1. Variables of Capital Structure are Total Debt, Short-term debt & Long-term debt Whereas,
2. Financial Performance measured by ROA & ROE
3. Firm Characteristics i.e. Age, Size, Location, Sector & Ownership structure.
4. Owner-manager Characteristics like, Age, Gender, Education, Experience & Ethical background
Your suggestions that how the Firm Characteristics and Owner-manager Characteristics are measured? and which estimation techniques uses for this type of data?
It depends on the regression itself, if you're using a dynamic panel, then it's evident to use GMM System or Difference GMM, but if you're studying a static panel, using FE and RE could get the job done.
Each of your lists could be expanded, depending on your research aims. For instance,
- Capital structure would not only consider debt but also equity.
- Financial performance could consider gross profit, EBIT, profit after tax.
- Firm characteristics could include market capitalisation and sector dominance.
This issue also depends on interest rates and inflation, so I suggest that you include these two variables as control variables in your research.
It could be interesting to include the exchange rate with respect to the currency, for an international projection.
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