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What is a real measure of corporate liquidity

Melik Ertugrul

Melik Ertugrul

Department of Business Administration, Galatasaray UniversityIstanbul, Turkey
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Ertugrul, Melik
 and 
Ali Coskun

Ali Coskun

Department of Management, Bogazici UniversityIstanbul, Turkey
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Coskun, Ali
  
Mar 26, 2021
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Article Category: Empirical Paper
Published Online: Mar 26, 2021
Page range: 3 - 13
Received: May 20, 2020
Accepted: Jan 21, 2021
DOI: https://doi.org/10.2478/ijme-2021-0002
Keywords
© 2021 Melik Ertugrul et al., published by Sciendo
This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Regression analyses I

Panel A Panel B Panel C Panel D
CUR_R OCF_R CUR_R OCF_R CUR_R OCF_R CUR_R OCF_R
BVPS 2.5069*** (0.0000) 2.3294*** (0.0000) 2.5195*** (0.0000) 2.3970*** (0.0000) 2.4865*** (0.0000) 2.3853*** (0.0000) 2.4885*** (0.0000) 2.4222*** (0.0000)
EPS 2.9678*** (0.0014) 4.0545*** (0.0001) 3.0946*** (0.0033) 3.5681*** (0.0002) 3.2280*** (0.0021) 3.4692*** (0.0001) 3.1020*** (0.0019) 3.3031*** (0.0002)
D 1.0518 (0.3236) 0.1486 (0.7970) 1.7871* (0.0958) −0.0329 (0.9422) 1.6955 (0.1337) −0.4293 (0.2819) 2.0250* (0.0895) −0.2485 (0.7575)
BVPS × D −0.0385 (0.8604) 0.3960** (0.0498) −0.2142 (0.4678) 0.2972* (0.0800) −0.1057 (0.6990) 0.4277** (0.0480) −0.0340 (0.9048) 0.3595 (0.1993)
EPS × D −0.2768 (0.7428) −2.8686** (0.0107) −1.1641 (0.3549) −2.6974** (0.0148) −1.6146 (0.2226) −2.8390** (0.0196) −1.0609 (0.3757) −2.9793** (0.0142)
Constant −0.7287 (0.5751) −0.5818 (0.6490) −0.7098 (0.5680) −0.3334 (0.7921) −0.6434 (0.6181) −0.1795 (0.8851) −0.6743 (0.6099) −0.2034 (0.8670)
Observations 2,329 2,329 2,329 2,329 2,329 2,329 2,329 2,329
R-squared 0.911 0.913 0.911 0.913 0.911 0.913 0.911 0.912
Firm FE Yes Yes Yes Yes Yes Yes Yes Yes
Year FE Yes Yes Yes Yes Yes Yes Yes Yes

Regression analyses II

Panel A Panel B Panel C Panel D
CUR_R OCF_R CUR_R OCF_R CUR_R OCF_R CUR_R OCF_R
BVPS 2.4948*** (0.0000) 2.3223*** (0.0000) 2.5098*** (0.0000) 2.3889*** (0.0000) 2.4760*** (0.0000) 2.3742*** (0.0000) 2.4772*** (0.0000) 2.4103*** (0.0000)
EPS 3.0578*** (0.0013) 4.1315*** (0.0001) 3.1723*** (0.0039) 3.6572*** (0.0002) 3.3147*** (0.0026) 3.5815*** (0.0002) 3.1992*** (0.0023) 3.4253*** (0.0002)
D 0.8783 (0.4079) 0.1167 (0.8346) 1.6475 (0.1328) −0.0558 (0.9000) 1.5299 (0.1894) −0.4621 (0.2417) 1.8670 (0.1254) −0.2721 (0.7361)
BVPS × D −0.0397 (0.8560) 0.3906* (0.0554) −0.2125 (0.4748) 0.2901* (0.0891) −0.1032 (0.7094) 0.4240* (0.0502) −0.0304 (0.9164) 0.3575 (0.2076)
EPS × D −0.1643 (0.8494) −2.8299** (0.0121) −1.0795 (0.3741) −2.6454** (0.0173) −1.5548 (0.2265) −2.7938** (0.0217) −1.0024 (0.3898) −2.9309** (0.0183)
L 1.0247 (0.1965) 0.6951 (0.3205) 0.7749 (0.1872) 0.7673 (0.2845) 0.7863 (0.1916) 0.9012 (0.2026) 0.8297 (0.1847) 0.9526 (0.2145)
Constant −0.9547 (0.4455) −0.7775 (0.5319) −0.8993 (0.4624) −0.5610 (0.6474) −0.8398 (0.5044) −0.4498 (0.7056) −0.8948 (0.4843) −0.4960 (0.6714)
Observations 2,329 2,329 2,329 2,329 2,329 2,329 2,329 2,329
R-squared 0.911 0.913 0.911 0.913 0.912 0.913 0.911 0.912
Firm FE Yes Yes Yes Yes Yes Yes Yes Yes
Year FE Yes Yes Yes Yes Yes Yes Yes Yes

