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Paper presented at EconAnadolu 2009: Anadolu International Conference in Economics June 17-19, 2009, Eskişehir, Turkey.

Impact of Economic Crisis on the Value Relevance of Earnings and Book Value: Case of 1994 and 2001 Crises in Turkey Cagnur Kaytmaz Balsari γ Faculty of Business, Dokuz Eylul University, Buca-İzmir e-mail: [email protected] Serdar Ozkan ∗ Izmir Economics University, Balçova -İzmir e-mail: [email protected] Abstract This paper investigates the value relevance of earnings and book value during financial crises in Turkey. Previous literature shows that, both under firm level and macro level economic pressure, value relevance of book value increase where as results on earnings are inconclusive. Additionally, same economic crises can influence value relevance differently in separate countries depending on country specific factors. Similarly, it can be expected that different economic crises can effect value relevance differently in the same country depending on type or severeness of the economic crises. This study examines the change in value relevance of earnings and book value between years 1992-2007 for non-financial firms listed in Istanbul Stock Exchange. During this period Turkey experienced economic crises of 1994 and 2001 each with different characteristics. Results show that 1994 crises and 2001 crises have very different implications for value relevance of earnings due to different characteristics of these two economic crises. 1994 crises is a sudden shorter crises whereas 2001 crises is an end point of continuous tension in the economy. Therefore, we can conclude that, long period of economic worsening followed by an economic crisis is more influential then a sudden shorter crisis in terms of value relevance of earnings. Keywords: Financial crises, value relevance, ISE Jel Classifications: G01, M41

γ

Correpondence: Faculty of Business, Dokuz Eylul University Kaynaklar Kampusu, Buca 35160, Izmir, Turkey, Tel:(232)4128254, Fax:(232)4535062, e-mail:[email protected] ∗ Izmir Economics University, Balçova , İzmir , Turkey, Tel: 0(232) 279 25 25 | Faks: 0(232) 279 26 26, e-mail: [email protected]


I. INTRODUCTION This paper investigates the value relevance of earnings and book value during financial crises in Turkey.

One major line of capital markets research in accounting focuses on the return/earnings association to increase the understanding of how earnings and other accounting information are related to share prices. Lev (1989) discusses the underlying logic of return/ earnings studies under the earnings usefulness context and states “if earnings are intended to facilitate predictions of stock returns, then the extent of the actual returns/earnings correlation is obviously an important measure of the usefulness of earnings. In a similar context, an accounting amount is defined as value relevant in the literature if it has a predicted association with market values of equity and the term ‘‘value relevance’’ was first used by Amir et al. (1993) to describe this association.

However, the vast majority of the value relevance studies investigate accounting information and market value relationships under normal economic conditions. There are only limited number of studies providing specific conclusions for micro (i.e. firms facing bankruptcy) or macro level extraordinary economic conditions (i.e. financial crises).

Lev and Thiagarajan (1993), states that research on value relevance was generally conducted in an unconditioned mode and tests value relevance of earnings and other fundamentals conditioned on macroeconomic variables. Their results show that value relevance analysis gives much stronger results when conditioned on macroeconomic variables. However, they did not test for extraordinary economic conditions such as financial crises. Kothari and Shanken (2003) states changing expectations about growth opportunities and discount rates can diminish the explanatory power of current financial information.

Barth et al (1998) address the value relevance under firm level extraordinary economic conditions and find evidence that the relative value relevance of equity book value and earnings in a set of firms that are facing bankruptcy. They conclude that the coefficient and


incremental explanatory power of equity book value (net income) are higher (lower) for firms classified as being less financially healthy than other firms.

Since financial crisis can be seen as the economic conditions deteriorating the financial heath of the firms in and altering growth expectations of the market, several value relevance studies examine whether the results from the Barth et al. (1998) analysis of bankrupt firms extend to a setting where firms are operating in a financial crisis.

However, during financial crises firms are more likely to report negative earnings and Basu (1997), Elliott and Hanna (1996), and Hayn (1995) suggest that negative earnings and nonrecurring items can adversely affect the value-relevance of earnings. Barth et al., (1997), Collins et al. (1997a) suggest that book values take on increased importance relative to earnings when earnings are negative or contain nonrecurring items. Two explanations (which are not mutually exclusive) have been given for these findings: (1) book values serve as a better proxy for future earnings when current earnings contain large transitory components, and (2) book values serve as a proxy for the firm's abandonment option (Collins et al., 1997b).

