The regression method is the ols each specication

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Unformatted text preview: f L-T debt is long term debt that is due in this period. Total debt is the summation of S-T bank loans, L-T bank loans, S-T portion of L-T debt and debentures. EBIT/total assets and EBIT/sales are the ratio of earnings before interest and taxes to total assets and sales, respectively. M-B ratio is the ratio of the market to the book values of total assets. Fixed asset ratio is the ratio of net fixed assets to total assets. S.D.(sales) is the S.D. of the percentage changes in sales over the period 1991-1995. Sale growth is the average annual growth in sales over the period 1992-96. Age is the number of years since incorporation. Total assets and sales are in million Baht. Mean and median differences are tested using the t -test and the Wilcoxon signed rank test, respectively. ∗ , ∗∗ , ∗∗∗ indicate statistically significant difference when compared with connected firms at the 10, 5 and 1 percent levels, respectively. Connect Mean Not connect Median Connect Not connect Financial characteristics Total liabilities/total assets Total debt/total assets S-T loans/total assets S-T portion of L-T loans/total assets Debentures/ Total assets L-T loans / Total assets Trade credit/total assets 0.554 0.405 0.201 0.039 0.027 0.138 0.071 0.536 0.409 0.266∗∗∗ 0.033 0.015 0.095∗∗ 0.074 0.580 0.433 0.167 0.025 0.000 0.106 0.045 0.563 0.428 0.262∗∗∗ 0.018∗ 0.000 0.061∗∗ 0.056 Debt maturity structure S-T loans/total debt S-T portion of L-T loans/total debt Debentures/total debt L-T loans / Total debt 0.534 0.093 0.034 0.305 0.668∗∗∗ 0.071∗ 0.022 0.216∗∗ 0.543 0.067 0.000 0.238 0.760∗∗∗ 0.043∗∗ 0.000 0.129∗∗ Firm characteristics Total assets Sales EBIT/total assets EBIT/sale M-B ratio Fixed asset ratio Cash/asset Liquid asset ratio Sale growth S.D. (sale 1991-95) Age 9,192.3 4,261.6 0.046 0.048 1.190 0.406 0.021 0.443 0.305 0.434 21.107 2,517.8∗∗∗ 1,886.7∗∗ 0.036 0.037 1.140 0.449 0.029∗ 0.466 0.226 0.284∗ 20.819 3,381.8 1,758.7 0.042 0.070 0.973 0.367 0.009 0.456 0.162 0.175 17 1,512.7∗∗∗ 1,209.3∗∗∗ 0.048 0.062 0.977 0.422∗ 0.017∗∗∗ 0.462 0.166 0.152 17 32 Table 6: Influential Familiy Regression The regression is based on a sample of 270 publicly traded firms in 1996. The dependent variable is long-term loans divided by total debt. Connected with influential families indicates if the firm belongs to one of the 60 largest business groups. Influential families with banks indicates if the firm’s major shareholder also owns at least one financial institution. Influential families without banks indicates if the firm’s major shareholder does not own a financial institution. M-B ratio is the ratio of the market to the book values of total assets. Fixed asset ratio is the ratio of net fixed assets to total assets. S.D. (sales 91-95) is the S.D. of the percentage changes in sales over the period 1991-1995. The regression method is the OLS. Each specification includes a set of 21 industry dumm...
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This document was uploaded on 02/28/2014 for the course ECONOMICS fn314 at Harvard.

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