Regression Model:

Log of Total Notional ᵢ t = β0 + + β1Financial Distress ᵢ t + β2Underinvestment Cost ᵢ t + + β3Firm Size ᵢ t +

β4Liquidity ᵢ t + β5Profitability ᵢ t + ε ᵢ t

Using Proxy Variable:

LNOTION= C+LTD_TE+CE_TA+LTA+QR+ROE

Co-efficient values Values:

LNOTION= -2.649+.003 LTD_TE** + 0.04 CE_TA*** + 0.961 LTA*** + 0.032 QR- 0.001 ROE

# Here,

** Indicates Significant at 5% level

*** Indicates Significant at 1% level