Sustainability of Both Pecking Order and Trade-Off Theories in Chinese Manufacturing Firms
Abstract
:1. Introduction
2. Literature Review
3. Data and Methodology
3.1. Data
3.2. Methodology
4. Models
5. Empirical Results
5.1. Main Findings
5.2. Leverage and Profitability
5.3. Leverage and Firm Size
5.4. Leverage and Investment Opportunities
5.5. Leverage and Dividend Payout Ratio
5.6. Investment Opportunities and Dividend Payout Ratio
5.7. Robustness Checks
6. Conclusions
Author Contributions
Funding
Acknowledgments
Conflicts of Interest
Appendix A
References
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Year | N | BLEV | MLEV | PROF | INV | SIZE | TANG | DIV |
---|---|---|---|---|---|---|---|---|
2001–2006 | 4044 | 0.5084 | 0.4448 | 0.0411 | 0.1452 | 14.1622 | 0.3060 | 0.0037 |
(0.3149) | (0.2991) | (0.1352) | (0.1437) | (1.0399) | (0.1529) | (0.0163) | ||
2007–2012 | 6109 | 0.4799 | 0.3878 | 0.0764 | 0.1170 | 14.6168 | 0.2597 | 0.0157 |
(0.2202) | (0.3221) | (0.0853) | (0.1339) | (1.2628) | (0.1512) | (0.0268) | ||
2013–2018 | 6775 | 0.4525 | 0.2926 | 0.0488 | 0.0883 | 15.4626 | 0.2501 | 0.0122 |
(0.2034) | (0.2241) | (0.0857) | (0.1339) | (1.1921) | (0.1488) | (0.0206) | ||
All years | 16,928 | 0.4757 | 0.3633 | 0.0569 | 0.1123 | 14.8467 | 0.2669 | 0.0114 |
(0.2413) | (0.2876) | (0.1008) | (0.1381) | (1.2982) | (0.1523) | (0.0226) |
Variables | Definitions |
---|---|
BLEV | Ratio between total liabilities to total book value of assets |
MLEV | Ratio between total liabilities to total market value of firm (MKV) MKV = total liabilities plus market value of equity minus book value of equity |
DIV | Ratio between dividend paid to total assets |
PROF | Ratio between earnings before taxes and interest (EBIT) and total assets |
TANG | ratio between net fixed assets to total assets |
SIZE | Logarithm of total assets |
INV | Ratio between (total asset in year t + 1 minus total asset year t) to total assets year t |
Variables | PROF | DIV | INV | SIZE | MLEV | TANG | BLEV |
---|---|---|---|---|---|---|---|
PROF | 1.000 | ||||||
– | |||||||
DIV | 0.3270 *** | 1.000 | |||||
(45.03) | – | ||||||
INV | 0.0013 | 0.1965 *** | 1.000 | ||||
(0.17) | (26.08) | – | |||||
SIZE | −0.0283 *** | 0.0043 | −0.1989 *** | 1.000 | |||
(−3.68) | (0.56) | (−26.40) | – | ||||
MLEV | 0.0210 *** | −0.1325 *** | −0.6753 *** | 0.0462 *** | 1.000 | ||
(2.74) | (−17.39) | (−119.11) | (6.02) | – | |||
TANG | −0.0612 *** | −0.1079 *** | −0.1642 *** | 0.0691 *** | 0.1384 *** | 1.000 | |
(−7.97) | (−14.13) | (−21.65) | (9.02) | (18.18) | – | ||
BLEV | −0.3905 *** | −0.2360 *** | −0.1874 *** | 0.1705 *** | 0.4814 *** | 0.1311 *** | 1.000 |
