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

Table 6

Estimated results of equity premium.

Variable	Coefficient
Constant	−0.165
Market premium	0.551
	(24.656)
Return on equity	0.003
	(1.814)
Quick ratio	0.003
	(0.932)
Dividend payout ratio	0.001
	(1.952)
Debt-to-equity ratio	−0.000
	(−1.190)
Accounts receivable turnover	0.027
	(3.402)
Size	0.009
	(1.800)
R-squared	0.194
Adj R-squared	0.193
SE of regression	0.564
F-statistic	94.768
Prob (F-statistic)	0.000
Durbin–Watson statistic	2.152
Prob (J-statistic)	0.3367

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