Appendix I: List of Abbreviation - AU...

Table of Content

Appendix I: List of Abbreviation

Appendix II: List of Symbols

Appendix III: Control Mechanisms to Divergent Voting Right From Capital

Right of the Shareholder

Appendix IV: Owner Identity Analysis From La Porta. (1999)

Appendix V: Measurement Process of Valuation

Appendix VI: Study of Faccio & Lang (2002)

Appendix VII: Sample Selection Process in Orbis

Appendix VIII: 80 Firms Sample for Simple Stastics Analysis

Appendix IX: 40 Firms Sample for Regression Analysis

Appendix X: Regression Results

Appendix I: List of Abbreviation

BVLTA year-end book value of the firm’s long-term assets

BVSTA year-end book value of the short term assets

BVSTL year-end book value of the short term liabilities

BVTA year-end book value of total assets

CAPM Capital Asset Pricing Model

CAR Cumulated Abnormal Return

CR Capital Right

EBIT Earnings Before Interest expenses and Taxes

EPS Earnings Per Share

HINV year-end historical value of inventories

HNP year-end historical value of net plant

I the investment cost at time t

i the discount rate at time t, it is also the opportunity cost of capital.

LVPS liquidation value of preferred stock

M/B Market-to-Book ratio

MC Manager-controlled

MQ Marginal Tobin's Q

MV Market Value

MVCS year-end market value of outstanding common stock

MVD year-end market value of outstanding debt

MVPS year-end market value of outstanding preferred stock

NOPLAT Net Operating Profit less Adjusted Taxes

NPV Net Present Value

OC Owner-controlled

OLS Ordinary Least Squares

PV Present Value

Q Tobin's Q

Q CP Tobin’s Q estimated by Chung

Q LR Tobin's Q by Lindenberg

r the quasi-permanent rate of return.

RC year-end replacement costs of production capacity

RINV year-end replacement costs of inventories

RNP year-end replacement costs of net plant

ROA Returen on Assets

ROE Returen on Equity

SIC Standard Industrial Classification

VR Voting Right

Appendix II: List of Symbols

Adjusted R-square

R-square

AGELogarithm of the number of years between the observation year and firm

founding year

Beta_t Beta of the firm

DEBT Long-term debt divided by total assets

Dispersed_D Dummy variable of dispersed owner identity.

DIV Number of different SIC codes of two-digit groups the firm has

Family_D Dummy variable of family owner identity.

G_t Growth rate of the year-end book value of total assets

G_t-1 Growth rate of the year-end book value of total assets during the earlier year

Govern_D Dummy variable of government owner identity.

IND The first digit of the SIC code of the firm

Institution_D Dummy variable of institutional owner identity.

INV Net cash used by investing divided by the total assets

LIQ Net cash from operating activities divided by current liabilities

ROE_t Return on Equity

ROE_t-1 Profit before taxes divided by shareholder equity in the earlier year'

SIZE Logarithm of sales

SUMVR_23 Sum of the voting right of the second and third largest shareholders

Tobin's Q_t Tobin's Q ratio calculated according to Chung's methodology

Tobin's Q_t-1Tobin's Q ratio calculated according to Chung's methodology using data from the

earlier year

VR/CR_1 Ratio of the voting right of the largest shareholder divided by its cash flow right

VR_1 Voting right of the largest shareholer

��

��

Appendix III: Control Mechanisms to Divergent Voting Right From

Capital Right of the Shareholder

There are three mechanisms in diverging voting right from capital right: crossholding,

pyramiding and dual-class equity.

Crossholding defines the ownership situation where the firm A is controlled by another

firm, which is controlled by A (Faccio, 2002). So the firm controls its own stocks directly

and indirectly. According to Bebchuk & Morck (2000), companies in crossholding

structures are horizontally connected by the cross-holding of shares. The power of the

central controller is reinforced and entrenches by this connection.

