Future Business Journal

Table 9 Regression analysis of firm size (total asset, total sales, MVE and number of employees) and ROE

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	10.62***	10.04***	11.91***	− 2.28***	7.75***	7.95***	7.63***	5.88***
Log (segments)	0.00^ns	0.02^ns	− 0.05*	− 0.16^ns	0.03**	0.03**	0.03*	0.03**
Debt/equity	− 1.51**	− 1.34**	− 1.94**	3.27**	− 0.16^ns	− 0.16^ns	− 0.15^ns	0.02^ns
Size: Ln(assets)	− 1.05***				0.11***
Size: Ln(sales)		− 1.10***				0.03^ns
Size: Ln(MVE)			− 1.12***				0.11***
Size: number of employees				0.84***				0.17***
Year fixed effect	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
R²	0.08	0.08	0.07	0.03	0.08	0.08	0.09	0.09
#Observations	1250	1250	1250	1250	1250	1250	1250	1250

F test
Chi2(3) = 44.68
p value = 0.000
Explanatory variable: return on equity (ROE)
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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