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Estimation of equation (2) on its own using OLS would result in
Debt-Equity Ratio
The Debt-Equity Ratio is a measure of a company's financial leverage, indicating the proportion of equity and debt used to finance a company's assets.
Capital Intensity Ratio
A financial metric indicating the amount of capital needed per unit of revenue, typically used to assess the business model's reliance on physical capital.
Total Assets
Represents the sum of everything of value owned by a company, including cash, investments, property, and equipment.
Sales
The exchange of goods or services for money, representing the primary source of revenue for most businesses.
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