Pyramiding is a sub form of control chains, where a shareholder control a second-tier

holding company that in turn controls that operating company, thus, the shareholder could

control the operating company through the control chain (Bebchuk & Morck, 2000).

Pyramids are the vertical control chain comparing with the crossholding which is more

resembles the horizontal control chain. Pyramids are found to be the most popular

mechanism for concentrating control at low equity involvement (La Porta et al, 1997).

Dual class equity allows managers to sell the stocks in the market while still retaining a

large portion of voting right by issuing different classes of shares with differential voting

rights to different investors (Bebchuk & Morck, 2000). The classes of the equity are one-

vote-one-share and shares with less or even no voting right. Dual-class equity is used to

retain the voting right after a private company goes public. According to Faccio (2002), the

dual class equity is not common in countries such as Belgium, Portugal and Spain, but it is

widely used in countries such as Sweden, Switzerland, Italy and South.

Shareholders also combined several kinds of control mechanisms to maintain the

controlling statue; this is defined as multiple control chain (Bertrand & Mullainathan,).

Appendix IV: Owner Identity Analysis From La Porta. (1999) Table 1 20 Largest Firms in 27 Countries Allocation to Different Owner Identities

Note: cutoff at 10%

Source: La Porta et al. 1999, p. 493

Appendix V: Measurement Process of Valuation

Tobin’s Q

There are two approaches for calculating Tobin’s q: by Lindenberg & Ross (1981) and

Chung & Pruitt (1994), respectively.

Lindenberg & Ross (1981) use the formula:

��

�

��

��

Where

��= Tobin’s Q by Lindenberg

��= year-end market value of outstanding financial claims,

�= year-end replacement costs of production capacity,

��= year-end market value of outstanding debt,

��= year-end market value of outstanding common stock,

��= year-end market value of outstanding preferred stock,

��= year-end book value of total assets,

��= year-end replacement costs of net plant,

��= year-end historical value of net plant,

��= year-end replacement costs of inventories, and

��= year-end historical value of inventories.

This formula uses the sum of market value of outstanding debt, common stock and

preferred stock to represent the market value of the firm and uses the sum of replacement

values of the fixed assets and inventories and the book values of the rest of the assets to

represent the total replacement costs of the production capacity. Other researchers further

developed or modified this approach with enhancements in data processing (Perfect &

Wiles 1995, Lewellen & Badrinath 1997, Lee & Tompkins 1999).

The other approach was based on the formula supported by. They estimated the Tobin’s Q

as the following formula:

��

��

Where

��= Tobin’s Q estimated by Chung

��= year-end market value of common stock

��= liquidation value of preferred stock

��= year-end book value of the firm’s long-term assets

��= year-end book value of the short term liabilities

��= year-end book value of the short term assets

��= year-end book value of the total assets of the firm

This Tobin’s Q calculation assumes that the replacement costs of the plant, equipment and

inventories are equal with their book values. And it proxy the market value of the debt as

the book value of long term debt plus the book value of the short term liabilities net the

book value of the short term assets.

Marginal Q

The assumption of the marginal q is that any investment should be estimated of its net

present value (NPV) before the implementation. The firm should only invest when the NPV

is positive, which means that the investment is value creating; otherwise, the firm is should

reject the investment because it will subtract value from the shareholders.

The present value of the investment and the return on a marginal investment (the

approximation of marginal q) could be expressed in the following formula:

��

�

��, ��

�

��

�

Where

��= the present value of the cash flows generated by the investment at time t

�= the investment cost at time t

�= the discount rate at time t, it is also the opportunity cost of capital.

�= the quasi-permanent rate of return.

Appendix VI: Study of Faccio & Lang (2002)

Faccio & Lang (2002) investigates the popularity of the control mechanisms and finds the

divergence level of 13 European countries.

Table 2 Percentage of Firms Using Different Control Mechanisms

Source: Faccio & Lang (2002), p.389

Faccio & Lang only include the 3,300 firms with controlling shareholders at the 20% level.