(−55.18) | (−31.60) | (−24.82) | (22.51) | (71.45) | (17.21) | – |
Coefficient | Quantiles | Fixed Effect Regression | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
10 | 20 | 30 | 40 | 50 | 60 | 70 | 80 | 90 | ||
Panel A: Book Leverage, all samples (14,806 observations) | ||||||||||
βprof | −0.494 a | −0.593 a | −0.647 a | −0.655 a | −0.693 a | −0.708 a | −0.700 a | −0.639 a | −0.699 a | −0.748 a |
(0.026) | (0.025) | (0.024) | (0.023) | (0.022) | (0.023) | (0.022) | (0.021) | (0.024) | (0.016) | |
βtang | 0.101 a | 0.077 a | 0.035 b | 0.035 | 0.001 | −0.021 | −0.035b | −0.014 | 0.055 a | −0.037 b |
(0.021) | (0.020) | (0.019) | (0.018) | (0.018) | (0.018) | (0.018) | (0.016) | (0.018) | (0.021) | |
βsize | 0.046 a | 0.052 a | 0.055 a | 0.056 a | 0.056 a | 0.056 a | 0.051 a | 0.040 a | 0.022 a | 0.013 a |
(0.002) | (0.002) | (0.002) | (0.001) | (0.001) | (0.001) | (0.001) | (0.001) | (0.002) | (0.002) | |
βinv | 0.099 a | 0.149 a | 0.203 a | 0.218 a | 0.225 a | 0.205 a | 0.166 a | 0.069 a | −0.097 a | 0.140 a |
(0.023) | (0.022) | (0.021) | (0.020) | (0.023) | (0.020) | (0.020) | (0.018) | (0.021) | (0.018) | |
β0 | −0.464 a | −0.451 a | −0.430 a | −0.374 a | −0.322 a | −0.247 a | −0.109 a | 0.110 a | 0.443 a | 0.322 a |
(0.025) | (0.023) | (0.022) | (0.021) | (0.021) | (0.021) | (0.021) | (0.020) | (0.022) | (0.025) | |
R2 | 0.0737 | 0.1016 | 0.1228 | 0.136 | 0.1444 | 0.1379 | 0.1246 | 0.1025 | 0.0718 | 0.14 |
Panel B: Market Leverage, all samples (14,806 Observations) | ||||||||||
βprof | −0.293 a | −0.381 a | −0.450 a | −0.526 a | −0.591 a | −0.590 a | −0.499 a | −0.268 a | 0.885 a | 0.120 a |
(0.014) | (0.016) | (0.018) | (0.022) | (0.028) | (0.033) | (0.038) | (0.046) | (0.104) | (0.021) | |
βtang | 0.066 a | 0.085 a | 0.102 a | 0.122 a | 0.103 a | 0.106 a | 0.100 a | 0.066 b | 0.066 | −0.198 a |
(0.011) | (0.012) | (0.015) | (0.018) | (0.022) | (0.026) | (0.030) | (0.036) | (0.082) | (0.028) | |
βsize | 0.026 a | 0.036 a | 0.047 a | 0.060 a | 0.073 a | 0.081 a | 0.082 a | 0.063 a | −0.033 a | −0.019 a |
(0.012) | (0.001) | (0.001) | (0.001) | (0.002) | (0.002) | (0.002) | (0.003) | (0.007) | (0.002) | |
βinv | −0.317 | 0.068 a | 0.092 a | 0.140 a | 0.203 a | 0.240 a | 0.258 a | 0.272 a | 0.286 a | 0.412 a |
(0.013) | (0.014) | (0.016) | (0.020) | (0.024) | (0.029) | (0.033) | (0.040) | (0.091) | (0.024) | |
β0 | −0.317 a | −0.414 a | −0.528 a | −0.669 a | −0.781 a | −0.836 a | −0.769 a | −0.387 a | 1.126 a | 0.618 a |
(0.013) | (0.015) | (0.017) | (0.021) | (0.026) | (0.031) | (0.035) | (0.043) | (0.098) | (0.032) | |
R2 | 0.0908 | 0.1205 | 0.1368 | 0.1445 | 0.1316 | 0.1147 | 0.0884 | 0.0371 | 0.0079 | 0.138 |
