Addressing selection bias using entropy balancing
| Treatment (high CORPCULTURE = 1) | Control (low CORPCULTURE = 0) | |||||
|---|---|---|---|---|---|---|
| Mean | Variance | Skewness | Mean | Variance | Skewness | |
| Panel A. Pre-balancing First, Second and Third moments of Control Variables | ||||||
| ACSIZE | 2.548 | 1.787 | −0.905 | 2.316 | 1.942 | −0.834 |
| ACIND | 0.291 | 0.044 | 1.074 | 0.268 | 0.048 | 1.041 |
| ACFEXPRT | 0.323 | 0.219 | 0.758 | 0.318 | 0.217 | 0.784 |
| INSTOWN | 0.656 | 0.072 | −1.218 | 0.538 | 0.117 | −0.435 |
| BDINDEP | 0.656 | 0.031 | −0.275 | 0.666 | 0.035 | −0.316 |
| BDSIZE | 5.034 | 0.088 | 4.886 | 5.014 | 0.028 | 11.830 |
| AUDOPN | 0.439 | 0.247 | 0.245 | 0.495 | 0.250 | 0.020 |
| AUDTEN | 4.705 | 21.880 | 1.494 | 3.669 | 12.800 | 2.124 |
| AQ | −0.485 | 0.139 | −4.611 | −0.511 | 0.173 | −4.851 |
| MB | 4.194 | 21.760 | 2.412 | 4.610 | 30.180 | 2.166 |
| ROA | 0.160 | 0.022 | 0.237 | 0.152 | 0.022 | 0.459 |
| INVREC | 0.503 | 0.038 | 0.033 | 0.504 | 0.034 | 0.076 |
| DEBTRATIO | 2.071 | 4.344 | 2.201 | 1.749 | 4.131 | 2.920 |
| INVEST | 0.373 | 0.180 | 3.146 | 0.430 | 0.238 | 2.838 |
| STDSALE | 0.305 | 0.068 | 2.284 | 0.312 | 0.078 | 2.294 |
| STDOCF | 0.093 | 0.005 | 2.797 | 0.098 | 0.005 | 2.549 |
| AGE | 3.598 | 0.149 | −0.661 | 3.576 | 0.159 | −0.648 |
| FINANCING | 0.554 | 0.247 | −0.218 | 0.483 | 0.250 | 0.070 |
| ZMJSCORE | −2.135 | 3.264 | 1.010 | −2.444 | 3.387 | 0.877 |
| Panel B. Post-balancing First, Second and Third moments of Control Variables | ||||||
| ACSIZE | 2.548 | 1.787 | −0.905 | 2.548 | 1.647 | −1.082 |
| ACIND | 0.291 | 0.044 | 1.074 | 0.291 | 0.045 | 1.089 |
| ACFEXPRT | 0.323 | 0.219 | 0.758 | 0.323 | 0.219 | 0.758 |
| INSTOWN | 0.656 | 0.072 | −1.218 | 0.656 | 0.088 | −1.084 |
| BDINDEP | 0.656 | 0.031 | −0.275 | 0.656 | 0.030 | −0.227 |
| BDSIZE | 5.034 | 0.088 | 4.886 | 5.034 | 0.067 | 7.474 |
| AUDOPN | 0.439 | 0.247 | 0.245 | 0.439 | 0.247 | 0.245 |
| AUDTEN | 4.705 | 21.880 | 1.494 | 4.705 | 20.900 | 1.494 |
| AQ | −0.485 | 0.139 | −4.611 | −0.485 | 0.117 | −4.426 |
| MB | 4.194 | 21.760 | 2.412 | 4.194 | 22.720 | 2.388 |
| ROA | 0.160 | 0.022 | 0.237 | 0.160 | 0.022 | 0.399 |
| INVREC | 0.503 | 0.038 | 0.033 | 0.503 | 0.035 | 0.066 |
| DEBTRATIO | 2.071 | 4.344 | 2.201 | 2.071 | 5.396 | 2.519 |
| INVEST | 0.373 | 0.180 | 3.146 | 0.373 | 0.184 | 3.076 |
| STDSALE | 0.305 | 0.068 | 2.284 | 0.305 | 0.074 | 2.422 |
| STDOCF | 0.093 | 0.005 | 2.797 | 0.093 | 0.003 | 2.030 |
| AGE | 3.598 | 0.149 | −0.661 | 3.598 | 0.148 | −0.691 |
| FINANCING | 0.554 | 0.247 | −0.218 | 0.554 | 0.247 | −0.218 |
| ZMJSCORE | −2.135 | 3.264 | 1.010 | −2.135 | 3.699 | 1.132 |
| Treatment (high | Control (low | |||||
|---|---|---|---|---|---|---|
| Mean | Variance | Skewness | Mean | Variance | Skewness | |
| 2.548 | 1.787 | −0.905 | 2.316 | 1.942 | −0.834 | |
| 0.291 | 0.044 | 1.074 | 0.268 | 0.048 | 1.041 | |
| 0.323 | 0.219 | 0.758 | 0.318 | 0.217 | 0.784 | |
| 0.656 | 0.072 | −1.218 | 0.538 | 0.117 | −0.435 | |
| 0.656 | 0.031 | −0.275 | 0.666 | 0.035 | −0.316 | |
| 5.034 | 0.088 | 4.886 | 5.014 | 0.028 | 11.830 | |