In line of the above arguments, Friday et al. (2006) examines the value relevance of earnings and book value in four Asian countries, Indonesia, South Korea, Malaysia and Thailand, during the Asian financial crisis. They found that the value relevance of earnings in Indonesia and Thailand was significantly reduced during the Asian financial crisis while the value relevance of book value increased. In Malaysia, the value relevance of both earnings and book value decreased during the crisis. In Korea, neither book value nor earnings was significantly impacted by the crisis. Authors link the mixing results between countries to their different accounting regimes (i.e. IAS or tax-based accounting) and varying corporate governance mechanisms (i.e. origin of law, shareholders rights etc).

Ho, Liu, and Sohn (2001) examines the value relevance of accounting earnings, book value of equity, and cash flows from operations for Korean firms during the 1995-1998 period surrounding Asian crisis. They found that the value relevance of accounting earnings for Korean firms significantly declines and instead of the book value the declining importance of


earnings is replaced by the increasing value relevance of cash flows from operations. Their results hold after controlling for the amount of foreign exchange translation gains and losses included in earnings and book value.

Friday and Gordon (2002), investigate the relation between the firms’ stock prices and their book values, earnings, and cash flows, taking into account the effect of the 1995 Mexican financial crisis. They find that book values retain their significance and explanatory power during the crisis while earnings do not. Additionally, the value relevance of book values does not significantly change during the crisis period while the value relevance and the explanatory power of earnings decline during the crisis period. The decline in the valuation of earnings and its explanatory power, however, is attributable to the presence of negative earnings.

Graham, King, and Bailes (2000) found that the value relevance of book values in Thailand are significantly increasing following the devaluation of the Thai Baht, but found no evidence that the value relevance of earnings changed. They link the increase in value relevance of book value to the increase in the number of the firms in the second half of 1997.

Overall results of the studies suggest that, both under firm level and macro level economic pressure, value relevance of book value increase where as results on earnings are inconclusive. Additionally, Friday et al. (2006) shows that same economic crises can influence value relevance differently in separate countries depending on country specific factors. Similarly, it can be expected that different economic crises can effect value relevance differently in the same country depending on type or severeness of the economic crises.

Turkish economy has been through two big financial crises during the period of 1992-2007 thus we extend this body of literature by investigating the relative value relevance of book values and earnings in Turkey in two distinct financial crisis. Consistent with the prior literature, we investigate the change in value-relevance of earnings and book values during financial crises by using both price and return regressions.


The paper is organized as follows. Section 2 provides an overview of Turkish economy and economic crises. Section 3 explains data and methodology followed by results in section 4. Section 5 concludes.

II. OVERVIEW OF TURKISH ECONOMY AND ECONOMIC CRISES

Turkey, as an emerging market, is shaped by economic crises and turbulences. The financial crises and their impact on the Turkish economy are well documented in the literature (Akyuz and Borotav,2002; Onis and Alper, 2002; Yeldan 2002). In the history of the Turkish economy, there have been several financial crises. Among them, the 1994 crisis and the 2001 crisis had extensive effects. The economy experienced fast economic growth during 1980s. Along with this speedy growth, government spendings and borrowings grew astronomically and as a result the 1994 financial crisis emerged. The Turkish economy was put under global pressure during 1990s. The exchange rates increased dramatically, foreign investment left the country, problems of short-term debt payment increased, and the availability of internal credit decreased. At the end of the 1990s, the Asian crisis in 1997 and the Russian crisis of 1998 affected the economy negatively and they portended the forthcoming 2001 financial crisis. 1994 Crisis: The 1994 crisis initially emerged from the exchange markets. By end of February 1994, Istanbul Stock Exchange had lost 20% of its value followed by a drastic increase of exchange rates and interest rates. Even though the Central Bank tried to intervene in the markets by selling US dollars, it could not stop the devaluation of the Turkish Lira. As a result, inflation rate moved up to 120.7%, The Turkish Lira was devaluated, and the economic growth rate declined shaply to -6.1 as seen in Table 1. It is important to note that under high chronic inflation, Turkish firms have been deprived of long-term funds, namely issuing bonds. The Turkish government has been the only bond issuing body. Insert Table 1 Here


