Table 7 Empirical estimation based on a multinomial logit model for the Choice equation
From: Raising capital amid economic policy uncertainty: an empirical investigation
Variables | Issue | Choice | Volume | ||||
|---|---|---|---|---|---|---|---|
Loan | Bonds | Convertible bonds | Preferred equity | Common equity | |||
EPU | 0.0002 (0.0007) | 0.0054 (0.0127) | 0.0076 (0.0128) | − 0.0090 (0.0132) | 0.0198 (0.0159) | 0.0021 (0.0127) | 0.0020 (0.0018) |
EPU × SIZE | 0.0001 (0.0001) | − 0.0004 (0.0013) | − 0.0004 (0.0013) | 0.0016 (0.0014) | − 0.0029 (0.0018) | − 0.0003 (0.0013) | − 0.0011*** (0.0003) |
EPU × PU | 0.0002** (0.0001) | 0.0067** (0.0028) | 0.0049* (0.0028) | 0.0025 (0.0029) | 0.0029 (0.0034) | 0.0043 (0.0028) | 0.0025*** (0.0003) |
Long-term investor | 0.0571 (0.0403) | 0.0646 (0.0399) | 0.0121 (0.0442) | − 0.0065 (0.0668) | − 0.1218*** (0.0425) | − 0.0738*** (0.0115) | |
Institutional investor | 0.0230 (0.0290) | 0.0188 (0.0289) | 0.0416 (0.0326) | 0.0524 (0.0583) | 0.0192 (0.0291) | − 0.0044 (0.0039) | |
Individual | − 0.0052 (0.0380) | − 0.0117 (0.0380) | − 0.0191 (0.0393) | − 0.0104 (0.0491) | − 0.0052 (0.0379) | 0.0094** (0.0039) | |
Government | − 0.3194 (9.9629) | − 1.2884 (9.9822) | − 14.0662 (969.15) | − 15.8856 (3443.01) | − 0.0986 (9.9539) | 1.7348*** (0.2869) | |
Concentration | 0.0008 (0.0010) | − 0.0400 (0.0400) | − 0.0419 (0.0399) | − 0.0593 (0.0432) | − 0.0623 (0.0679) | − 0.0418 (0.0400) | 0.0076 (0.0057) |
Golden parachute | 0.0297 (0.0330) | 0.1946 (0.6371) | 0.0655 (0.6356) | 0.2378 (0.6652) | 0.3660 (0.8790) | − 0.0357 (0.6449) | 0.0658** (0.0278) |
CEO duality | 0.0036 (0.0183) | 0.1703 (0.4432) | 0.2058 (0.4431) | 0.0459 (0.4516) | − 0.0779 (0.5203) | − 0.2217 (0.4443) | − 0.2653*** (0.0336) |
Insider optimism | 0.0655*** (0.0222) | − 0.1975 (0.5772) | − 0.2029 (0.5774) | 0.0504 (0.5848) | − 0.4025 (0.6689) | − 0.1189 (0.5779) | 0.0402 (0.0329) |
Market optimism | 0.0056*** (0.0015) | 0.0167 (0.0210) | 0.0224 (0.0210) | 0.0184 (0.0213) | − 0.0206 (0.0304) | 0.0116 (0.0208) | − 0.0134*** (0.0034) |
Board size | 0.0251*** (0.0035) | 0.1872** (0.0916) | 0.2040** (0.0916) | 0.0188 (0.0928) | 0.0386 (0.1068) | 0.0853 (0.0918) | − 0.0867*** (0.0069) |
Analyst coverage | − 0.0072*** (0.0015) | − 0.0010 (0.0315) | 0.0186 (0.0314) | 0.0768** (0.0322) | − 0.0107 (0.0423) | 0.0685** (0.0317) | 0.0140** (0.0057) |
Analyst variance | 0.0358 (0.0297) | 0.3051 (0.8403) | 0.4623 (0.8421) | 0.0685 (0.8534) | 0.1052 (0.9297) | − 0.1047 (0.8396) | − 0.5530*** (0.0609) |
Firm size | 0.2288*** (0.0163) | 1.1497*** (0.2767) | 1.3221*** (0.2807) | − 0.2229 (0.2879) | 0.3870 (0.3711) | − 0.2588 (0.2756) | − 1.3918*** (0.0977) |
Leverage | 0.8285*** (0.0515) | 7.4758*** (0.8705) | 8.8602*** (0.8924) | 7.3853*** (0.9022) | 3.6881*** (1.1532) | 4.8665*** (0.8390) | − 3.6041*** (0.4564) |
Cash | 0.0393 (0.0757) | − 2.3805 (1.7130) | − 1.3334 (1.7265) | 2.2095 (1.7153) | 0.9291 (1.9151) | 0.6766 (1.6982) | − 0.5516** (0.2787) |
Free cash flow | − 0.0803*** (0.0240) | ||||||
Profitability | − 0.8934*** (0.0634) | ||||||
Interest rate | 0.0117** (0.0053) | 0.2808** (0.1222) | 0.2431** (0.1222) | 0.2828** (0.1247) | 0.2925** (0.1427) | 0.2030* (0.1225) | 0.0305*** (0.0065) |
GDP Growth rate | 0.0709*** (0.0068) | 0.7634*** (0.1790) | 0.6134*** (0.1790) | 0.4675** (0.1818) | 0.3451* (0.2034) | 0.4817*** (0.1792) | 0.1360*** (0.0170) |
Constant | − 2.5231*** (0.1562) | − 26.5117*** (4.3367) | − 27.8902*** (4.4142) | − 12.6266*** (4.4205) | − 14.4169*** (5.3824) | − 8.2984* (4.2568) | 19.0410*** (1.3393) |
Ρ | − 0.2339** (0.0943) | ||||||
Selectivity bias (Eq. 2) | 33.4769*** (1.6244) | 31.8580*** (1.6480) | 27.8274*** (1.6338) | 24.7157*** (1.7285) | 27.3773*** (1.5961) | ||
Selectivity bias (Eq. 3) | 7.2401*** (0.3815) | − 5.6055*** (0.8186) | 1.8063** (0.7456) | − 3.0184* (1.7204) | 5.9013*** (0.6259) | ||
Firm—fixed effects | Yes | Yes | Yes | ||||
Year—fixed effects | Yes | Yes | Yes | ||||
Wald test of indep. eqns. (ρ = 0) χ2(1) | 6.15** | ||||||
Observations | 20,976 | 20,994 | 20,994 | 20,994 | 20,994 | 20,994 | 20,968 |