Independent

variable

Pooled OLS

Fixed effect

Random effect

Coefficient

t-statistic

P value

Coefficient

t-statistic

P value

Coefficient

t-statistic

P value

Constant

−53277.59

−47.31

0.00*

−38646.72

−26.07

0.00*

−38805.38

−13.64

0.00*

Leverage (TOL_TNW)

124.56

7.21

0.00*

106.84

8.90

0.00*

106.75

8.90

0.00*

Firm quality (Z score)

4321.41

20.46

0.00*

2267.24

12.48

0.00*

2266.91

12.50

0.00*

Size (Ln TA)

7288.81

75.79

0.00*

5480.17

28.15

0.00*

5506.70

28.54

0.00*

Tangibility (FA_TA)

2965.68

4.32

0.00*

1258.79

1.54

0.12

1255.61

1.54

0.12

Profitability (ROA)

−298.58

−8.45

0.00*

−219.19

−7.67

0.00*

−218.48

−7.65

0.00*

Growth (GRWTA)

−10.25

−1.26

0.20

−11.42

−1.96

0.05**

−11.50

−1.97

0.04**

Liquidity (CR)

174.80

5.13

0.00*

109.72

4.51

0.00*

110.25

4.53

0.00*

GDP growth (GDPGR)

260.38

3.85

0.00*

351.24

7.66

0.00*

351.38

7.66

0.00*

Inflation (Infl)

−198.62

−3.68

0.00*

−23.29

−0.57

0.56

−25.86

−0.64

0.51

R2

0.500

0.776

0.193

Adjusted R2

0.499

0.775

0.192

F-statistic

803.082

835.803

193.139

Prob (F-statistic)

0.000

0.000

0.000

D-W statistics

0.541

1.206

1.202

F test

F statistic = 412.903, P = 0.00000

Hausman test

Chi square statistic = 4.36604, P value = 0.8857