Pyramids report the percentage of firms whose largest controlling shareholder adopts

pyramids as control devices. Holdings through multiple control chains report the

percentage of firms whose largest controlling shareholder adopts at least 5% of holdings

through multiple control chains as control devices. Cross-holdings report the percentage of

firms whose largest controlling shareholder adopts cross-holdings as control devices.

Controlling owner alone reports the percentage of firms that have single controlling owners.

Management reports the percentage of firms whose top managers come from the largest

shareholder’s family. The table presents the percentage of firms controlled by different

controlling owners at the 20% threshold.

Country

Number of

firms Pyramids

Holdings

through

multiple

control chains

Cross-

holdings

Controlling

owner alone Management

Austria 88 20.78 6.49 1.14 81.82 80.00

Belgium 104 25.00 2.38 0.00 71.15 80.00

Finland 92 7.46 1.49 0.00 41.30 69.23

France 522 15.67 2.87 0.00 64.75 62.20

Germany 631 22.89 7.22 2.69 59.90 61.46

Ireland 26 9.09 0.00 0.00 42.31 77.78

Italy 181 20.27 8.78 1.13 58.76 70.00

Norway 98 33.90 20.34 2.04 38.78 66.67

Portugal 68 10.91 0.00 0.00 60.29 50.00

Spain 465 16.00 5.43 0.22 44.30 62.50

Sweden 149 15.91 0.00 0.67 48.32 73.47

Switzerland 155 10.91 0.91 0.00 68.39 70.00

UK 721 21.13 4.93 0.00 43.00 75.85

Total 3300 19.13 5.52 0.73 53.99 68.45

Table 3 Ratio of Capital to Voting Rights of the 13 Countries

Source: Faccio & Lang (2002), p392

Country

Number

of firms Mean

Standard

Deviation Median

1st

Quartile

3rd

Quartile

Austria 95 0.851 0.224 1000 0.704 1.000

Belgium 120 0.779 0.360 1000 0.596 1.000

Finland 119 0.842 0.246 1000 0.800 1.000

France 604 0.930 0.189 1000 1000 1.000

Germany 690 0.842 0.267 1000 0.709 1.000

Ireland 68 0.811 0.321 1000 0.683 1.000

Italy 204 0.743 0.337 0.971 0.548 1.000

Norway 149 0.776 0.341 1000 0.532 1.000

Portugal 86 0.924 0.218 1000 1000 1.000

Spain 610 0.941 0.178 1000 1000 1.000

Sweden 244 0.790 0.339 1000 0.526 1.000

Switzerland 189 0.740 0.290 0.830 0.468 1.000

UK 1,628 0.888 0.228 1000 0.907 1.000

Total 4,806 0.868 0.255 1000 0.852 1.000

Appendix VII: Sample Selection Process in Orbis Table 4 Sample Selection Process

Source: Orbis

Step result Search result

1. 84,390,344 84,390,344

2. 1,366 1,210

3. 3,745,830 1,167

4. 1,272,917 801

5. 8,517,659 742

6. 62,892 706

7. 86,932,760 574

TOTAL 574

Listed/Unlisted companies: Publicly listed

companiesType of entities: Industrial companies

Boolean search : 1 And 2 And 3 And 4 And 5 And 6 And 7

All active companies and companies with unknown

situation

Main stock exchange: OMX - Nordic Exchange

Copenhagen, OMX - Nordic Exchange Helsinki, OMX

- Nordic Exchange Stockholm, Oslo Bors

World region/Country/Region in country:

Denmark, Finland, Norway, Sweden

Accounting practice: IFRS (International Financial

Reporting Standards)

Total assets: All companies with a known value,

2010, 2009, 2008, for all the selected periods

Data update 14/08/2012 (n° 10251)

Username Aarhus Business School-6767

Export date 19-04-2012

Product name Orbis

Update number 102

Software version 127.00

Appendix VIII: 80 Firms Sample for Simple Stastics Analysis Table 5 80 Firms List

source: own make

The firms with a star mark are the ones that do not provide full information about their

ownership structure in the annual report.

