I have examined the micro level determinants of external commercial borrowing by non financial Indian firms for the study period 2004-2020 by applying the random effect logit panel model. Number of sample firms are 545 who have taken ECB during the study period. I have taken only those firm who have raised ECB at least twice during the study period.
Dependent variable in the study is binary as it takes value one when firm raise ECB in a particular year or otherwise zero.
There are 9 independent variables such as firm size, asset tangibility, profitability, foreign earning, foreign spending, sales growth, age, leverage, liquidity. lagged values of independent variables have been taken in the model.
I have also included time dummies and cluster at firm level.
Is this methodology correct to know the micro level determinants of ECB in India
Dependent variable in the study is binary as it takes value one when firm raise ECB in a particular year or otherwise zero.
There are 9 independent variables such as firm size, asset tangibility, profitability, foreign earning, foreign spending, sales growth, age, leverage, liquidity. lagged values of independent variables have been taken in the model.
I have also included time dummies and cluster at firm level.
Is this methodology correct to know the micro level determinants of ECB in India
