.2720.1270.2560.3730.3490.399
Observations107107133133133133107107

Notes:

The table displays the OLS results of the moderating effect of financial constraints for different sample periods (namely, pre-Covid 19 and during Covid-19 period) for HFC and NFC subsample based on KZ index. 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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