68
Those five covariates are defined as follows,
|
Growthi = |
Assetsi — Assetsi--∖ rfwl ----7~i----— [%] Λssetsi-ι ⅛Sharesi × aEarned ∙ Per ■ Sharei" rrw, |
(4.1) |
|
Pro fitabilityi = |
-------------------~λ----7--------------------- % Assetsi |
(4.2) |
|
Size = |
“Outstanding ■ Shares" × “Common ■ Stock" [MM$] (4.3) | |
|
Age = |
1994 — “Starting ∙ Year" [years] |
(4.4) |
|
Liability = |
Liability [M MS], |
(4.5) |
where i indicates a particular calendar year.
Table 4.1: Results of P-values of Five Covariates for Bankruptcies
|
Estimates |
Exp of Est |
SE of Est |
z Statistic |
p-value | |
|
Growth |
0.116 |
1.123 |
0.440 |
0.263 |
0.790 |
|
Profit |
0.218 |
1.243 |
0.456 |
0.477 |
0.630 |
|
Size |
0.940 |
2.559 |
0.560 |
1.677 |
0.093 |
|
Age |
-0.503 |
0.605 |
0.447 |
-1.125 |
0.260 |
|
Liability |
1.545 |
4.686 |
0.695 |
2.223 |
0.026 |
Remarks
Note that the starting year represents the time when the company was first es-
tablished. If the company was established before 1950, the starting year is counted
as 1950, which is the earliest recorded year in the CRSP data set. In this analysis,
all companies existed in 1994. Companies started after 1994 or companies that went