Do Decision Makers' Debt-risk Attitudes Affect the Agency Costs of Debt?

Current Agriculture, Food & Resource Issues

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Table 3 Perceived Behavioural Control (Sample Respondent)

Based on the theory of planned behaviour, the following regression equations are
specified:

(4)     Ai = ^a о ⁺ ∑ ^ajDemθji ^{+ ε}ii ,

j=1

n

⁽5)     SNi= δo + У δjD^em°j_i + ε2i ^,

j=1

(6)     PBC_i = φ₀ + ∑ φ_jDemo_ji + ε_3i, and

j=1

n

(7)     BIi = βo + βι A + β SNi + β3 PBCi + ∑ βjDemθji + ɛ 4i ,

j=1

where, for individual i, BIi is observed behavioural intention; Ai is attitude toward
behaviour; SNi is subjective norm; PBCi is perceived behavioural control; Demo refers to
demographic characteristics (age, manager-director dummy variable, age, income); β, α, δ
and φ are parameters to be estimated; and εs are i.i.d. disturbance terms. The above
equations are estimated independently.

When the dependent variable takes more than two values, but these values have a
natural ordering, the ordered probit model is often appropriate (McKelvey and Zavoina,
1975). Since the dependent variable for behavioural intention is an ordinal response,
ordinary least squares may not be appropriate. Thus, an ordered probit model is proposed
to estimate the equation for behavioural intention.

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