Table 10.

Alternative proxy for financial constraints

Full sampleHigh financially constrained subsample (HFC = 1)Nonfinancially constrained subsample (NFC = 0)
DUVOLt+1NCSKEWt+1DUVOLt+1NCSKEWt+1DUVOLt+1NCSKEWt+1
(1)(2)(3)(4)(5)(6)
Constant−0.419 (−0.59)−3.052 (−1.668)−0.929 (−1.615)−0.611 (−0.663)0.273 (0.317)−3.500 (−3.073)
MAS−1.182*** (−5.056)−1.832*** (−5.635)−0.343 (−1.545)−1.118*** (−3.137)−1.594*** (−4.829)−1.808*** (−4.144)
NODIV−0.087 (−1.412)0.011 (0.115)    
MAS×NODIV0.558** (2.046)0.738* (1.943)    
SIGMA1.332 (0.150)53.740*** (3.581)2.632 (0.249)52.896*** (3.123)−8.204 (−0.0.622)54.572*** (3.130)
RET−15.202 (−0.963)−82.039*** (−3.383)−14.669 (−0.713)−75.393** (−2.284)−42.355 (1.385)−127.650*** (−3.158)
SIZE−0.041** (−2.068)0.030 91.022)−0.026 (−0.935)−0.024 (−0.546)−0.040 (−1.175)0.067 (1.492)
ROA0.434*** (3.369)0.028 (0.137)0.130 (0.661)0.065 (0.207)0.709*** (2.884)−0.032 (−0.100)
LEV1.035*** (4.773)0.305 (0.962)1.528 ***(5.805)0.364 (0.836)0.302 (0.715)0.397 (0.710)
MTB−0.010 (−0.567)−0.012 (−0.440)−0.015 (−0.509)−0.048 (−1.040)0.022 (0.680)0.020 (0.467)
Adjusted R20.2940.2410.2760.1290.2360.306
Observation480480270270210210
Year fixed effectYesYesYesYesYesYes
Industry fixed effectYesYesYesYesYesYes

Notes:

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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