An Empirical Analysis of Firm-Specific Factors and Equity Premium: Evidence from Manufacturing Sector of Pakistan

Table 7

Estimated results of equity premium: robustness analysis.

Variable	(1)	(2)	(3)	(4)	(5)	(6)
Constant	−0.165	−0.151	−0.15	−0.167	−0.173	−0.178
Market premium	0.551	0.352	0.331	0.401	0.468	0.501
	(24.656)	(7.123)	(9.324)	(12.198)	(16.876)	(20.159)
Return on equity	0.003	0.002	0.002	0.002	0.003	0.003
	(1.814)	(1.711)	(1.804)	(1.81)	(1.811)	(1.814)
Quick ratio	0.003		0.001	0.001	0.002	0.003
	−0.932		−0.811	−0.882	−0.901	−0.913
Dividend payout ratio	0.001			0.001	0.001	0.001
	(1.952)			(1.943)	(1.949)	(1.951)
Debt-to-equity ratio	0.00				0.000	0.000
	(−1.190)				(−1.190)	(−1.284)
A/R turnover (days)	0.027					0.025
	(3.402)					(2.398)
Size	0.009
	(1.800)
R-squared	0.194	0.112	0.134	0.14	0.165	0.179
Adj R-squared	0.193	0.123	0.139	0.148	0.166	0.181
SE of regression	0.564	0.432	0.459	0.484	0.501	0.588
F-statistic	94.768	88.132	88.977	90.373	92.118	93.631
Prob (F-statistic)	0	0	0	0	0	0
Durbin–Watson statistic	2.152	2.322	2.341	2.202	2.2	2.152

Note. , , and indicate that variable is significant at 1%, 5%, and 10% levels of significance.