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Table 7 Ordered Probit regression results of the relationship between working capital components (accounts receivable, inventory, and accounts payable) and credit rating

From: The impact of working capital management on credit rating

Dependent variable Rating
Column 1 Column 2
AR 0.0016*** 0.0025***
(0.0001) (0.0002)
AR2    − 0.0000023***
  (0.0000005)
INV 0.0004*** 0.0014***
(0.0001) (0.0002)
INV2    − 0.0000024***
  (0.0000003)
AP  − 0.0011***  − 0.0011***
(0.0001) (0.0002)
AP2   0.000000033
  (0.0000003)
SIZE 0.4906*** 0.4912***
(0.0044) (0.0044)
COVERAGE 0.0523*** 0.0521***
(0.0009) (0.0009)
LEV  − 1.6270***  − 1.6152***
(0.0349) (0.0350)
CAP_INTEN 0.4443*** 0.4564***
(0.0153) (0.0154)
LOSS  − 0.6586***  − 0.6588***
(0.0145) (0.0145)
BIG4 0.0016 0.0042
(0.0120) (0.0120)
SUBORD  − 0.1650**  − 0.1590**
(0.0639) (0.0639)
Year effect Yes Yes
Industry effect Yes Yes
Pseudo R2 0.2888 0.2893
Firm-year observations 43,141 43,141
  1. Variable definitions are provided in the Table 2. Standard errors are reported in parentheses. ***, **, and * indicate two-tailed significance at the 1%, 5%, and 10% levels. The results in this table are based on annual panel data of U.S. listed firms from WRDS merged with CRSP/Compustat files for the period between 1985 and 2017