Size (SIZE) | 0.00160 (0.003) | 0.00224 (0.003) | −0.93308 |
−1.02897 |
−1.09899 |
−0.96605 |
−0.97559 |
−1.10897 |
Taxes (TAX) | 0.00772 (0.005) | 0.00769 (0.005) | −0.16607 (0.193) | −0.16175 (0.182) | −0.40188 (0.367) | −0.18751 (0.185) | −0.54600 (0.421) | −0.53800 (0.434) |
Growth (FG) | 0.04132 (0.023) | 0.04205 |
−0.34973 (0.500) | −0.46025 (0.488) | −1.77269 |
−0.16476 (0.576) | −1.53567 |
−0.28125 (0.651) |
Profitability (ROA) | −0.00013 (0.000) | −0.00011 (0.000) | 0.36536 |
0.36229 |
0.36585 |
0.33794 |
0.30989 |
0.30508 |
Volatility of returns (σROA) | −0.00289 |
−0.00280 |
−0.53881 |
−0.55181 |
−0.46419 |
−0.55673 |
−0.44523 |
−0.43472 |
Liquidity (LIQ) | −0.00035 (0.001) | −0.00035 (0.001) | 1.14943 |
1.14839 |
1.15940 |
1.10864 |
1.06987 |
1.13018 |
Non–duality (NDU) | − |
4.14921 |
5.01171 |
3.58257 |
3.98121 |
|||
Debt Maturity (DMR) | 31.20601 |
42.07174 |
||||||
Fixed Collateral (FC) | −11.74894 |
−27.59376 |
0.16597 (2.589) | |||||
DM |
||||||||
Year Effect | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
Industry Effect | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
R2 | 0.24 | 0.24 | 0.06 | 0.06 | 0.06 | 0.06 | 0.07 | 0.08 |
Prob>chi2 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 |
Size (SIZE) | 0.00160 (0.003) | −0.00022 (0.003) | −0.93308 (1.373) | −0.94319 (1.393) | −0.93628 (1.390) | −0.87341 (1.394) | −0.77118 (1.388) | −0.91159 (1.383) |
Taxes (TAX) | 0.00772 (0.011) | 0.00958 (0.011) | −0.16607 (4.654) | −0.15579 (4.662) | −0.45210 (4.651) | −0.20001 (4.662) | −0.66659 (4.642) | −0.65639 (4.624) |
Growth (FG) | 0.04132 |
0.03958 |
−0.34973 (4.157) | −0.35935 4.164 | −1.58314 (4.174) | −0.04862 (4.172) | −1.32004 (4.167) | −0.07162 (4.166) |
Profitability (ROA) | −0.00013 (0.000) | −0.00013 (0.000) | 0.36536 |
0.36533 |
0.36963 |
0.33940 |
0.31087 |
0.30597 |
Volatility of returns (σROA) | −0.00289 |
−0.00302 |
−0.53881 |
−0.53956 |
−0.44588 |
−0.54528 |
−0.42396 |
−0.41421 |
Liquidity (LIQ) | −0.00035 (0.001) | −0.00038 (0.001) | 1.14943 |
1.14930 |
1.16113 |
1.10768 |
1.06866 |
1.12913 |
Board Independence (BI) | 0.39269 (9.045) | −1.80295 (9.052) | −0.28789 (9.061) | −4.21389 (9.084) | ||||
Debt Maturity (DMR) | 30.91784 |
42.55229 |
||||||
Fixed Collateral (FC) | −12.32151 (10.381) | −28.694 |
−0.84991 (13.784) | |||||
DM |
||||||||
Year Effect | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
Industry Effect | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
R2 | 0.24 | 0.25 | 0.06 | 0.06 | 0.06 | 0.06 | 0.07 | 0.08 |
Adjusted R2 | 0.23 | 0.23 | 0.04 | 0.04 | 0.05 | 0.04 | 0.05 | 0.06 |
F stat | 19.29 |
19.01 |
3.75 |
3.59 |
3.81 |
3.51 |
3.92 |
4.25 |
1 | Textile | 136 | 101 | 74.26% |
2 | Sugar | 30 | 23 | 76.67% |
3 | Food Sector | 16 | 11 | 68.75% |
4 | Chemical & Pharmaceuticals | 43 | 34 | 79.07% |