Short-term capital flows and increased public debt led to a fragile financial system and to an unstable economy. Manufacturing firms were damaged due to low demand, high cost of borrowings and devaluation. On 5th of April, an economic stability program was launced. However, this program was incapable of repairing the major problems. While the Turkish economy tried to recover during this time, the subsequent Asian Crisis in 1997 made the domestic economy, namely the manufacturing industry, vulnerable (Muslumov and Karatas, 2001). 2001 Crisis:

The chain of consequent crises such as the Asian crisis in 1997, the Russian crisis in 1998, the earthquake in 1999 and collapse of the disinflation program in 2000 led to a series of accumulated risk and liquidity problems. All these crises had weakened the economy. High inflation was the inevitable consequence of the unstable economy. At the end of 1999, Turkey signed a stand-by agreement with the IMF and a new economic program was launced to control inflation. The disinflation programme appeared to operate well for a short time and inflation was partially controlled. During this period, there was no effective auditing of the banking industry. This led banks to carry very high open positions while financing the government. Soon after, the decline in the inflation rate associated with the fluctuating interest rates resulted in a financial deterioration in 2000. Further, insufficient capital base of banks, lack of financial discipline and regulations increased the vulnerability of the financial system and this lead to the 2001 financial crisis (Koc and Chaudhary, 2001; Ozay and Sak, 2002).

During the period of 2001, a financial crisis emerged in the banking industry. Since the Turkish economy is bank-oriented; a crisis in the banking industry spreads quickly to other industries and results in losses. A severe liquidity and working capital problem emerged, reflecting low sales and profits. The real depreciation of the exchange rate reduced real income and spending. The withdrawal of the capital and reduced creditworthiness of the domestic borrowers worsened the fundemantals. Additionally, firms became more vulnerable due to ongoing crises in the condition of the economy from 1997 to 2001.

Comparing the 1994 and the 2001 financial crises, it is important to note that the 2001 financial crisis was an end point rather then a sudden crisis. The 2001 financial crisis was more than a financial crisis. It was the outcome of combined effects However, the 1994 crisis


was unexpected and characterized by excess government spending due to rapid economic growth.

III. DATA and METHODOLOGY

Value relevance research examines the association between accounting amounts and equity market values. This suggests testing whether earnings explain cross-sectional variation in share prices. For the most part, valuation models that form the basis for tests in the value relevance literature are developed in terms of the level of firm value (e.g.,Ohlson, 1995). Examining changes in share prices, or returns, is an alternative in assessing value relevance, where the precise specification of the valuation equation depends on the valuation model adopted (see, e.g., Ohlson, 1995). Selection of which model to use depends jointly on the hypotheses dictated by the research question and on econometric considerations (Landsman and Magliolo, 1988). Both price and return models are employed in this study.

Our first analysis is based on the valuation model developed by Ohlson (1995). The Ohlson (1995) valuation model derives the value of a firm by using a function of the firm’s earnings and the book value per share. It has been widely used in literature for testing the differences in the value relevance of accounting information (Sami and Zhou, 2004; Davis-Friday and Rivera, 2000; Jermakowicz, Kinsey and Wulf, 2007). Secondly, we have used a returns regression model. Apart from the macro-economic factors (i.e. financial crises), firm level information based on financial statements is widely used to predict returns (Lev and Thiagarajan, 1993). Easton and Harris (1991) show that both earnings level and changes in earnings have explanatory power in a regression of annual returns. In their study, Ohlson and Shroff (1992) argue that earnings level variable will help explain returns if it helps forecast earnings. Early empirical works have generally supported the hypothesis that earning per share has significant explanatory power to predict the stock return (Ou and Penman, 1989; Dechow, 1994) 1 .

1

In addition to earnings levels, earnings changes could be used in the regression as an independent variable according to the prior literature.


We have employed two different approaches for both price and return models. A data set of the Istanbul Stock Exchange-listed non-financial firms was gathered from an ISE website. Unbalanced panel data for the period of 1992–2007 is used in the analysis. Firstly, following Friday and Gordon (2002) we estimate equation (1) for both the crisis and non-crisis periods.

Pit = β0 + β1 EPSit + β2BVSit + eit

(1a)

Retit = β0 + β1 EPSit + β2BVSit + eit

(1b)

where Pit is the market value of equity per share of company i on April at year t +1; Retit is 12 months raw stock returns of firm i calculated from April prices; BVSit is the book value per share of company i at time t; EPSit is earnings per share of company i over the period ending at time t; and eit is an error term. A pooled regression analysis is performed for easiness of comparison between crises and non-crises years.