Company Name Nation Company Name Nation

A.P. MOLLER - MAERSK A/S Denmark STATOIL ASA Norway

CARLSBERG A/S* Denmark TELENOR ASA Norway

TDC A/S Denmark NORSK HYDRO ASA Norway

NOVO NORDISK A/S* Denmark ORKLA ASA Norway

VESTAS WIND SYSTEMS A/S Denmark YARA INTERNATIONAL ASA Norway

DSV A/S* Denmark AKER ASA Norway

FLSMIDTH & CO. A/S* Denmark AKER SOLUTIONS ASA Norway

TORM A/S Denmark RENEWABLE ENERGY CORPORATION ASA Norway

H. LUNDBECK A/S* Denmark HAFSLUND ASA Norway

DFDS AS Denmark NORSKE SKOGINDUSTRIER ASA Norway

DAMPSKIBSSELSKABET NORDEN A/S Denmark BONHEUR ASA Norway

NOVOZYMES A/S* Denmark DOF ASA Norway

NKT HOLDING A/S* Denmark WILH. WILHELMSEN HOLDING ASA Norway

ROCKWOOL INTERNATIONAL A/S* Denmark MARINE HARVEST ASA Norway

CHR. HANSEN HOLDING A/S Denmark AUSTEVOLL SEAFOOD ASA Norway

GN STORE NORD AS Denmark PETROLEUM GEO-SERVICES ASA Norway

COPENHAGEN AIRPORTS A/S Denmark SCHIBSTED ASA Norway

COLOPLAST A/S Denmark SOLSTAD OFFSHORE ASA Norway

WILLIAM DEMANT HOLDING A/S Denmark SEVAN MARINE ASA Norway

AURIGA INDUSTRIES A/S Denmark ODFJELL ASA Norway

NOKIA OYJ Finland AB VOLVO Sweden

FORTUM OYJ Finland TELEFONAKTIEBOLAGET LM ERICSSON Sweden

UPM-KYMMENE OYJ Finland TELIASONERA AB Sweden

STORA ENSO OYJ Finland SVENSKA CELLULOSA AB SCA Sweden

NESTE OIL OYJ Finland SCANIA AB Sweden

METSO OYJ Finland SANDVIK AB Sweden

OUTOKUMPU OYJ Finland SKANSKA AB Sweden

WARTSILA OYJ Finland AB ELECTROLUX Sweden

KESKO OYJ Finland ATLAS COPCO AB Sweden

KONE OYJ Finland AB INDUSTRIVARDEN Sweden

SANOMA OYJ Finland SSAB AB Sweden

YIT OYJ Finland HENNES & MAURITZ AB Sweden

M-REAL OYJ Finland SKF AB Sweden

CARGOTEC OYJ Finland ASSA ABLOY AB Sweden

KEMIRA OYJ Finland HEXAGON AB Sweden

RAUTARUUKKI OYJ Finland SAS AB Sweden

FINNAIR OYJ Finland TELE2 AB Sweden

STOCKMANN OYJ ABP Finland BOLIDEN AB Sweden

ELISA OYJ Finland GETINGE AB Sweden

HUHTAMAKI OYJ Finland MEDA AB Sweden

Appendix IX: 40 Firms Sample for Regression Analysis Table 6 40 Firms List

Source: own make

Company Name Nation Company Name Nation

A.P. MOLLER - MAERSK A/S Denmark STATOIL ASA Norway

TDC A/S Denmark TELENOR ASA Norway

VESTAS WIND SYSTEMS A/S Denmark NORSK HYDRO ASA Norway

TORM A/S Denmark ORKLA ASA Norway

DFDS AS Denmark YARA INTERNATIONAL ASA Norway

DAMPSKIBSSELSKABET NORDEN A/S Denmark AKER ASA Norway

CHR. HANSEN HOLDING A/S Denmark AKER SOLUTIONS ASA Norway

GN STORE NORD AS Denmark RENEWABLE ENERGY CORPORATION ASA Norway

COPENHAGEN AIRPORTS A/S Denmark HAFSLUND ASA Norway

COLOPLAST A/S Denmark NORSKE SKOGINDUSTRIER ASA Norway

NOKIA OYJ Finland AB VOLVO Sweden

FORTUM OYJ Finland TELEFONAKTIEBOLAGET LM ERICSSON Sweden

UPM-KYMMENE OYJ Finland TELIASONERA AB Sweden

STORA ENSO OYJ Finland SVENSKA CELLULOSA AB SCA Sweden

NESTE OIL OYJ Finland SCANIA AB Sweden

METSO OYJ Finland SANDVIK AB Sweden

OUTOKUMPU OYJ Finland SKANSKA AB Sweden

WARTSILA OYJ Finland AB ELECTROLUX Sweden

KESKO OYJ Finland ATLAS COPCO AB Sweden

KONE OYJ Finland AB INDUSTRIVARDEN Sweden

Table 7 Variables for Regression

Source: own make

Company name Nation Q ROE G Beta SIZE DEBT INV LIQ AGE DIV IND Q_t-1 ROE_t-1 G_t-1 VR_1 VR/CR_1 SUMVR_23 F_D I_D G_D D_D