Coefficient | Quantiles | Fixed Effect Regression | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
10 | 20 | 30 | 40 | 50 | 60 | 70 | 80 | 90 | ||
Panel A: Book Leverage, all samples (14,806 observations) | ||||||||||
βprof | −0.346 a | −0.420 a | −0.472 a | −0.493 a | −0.535 a | −0.565 a | −0.577 a | −0.542 a | −0.636 a | −0.750 a |
(0.027) | (0.026) | (0.025) | (0.023) | (0.023) | (0.023) | (0.023) | (0.022) | (0.025) | (0.016) | |
βtang | 0.072 a | 0.042 b | 0.001 | −0.016 | −0.030 c | −0.049 a | −0.060 a | −0.033 b | 0.042 b | −0.037 c |
(0.020) | (0.019) | (0.019) | (0.018) | (0.017) | (0.018) | (0.017) | (0.016) | (0.019) | (0.021) | |
βsize | 0.047 a | 0.053 a | 0.057 a | 0.057 a | 0.058 a | 0.057 a | 0.052 a | 0.071 a | 0.022 a | 0.013 a |
(0.002) | (0.002) | (0.002) | (0.001) | (0.001) | (0.001) | (0.001) | (0.018) | (0.002) | (0.002) | |
βinv | 0.102 a | 0.152 a | 0.206 a | 0.221 a | 0.228 a | 0.208 a | 0.071 a | 0.071 a | 0.071 a | 0.140 a |
(0.023) | (0.022) | (0.021) | (0.001) | (0.020) | (0.020) | (0.019) | (0.018) | (0.021) | (0.018) | |
βdiv | −1.962 a | −2.295 a | −2.321 a | −2.154 a | −2.089 a | −1.892 a | −1.629 a | −1.284 a | −0.840 a | 0.047 |
(0.115) | (0.109) | (0.104) | (0.098) | (0.097) | (0.098) | (0.098) | (0.092) | (0.104) | (0.076) | |
β0 | −0.460 a | −0.446 a | −0.424 a | −0.368 a | −0.317 a | −0.242 a | −0.105 a | 0.113 a | 0.445 a | 0.047 |
(0.024) | (0.023) | (0.022) | (0.021) | (0.021) | (0.021) | (0.021) | (0.019) | (0.022) | (0.076) | |
R2 | 0.092 | 0.128 | 0.152 | 0.163 | 0.170 | 0.159 | 0.141 | 0.114 | 0.076 | 0.140 |
Panel B: Market Leverage, all samples (14,806 observations) | ||||||||||
βprof | −0.187 a | −0.244 a | −0.293 a | −0.346 a | −0.393 a | −0.392 a | −0.336 a | −0.148 a | 0.916 a | 0.123 a |
(0.014) | (0.016) | (0.019) | (0.023) | (0.029) | (0.034) | (0.040) | (0.048) | (0.110) | (0.021) | |
βtang | 0.045 a | 0.058 a | 0.071 a | 0.086 a | 0.064 a | 0.067 b | 0.068 b | 0.042 | 0.060 | −0.199 a |
(0.011) | (0.012) | (0.014) | (0.017) | (0.022) | (0.026) | (0.030) | (0.036) | (0.082) | (0.028) | |
βsize | 0.027 a | 0.037 a | 0.049 a | 0.062 a | 0.074 a | 0.083 a | 0.084 a | 0.064 a | −0.032 a | −0.019 a |
(0.012) | (0.001) | (0.001) | (0.001) | (0.002) | (0.002) | (0.002) | (0.003) | (0.007) | (0.002) | |
βinv | −1.404 a | 0.070 a | 0.094 a | 0.143 a | 0.206 a | 0.261 a | 0.261 a | 0.274 a | 0.287 a | 0.412 a |
(0.059) | (0.013) | (0.016) | (0.019) | (0.024) | (0.029) | (0.033) | (0.040) | (0.091) | (0.024) | |
βdiv | −1.404 a | −1.811 a | −2.085 a | −2.381 a | −2.627 a | −2.613 a | −2.158 a | −1.588 a | −0.419 | −0.091 |
