Descriptive statistics

From the following table we can observe that, about 34.19% of the industries were other type

of industries.

Industry Freq. Percent Cum.

Banks 90 0.80 0.80

Chemicals, rubber, plastics, non-meta.. 531 4.74 5.54
Construction 612 5.46 11.00
Education, Health 405 3.61 14.61
Food, beverages, tobacco 477 4.25 18.86
Gas, Water, Electricity 144 1.28 20.14
Hotels & restaurants 405 3.61 23.76
Machinery, equipment, furniture, recy.. 828 7.38 31.14
Metals & metal products 513 4.57 35.71
Other services 3,834 34.19 69.90
Post & telecommunications 108 0.96 70.87
Primary sector 423 3.77 74.64
Publishing, printing 324 2.89 77.53
Textiles, wearing apparel, leather 72 0.64 78.17
Transport 477 4.25 82.42
Wholesale & retail trade 1,863 16.61 99.04
Wood, cork, paper 108 0.96 100.00

Total 11,214 100.00

From the following table we can observe that, about 84.44% of the industries were medium

sized companies.

Size classification Freq. Percent Cum.

Medium sized company 9,477 84.44 84.44

Small company 1,746 15.56 100.00

Total 11,223 100.00

From the following table we can observe that, about 11.1% of the reports were equally from

the year 2009 - 2017.

 Reporting
Year Freq. Percent Cum.

2009 1,247 11.11 11.11

2010 1,247 11.11 22.22
2011 1,247 11.11 33.33
2012 1,247 11.11 44.44
2013 1,247 11.11 55.56
2014 1,247 11.11 66.67
2015 1,247 11.11 77.78
2016 1,247 11.11 88.89
2017 1,247 11.11 100.00

Total 11,223 100.00

From the following table we can observe that, the mean age of industries was 17.22 years

ranging from 0 to 66 years.

Variable Obs Mean Std. Dev. Min Max

age 11223 17.22294 10.85236 0 66

Age

Percentiles Smallest
1% 2 0
5% 4 0
10% 6 0 Obs 11223
25% 9 0 Sum of Wgt. 11223

50% 15 Mean 17.22294

Largest Std. Dev. 10.85236
75% 22 65
90% 32 65 Variance 117.7737
95% 39 66 Skewness 1.201749
99% 53 66 Kurtosis 4.74217

From the following table we can observe that, the mean number of employees was 35.02
ranging from 1 to 15166.

Variable Obs Mean Std. Dev. Min Max

numberofem~s 11204 35.01687 151.2475 1 15166

 Number of employees

Percentiles Smallest
1% 1 1
5% 2 1
10% 4 1 Obs 11204
25% 9 1 Sum of Wgt. 11204

50% 20 Mean 35.01687

Largest Std. Dev. 151.2475
75% 42 1017
90% 76 1310 Variance 22875.82
95% 104 1437 Skewness 89.71203
99% 176 15166 Kurtosis 8943.745

From the following table we can observe that, the mean turnover was 3746.81 ranging from 1

to 193687.

Variable Obs Mean Std. Dev. Min Max

operatingr~r 11184 3746.813 6346.353 1 193687

Operating revenue (Turnover)

Percentiles Smallest
1% 33 1
5% 180 1
10% 353 1 Obs 11184
25% 935 1 Sum of Wgt. 11184

50% 2424.5 Mean 3746.813

Largest Std. Dev. 6346.353
75% 5094.5 168964
90% 8090 169797 Variance 4.03e+07
95% 9990 171073 Skewness 14.79626
99% 17714 193687 Kurtosis 341.4867

From the following table we can observe that, the mean total asset was 3701.406 years

ranging from 1 to 94616.

Variable Obs Mean Std. Dev. Min Max

totalassets 11221 3701.406 5051.332 1 94612

 Total assets

Percentiles Smallest
1% 50 1
5% 170 1
10% 313 2 Obs 11221
25% 823 2 Sum of Wgt. 11221

50% 2047 Mean 3701.406

Largest Std. Dev. 5051.332
75% 4730 68485
90% 8586 70193 Variance 2.55e+07
95% 12581 83127 Skewness 4.749726
99% 22590 94612 Kurtosis 46.09811

From the following table we can observe that, the mean book value was 2730.668 ranging

from -47776 to 106734.

Variable Obs Mean Std. Dev. Min Max

bookvalue 11223 2730.668 6041.307 -47776 106734

Book Value

Percentiles Smallest
1% -8816 -47776
5% -1324 -34568
10% -148 -33161 Obs 11223
25% 237 -32201 Sum of Wgt. 11223

50% 1213 Mean 2730.668

Largest Std. Dev. 6041.307
75% 3529 83357
90% 7968 90249 Variance 3.65e+07
95% 12119 92705 Skewness 3.665066
99% 26362 106734 Kurtosis 41.63988

From the following table we can observe that, the mean book leverage ratio was 0.25 ranging

from -1041.5 to 2.143.

Variable Obs Mean Std. Dev. Min Max

booklevera~o 11221 .2586659 14.40831 -1041.5 2.142857

 Book Leverage Ratio

Percentiles Smallest
1% -6.574785 -1041.5
5% -.9265968 -1037.75
10% -.1601286 -245.1765 Obs 11221
25% .2839506 -102.55 Sum of Wgt. 11221

50% .7643678 Mean .2586659

Largest Std. Dev. 14.40831
75% 1.259259 2.016667
90% 1.598039 2.023809 Variance 207.5995
95% 1.761905 2.030303 Skewness -67.63233
99% 1.948067 2.142857 Kurtosis 4845.36

From the following table we can observe that, the mean number of shareholders was 2.251
years ranging from 1 to 227.