| 0.439 | 0.247 | 0.245 | 0.495 | 0.250 | 0.020 | |
| 4.705 | 21.880 | 1.494 | 3.669 | 12.800 | 2.124 | |
| −0.485 | 0.139 | −4.611 | −0.511 | 0.173 | −4.851 | |
| 4.194 | 21.760 | 2.412 | 4.610 | 30.180 | 2.166 | |
| 0.160 | 0.022 | 0.237 | 0.152 | 0.022 | 0.459 | |
| 0.503 | 0.038 | 0.033 | 0.504 | 0.034 | 0.076 | |
| 2.071 | 4.344 | 2.201 | 1.749 | 4.131 | 2.920 | |
| 0.373 | 0.180 | 3.146 | 0.430 | 0.238 | 2.838 | |
| 0.305 | 0.068 | 2.284 | 0.312 | 0.078 | 2.294 | |
| 0.093 | 0.005 | 2.797 | 0.098 | 0.005 | 2.549 | |
| 3.598 | 0.149 | −0.661 | 3.576 | 0.159 | −0.648 | |
| 0.554 | 0.247 | −0.218 | 0.483 | 0.250 | 0.070 | |
| −2.135 | 3.264 | 1.010 | −2.444 | 3.387 | 0.877 | |
| 2.548 | 1.787 | −0.905 | 2.548 | 1.647 | −1.082 | |
| 0.291 | 0.044 | 1.074 | 0.291 | 0.045 | 1.089 | |
| 0.323 | 0.219 | 0.758 | 0.323 | 0.219 | 0.758 | |
| 0.656 | 0.072 | −1.218 | 0.656 | 0.088 | −1.084 | |
| 0.656 | 0.031 | −0.275 | 0.656 | 0.030 | −0.227 | |
| 5.034 | 0.088 | 4.886 | 5.034 | 0.067 | 7.474 | |
| 0.439 | 0.247 | 0.245 | 0.439 | 0.247 | 0.245 | |
| 4.705 | 21.880 | 1.494 | 4.705 | 20.900 | 1.494 | |
| −0.485 | 0.139 | −4.611 | −0.485 | 0.117 | −4.426 | |
| 4.194 | 21.760 | 2.412 | 4.194 | 22.720 | 2.388 | |
| 0.160 | 0.022 | 0.237 | 0.160 | 0.022 | 0.399 | |
| 0.503 | 0.038 | 0.033 | 0.503 | 0.035 | 0.066 | |
| 2.071 | 4.344 | 2.201 | 2.071 | 5.396 | 2.519 | |
| 0.373 | 0.180 | 3.146 | 0.373 | 0.184 | 3.076 | |
| 0.305 | 0.068 | 2.284 | 0.305 | 0.074 | 2.422 | |
| 0.093 | 0.005 | 2.797 | 0.093 | 0.003 | 2.030 | |
| 3.598 | 0.149 | −0.661 | 3.598 | 0.148 | −0.691 | |
| 0.554 | 0.247 | −0.218 | 0.554 | 0.247 | −0.218 | |
| −2.135 | 3.264 | 1.010 | −2.135 | 3.699 | 1.132 | |
| Panel C. Models with entropy balancing weights | |||||
|---|---|---|---|---|---|
| Variables | TRNSP1 | TRNSP2 | TRNSP3 | TRNSP4 | TRNSP5 |
| CORPCULTURE | 0.806*** | 1.655*** | 1.218*** | 0.0301*** | 0.003*** |
| (0.179) | (0.314) | (0.255) | (0.006) | (0.001) | |
| CONST and CONTROLS | Yes | Yes | Yes | Yes | Yes |
| YEAR_FE | Yes | Yes | Yes | Yes | Yes |
| INDUSTRY_FE | Yes | Yes | Yes | Yes | Yes |
| Observations | 1,480 | 1,480 | 1,480 | 1,480 | 1,480 |
| R-squared | 0.199 | 0.182 | 0.178 | 0.127 | 0.126 |
| Adj R-squared | 0.168 | 0.151 | 0.147 | 0.094 | 0.093 |
| F (Sig) | 6.546 (0.000) | 5.855 (0.000) | 5.726 (0.000) | 3.827 (0.000) | 3.814 (0.000) |
| Variables | |||||
|---|---|---|---|---|---|
| 0.806*** | 1.655*** | 1.218*** | 0.0301*** | 0.003*** | |
| (0.179) | (0.314) | (0.255) | (0.006) | (0.001) | |
| Yes | Yes | Yes | Yes | Yes | |
| YEAR_FE | Yes | Yes | Yes | Yes | Yes |
| INDUSTRY_FE | Yes | Yes | Yes | Yes | Yes |
| Observations | 1,480 | 1,480 | 1,480 | 1,480 | 1,480 |
| R-squared | 0.199 | 0.182 | 0.178 | 0.127 | 0.126 |
| Adj R-squared | 0.168 | 0.151 | 0.147 | 0.094 | 0.093 |
| F (Sig) | 6.546 (0.000) | 5.855 (0.000) | 5.726 (0.000) | 3.827 (0.000) | 3.814 (0.000) |
Note(s): Standard errors in parentheses. Variable definitions are located in Appendix 3. ***p < 0.01, **p < 0.05, *p < 0.10
Source(s): Table created by author
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