Secondly, following Friday et al. (2006) we estimate equation (2a) and (2b) for each economic crises separately. A fixed effects generalized least square (GLS) estimation models are applied for estimation of equation 2. To ensure the robustness of the results, outliers are removed from the sample by examining the distribution of key variables. Pit = β0 + β1 EPSit + β2BVSit + β3 CR94 + β4 CR94∗ BVSit + β5 CR94∗ EPSit + eit

(2a)

Pit = β0 + β1 EPSit + β2BVSit + β3 CR01 + β4 CR01∗ BVSit + β5 CR01∗ EPSit + eit

(2b)

Retit = β0 + β1 EPSit + β2BVSit + β3 CR94 + β4 CR94∗ BVSit + β5 CR94∗ EPSit + eit

(2c)

Retit = β0 + β1 EPSit + β2BVSit + β3 CR01 + β4 CR01∗ BVSit + β5 CR01∗ EPSit + eit

(2d)

where Pit is the market value of equity per share of company i on April at year t +1; Retit is 12 months raw stock returns of firm i calculated from April prices; BVSit is the book value per share of company i at time t; EPSit is earnings per share of company i over the period ending at time t; CR94 is an indicator variable equal to zero in non-crises years and one in 1994; CR01 is an indicator variable equal to zero in non-crises years and one in 2001; CR94∗ BVSit and CR94∗ EPSit are interaction terms between 1994 crises and BVSit and EPSit; CR01∗ BVSit and CR01∗ EPSit are interaction terms between 2001 crises and BVSit and EPSit; and eit is an error term.


Additionally, the differential effects of losses and profits on value relevance is examined by Friday et al. (2006). Their findings show that firms with negative book value and negative earnings have lower value relevance of book values and earnings. As seen in Table 2, during economic crises percentage of firms reporting negative earnings and book values increase in Turkey. Especially during 2001 crises 46% of firms reported losses and 11% of firms reported negative book values. Insert Table 2 Here

Following Friday et al. (2006) we investigate the differential effects of losses and profits on value relevance by equation (2c) and (2d). Pit = β0 + β1 EPSit + β2BVSit + β3 NEEPS + β4 NEBV + β4 NEBV∗ BVSit + β5 NEEPS∗ EPSit + eit(2e) Retit = β0 + β1 EPSit + β2BVSit + β 3 NEEPS + β4 NEBV + β4 NEBV∗ BVSit + β5 NEEPS∗ EPSit + ei

(2f)

where, NEEPS is an indicator variable taking the value of one if the firm had negative net income, and zero otherwise. NEBV is an indicator variable taking the value of one if the firm had negative book value of equity, and zero otherwise. NEBV∗ BVSit and NEEPS∗ EPSit are the interaction terms between negative book value firms and book value per share and negative earnings firms and earnings per share, respectively.

IV. RESULTS

Table 3 reports descriptive statistics for all firms across all years. Total number of firm years is 2466. Mean earnings per share is 1.43 where mean book value per share is 7.52. For both variables there is high standard deviation. Price varies between 180 and 2720000 which has a high standard deviation as well. Evaluated together these shows that our sample includes big and small firms both in terms of book value and market capitalization.

Insert Table 3 Here


Correlation among dependent and major independent variables of earnings and book value are given at Table 4. All variables are significantly correlated to each other. However, correlations of independent variables with price is higher then return. Additionally the correlation of price and return is negative and significant. This shows that firms with higher share price have lower returns. Insert Table 4 Here

Estimation results of equations (1a) and (1b) are provided in panel A and panel B Table 5. Results in panel A shows that coefficient for earnings is significant for no crises years and 94 crises but it becomes insignificant in 2001 crises showing that value relevance of earnings is significantly diminished in 2001 crises. When adjusted R2 is investigated, it can be seen that in crises years adjusted R2’s are reduced to 25% and 14% for 1994 and 2001 crises respectively from 48% in non-crises years. For the return model reported in panel B, book value becomes significant in non-crises years showing increased importance of book values during crises years. Earnings is not significant return regressions both in crises and non-crises years. Insert Table 5 Here Table 6 Panel A reports results for GLS regression equations (2a), (2b) and (2e). Results suggest that both earnings and book value are value relevant when the whole sample is included in the analysis. In model (2a) when 1994 crises is introduced to the model both crises variable and interaction terms are insignificant showing that 1994 crises does not have a significant impact on the value relevance of book value and earnings. However, in 2001 crises estimation it is seen that the interaction of crises and earnings is significant and negative. This shows that in 2001 crises value relevance of earnings declined but there is no significant change in the value relevance of book values.

