COMMONS DEED

-0.076
-0.069
-0.061
-0.053
-0.046
-0.038
-0.031
-0.023
-0.015
-0.008
0.000
0.008
0.015
0.023
0.031
0.038
0.046
0.053
0.061
0.069
0.076
0.084
0.092
0.099
0.107
0.114
0.122
-0.077
-0.070
-0.062
-0.054
-0.046
-0.039
-0.031
-0.023
-0.015
-0.008
0.000
0.008
0.015
0.023
0.031
0.039
0.046
0.054
0.062
0.070
0.077
0.085
0.093
0.101
0.108
0.116
0.124
Laura Parte Esteban, María Jesús Such Devesa & Pilar Alberca Oliver
Panel B: Changes in Net Income distribution (ΔNI/AT t-1 )
Debt ratio (q1)
Debt ratio (q3)
16.0%
14.0%
12.0%
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%
16.0%
14.0%
12.0%
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%
The histograms are generated from 1,990 observations. Panel A shows net income
distributions (NI/ATt-1). Panel B represents changes in net income distributions (ΔNI/ATt-
1). The frequency histogram on the left represents low leverage firms (Debt ratio < quartile
1) and the frequency histogram on the right represents high leverage firms (Debt ratio >
quartile 3).
The interval widths are calculated following the Degeorge et al.´s (1999) formula. In
Panel A, the interval widths are 0.016 for NI and 0.008 for ΔNI. In Panel B, the interval
widths are 0.008 for both NI and ΔNI. In a sensitivity analysis, frequency histograms are
built using another two measures (mean and median) to discriminate between high and low
leverage firms. Similar results are obtained.
Table 4 reports the incidence of ownership structure in reaching the
earnings benchmarks (levels and changes). As we explained, the database
used in this study provides limited-information related to the owners of
the firms. The introduction of this variable produces a sample-reduction
(see Table 1, statistical descriptive).
In Table 4, we can see that the discontinuity of earnings distribution
in earnings level as well as in earnings changes is more accentuated in
family structure than in others ownership structures. In the annex, Table 7
shows similar results using the alternative interval widths. This evidence
must be interpreted with caution due the difficulties found when picking
up the data.
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