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Table 6 Empirical estimations based on the Heckman three-stage ordered probit model with firm-fixed effects and year-fixed effects and robust standard errors

From: Raising capital amid economic policy uncertainty: an empirical investigation

Variables

Issue

Choice

Volume

EPU

0.0002 (0.0007)

− 0.0192*** (0.0053)

0.0015 (0.0020)

EPU × SIZE

0.0001 (0.0001)

0.0001 (0.0001)

− 0.0003 (0.0002)

EPU × PU

0.0002* (0.0001)

− 0.0076*** (0.0028)

0.0001 (0.0002)

Long-term investor

 

− 0.0356*** (0.0077)

− 0.0037 (0.0066)

Institutional investor

 

− 0.0056** (0.0027)

− 0.0105* (0.0058)

Individual

 

0.0032 (0.0031)

− 0.0035 (0.0052)

Government

 

− 0.0521 (0.2699)

− 0.1590* (0.0944)

Concentration

0.0008 (0.0010)

0.0040 (0.0035)

− 0.0003 (0.0078)

Golden parachute

0.0298 (0.0325)

0.3098*** (0.0559)

− 0.1500*** (0.0316)

CEO duality

0.0037 (0.0183)

0.0252 (0.0421)

− 0.0625*** (0.0215)

Insider optimism

0.0657*** (0.0221)

0.1079*** (0.0375)

− 0.1238*** (0.0319)

Market optimism

0.0056*** (0.0016)

0.0063*** (0.0024)

− 0.0007 (0.0042)

Board size

0.0251*** (0.0036)

0.0051 (0.0126)

0.0246*** (0.0045)

Analyst coverage

− 0.0072*** (0.0015)

0.0060 (0.0042)

0.0232*** (0.0031)

Analyst variance

0.0358 (0.0294)

− 0.1086* (0.0615)

− 0.3235*** (0.0552)

Firm size

0.2288*** (0.0162)

− 0.0556 (0.0545)

− 0.5448*** (0.0572)

Leverage

0.8280*** (0.0540)

0.4202*** (0.1423)

− 0.4397*** (0.1204)

Cash

0.0390 (0.0796)

1.2405*** (0.2258)

2.1575*** (0.2112)

Free cash flow

− 0.0826*** (0.0259)

  

Profitability

− 0.8927*** (0.0806)

  

Interest rate

0.0118** (0.0053)

0.0309 (0.0624)

0.0010 (0.0065)

GDP Growth rate

0.0710*** (0.0068)

1.5717*** (0.5066)

− 0.0419*** (0.0119)

Constant

− 2.5211*** (0.1561)

6.3812*** (0.8735)

 

Ρ

  

− 0.6288*** (0.1589)

Selectivity bias

  

− 0.0963* (0.0493)

Firm—fixed effects

Yes

Yes

Yes

Year—fixed effects

Yes

Yes

Yes

Wald test of indep. eqns. (ρ = 0) χ2(1)

  

15.67***

Observations

20,976

20,976

20,969

  1. The sample includes data from 6834 publicly listed firms in the US. The sample period is from 2000 until 2018. Firms’ decisions follow the sequence shown in Fig. 1. The first decision on issuance is represented by the binary dependent variable Issue. The Choice categorical variable in the second column takes up values following pecking order theory as follows: Loan = 1; Bond = 2; Convertible bond = 3; Preferred equity = 4; Common equity = 5. The selectivity bias variable indicates the presence of sample selection bias. Ρ indicates the correlation between error terms in output and participation equations. Probability of coefficient estimates from the model greater than standard statistics are provided in parentheses with ***p < 0.01, **p < 0.05, *p < 0.1***. Parentheses contain robust standard error estimates. Asterisks correspond to the outcome of the z-test from the model. Year fixed-effects and firm fixed-effects are included; however, the estimated coefficients are not reported (Long tables are available at request). Variable definitions are given in “Appendix 1