5 | Manufacturing | 31 | 25 | 80.65% |
6 | Mineral Products | 09 | 05 | 55.56% |
7 | Cement Sector | 17 | 17 | 100% |
8 | Motor Vehicles, Trailers & Autoparts | 18 | 18 | 100% |
9 | Fuel & Energy Sector | 22 | 14 | 63.64% |
10 | Information & Communication | 11 | 10 | 90.91% |
11 | Coke & Refined Petroleum Products | 10 | 09 | 90% |
12 | Paper, Paperboard & Products | 09 | 07 | 77.78% |
13 | Electrical machinery & Apparatus | 07 | 05 | 71.43% |
14 | Other Services Activities | 10 | 05 | 50% |
369 | 284 | 76.96% |
1 | Insolvency risk | IR | Measured through emergent market Z-score proposed by |
Ratio |
2 | Non-duality | NDU | A binary variable that assumes value ‘0’ in case of CEO duality and ‘1’ otherwise. | Binary |
3 | Board Independence | BI | Ratio of independent & non-executive directors to total directors. | Ratio |
4 | Debt Maturity | DMR | Ratio of long term debt to total debt. | Ratio |
5 | Fixed Collaterals | FC | Ratio of fixed assets to total assets. | Ratio |
6 | Size | SIZE | Natural log of value of total assets in each financial year. | Number |
7 | Taxes | TAX | Natural log of value of total taxes in each financial year. | Number |
8 | Firm Growth | FG | Rate of growth in firm's total assets. | Ratio |
9 | Profitability | ROA | Net profit (loss) scaled by total assets. | Ratio |
10 | Volatility of returns | σROA | Standard deviation of return on assets for last five years. | Ratio |
11 | Liquidity | LIQ | Ratio of current assets to current liabilities. | Ratio |
1 | NDU-DMR |
−0.02763 |
134.6859 |
3.77374 (5.771) | Full Mediation | Negative Moderation |
2 | BI-DMR |
0.07101 |
135.3171 |
−4.14236 (9.048) | Full Mediation | Negative Moderation |
3 | NDU-DMR |
0.02763 |
134.6859 |
3.77374 |
Partial Mediation | Negative Moderation |
4 | BI-DMR |
0.07101 |
135.3171 |
−4.14236 (4.648) | Full Mediation | Negative Moderation |
Size (SIZE) | 0.00160 (0.003) | −0.00022 (0.003) | −0.93308 |
−0.94319 |
−0.93628 |
−0.87341 |
−0.77118 |
−0.91159 |
Taxes (TAX) | 0.00772 (0.005) | 0.00958 (0.006) | −0.16607 (0.193) | −0.15579 (0.204) | −0.45210 (0.370) | −0.20001 (0.225) | −0.66659 (0.463) | −0.65639 (0.451) |
Growth (FG) | 0.04132 |
0.03958 |
−0.34973 (0.500) | −0.35935 (0.502) | −1.58314 |
−0.04862 (0.600) | −1.32004 |
−0.07162 (0.663) |
Profitability (ROA) | −0.00013 (0.000) | −0.00013 (0.000) | 0.36536 |
0.36533 |
0.36963 |
0.33940 |
0.31087 |
0.30597 |
Volatility of returns (σROA) | −0.00289 |
−0.00302 |
−0.53881 |
−0.53956 |
−0.44588 |
−0.54528 |
−0.42396 |
−0.41421 |
Liquidity (LIQ) | −0.00035 (0.001) | −0.00038 (0.001) | 1.14943 |
1.14930 |
1.16113 |
1.10768 |
1.06866 |
1.12913 |
Board Independence (BI) | 0.39269 (4.675) | −1.80295 (4.723) | −0.28779 (4.805) | −4.21389 (4.967) | ||||
Debt Maturity (DMR) | 30.91784 |
42.55229 |
||||||
Fixed Collateral (FC) | −12.32152 |
−28.69400 |
