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In the pictures below, there are the details of the analysis - it is about quantitative methods. The main topic is if a firm size

In the pictures below, there are the details of the analysis - it is about quantitative methods.

The main topic is if a firm size matter for firm performance.

  • How do we interpret the ANOVA below? All the variables are also included in the picture below (dependent and independent).
  • What regression model can we used? Can we use the OLS? If yes, how? Simple or multiple regression model?
  • Properly present the econometric estimates and evaluate the model performance in terms of goodness of fit and diagnostic tests.
  • Interpret the estimated coefficients, and describe whether they correspond to your expectations in light of the literature/theories
  • Discuss the results of other specification tests, hypothesis tests, robustness analysis (if you have conducted any) and report your findings.
  • Does the estimated equation support the theory on which it is based or the rationale in your mind? What explains any discrepancy between theory and empirics?

image text in transcribedimage text in transcribed
This below the summary output, what does it mean? SUMMARY OUTPUT Regression Statistics Multiple R 0,255439137 R Square 0,065249153 Adjusted R Square 0,046041943 Standard Error 2,888403065 Observations 299 ANOVA df SS MS F ignificance F Regression 6 170,0503202 28,34172 3,397118 0,002961 Residual 292 2436,118702 8,342872 Total 298 2606,169022 Coefficients Standard Error t Stat P-value Lower 95% Upper 95% ower 95.0%Upper 95.0% Intercept -0,049538234 1,361245498 -0,03639 0,970995 -2,72863 2,629558 -2,72863 2,629558 Itassets 1,072892553 0,350154343 3,064056 0,002387 0,383746 1,762039 0,383746 1,762039 gapgrowth -0,158186042 0,060112247 -2,63151 0,008952 -0,27649 -0,03988 -0,27649 -0,03988 debtassets 0,019618865 0,188217929 0,104235 0,917055 -0,35082 0,390055 -0,35082 0,390055 roa -0,019330197 0,034872509 -0,55431 0,579791 -0,08796 0,049303 -0,08796 0,049303 liquidity -0,005677272 0,030363426 -0,18698 0,851808 -0,06544 0,054082 -0,06544 0,054082 lemployee -1,655387146 0,443548546 -3,73214 0,000228 -2,52834 -0,78243 -2,52834 -0,78243Based on the below dataset - write an empirical project on 'Does firm size matter for firm performance'. The information contained in the data has been extracted from the DataStream database and all the variables are the latest available and have been constructed and cleaned so they are ready for you to use. Table 1: An overview of the dataset Prox Sales _rowth of the firm Log of total assets . erformance Firm size GDP rowth of a count Debt over total assets ratio Return on Assets Assets over liabilities Log of number of total employees of the firm Employee Note: Dependent Variable: Firm performance Independent variable: Firm size Control variables-GDP growth, leverage, ROA, liquidity, employee

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