Firm performance and cost of equity capital: the moderating role of narrative risk disclosure quality in Egypt

Future Business Journal

Table 6 2SLS Results for models (1) and (2)

Variables	Model (1)		Model (2)
	Firm performance and cost of equity		Moderator RDQ
	Coef.	t	Coef.	t
Constant	0.221	3.07***	0.193	2.55**
ROA	− 0.058	− 1.15	0.25	1.35
RDQ	–	–	0.006	0.60
ROA x RDQ	–	–	− 0.099	− 1.72*
Size	− 0.003	− 0.66	− 0.002	− 0.52
Leverage	0.021	1.19	0.022	1.23
EQ	− 0.033	− 0.46	− 0.041	− 0.56
Liquidity	− 0.0004	− 0.44	− 0.000	− 0.14
R-Squared	7.6%		8.8%
No. of Obs	219		219
Wu–Hausman F test	0.7822		0.7213
Durbin–Wu–Hausman	0.7738		0.7093
Sargan test Chi² (1)	0.4606		0.5355
Basmann test Chi² (1)	0.4769		0.5525

*Significant at level 10%, **Significant at level 5%, ***Significant at level 1%
Wu–Hausman and Durbin–Wu–Hausman are tests of endogeneity (the results reveal acceptance of H0: regressors are exogenous). Sargan and Basmann are tests of overidentification (the results indicate acceptance of the instrumental variables)