Insert Table 6 Here When we examine the differential effects of losses and profits on value relevance in the last model, it is found that coefficient of interaction term for earnings and loss firms is significant and negative. This provides supportive evidence to the differential effect of losses and profits


on value relevance. Value relevance of earnings for loss firms is significantly lower then profit firms. We do not find the same result for book values. Even though negative book value variable has a significant negative coefficient the interaction term with book value is not significant. In Panel B return regression results are reported. Results suggest that both earnings and book value are value relevant when the whole sample is included in the analysis. An interesting result is seen when 1994 crises is introduced to the model. The coefficient for interaction terms for earnings and book value are both significant. Earnings and crises interaction has a negative coefficient showing a decline in value relevance of earnings whereas book value and crises interaction has a positive coefficient, showing an increase in value relevance of book value. In 2001 crises the significance of book value and crises interaction diminishes, showing no impact in valuation of book value but the negative coefficient of earnings and crises interaction shows decline in value relevance of earnings. An interesting result here show that 1994 crises has a positive significant coefficient whereas 2001 crises has a negative and significant coefficient. This shows that 1994 crises had a positive impact on return but 2001 had a negative impact by itself. For the return regression we again find that coefficient of interaction term for earnings and loss firms is significant and negative. This provides supportive evidence to the differential effect of losses and profit on value relevance of earnings. Nevertheless, we did not find any significance for negative book value and book value interaction.

V. CONCLUSION & DISCUSSION This paper investigates the value relevance of earnings and book value during financial crises in Turkey. Turkish economy has been through two big financial crises during the period of 1992-2007 thus we extend this body of literature by investigating the relative value relevance of book values and earnings in Turkey in two distinct financial crisis by employing both price and return regressions. Results interpreted together indicates a much stronger impact of 2001 crises on value relevance compared to 1994 crises. For 2001 crises, pooled regression results comparing crises to non-crises years and panel data analysis evaluating crises dummy variable and interaction of crises and earnings and book value support the decline in value relevance of earnings during 2001 crises both for price and return regressions. The value relevance of book


value does not show the same sensitivity as earnings to 2001 crises. For 1994 crises the only weak evidence is gathered from panel data analysis showing a reduced value relevance of earnings in return regression. Additionally, results altogether confirm that value relevance of earnings is lower for loss firms compared to profit firms. However same argument is not supported for book value. The reason to have very different implications of two economic crises for value relevance of earnings might be due to the different characteristics of these two economic crises. 1994 crises is a sudden one year crises whereas 2001 crises is an end point of continuous tension in the economy. Therefore, we can conclude that, long period of economic worsening followed by an economic crises is more influential then a sudden shorter crises in terms of value relevance of earnings.


Table 1: Major Economic Indicators over Years Year

*

Average Inflation %

*

Year-end Excange Rate ($)

GNP Growth Rate %

1991

55.3

5,074.83

0.3

1992

62.1

8,555.85

6.4

1993

58.4

14,458.03

8.1

1994

120.7

38,418.00

-6.1

1995

86.0

59,501.00

8.0

1996

75.9

107,505.00

7.1

1997

81.8

204,860.00

8.3

1998

71.8

313,707.00

3.9

1999

53.1

540,089.00

-6.1

2000

51.4

671,765.00

6.3

2001

61.6

1,439,567.00

-9.5

2002

50.1

1,634,501.00

7.9

2003

25.6

1,395,835.00

5.9

WPI (Wholesale Pric Index), The data is taken from Central Bank the Republic of Turkey (CBRT) Statistics Data Set.

Paper presented at EconAnadolu 2009: Anadolu International Conference in Economics June 17-19, 2009, Eskişehir, Turkey. Table 2: Incidence of negative earnings and book value

Years 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 Total

Number of observations 72 83 91 106 122 136 152 164 167 194 195 195 1677

Number with negative earnings 10 8 11 7 6 11 28 56 47 90 58 46 378

% of firms with negative earnings 14% 10% 12% 7% 5% 8% 18% 34% 28% 46% 30% 24% 23%

Number with Negative book value 2 1 0 0 0 0 1 6 7 22 19 12 70

% of firms with negative book value 3% 1% 0% 0% 0% 0% 1% 4% 4% 11% 10% 6% 4%


Table 3: Descriptive Statistics N

Minimum

Maximum

Mean

Std. Dev.