A.P. MOLLER - MAERSK

A/SD 0,77 29,95 0,08 1,17 17,55 0,24 0,07 0,83 3,87 0 4 0,86 10,02 -0,01 50,60 1,23 20,02 1

TDC A/S D 1,01 12,40 -0,25 0,45 15,06 0,36 0,06 2,00 3,00 0 4 1,03 13,79 0,14 59,10 1,00 12,00 1

VESTAS WIND SYSTEMS

A/SD 0,31 8,64 0,10 1,56 15,75 0,13 0,11 0,02 4,17 0 4 0,14 24,05 0,21 5,23 1,00 10,08 1

TORM A/S D 0,94 -12,22 0,10 1,25 13,37 0,54 0,06 0,00 4,80 0 4 0,92 -1,53 -0,06 32,20 1,00 26,30 1

DFDS AS D 0,77 8,63 0,48 0,38 14,09 0,29 0,11 0,26 4,97 2 4 1,07 0,54 0,06 36,00 1,00 40,50 1

DAMPSKIBSSELSKABET

NORDEN A/SD 0,33 12,55 0,19 0,88 14,31 0,01 0,17 1,25 4,93 0 4 0,10 12,44 -0,04 26,60 1,00 16,60 1

CHR. HANSEN HOLDING

A/SD 0,90 9,61 0,03 0,41 13,26 0,40 0,03 0,65 4,91 0 2 0,88 3,17 -0,03 59,60 1,00 8,00 1

GN STORE NORD AS D 0,32 38,99 0,37 0,96 13,44 0,11 0,04 0,39 4,95 0 4 0,74 -0,02 -0,11 11,90 1,00 9,90 1

COPENHAGEN

AIRPORTS A/SD 0,87 35,27 0,07 0,11 12,98 0,41 0,03 1,68 4,44 0 4 0,97 25,68 0,05 53,70 1,00 43,10 1

COLOPLAST A/S D 0,43 48,49 -0,03 0,45 14,06 0,20 0,04 0,86 4,03 0 3 0,43 42,49 0,00 39,40 2,12 14,70 1

NOKIA OYJ F 0,07 12,42 0,09 1,03 17,56 0,11 0,06 0,27 4,98 2 3 0,11 7,35 -0,10 1,30 1,01 2,03 1

FORTUM OYJ F 1,06 19,67 0,11 0,74 15,66 0,30 0,05 0,42 4,13 3 4 1,00 20,36 -0,02 50,76 1,00 2,57 1

UPM-KYMMENE OYJ F 0,72 8,95 0,02 1,12 16,00 0,26 0,01 0,55 2,64 0 2 0,74 2,84 -0,01 3,53 1,00 3,76 1

STORA ENSO OYJ F 0,61 14,93 0,12 1,18 16,15 0,25 0,03 0,32 2,48 1 2 0,69 -17,31 -0,05 27,20 2,69 35,20 1

NESTE OIL OYJ F 0,58 12,26 0,17 1,15 16,29 0,28 0,14 0,58 4,13 0 2 0,55 13,39 0,21 50,10 1,00 4,40 1

METSO OYJ F 0,28 18,06 0,09 1,36 15,53 0,15 0,05 0,17 2,40 1 3 0,29 12,45 0,04 10,40 1,00 6,10 1

OUTOKUMPU OYJ F 0,47 -6,03 0,16 0,58 15,26 0,26 0,03 -0,32 4,36 0 3 0,61 -19,34 -0,09 30,80 1,00 12,70 1

WARTSILA OYJ F 0,17 33,45 0,01 1,16 15,33 0,12 -0,02 0,30 5,17 0 3 0,21 37,23 -0,02 17,08 1,00 7,03 1

KESKO OYJ F 0,28 14,52 0,09 0,77 15,99 0,06 0,06 0,27 4,23 1 5 0,30 10,80 -0,01 8,88 2,54 13,92 1

KONE OYJ F 0,31 44,67 0,14 0,82 15,42 0,01 0,04 0,51 1,61 0 3 0,31 44,43 0,07 61,39 3,02 3,45 1

STATOIL ASA N 0,78 62,32 0,21 0,97 18,02 0,16 0,12 0,56 3,64 2 1 0,80 57,93 0,14 67,00 1,00 5,63 1

TELENOR ASA N 0,93 23,00 0,11 0,68 16,31 0,15 0,09 0,62 4,71 1 4 0,92 19,48 0,04 53,97 1,00 8,48 1