(0.059) | (0.068) | (0.080) | (0.097) | (0.120) | (0.144) | (0.166) | (0.203) | (0.460) | (0.098) | |
β0 | −0.313 a | −0.410 a | −0.524 a | −0.664 a | −0.775 a | −0.829 a | −0.764 a | −0.383 a | 1.127 a | 0.616 a |
(0.013) | (0.014) | (0.017) | (0.021) | (0.026) | (0.030) | (0.035) | (0.043) | (0.098) | (0.032) | |
R2 | 0.12 | 0.16 | 0.17 | 0.18 | 0.16 | 0.13 | 0.10 | 0.04 | 0.01 | 0.03 |
Coefficient | Quantiles | Fixed Effect Regression | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
10 | 20 | 30 | 40 | 50 | 60 | 70 | 80 | 90 | ||
Panel A: Book leverage, All samples (14,806 observations) | ||||||||||
βblev | 0.013 c | 0.010 b | 0.019 a | 0.022 a | 0.032 a | 0.037 a | 0.061 a | 0.080 a | 0.109 a | 0.018 a |
(0.008) | (0.005) | (0.005) | (0.005) | (0.006) | (0.006) | (0.007) | (0.009) | (0.012) | (0.006) | |
βprof | 0.244 a | 0.135 a | 0.123 a | 0.123 a | 0.108 a | 0.092 a | 0.102 a | 0.100 a | 0.134 a | 0.035 a |
(0.018) | (0.012) | (0.012) | (0.013) | (0.013) | (0.015) | (0.018) | (0.022) | (0.029) | (0.011) | |
βsize | −0.003 a | −0.003 a | −0.005 a | −0.006 a | −0.006 a | −0.005 a | −0.007 a | −0.007 a | −0.007 a | −0.017 a |
(0.001) | (0.001) | (0.001) | (0.001) | (0.001) | (0.001) | (0.001) | (0.001) | (0.002) | (0.001) | |
βdiv | −0.115 | −0.138 a | −0.161 a | −0.176 a | −0.255 a | −0.368 a | −0.480 a | −0.559 a | −0.624 a | −0.298 a |
(0.072) | (0.047) | (0.046) | (0.050) | (0.005) | (0.059) | (0.071) | (0.088) | (0.114) | (0.048) | |
β0 | 0.003 | 0.054 a | 0.096 a | 0.117 a | 0.157 a | 0.180 a | 0.233 a | 0.274 a | 0.328 a | 0.339 a |
(0.015) | (0.010) | (0.010) | (0.010) | (0.011) | (0.012) | (0.015) | (0.018) | (0.024) | (0.015) | |
R2 (%) | 1.35 | 1.01 | 0.94 | 0.65 | 0.78 | 0.75 | 1.02 | 0.98 | 0.89 | 2.30 |
Panel B: Market leverage, all samples (14,806 observations) | ||||||||||
βmlev | 0.003 | 0.007 b | 0.013 a | 0.016 a | 0.025 a | 0.031 a | 0.047 a | 0.063 a | 0.079 a | 0.020 a |
(0.005) | (0.003) | (0.003) | (0.004) | (0.004) | (0.004) | (0.005) | (0.006) | (0.008) | (0.004) | |
βprof | 0.231 a | 0.124 a | 0.103 a | 0.082 a | 0.073 a | 0.050 a | 0.035 b | 0.011 | 0.015 | 0.014 |
(0.017) | (0.011) | (0.011) | (0.012) | (0.013) | (0.014) | (0.017) | (0.021) | (0.027) | (0.010) | |
βsize | −0.003 c | −0.003 a | −0.004 a | −0.004 a | −0.005 a | −0.004 a | −0.006 a | −0.006 a | −0.004 a | −0.015 a |
(0.072) | (0.001) | (0.001) | (0.001) | (0.001) | (0.001) | (0.001) | (0.001) | (0.002) | (0.001) | |
βdiv | 0.003 c | −0.137 a | −0.161 a | −0.172 a | −0.247 a | −0.355 a | −0.465 a | −0.539 a | −0.608 a | −0.292 a |
(0.015) | (0.047) | (0.046) | (0.050) | (0.053) | (0.059) | (0.071) | (0.088) | (0.114) | (0.047) | |
