Table 6 First linear model of the cash conversion cycle.
Variables | (1) | (2) | (3) | (4) | (5) | (6) |
|---|---|---|---|---|---|---|
OLS | RE | FE | PCSE AR1 | PCSEAR1 Het only | 2stepSys GMM | |
GP = L | 0.344*** (0.105) | |||||
CCC | −0.00182 (0.00183) | −0.00182 (0.00183) | −0.00630*** (0.00190) | −0.00302 (0.00198) | −0.00302* (0.00174) | −0.00616*** (0.00186) |
Age | −0.103 (0.312) | −0.103 (0.312) | −6.437*** (2.252) | −0.107 (0.207) | −0.107 (0.247) | −2.516*** (0.760) |
Size | 0.206*** (0.0694) | 0.206*** (0.0694) | −0.0848 (0.0684) | 0.150 (0.0954) | 0.150** (0.0693) | 1.245*** (0.152) |
DER | −0.0576** (0.0222) | −0.0576*** (0.0222) | −0.0623** (0.0286) | −0.0558*** (0.0162) | −0.0558*** (0.0128) | −0.0549*** (0.0188) |
NCFO | 0.706*** (0.0576) | 0.706*** (0.0576) | 0.634*** (0.0632) | 0.735*** (0.0660) | 0.735*** (0.0574) | 0.629*** (0.103) |
Liq | −0.289*** (0.0522) | −0.289*** (0.0522) | 0.252*** (0.0798) | −0.241 (0.175) | −0.241 (0.170) | 0.220*** (0.0188) |
Irate | −27.37* (15.87) | −27.37* (15.87) | −36.35*** (13.15) | −25.49* (14.41) | −25.49* (14.11) | −13.57** (6.449) |
ExR | −16.94*** (5.096) | −16.94*** (5.096) | −5.827 (4.969) | −13.93*** (4.111) | −13.93*** (4.352) | −17.74*** (2.877) |
Constant | 83.21*** (24.10) | 83.21*** (24.10) | 57.14*** (18.92) | 69.37*** (19.11) | 69.37*** (20.26) | 71.28*** (13.17) |
Diagnostic checks | ||||||
Hausman test 93.29*** | ||||||
Multicollinearity Test mean VIF 1.30 | ||||||
Heteroskedasticity test 1476.55*** | ||||||
Wooldridge test 5.207** | ||||||
Sargan test Prob 0.3052 | ||||||
Arellano bond test AR (1) Prob 0.6510 | ||||||
AR (2) Prob 0.2387 | ||||||
Observations | 126 | 126 | 126 | 126 | 126 | 105 |
R-squared | 0.746 | 0.7457 | 0.602 | 0.740 | 0.740 | |
Firms | 21 | 21 | 21 | 21 | 21 | 21 |
