The Effect of Profitability, Board Size, Woman on Boards, and Political Connection on Financial Distress Conditions

Figures & data

Figure 1. Research conceptual framework.

Table

r	=	Correlation value
X	=	Variable X
Y	=	Variable Y

Table 1. Description of variable

Data		Variable—Description
i	=	Data cross-section company
t	=	Data time series company
ROA	=	Profitabilitas
BZ	=	Board Size
WOMC	=	Woman on Board of Commissioner
WOMD	=	Woman on Board of Director
PC	=	Political Connection
FD	=	Financial Distress
α	=	Constant
β1, β2, β3, β4, β5	=	Variable regression coeff. FD, ROA, BZ, WOMC, WOMD, PC
є	=	Error

Table 2. Descriptive statistics

Variables	Obs	Mean	Std. Dev.	Min.	Max.	p1.	p99.	Skew.	Kurt.
FD	145	2.257	2.759	.144	16.079	.155	15.308	2.461	10.502
ROA	145	.085	.080	.001	.467	.003	.370	2.036	8.198
BZ	145	5.959	2.048	300	120	300	100	.402	2.671
WOMC	145	.081	.116	000	.429	000	.429	1.168	3.261
WOMD	145	.124	.179	000	.667	000	.667	1.788	5.469
PC	145	.897	.306	000	100	000	100	−2.604	7.782

Table 3. Test of Pearson correlation

Variable	(1)	(2)	(3)	(4)	(5)	(6)
(1) FD	1.000
(2) ROA	−0.369	1.000
	(0.000)
(3) BZ	0.288	−0.259	1.000
	(0.000)	(0.002)
(4) WOMC	−0.060	0.121	0.204	1.000
	(0.477)	(0.147)	(0.014)
(5) WOMD	−0.022	0.422	−0.260	−0.108	1.000
	(0.791)	(0.000)	(0.002)	(0.198)
(6) PC	0.202	0.042	0.237	−0.007	0.114	1.000
	(0.015)	(0.615)	(0.004)	(0.936)	(0.173)
(1) FD	1.000
(2) ROA	−0.369*	1.000
(3) BZ	0.288*	−0.259*	1.000
(4) WOMC	−0.060	0.121	0.204	1.000
(5) WOMD	−0.022	0.422*	−0.260*	−0.108	1.000
(6) PC	0.202	0.042	0.237*	−0.007	0.114	1.000

*** p < 0.01, ** p < 0.05, * p < 0.1

Table 4. Testing the goodness-of-fit model

	(Model 1)	(Model 2)	(Model 3)	(Model 4)
VARIABLES	OLS	Fixed Effects	Random Effects	Robust
ROA	−13.617***	−13.833***	−13.617***	−13.617***
	(2.959)	(3.038)	(2.959)	(3.553)
	0.000	0.000	0.000	0.000
BZ	.273**	.273**	.273**	.273***
	(.113)	(.114)	(.113)	(.098)
	0.017	0.018	0.016	0.006
WOMC	−.789	−.767	−.789	−.789
	(1.859)	(1.886)	(1.859)	(1.337)
	0.672	0.685	0.671	0.556
WOMD	2.716**	2.804**	2.716**	2.716**
	(1.312)	(1.349)	(1.312)	(1.088)
	0.040	0.040	0.039	0.014
PC	1.36*	1.357*	1.36*	1.36***
	(.705)	(.715)	(.705)	(.33)
	0.056	0.060	0.054	0.000
Constant	.305	.314	.305	.305
	(.865)	(.877)	(.865)	(.594)
Observations	145	145	145	145
R-squared	.232	.233		.232
Number of YEAR		5	5
Country FE		YES
Country RE			YES

Standard errors in parentheses *** p < 0.01, ** p < 0.05, and * p < 0.1

Table

Variables	Obs	Mean	Std. Dev.	Min	Max	p1	p99	Skew.	Kurt.
Y	145	2.257	2.759	.144	16.079	.155	15.308	2.461	10.502
X1	145	.085	.08	.001	.467	.003	.37	2.036	8.198
X2	145	5.959	2.048	3	12	3	10	.402	2.671
X3	145	.081	.116	0	.429	0	.429	1.168	3.261
X4	145	.124	.179	0	.667	0	.667	1.788	5.469
X5	145	.897	.306	0	1	0	1	−2.604	7.782

Table

Variables	(1)	(2)	(3)	(4)	(5)	(6)
(1) Y	1.000
(2) X1	−0.369	1.000
	(0.000)
(3) X2	0.288	−0.259	1.000
	(0.000)	(0.002)
(4) X3	−0.060	0.121	0.204	1.000
	(0.477)	(0.147)	(0.014)
(5) X4	−0.022	0.422	−0.260	−0.108	1.000
	(0.791)	(0.000)	(0.002)	(0.198)
(6) X5	0.202	0.042	0.237	−0.007	0.114	1.000
	(0.015)	(0.615)	(0.004)	(0.936)	(0.173)

Table

Variables	(1)	(2)	(3)	(4)	(5)	(6)
(1) Y	1.000
(2) X1	−0.369*	1.000
(3) X2	0.288*	−0.259*	1.000
(4) X3	−0.060	0.121	0.204	1.000
(5) X4	−0.022	0.422*	−0.260*	−0.108	1.000
(6) X5	0.202	0.042	0.237*	−0.007	0.114	1.000

*** p < 0.01, ** p < 0.05, * p < 0.1

Table

	(Pooled Least Square (PLS)	(Fixed Effect Model (FE)	(Random Effect Model (RE)	(Robust)
	Financial Distress	Financial Distress	Financial Distress	Financial Distress
X1	−13.617***	−13.833***	−13.617***	−13.617***
	(2.959)	(3.038)	(2.959)	(3.553)
	0.000	0.000	0.000	0.000
X2	.273**	.273**	.273**	.273***
	(.113)	(.114)	(.113)	(.098)
	0.017	0.018	0.016	0.006
X3	−.789	−.767	−.789	−.789
	(1.859)	(1.886)	(1.859)	(1.337)
	0.672	0.685	0.671	0.556
X4	2.716**	2.804**	2.716**	2.716**
	(1.312)	(1.349)	(1.312)	(1.088)
	0.040	0.040	0.039	0.014
X5	1.36*	1.357*	1.36*	1.36***
	(.705)	(.715)	(.705)	(.33)
	0.056	0.060	0.054	0.000
_cons	.305	.314	.305	.305
	(.865)	(.877)	(.865)	(.594)
Observations	145	145	145	145
R-squared	.232	.233	.z	.232

Standard errors are in parentheses *** p < .01, ** p < .05, * p < .1

Data Availability Statement

The study did not involve any data sets, and the articles collected were sourced from https://www.scopus.com/home.uri, accessed in 2022 and https://scholar.google.com/, accessed in 2022.