β0 | 0.003 | 0.053 a | 0.095 a | 0.116 a | 0.155 a | 0.177 a | 0.229 a | 0.268 a | 0.321 a | 0.321 a |
(0.015) | (0.010) | (0.010) | (0.010) | (0.011) | (0.012) | (0.015) | (0.018) | (0.024) | (0.016) | |
R2 (%) | 1.30 | 1.00 | 0.90 | 0.70 | 0.80 | 0.90 | 1.10 | 1.10 | 1.00 | 2.50 |
Coefficient | Quantiles | Fixed Effect Regression | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
10 | 20 | 30 | 40 | 50 | 60 | 70 | 80 | 90 | ||
Panel A: Book Leverage | ||||||||||
Smallest size (4471 observations) | ||||||||||
βprof | −0.264 a | −0.331 a | −0.374 a | −0.402 a | −0.452 a | −0.477 a | −0.531 a | −0.638 a | −0.734 a | −0.647 a |
(0.029) | (0.033) | (0.034) | (0.034) | (0.036) | (0.036) | (0.037) | (0.042) | (0.047) | (0.024) | |
Medium size (4895 observations) | ||||||||||
βprof | −0.525 a | −0.544 a | −0.566 a | −0.560 a | −0.572 a | −0.620 a | −0.658 a | −0.659 a | −0.818 a | −1.039 a |
(0.046) | (0.039) | (0.037) | (0.036) | (0.037) | (0.039) | (0.040) | (0.041) | (0.049) | (0.034) | |
Biggest size (5440 observations) | ||||||||||
βprof | −1.248 a | −1.212 a | −1.179 a | −1.063 a | −1.017 a | −0.897 a | −0.772 a | −0.682 a | −0.744 a | −0.502 a |
(0.062) | (0.052) | (0.046) | (0.043) | (0.040) | (0.036) | (0.033) | (0.033) | (0.041) | (0.025) | |
Panel B: Market Leverage | ||||||||||
Smallest size (4471 observations) | ||||||||||
βprof | −0.118 a | −0.153 a | −0.173 a | −0.180 a | −0.202 a | −0.243 a | −0.245 a | −0.182 a | 4.777 a | 0.244 a |
(0.013) | (0.015) | (0.017) | (0.020) | (0.024) | (0.032) | (0.050) | (0.078) | (0.465) | (0.035) | |
Medium size (4895 observations) | ||||||||||
βprof | −0.118 a | −0.153 a | −0.173 a | −0.180 a | −0.202 a | −0.243 a | −0.245 a | −0.182 a | 4.777 a | 0.244 a |
(0.013) | (0.015) | (0.017) | (0.020) | (0.024) | (0.032) | (0.050) | (0.078) | (0.465) | (0.035) | |
Panel C: Biggest size (5440 observations) | ||||||||||
βprof | −1.120 a | −1.276 a | −1.354 a | −1.357 a | −1.172 a | −1.035 a | −0.845 a | −0.674 a | −0.119 a | −0.308 a |
(0.044) | (0.049) | (0.055) | (0.058) | (0.060) | (0.062) | (0.064) | (0.075) | (0.135) | (0.038) |
Coefficient | Quantiles | Fixed Effect Regression | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
10 | 20 | 30 | 40 | 50 | 60 | 70 | 80 | 90 | ||
Panel A: Book Leverage | ||||||||||
Smallest size (4471 observations) | ||||||||||
βprof | −0.198 a | −0.247 a | −0.287 a | −0.304 a | −0.360 a | −0.387 a | −0.437 a | −0.550 a | −0.669 a | −0.650 a |
(0.030) | (0.033) | (0.035) | (0.035) | (0.036) | (0.036) | (0.038) | (0.043) | (0.049) | (0.024) | |
Medium size (4895 observations) | ||||||||||
βprof | −0.364 a | −0.397 a | −0.434 a | −0.427 a | −0.443 a | −0.499 a | −0.538 a | −0.557 a | −0.744 a | −1.045 a |
