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Table 6 Correlation matrix and multicollinearity diagnostics of key variables

From: A proposed multidimensional model for predicting financial distress: an empirical study on Egyptian listed firms

Variables

Correlation matrix

WCTA

EBITTA

SalesTA

MVETL

lnMcap

IR

GDP

WCTA

1.0000

      

EBITTA

0.2111*

1.0000

     

0.0000

      

SalesTA

− 0.0044

0.5498*

1.0000

    

0.9245

0.0000

     

MVETL

0.3569*

0.3121*

0.1527*

1.0000

   

0.0000

0.0000

0.0010

    

lnMcap

0.0707

0.5075*

0.2056*

0.2016*

1.0000

  

0.1310

0.0000

0.0000

0.0000

   

IR

0.0146

0.1288*

0.0806

0.0823

− 0.0103

1.0000

 

0.7559

0.0058

0.0848

0.0784

0.8260

  

GDP

0.0102

0.0048

0.0119

− 0.0603

0.0720

− 0.1281*

1.0000

0.8277

0.9191

0.8002

0.1979

0.1240

0.0060

 

Multicollinearity diagnostics

Tolerance

0.6955

0.6224

0.9050

0.8851

0.8345

0.9214

0.9235

VIF

1.44

1.61

1.11

1.13

1.20

1.09

1.08

Mean VIF

1.24

      
  1. *Significant at 0.05