Further analyses
| Channel analyses | Performance | ||
|---|---|---|---|
| (1) | (2) | (3) | |
| Variables | Receivables | Cash ratio | Net profit margin |
| Post*IFRS-9*Provision | −2.21*** (−4.123) | ||
| Post*Provision | 0.963** (2.076) | ||
| IFRS-9*Provision | 1.030** (1.99) | ||
| Post*IFRS-9*Receivables | 0.003** (2.192) | ||
| Post*Receivables | −0.005** (−2.519) | ||
| IFRS-9*Receivables | 0.086 (1.63) | ||
| Post*IFRS-9*Cash | 0.052 (0.927) | ||
| Post*Cash | 0.161 (1.236) | ||
| IFRS-9*Cash | 0.004* (1.861) | ||
| Cash | −2.015* (−1.765) | ||
| Post*IFRS-9 | −0.177*** (−6.073) | 0.013 (0.618) | −0.736* (−1.732) |
| Post | 0.0028*** (3.020) | −0.001 (−0.501) | 0.900 (1.251) |
| IFRS-9 | −0.011 (−0.563) | −0.032*** (−3.239) | −0.295 (−1.055) |
| Provision | −0.049*** (−3.604) | ||
| Constant | −2.837** (−2.422) | 0.083 (1.186) | 5.148 (1.346) |
| Control | Yes | Yes | Yes |
| Industry effect | Yes | Yes | Yes |
| Year effect | Yes | Yes | Yes |
| Observations | 1,600 | 1,600 | 37,328 |
| R-squared | 0.407 | 0.152 | 0.077 |
| Channel analyses | Performance | ||
|---|---|---|---|
| (1) | (2) | (3) | |
| Variables | Receivables | Cash ratio | Net profit margin |
| Post | −2.21 | ||
| Post | 0.963 | ||
| IFRS-9 | 1.030 | ||
| Post | 0.003 | ||
| Post | −0.005 | ||
| IFRS-9 | 0.086 (1.63) | ||
| Post | 0.052 (0.927) | ||
| Post | 0.161 (1.236) | ||
| IFRS-9 | 0.004 | ||
| Cash | −2.015 | ||
| Post | −0.177 | 0.013 (0.618) | −0.736 |
| Post | 0.0028 | −0.001 (−0.501) | 0.900 (1.251) |
| IFRS-9 | −0.011 (−0.563) | −0.032 | −0.295 (−1.055) |
| Provision | −0.049 | ||
| Constant | −2.837 | 0.083 (1.186) | 5.148 (1.346) |
| Control | Yes | Yes | Yes |
| Industry effect | Yes | Yes | Yes |
| Year effect | Yes | Yes | Yes |
| Observations | 1,600 | 1,600 | 37,328 |
| R-squared | 0.407 | 0.152 | 0.077 |
Note(s):
This table presents the results of channel analyses and the value relevance of the effect IFRS 9 on cash holding. The dependent variable in column 1 is Trade receivable is ratio of total trade receivable to net sales. The dependent variable in column 2 is Cash holding measured as the ratio of total cash and cash equivalent to total tangible assets. The dependent variable in column 3 is Net profit margin measured as net profit before tax divided by net sales. Provision captures impairment on only trade receivables. Robust t-statistics in parentheses ***p < 0.01; **p < 0.05; *p < 0.1
Source(s): Created by author