Variable Obs Mean Std. Dev. Min Max

noofshareh~s 11223 2.251002 7.457155 1 227

No of shareholders

Percentiles Smallest
1% 1 1
5% 1 1
10% 1 1 Obs 11223
25% 1 1 Sum of Wgt. 11223

50% 1 Mean 2.251002

Largest Std. Dev. 7.457155
75% 2 227
90% 4 227 Variance 55.60915
95% 5 227 Skewness 24.35685
99% 10 227 Kurtosis 688.5573

From the following table we can observe that, the mean major shareholder – Max
ownership% was 87.63 years ranging from 0 to 100.
Variable Obs Mean Std. Dev. Min Max

majorshare~p 10982 87.62889 22.16087 0 100

 Major Shareholder - Max Ownership %

Percentiles Smallest
1% 11 0
5% 45 0
10% 50 0 Obs 10982
25% 83 0 Sum of Wgt. 10982

50% 100 Mean 87.62889

Largest Std. Dev. 22.16087
75% 100 100
90% 100 100 Variance 491.1039
95% 100 100 Skewness -1.720348
99% 100 100 Kurtosis 5.022146

From the following table we can observe that, about 75.06% of the shareholders of corporate

type.

Major Shareholder Type Freq. Percent Cum.

Bank 71 0.63 0.63

Corporate 8,402 75.06 75.70
Employees, managers, directors 27 0.24 75.94
Financial company 556 4.97 80.91
Foundation, research Institute 17 0.15 81.06
Insurance company 62 0.55 81.61
Mutual and pension fund, nominee, tru.. 231 2.06 83.68
One or more named individuals or fami.. 1,649 14.73 98.41
Other unnamed shareholders, aggregated 18 0.16 98.57
Private equity firm 55 0.49 99.06
Public authority, state, government 18 0.16 99.22
Self ownership 1 0.01 99.23
Unnamed private shareholders, aggrega.. 8 0.07 99.30
Venture capital 78 0.70 100.00

Total 11,193 100.00

From the following table we can observe that, the mean number of employees in medium
sized companies was 38.42, mean operating revenue was 4152.98, mean total assets was
4148.88, the mean book value was 3196.492 and leverage ratio was 0.62. In the small sized
companies, the mean number of employees was 16.51, mean operating revenue was 1511.94,
mean total assets was 1269.802, the mean book value was 202.252 and leverage ratio was
1.90.
-> sizeclassification = Medium sized company

Variable Obs Mean Std. Dev. Min Max

numberofem~s 9464 38.41885 162.781 1 15166

operatingr~r 9464 4152.981 5833.187 1 193687
totalassets 9477 4148.88 5117.248 2 94612
bookvalue 9477 3196.492 6327.414 -47776 106734
booklevera~o 9477 .6197688 1.90327 -84.42857 2.142857

-> sizeclassification = Small company

Variable Obs Mean Std. Dev. Min Max

numberofem~s 1740 16.51322 52.67507 1 847

operatingr~r 1720 1511.94 8294.599 1 169797
totalassets 1744 1269.802 3857.692 1 67001
bookvalue 1746 202.252 3118.722 -29224 31893
booklevera~o 1744 -1.703589 36.22291 -1041.5 2.030303

The correlation coefficient between the leverage ratio and number of employees was 0.0039,

operating revenue was 0.014, total asset was 0.0239 and book value was 0.064.

number~s operat~r totala~s bookva~e bookle~o

numberofem~s 1.0000
operatingr~r 0.0944 1.0000
totalassets 0.0926 0.4454 1.0000
bookvalue 0.0521 0.1887 0.6609 1.0000
booklevera~o 0.0039 0.0140 0.0239 0.0640 1.0000

Regression

In order find the association between the leverage ratio and other variables, a regression

analysis was conducted by using STATA.

 Source SS df MS Number of obs = 11202
F( 8, 11193) = 6.25
Model 10325.2161 8 1290.65201 Prob > F = 0.0000
Residual 2310295.51 11193 206.405388 R-squared = 0.0044
Adj R-squared = 0.0037
Total 2320620.73 11201 207.179781 Root MSE = 14.367

bookleverageratio Coef. Std. Err. t P>|t| [95% Conf. Interval]

age .0136304 .013579 1.00 0.316 -.0129868 .0402476

Size -2.096496 .3929936 -5.33 0.000 -2.866833 -1.326159
Industry1 -.0538408 .0325072 -1.66 0.098 -.1175607 .009879
totalassets .0000248 .000028 0.89 0.375 -.00003 .0000797
numberofemployees -.0000243 .0009026 -0.03 0.979 -.0017936 .001745
Country1 .025075 .0275391 0.91 0.363 -.0289066 .0790565
Majorshareholder~e .029995 .056049 0.54 0.593 -.0798709 .1398609
reportingyear -.1344041 .054358 -2.47 0.013 -.2409552 -.0278529
_cons 273.1712 109.3793 2.50 0.013 58.76854 487.5738

The coefficient between the leverage ratio and size and year was negative and

significant. Age, total assets, country and major share holders type was positive but not

significant. Industry and number of employees was negative and non significant.