TABLE 2.
Market competition and firm performance: a mediating effect of capital structure.
| Dependent variables | Model 1 |
Model 2 | Model 3 |
||
| ROE | ROA | ROE | ROA | ||
| HHI | 0.619** (0.347) | 0.30024** (0.150) | 0.0858** (0.0446) | 1.703*** (0.492) | |
| D.R. | –0.0224*** (0.0076) | –0.0613*** (0.016) | –0.797*** (0.016) | ||
| R&D | –45.9* (35.03) | –0.270 (0.233) | 20.78* (13.55)*** | –15.14* (11.17) | –0.2843** (0.167) |
| Current ratio | 3.368*** (0.685) | 5.595*** (0.215) | –0.080** (0.041) | 0.1310** (0.0683) | –0.549*** (0.104) |
| Growth | 6.22 (1.608) | 11.20*** (1.37) | –1.534** (0.649) | –0.7722*** (0.215) | –6.325*** (2.800) |
| Constant | –1.704*** (0.512) | –3.54 (0.337) | 1.104*** (0.173) | 0.5527*** (0.0783) | 0.8085 (0.784) |
| Wald test | 48.53*** | 24.25*** | 61.62*** | 45.38*** | 4,135*** |
| AR (1) | –1.07 | –1.02 | –3.76 | –3.78 | –4.22 |
| AR (2) | –1.75 | –1.44 | 1.01 | –1.78 | 0.29 |
| Sargan test | 4.08 | 6.86 | 118.04 | 719.21 | 202.04 |
| Observation | 2,502 | 2,502 | 2,502 | 2,502 | 2,502 |
***p < 0.01, **p < 0.05, *p < 0.1 shows significance levels.