(0.047) | (0.041) | (0.038) | (0.037) | (0.038) | (0.040) | (0.042) | (0.043) | (0.051) | (0.035) | |
Biggest size (5440 observations) | ||||||||||
βprof | −0.882 a | −0.881 a | −0.889 a | −0.813 a | −0.797 a | −0.722 a | −0.629 a | −0.578 a | −0.671 a | −0.466 a |
(0.068) | (0.058) | (0.051) | (0.047) | (0.044) | (0.040) | (0.036) | (0.036) | (0.045) | (0.025) | |
Panel B: Market Leverage | ||||||||||
Smallest size (4471 observations) | ||||||||||
βprof | −0.081 a | −0.105 a | −0.121 a | −0.120 a | −0.139 a | −0.174 a | −0.166 a | −0.128 a | 4.431 a | 0.233 a |
(0.013) | (0.015) | (0.017) | (0.020) | (0.024) | (0.032) | (0.051) | (0.080) | (0.479) | (0.035) | |
Medium size (4895 observations) | ||||||||||
βprof | −0.081 a | −0.105 a | −0.121 a | −0.120 a | −0.139 a | −0.174 a | −0.166 a | −0.128 a | 4.431 a | 0.157 a |
(0.013) | (0.015) | (0.017) | (0.020) | (0.024) | (0.032) | (0.051) | (0.080) | (0.479) | (0.038) | |
Panel C: Biggest size (5440 observations) | ||||||||||
βprof | −0.711 a | −0.862 a | −0.901 a | −0.921 a | −0.773 a | −0.682 a | −0.541 a | −0.381 a | 0.178 a | −0.211 a |
(0.047) | (0.053) | (0.060) | (0.064) | (0.066) | (0.069) | (0.071) | (0.084) | (0.151) | (0.039) |
Coefficient | Quantiles | Fixed Effect Regression | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
10 | 20 | 30 | 40 | 50 | 60 | 70 | 80 | 90 | ||
Panel A: The first model | ||||||||||
Smallest size (4471 observations) | ||||||||||
βtang | −0.016 | 0.066 c | 0.109 a | 0.071 c | 0.077 b | 0.120 a | 0.198 a | 0.262 a | 0.374 a | 0.275 a |
(0.031) | (0.035) | (0.036) | (0.037) | (0.038) | (0.038) | (0.040) | (0.045) | (0.051) | (0.041) | |
Medium size (4,895 observations) | ||||||||||
βtang | 0.148 a | 0.068 a | 0.041 | 0.021 | −0.004 | −0.032 | −0.029 | −0.012 | 0.057 | −0.147 a |
(0.035) | (0.031) | (0.028) | (0.028) | (0.028) | (0.029) | (0.031) | (0.032) | (0.038) | (0.043) | |
Biggest size (5440 observations) | ||||||||||
βtang | −0.009 | −0.099 a | −0.158 a | −0.166 a | −0.180 a | −0.151 a | −0.125 a | −0.099 a | −0.039 c | −0.173 a |
(0.035) | (0.029) | (0.026) | (0.024) | (0.022) | (0.020) | (0.018) | (0.018) | (0.023) | (0.025) | |
Panel B: The second model | ||||||||||
Smallest size (4471 observations) | ||||||||||
βtang | −0.034 | 0.440 | 0.085 b | 0.044 | 0.052 | 0.096 b | 0.173 a | 0.238 a | 0.357 a | 0.277 a |
(0.031) | (0.035) | (0.036) | (0.036) | (0.038) | (0.038) | (0.039) | (0.045) | (0.051) | (0.041) | |
Medium size (4895 observations) | ||||||||||
βtang | 0.116 a | 0.040 | 0.015 | −0.005 | −0.029 | −0.055 c | −0.052 c | −0.032 | 0.043 | −0.146 b |