−0.84991 (2.689) | |||||
DM |
||||||||
Year Effect | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
Industry Effect | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
R2 | 0.24 | 0.25 | 0.06 | 0.06 | 0.06 | 0.06 | 0.07 | 0.08 |
Prob>chi2 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 |
1) Insolvency Risk (IR) | 1 | ||||||||||
2) Board Independence (BI) | 0.0017 | 1 | |||||||||
3) Non-duality (NDU) | 0.0262 | 0.1321 |
1 | ||||||||
4) Debt Maturity (DMR) | 0.0390 | 0.0163 | −0.0642 |
1 | |||||||
5) Fixed Collaterals (FC) | −0.0832 |
−0.1496 |
−0.1127 |
−0.4745 |
1 | ||||||
6) Size (SIZE) | −0.0092 | 0.2247 |
0.1168 |
0.0590 |
0.0021 | 1 | |||||
7) Taxes (TAX) | 0.0035 | −0.0509 | 0.0046 | 0.0112 | −0.0224 | 0.0354 | 1 | ||||
8) Growth (FG) | −0.0030 | 0.0475 | 0.0420 | 0.0948 |
0.0361 | 0.0174 | 0.0086 | 1 | |||
9) Profitability (ROA) | 0.0897 |
0.0622 |
0.0800 |
−0.0265 | −0.1993 |
0.2091 |
0.0434 | 0.443 | 1 | ||
10) Volatility of returns (σROA)) | −0.0598 |
0.0200 | 0.0524 |
−0.1519 |
−0.0369 | −0.2670 |
0.0046 | 0.0018 | 0.0305 | 1 | |
11) Liquidity (LIQ) | 0.1498 |
0.0111 | 0.0115 | −0.0407 | −0.1809 |
−0.1223 |
0.0040 | −0.0090 | 0.0349 | 0.0543 |
1 |
X | 9.96 | 2.64 | − | 0.27 | 0.55 | 15.29 | 16.41 | 0.09 | 4.04 | 7.66 | 2.12 |
σ | 76.86 | 0.24 | − | 0.21 | 0.22 | 1.76 | 0.43 | 0.48 | 16.23 | 10.44 | 10.08 |
N | 1420 | 1420 | 1420 | 1420 | 1420 | 1420 | 1420 | 1420 | 1420 | 1420 | 1420 |
Size (SIZE) | 0.00160 (0.003) | 0.00224 (0.003) | −0.93308 (1.374) | −1.02897 (1.380) | −1.09899 (1.376) | −0.96605 (1.381) | −0.97568 (1.375) | −1.10897 (1.370) |
Taxes (TAX) | 0.00772 (0.011) | 0.00769 (0.011) | −0.16607 (4.654) | −0.16175 (4.655) | −0.40188 (4.643) | −0.18751 (4.655) | −0.54600 (4.635) | −0.53800 (4.617) |
Growth (FG) | 0.04132 |
0.04205 |
−0.34973 (4.157) | −0.46025 (4.160) | −1.77269 (4.173) | −0.16476 (4.168) | −1.53567 (4.166) | −0.28125 (4.166) |
Profitability (ROA) | −0.00013 (0.000) | −0.00011 (0.000) | 0.36536 |
0.36229 |
0.36585 |
0.33794 |
0.30989 |
0.30508 |
Volatility of returns (σROA) | −0.00289 |
−0.00280 |
−0.53881 |
−0.55181 |
−0.46419 |
−0.55673 |
−0.44523 |
−0.43472 |
Liquidity (LIQ) | −0.00035 (0.001) | −0.00035 (0.001) | 1.14943 |
1.14839 |
1.15940 |
1.10864 |
1.06987 |
1.13018 |
Non-duality (NDU) | 4.14921 (5.797) | 5.01171 (5.789) | 3.58257 (5.818) | 3.98121 (5.794) | ||||
Debt Maturity (DMR) | 31.20601 |
42.07174 |
||||||
Fixed Collateral (FC) | −11.74894 (10.398) | −27.59376 |
0.16597 (13.751) | |||||
DM |
||||||||
Year Effect | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
Industry Effect | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
R2 | 0.24 | 0.24 | 0.06 | 0.06 | 0.06 | 0.06 | 0.07 | 0.08 |
Adjusted R2 | 0.23 | 0.23 | 0.04 | 0.04 | 0.05 | 0.04 | 0.05 | 0.06 |
F stat | 19.29 |
18.67 |
3.75 |
3.61 |
3.84 |
3.52 |
3.93 |
4.26 |