NORSK HYDRO ASA N 0,37 6,59 0,22 1,36 16,08 0,00 0,07 0,40 4,65 3 3 0,49 2,96 -0,05 43,70 1,00 8,80 1

ORKLA ASA N 0,13 0,04 -0,02 0,85 15,81 0,25 0,02 0,26 5,87 2 3 0,31 2,21 0,06 23,20 1,00 16,10 1

YARA INTERNATIONAL

ASAN 0,50 31,77 0,13 1,13 15,94 0,17 -0,01 0,57 4,70 1 2 0,60 12,11 -0,11 36,20 1,00 9,10 1

AKER ASA N 0,83 9,16 0,05 1,07 13,78 0,43 -0,01 0,15 5,13 0 1 0,86 -16,15 0,04 66,66 1,00 4,30 1

AKER SOLUTIONS ASA N 0,34 23,17 0,07 1,74 15,59 0,19 0,05 0,11 1,79 0 3 0,38 35,74 0,09 40,27 1,00 7,80 1

RENEWABLE ENERGY

CORPORATION ASA -

REC

N 0,72 8,21 0,15 1,56 14,38 0,23 0,12 0,76 2,64 0 4 0,74 -14,69 0,32 39,74 1,00 11,80 1

HAFSLUND ASA N 0,67 1,73 0,08 0,33 14,52 0,35 0,05 0,10 4,72 0 4 0,71 5,16 0,11 58,50 1,09 37,30 1

NORSKE

SKOGINDUSTRIER ASAN 0,91 -32,68 -0,06 1,89 14,70 0,40 -0,01 0,08 3,87 0 2 0,91 -8,50 -0,14 5,74 1,00 7,47 1

AB VOLVO S 0,50 21,22 0,09 1,38 17,20 0,26 0,01 0,25 4,55 2 3 0,47 -30,98 -0,05 17,50 2,57 16,60 1

TELEFONAKTIEBOLAGE

T LM ERICSSONS -0,01 10,87 0,19 0,92 16,94 0,10 0,04 0,27 4,90 2 3 0,03 4,46 0,00 19,33 3,86 17,32 1

TELIASONERA AB S 0,87 23,78 0,06 0,78 16,29 0,24 0,07 0,84 2,08 0 4 0,84 20,40 0,08 37,30 1,00 16,80 1

SVENSKA CELLULOSA

AB SCAS 0,80 11,24 0,09 0,76 16,31 0,16 0,03 0,30 4,39 1 2 0,79 9,75 0,00 29,33 3,01 19,07 1

SCANIA AB S 0,46 41,73 0,14 1,26 15,98 0,22 0,02 0,46 4,70 1 4 0,57 6,88 -0,05 70,94 1,55 18,39 1

SANDVIK AB S 0,28 28,89 0,12 1,41 16,04 0,26 0,05 0,49 5,00 1 3 0,29 -11,98 -0,06 11,70 1,00 9,00 1

SKANSKA AB S 0,10 26,24 0,09 0,95 16,43 0,01 0,05 0,12 4,81 3 1 0,08 25,35 0,03 28,40 3,64 9,00 1

AB ELECTROLUX S 0,23 25,74 0,16 1,08 16,29 0,11 0,06 0,21 4,69 5 3 0,21 18,49 0,05 29,90 2,20 12,10 1

ATLAS COPCO AB S -0,02 46,31 0,21 1,18 15,87 0,27 0,04 0,57 4,92 2 3 0,08 32,42 -0,05 22,30 1,33 5,04 1

AB INDUSTRIVARDEN S 1,05 26,40 0,52 1,23 11,94 0,16 0,04 0,30 4,19 0 6 1,06 48,58 0,59 16,70 1,38 21,10 1

Appendix X: Regression Results Table 8 Regression Result on Tobin's Q

Source: SAS regression

Linear Regression ResultsThe REG Procedure

Model: Linear_Regression_Model

Dependent Variable: Tobin's Q_2010

Number of Observations Read 40

Number of Observations Used 40

Note: No intercept in model. R-Square is redefined.