Descriptive statistics and correlation matrix

Panel A
N MEAN P50 SD MIN MAX
P 2,329 13.11 3.510 29.55 0.290 190
BVPS 2,329 4.700 2.192 7.774 0.237 53.63
EPS 2,329 0.554 0.164 1.551 −2.464 9.404
CUR_R 2,329 2.330 1.481 2.797 0.185 19.51
OCF_R 2,329 0.255 0.124 0.897 −3.053 4.914
Panel B
P BVPS EPS CUR_R OCF_R
P 1
BVPS 0.7932* 1
EPS 0.6687* 0.6237* 1
CUR_R 0.0373 0.0534* 0.1166* 1
OCF_R 0.1124* 0.0987* 0.1918* 0.2691*

Regression analyses III

Panel A Panel B Panel C Panel D
CUR_R OCF_R CUR_R OCF_R CUR_R OCF_R CUR_R OCF_R
BVPS 0.7063** (0.0452) 0.5120* (0.0979) 0.7182** (0.0358) 0.5646* (0.0688) 0.6997** (0.0320) 0.5896* (0.0543) 0.7273** (0.0179) 0.5656* (0.0568)
EPS 1.7381*** (0.0011) 2.2798*** (0.0003) 1.8239*** (0.0006) 2.1087*** (0.0002) 1.7248*** (0.0007) 1.9182*** (0.0008) 1.6644*** (0.0007) 1.9560*** (0.0005)
D −0.0345 (0.7583) −0.1657* (0.0581) −0.0365 (0.7405) −0.1748* (0.0590) −0.0803 (0.4969) −0.1787** (0.0373) −0.0431 (0.6003) −0.2196** (0.0283)
BVPS × D 0.0862 (0.7825) 0.4261** (0.0382) 0.1313 (0.7154) 0.4250* (0.0677) 0.3509 (0.3484) 0.4060** (0.0373) 0.2020 (0.4525) 0.5514** (0.0156)
EPS × D −0.1932 (0.8158) −1.2309*** (0.0083) −0.4271 (0.6481) −1.0899** (0.0173) 0.0257 (0.9809) −0.7738 (0.1279) 0.1417 (0.9071) −0.9872* (0.0536)
Constant 0.6404*** (0.0017) 0.7001*** (0.0003) 0.6251*** (0.0014) 0.6821*** (0.0003) 0.6314*** (0.0010) 0.6801*** (0.0003) 0.6267*** (0.0005) 0.6828*** (0.0002)
Observations 2,329 2,329 2,329 2,329 2,329 2,329 2,329 2,329
R-squared 0.755 0.758 0.755 0.757 0.755 0.756 0.755 0.757
Firm FE Yes Yes Yes Yes Yes Yes Yes Yes
Year FE Yes Yes Yes Yes Yes Yes Yes Yes
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