University of Westminster

 

 

 

 

 

 

 

 

 

 

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WESTMINSTER INTERNATIONAL UNIVERSITY IN TASHKENT 

10 

001023, 00953, 000933, 001012 

Regression analysis

  

 

 

       OLS Regression output     

 

Sales 

LnFin 

0.374

***

 

 

(0.0950) 

 

 

lnRD 

0.207

*

 

 

(0.0973) 

 

 

Age 

0.0437

***

 

 

(0.0111) 

 

 

ManAb 

-0.0158 

 

(0.0130) 

 

 

Gender 

0.293 

 

(0.361) 

 

 

AccFin 

-0.160 

 

(0.258) 

 

 

Exp 

-0.00795 

 

(0.0116) 

 

 

Constant 

9.229

***

 

 

(1.565) 

Observations 

117 

R

2

 

0.483 

Adjusted 

R

2

 

0.450 

 

 

Standard errors in parentheses 

*

 

p

 < 0.05, 

**

 

p

 < 0.01, 

***

 

p

 < 0.001 

 

 

It can be seen from the regression output that the chosen variables explain 48% variability in the dependent 

variable. (R

2 

is 0.48) Regression with robust option provide the same results and the main variables of interest 

are significant and positively impact the sales. Complying with findings of Eisner (1964) and Rosandy and Mita 

(2018) there is positive and significant relationship between fixed assets expenditure and sales, implying 1 % 

increase in fixed assets expenditure will increase the total sales by 0.37%.   

R&D expenditure is also in line with theory provided by Boulding and Staelin (1986), Leigh McAlister, Raji 

Srinivasan, & MinChung Kim (2015) and supports the hypothesis that there is positive and significant link 

between sales and R&D expenditure. According to the regression output 1% increase in R&D expenditure will 

increase the sales by 0.20 % ceteris paribus.  

Firms age is also positively correlated with sales, which is in line with the studies of Coad et al. (2013) and 

Heshmati (2001).  1 additional year in firm’s age will increase the sales by 0.04 % holding all other variables 

constant. The variable managerial ability had no impact on sales, the coefficient found statistically insignificant. 

  

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