(0.035) | (0.030) | (0.028) | (0.027) | (0.028) | (0.029) | (0.031) | (0.032) | (0.038) | (0.043) | |
Biggest size (5440 observations) | ||||||||||
βtang | −0.044 | −0.131 a | −0.185 a | −0.191 a | −0.201 a | −0.168 a | −0.139 a | −0.106 a | −0.046 b | −0.178 a |
(0.034) | (0.029) | (0.025) | (0.023) | (0.022) | (0.020) | (0.018) | (0.018) | (0.023) | (0.025) |
Coefficient | Quantiles | Fixed Effect Regression | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
10 | 20 | 30 | 40 | 50 | 60 | 70 | 80 | 90 | ||
Panel A: Book Leverage | ||||||||||
Smallest size (4471 observations) | ||||||||||
βdiv | −1.253 a | −1.586 a | −1.656 a | −1.849 a | −1.739 a | −1.700 a | −1.774 a | −1.662 a | −1.226 a | 0.135 |
(0.136) | (0.153) | (0.161) | (0.162) | (0.167) | (0.167) | (0.175) | (0.197) | (0.224) | (0.126) | |
Medium size (4895 observations) | ||||||||||
βprof | −2.192 a | −1.998 a | −1.804 a | −1.812 a | −1.574 a | −1.652 a | −1.637 a | −1.397 a | −1.009 a | 0.171 |
(0.196) | (0.169) | (0.158) | (0.155) | (0.158) | (0.166) | (0.174) | (0.178) | (0.212) | (0.158) | |
Biggest size (5440 observations) | ||||||||||
βprof | −2.913 a | −2.637 a | −2.301 a | −1.994 a | −1.751 a | −1.389 a | −1.137 a | −0.823 a | −0.582 a | −0.492 a |
(0.249) | (0.211) | (0.186) | (0.172) | (0.162) | (0.146) | (0.133) | (0.029) | (0.036) | (0.100) | |
Panel B: Market Leverage | ||||||||||
Smallest size (4471 observations) | ||||||||||
βprof | −0.702 a | −0.917 a | −0.986 a | −1.137 a | −1.181 a | −1.291 a | −1.494 a | −1.019 a | 6.547 a | 0.532 a |
(0.061) | (0.068) | (0.078) | (0.092) | (0.112) | (0.149) | (0.235) | (0.371) | (2.212) | (0.179) | |
Medium size (4895 observations) | ||||||||||
βprof | −1.587 a | −1.674 a | −1.863 a | −2.098 a | −2.139 a | −2.131 a | −1.746 a | −1.198 a | 0.766 | −0.009 |
(0.102) | (0.112) | (0.124) | (0.143) | (0.168) | (0.206) | (0.232) | (0.304) | (0.581) | (0.170) | |
Panel C: Biggest size (5440 observations) | ||||||||||
βprof | −3.252 a | −3.292 a | −3.608 a | −3.466 a | −3.177 a | −2.184 a | −2.424 a | −2.337 a | −2.373 a | −1.337 a |
(0.174) | (0.193) | (0.218) | (0.233) | (0.240) | (0.251) | (0.259) | (0.305) | (0.550) | (0.153) |
Quantiles | F-Statistic (p Value) | ||
---|---|---|---|
The First Model | The Second Model | The Third Model | |
0.1 versus 0.2 | chi2 (4) = 36.98 Prob > chi2 = 0.0000 | chi2 (5) = 48.88 Prob > chi2 = 0.0000 | chi2 (4) = 82.13 Prob > chi2 = 0.0000 |
0.2 versus 0.3 | chi2 (4) = 25.40 Prob > chi2 = 0.0000 | chi2 (5) = 25.51 Prob > chi2 = 0.0001 | chi2 (4) = 21.41 Prob > chi2 = 0.0003 |
0.3 versus 0.4 | chi2 (4) = 2.70 Prob > chi2 = 0.6087 | chi2 (5) = 8.48 Prob > chi2 = 0.1316 | chi2 (4) = 17.36 Prob > chi2 = 0.0016 |
