Future Business Journal

Table 8 Regression analysis of firm size (total asset, total sales, MVE and number of employees) and ROA

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	11.26***	10.57***	12.85***	− 2.46***	8.12***	10.08***	7.28***	1.77***
Log (segments)	− 0.02^ns	0.01^ns	− 0.10*	− 0.13^ns	0.02^ns	0.02^ns	0.01^ns	0.04**
Debt/equity	0.59***	0.64***	0.31***	− 0.33*	0.27***	0.34***	0.29***	0.20***
Size: Ln(assets)	− 1.18***				0.20***
Size: Ln(sales)		− 1.23***				− 0.84***
Size: Ln(MVE)			− 1.24***				0.39***
Size: number of employees				0.95***				0.56***
Year fixed effect	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
R²	0.08	0.08	0.07	0.03	0.08	0.07	0.09	0.09
#Observations	1250	1250	1250	1250	1250	1250	1250	1250

F test
Chi2(3) = 9.79
p value = 0.000
Explanatory variable: return on assets (ROA)
Models (1)–(4) represent simple pooled OLS results, i.e. common effect
Models (5)–(8) represent fixed/random effect regression based on results of Hausman test stated above
***, **, * represent 1%, 5% and 10% level of significance, respectively; ns represents not significant

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