Sum of Mean

Squares Square

Model 15 1.534.784 102.319 104.34 <.0001

Error 25 0.24515 0.00981

Uncorrected Total 40 1.559.299

Root MSE 0.09902 R-Square 0.9843

Dependent Mean 0.54116 Adj R-Sq 0.9748

Coeff Var 1.829.850

Paramet

er Standard

Estimate Error

VR_1 1 0.00144 0.00134 1.08 0.2913

VR/CR_1 1 0.01974 0.03491 0.57 0.5767

SUMVR_23 1 -0.00296 0.00213 -1.39 0.1782

family 1 -0.05258 0.35445 -0.15 0.8833

institution 1 0.03429 0.34084 0.10 0.9207

govern 10.00075026 0.35294 0.00 0.9983

dispersed 1 0.11351 0.37463 0.30 0.7644

SIZE 1 -0.00646 0.01844 -0.35 0.7291

DEBT 1 0.24812 0.21683 1.14 0.2633

INV 1 107.440 0.48294 2.22 0.0354

LIQ 1 0.01340 0.04456 0.30 0.7661

AGE 1 -0.02117 0.01920 -1.10 0.2808

DIV 1 -0.00712 0.01869 -0.38 0.7066

IND 1 0.00991 0.01919 0.52 0.6101

tobin's Q_2009 1 0.89810 0.08833 10.17 <.0001

Variable DF t Value Pr > |t|

Analysis of Variance

Source DF F Value Pr > F

Parameter Estimates

Table 9 Regression Result on ROE




Dependent Variable: ROE_2010




Sum of Mean

Squares Square

Model 15 22295 148.635.056 8.53 <.0001

Error 25 435.506.973 17.420.279

Uncorrected Total 40 26650

Root MSE 1.319.859 R-Square 0.8366

Dependent Mean 1.902.350 Adj R-Sq 0.7385

Coeff Var 6.938.045

Parameter Standard

Estimate Error

VR_1 1 -0.03022 0.16577 -0.18 0.8568

VR/CR_1 1 494.849 448.185 1.10 0.2801

SUMVR_23 1 -0.05516 0.27944 -0.20 0.8451

family 1 -4769255 4459167 -1.07 0.2950

institution 1 -5.145.231 4.322.745 -1.19 0.2451

govern 1 -5146164 4371939 -1.18 0.2502

dispersed 1 -7021672 4641674 -1.51 0.1429

SIZE 1 396.244 231.396 1.71 0.0992

DEBT 1 -2.457.021 2.821.241 -0.87 0.3921

INV 1 -7.922.533 6.319.379 -1.25 0.2216

LIQ 1 1.024.596 592.870 1.73 0.0963

AGE 1 219.809 244.692 0.90 0.3776

DIV 1 -0.89773 244.674 -0.37 0.7168

IND 1 -0.23737 253.260 -0.09 0.9261

ROE_2009 1 0.41496 0.13171 3.15 0.0042