0.4 versus 0.5 | chi2 (4) = 7.56 Prob > chi2 = 0.1092 | chi2 (5) = 8.55 Prob > chi2 = 0.1282 | chi2 (4) = 30.43 Prob > chi2 = 0.0000 |
0.5 versus 0.6 | chi2 (4) = 19.00 Prob > chi2 = 0.0008 | chi2 (5) = 28.29 Prob > chi2 = 0.0000 | chi2 (4) = 37.44 Prob > chi2 = 0.0000 |
0.6 versus 0.7 | chi2 (4) = 48.60 Prob > chi2 = 0.0000 | chi2 (5) = 64.15 Prob > chi2 = 0.0000 | chi2 (4) = 44.84 Prob > chi2 = 0.0000 |
0.7 versus 0.8 | chi2 (4) = 173.84 Prob > chi2 = 0.0000 | chi2 (5) = 198.82 Prob > chi2 = 0.0000 | chi2 (4) = 23.53 Prob > chi2 = 0.0001 |
0.8 versus 0.9 | chi2 (4) = 320.66 Prob > chi2 = 0.0000 | chi2 (5) = 349.57 Prob > chi2 = 0.0000 | chi2 (4) = 11.53 Prob > chi2 = 0.0212 |
Quantiles | The First Model | The Second Model | The Third Model |
---|---|---|---|
0.1 versus 0.2 | chi2 (4) = 201.79 Prob > chi2 = 0.0000 | chi2 (5) = 254.70 Prob > chi2 = 0.0000 | chi2 (4) = 82.43 Prob > chi2 = 0.0000 |
0.2 versus 0.3 | chi2 (4) = 220.87 Prob > chi2 = 0.0000 | chi2 (5) = 244.66 Prob > chi2 = 0.0000 | chi2 (4) = 23.25 Prob > chi2 = 0.0001 |
0.3 versus 0.4 | chi2 (4) = 256.90 Prob > chi2 = 0.0000 | chi2 (5) = 279.11 Prob > chi2 = 0.0000 | chi2 (4) = 11.24 Prob > chi2 = 0.0240 |
0.4 versus 0.5 | chi2 (4) = 142.25 Prob > chi2 = 0.0000 | chi2 (5) = 153.02 Prob > chi2 = 0.0000 | chi2 (4) = 27.00 Prob > chi2 = 0.0000 |
0.5 versus 0.6 | chi2 (4) = 52.72 Prob > chi2 = 0.0000 | chi2 (5) = 52.74 Prob > chi2 = 0.0000 | chi2 (4) = 29.78 Prob > chi2 = 0.0000 |
0.6 versus 0.7 | chi2 (4) = 17.38 Prob > chi2 = 0.0016 | chi2 (5) = 36.14 Prob > chi2 = 0.0000 | chi2 (4) = 48.57 Prob > chi2 = 0.0000 |
0.7 versus 0.8 | chi2 (4) = 155.26 Prob > chi2 = 0.0000 | chi2 (5) = 173.58 Prob > chi2 = 0.0000 | chi2 (4) = 19.23 Prob > chi2 = 0.0007 |
0.8 versus 0.9 | chi2 (4) = 527.63 Prob > chi2 = 0.0000 | chi2 (5) = 539.02 Prob > chi2 = 0.0000 | chi2 (4) = 12.45 Prob > chi2 = 0.0143 |
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Nguyen, H.M.; Vuong, T.H.G.; Nguyen, T.H.; Wu, Y.-C.; Wong, W.-K. Sustainability of Both Pecking Order and Trade-Off Theories in Chinese Manufacturing Firms. Sustainability 2020, 12, 3883. https://doi.org/10.3390/su12093883
Nguyen HM, Vuong THG, Nguyen TH, Wu Y-C, Wong W-K. Sustainability of Both Pecking Order and Trade-Off Theories in Chinese Manufacturing Firms. Sustainability. 2020; 12(9):3883. https://doi.org/10.3390/su12093883
Chicago/Turabian StyleNguyen, Huu Manh, Thi Huong Giang Vuong, Thi Huong Nguyen, Yang-Che Wu, and Wing-Keung Wong. 2020. "Sustainability of Both Pecking Order and Trade-Off Theories in Chinese Manufacturing Firms" Sustainability 12, no. 9: 3883. https://doi.org/10.3390/su12093883