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Table 4 Convergence test

From: Economic and non-economic determinants of Iranian pharmaceutical companies’ financial performance: an empirical study

Null hypothesis

Alternative hypothesis

Coefficient

Critical values 95%

Prob

Trace Test

 r = 0

1 = r

264.9716

159.5297

0.0000

 r≤1

2 = r

168.5711

125.6154

0.0000

 r≤2

3 = r

95.74869

95.75366

0.0500

 r≤4

4 = r

62.09743

69.81889

0.1767

 r ≤ 4

5 = r

40.41922

47.85613

0.2079

λmax Test

 r = 0

r ≥ 1

96.40047

52.36261

0.0000

 r ≤ 1

r ≥ 2

72.82243

46.23142

0.0000

 r ≤ 2

r ≥ 3

33.65125

40.07757

0.2211

 r ≤ 3

r ≥ 4

21.67821

33.87687

0.6325

 r ≤ 4

r ≥ 5

3.525272

3.841466

0.0604