Skip to main content

Table 6 Regression analysis of firm size (total asset, total sales, MVE and number of employees) and CAPEX

From: Sensitivity of firm size measures to practices of corporate finance: evidence from BRICS

 

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

Pooled OLS

Pooled OLS

Pooled OLS

Pooled OLS

FE

FE

FE

FE

C

0.90***

0.86***

1.00***

− 0.32***

0.85***

0.76***

0.75***

0.72***

Leverage

0.05*

0.06**

0.04ns

− 0.01ns

0.00ns

0.00ns

− 0.001ns

− 0.001ns

Size: Ln(assets)

− 0.08***

   

− 0.04**

   

Size: Ln(sales)

 

− 0.09***

   

− 0.01ns

  

Size: Ln(MVE)

  

− 0.08***

   

− 0.0001ns

 

Size: number of employees

   

0.09***

   

0.002ns

Year fixed effect

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

R2

0.18

0.19

0.17

0.14

0.09

0.09

0.09

0.09

#Observations

1250

1250

1250

1250

1250

1250

1250

1250

  1. F test
  2. Chi2(3) = 10.49
  3. p value = 0.01
  4. Explanatory variable: CAPEX (net capital expenditure scaled by total assets)
  5. Models (1)–(4) represent simple pooled OLS results, i.e. common effect
  6. Models (5)–(8) represent fixed/random effect regression based on results of Hausman test stated above
  7. ***, **, * represent 1%, 5% and 10% level of significance, respectively; ns represents not significant