Table 5 Dynamic panel GMM model hedging... | Emerald Publishing

Table 5

Dynamic panel GMM model hedging extent and cost of capital [Models 4–6]

Variables	Definition	Model 4	Model 5	Model 6
Variables	Definition	WACC	$K_{E}$	$K_{D}$
$γ$	Lagged-dependent	0.264***	0.0441**	0.966***
$γ$	Lagged-dependent	(0.0140)	(0.0218)	(0.0267)
$β$	Hedging-extent	21.39***	15.36***	15.24***
$β$	Hedging-extent	(0.1300)	(0.9610)	(0.3940)
$ϑ$	Leverage	−0.0294***	0.0102	0.0746***
$ϑ$	Leverage	(0.0055)	(0.0063)	(0.0052)
$ϕ$	Cashflows	−0.237***	−0.586**	−0.0921
$ϕ$	Cashflows	(0.0676)	(0.1220)	(0.0562)
$π$	Tangibility	−16.65***	−2.641***	1.556***
$π$	Tangibility	(0.4390)	(0.8970)	(0.3010)
$λ$	Size	−1.315***	−1.796***	−0.961*
$λ$	Size	(0.0353)	(0.1760)	(0.0366)
$ξ$	Liquidity	1.197	0.998***	−0.531**
$ξ$	Liquidity	(0.1270)	(0.1660)	(0.2240)
AR(2)		0.96	0.40	0.09
Hansen-test		0.50	0.75	0.37

Variables	Definition	Model 4	Model 5	Model 6
Variables	Definition	WACC	$K_{E}$	$K_{D}$
$γ$	Lagged-dependent	0.264***	0.0441**	0.966***
$γ$	Lagged-dependent	(0.0140)	(0.0218)	(0.0267)
$β$	Hedging-extent	21.39***	15.36***	15.24***
$β$	Hedging-extent	(0.1300)	(0.9610)	(0.3940)
$ϑ$	Leverage	−0.0294***	0.0102	0.0746***
$ϑ$	Leverage	(0.0055)	(0.0063)	(0.0052)
$ϕ$	Cashflows	−0.237***	−0.586**	−0.0921
$ϕ$	Cashflows	(0.0676)	(0.1220)	(0.0562)
$π$	Tangibility	−16.65***	−2.641***	1.556***
$π$	Tangibility	(0.4390)	(0.8970)	(0.3010)
$λ$	Size	−1.315***	−1.796***	−0.961*
$λ$	Size	(0.0353)	(0.1760)	(0.0366)
$ξ$	Liquidity	1.197	0.998***	−0.531**
$ξ$	Liquidity	(0.1270)	(0.1660)	(0.2240)
AR(2)		0.96	0.40	0.09
Hansen-test		0.50	0.75	0.37

Note(s): ***p < 0.01, **p < 0.05,*p < 0.1 significant at 1%, 5% and 10% level respectively

Source(s): Author’s compilation from raw data