EPS

2466

-21.254

499.587

1.437

12.769

BVPS

2465

-27.519

762.199

7.529

32.377

Price

2466

180.00

2720000

23528.01

120947.95

Return

2466

-.994

14.365

.298

1.290


Table 4: Correlation Matrix of Dependent and Major Independent Variables

EPS EPS

BVPS

Price

Return

1

BVPS

.690a

1

Price

.527 a

.700 a

1

Return

.038c

.041b

-.044 b

1


Table 5: Pooled OLS Regression Results Panel A: Pit = β0 + β1 EPSit + β2BVSit + eit

No Crises 1 Years

94 Crises Year

2001 Crises Year

constant

4671.3b

3899.0b

5492.1a

eps

2066.2a

3537.4a

401.1

bvps F-Stat Adj. R2 n

2730.7a 630.34 a 0.48 1373

330.0 14.42a 0.25 83

672.6a 14.34a 0.14 163

Variables:

Panel B: Retit = β0 + β1 EPSit + β2BVSit + eit No Crises 2 Years

94 Crises Year

2001 Crises Year

constant

.283a

.528

-.210 a

eps

.004

-.196

-.029

bvps F-Stat Adj. R2 N

.002 3.08b 0.003 1373

.524 a 4.84 b 0.08 82

.038 b 3.38 b 0.03 172

1

No crises sample includes years 1992 to 2003 exept year 1994 and 2001. Years 2004 through 2007 are excluded due to use of different accounting regime. Pooled regression analysis do not account for year effects like panel data analysis, estimates would be biased if they have been include in the model 2 No crises sample includes years 1992 to 2003 exept year 1994 and 2001. Years 2004 through 2007 are excluded due to use of different accounting regime. Pooled regression analysis do not account for year effects like panel data analysis, estimates would be biased if they have been include in the model


Table 6: Fixed Effects GLS Regression Results Panel A: Pit = β0 + β1 EPSit + β2BVSit + β3 CR + β4 CR∗ BVSit + β5 CR∗ EPSit + eit Pit = β0 + β1 EPSit + β2BVSit + β3 NEEPS + β4 NEBV + β4 NEBV∗ BVSit + β5 NEEPS∗ EPSit + eit No Crises

94 Crises

2001 Crises

Negative EPSNegative BV

constant eps bvps cr94 inteps94 intbv94 cr01 inteps01 intbv01 NEEPS NEBV NEBV∗ BVS NEEPS∗ EPS

5670.2 a 1742.9 a 517.9 a

6553.7 a 1732.2a 515.0a -2135.0 1233.6 -281.7

5494.8a 1999.5a 512.2a

5599.9 a 2711.5 a 368.4 a

F-Stat R2 within R2 between R2 overall n

127.64 a 0.12 0.60 0.25 2152

1074.3 -1434.0 a -65.8 -1535.0 a -2742.4 b -357.4 -4193.4 a 52.96a 0.12 0.58 0.25 2152

54.14a 0.12 0.61 0.26 2152

54.46 a 0.14 0.63 0.28 2152


Panel B: Retit = β0 + β1 EPSit + β2BVSit + β3 CR + β4 CR∗ BVSit + β5 CR∗ EPSit + eit Retit = β0 + β1 EPSit + β2BVSit + β3 NEEPS + β4 NEBV + β4 NEBV∗ BVSit + β5 NEEPS∗ EPSit + eit No Crises

94 Crises

2001

Negative EPSNegative BV

constant eps bvps cr94 inteps94 intbv94 cr01 inteps01 intbv01 NEEPS NEBV NEBV∗ BVS NEEPS∗ EPS

.013 .173 a .060 a

-.050 .112a .064a .544 b -.303b .464 a

.023 .200 a .057 a

-.072 .325 a .044 a

F-Stat R2 within

39.10 a 0.04

-.327 b -.309 a .042 .031 -.029 -.009 -.436 a 67.04 a 0.15

17.97 a 0.04

16.87 a 0.05


R2 between R2 overall n

0.14 0.04 2152

0.23 0.15 2152

0.15 0.05 2152

0.16 0.05 2152

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