Table 4.
GMM regressions of firm performance.
| Variable | (1) ROA | P-value | (2) ROA | P-value |
|---|---|---|---|---|
| TC | −0.169*** (0.055) | 0.002 | 0.482*** (0.145) | 0.000 |
| TC2 | −1.529*** (0.346) | 0.000 | ||
| FSIZE | 0.006*** (0.000) | 0.000 | 0.003*** (0.001) | 0.000 |
| LEV | −0.017*** (0.002) | 0.000 | −0.018*** (0.002) | 0.000 |
| LQD | 0.002 (0.001) | 0.206 | 0.001 (0.001) | 0.386 |
| SGR | 0.028*** (0.007) | 0.000 | 0.025*** (0.007) | 0.000 |
| GDP | −0.092 (0.112) | 0.414 | 0.083 (0.111) | 0.455 |
| Sargan statistic | 2.116 | 4.909 | ||
| Sargan p-value | 0.146 | 0.086 |
Note: This table presents the results of GMM regression of firm performance. The dependent variable is the return on assets (ROA), measured as the ratio of earnings before interest and taxes to total assets, for a sample of 51 firms during the period 2001–2020. Please see Appendix 1 for the variable description. Robust standard errors, which are clustered at the firm level, are reported in parentheses. *, **, and *** represent statistical significance at the 10%, 5%, and 1% levels, respectively.