Independent

variable

Pooled OLS

Fixed effect

Random effect

Coefficient

t-statistic

P value

Coefficient

t-statistic

P value

Coefficient

t-statistic

P value

Constant

−4.126

−26.962

0.000*

−1.928

−7.710

0.000*

−2.096

−7.265

0.000*

Leverage (TOL_TNW)

0.084

34.648

0.000*

0.088

41.332

0.000*

0.088

41.277

0.000*

Firm quality (Z score)

2.369

82.701

0.000*

2.225

72.752

0.000*

2.218

73.106

0.000*

Size (Ln TA)

0.224

17.091

0.000*

0.038

1.151

0.249

0.059

1.890

0.058**

Tangibility (FA_TA)

1.210

12.973

0.000*

−0.267

−1.938

0.052**

−0.196

−1.446

0.1481

Profitability (ROA)

−0.175

−36.452

0.000*

−0.117

−24.392

0.000*

−0.117

−24.516

0.000*

Growth GRWTA

0.014

13.523

0.000*

0.015

16.013

0.000*

0.015

16.010

0.000*

Liquidity (CR)

−0.028

−6.261

0.000*

−0.011

−2.797

0.005*

−0.011

−2.755

0.005*

GDP growth (GDPGR)

0.093

10.194

0.000*

0.068

8.856

0.000

0.069

8.972

0.000*

Inflation (Infl)

0.006

0.897

0.369

0.014

2.125

0.033**

0.012

1.905

0.056**

R²

0.5652

0.7005

0.5586

Adjusted R²

0.5647

0.6993

0.5580

F-statistic

1037.9470

558.6899

1010.3240

Prob (F-statistic)

0.0000

0.0000

0.0000

D-W statistics

0.9290

1.2552

1.2459

F test

F statistic = 147.7796, P = 0.00000

Hausman test

Chi square statistic = 38.538, P value = 0.000