Parameter Estimates


Table 10 Regression Results on Growth




Dependent Variable: G_2010




Sum of Mean

Squares Square

Model 15 0.96486 0.06432 6.08 <.0001

Error 25 0.26447 0.01058

Uncorrected Total 40 122.933



Coeff Var 8.658.656

Paramet

er Standard

Estimate Error

VR_1 1 -0.00120 0.00130 -0.92 0.3647

VR/CR_1 1 0.00303 0.03483 0.09 0.9314

SUMVR_23 1 0.00298 0.00216 1.38 0.1802

family 1 0.58516 0.34646 1.69 0.1037

institution 1 0.51660 0.34133 1.51 0.1427

govern 1 0.57419 0.34329 1.67 0.1069

dispersed 1 0.46325 0.36639 1.26 0.2178

SIZE 1 -0.02875 0.01863 -1.54 0.1354

DEBT 1 -0.29913 0.20735 -1.44 0.1615

INV 1 0.69663 0.52362 1.33 0.1954

LIQ 1 -0.09991 0.04653 -2.15 0.0416

AGE 1 0.01960 0.01995 0.98 0.3354

DIV 1 0.01945 0.01901 1.02 0.3161

IND 1-0.00027080 0.02037 -0.01 0.9895

G_2009 1 0.22196 0.16408 1.35 0.1882



Parameter Estimates


Table 11 Regression Results on Beta




Dependent Variable: risk_2010




Sum of Mean

Squares Square

Model 14 4.359.111 311.365 32.11 <.0001

Error 26 252.106 0.09696

Uncorrected Total 40 4.611.217



Coeff Var 3.112.613

Paramet

er Standard

Estimate Error

VR_1 1 -0.00420 0.00383 -1.10 0.2834

VR/CR_1 1 -0.11796 0.10544 -1.12 0.2735

SUMVR_23 1 -0.00887 0.00653 -1.36 0.1860

family 1 0.79175 102152 0.78 0.4453

institution 1 113364 0.99406 1.14 0.2645

govern 1 0.73604 100746 0.73 0.4716

dispersed 1 0.93066 107103 0.87 0.3928

SIZE 1 0.07604 0.05393 1.41 0.1704

DEBT 1 -0.16519 0.62473 -0.26 0.7935

INV 1 0.59790 148.955 0.40 0.6914

LIQ 1 -0.40998 0.13861 -2.96 0.0065

AGE 1 -0.11368 0.05707 -1.99 0.0570

DIV 1 -0.01954 0.05754 -0.34 0.7369

IND 10.00073588 0.05962 0.01 0.9902

Parameter Estimates




Appendix I: List of Abbreviation - AU...

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Transcript of Appendix I: List of Abbreviation - AU...