Table 10 Addressing Selection Bias Using...

Table 10

Addressing Selection Bias Using Propensity Score Matching (PSM)

	Mean			Statistics
	(1) Treatment	(2) Control	(3) %Bias	(5) t-test	(6) p-value	(7) V(T)/V(C)
Panel A. Balance Check after PSM [Treatment (HIGHCORPCULTURE = 1) Vs. Control (LOWCORPCULTURE = 0)]
ACSIZE	2.522	2.508	1.1	0.21	0.832	1.09
ACIND	0.288	0.305	−8.1	−1.52	0.128	0.77*
ACFEXPRT	0.331	0.286	9.6	1.89	0.059
INSTOWN	0.665	0.674	−2.9	−0.62	0.532	0.84*
BDINDEP	0.653	0.648	2.8	0.57	0.569	0.95
BDSIZE	5.032	5.016	6.5	1.29	0.199	2.66*
AUDOPN	0.416	0.453	−7.4	−1.45	0.147
AUDTEN	4.434	4.800	−8.9	−1.6	0.111	0.94
AQ	−0.487	−0.522	9	1.78	0.075	1.14
MB	4.074	4.552	−9.3	−2.01	0.044	0.9
ROA	0.168	0.178	−6.3	−1.23	0.218	0.98
INVREC	0.494	0.516	−11.7	−2.26	0.024	1.09
DEBTRATIO	1.967	2.161	−9.3	−1.77	0.077	0.75*
INVEST	0.387	0.365	5	1.07	0.285	1.25*
STDSALE	0.312	0.301	3.9	0.79	0.43	1.43*
STDOCF	0.093	0.097	−5.6	−1.14	0.254	1.09
AGE	3.592	3.564	7.2	1.39	0.164	1.02
FINANCING	0.582	0.607	−5.1	−0.99	0.321
ZMJSCORE	−2.239	−2.063	−9.7	−1.84	0.066	0.88
Overall Balance	Ps R2	0.021		MedBias	7.2
	LR χ²	45.18		B	34.7
	p > χ²	0.001		R	0.87
	MeanBias	6.8		%Var	38

	Mean			Statistics
	(1)Treatment	(2)Control	(3)%Bias	(5) t-test	(6)p-value	(7)V(T)/V(C)
Panel A. Balance Check after PSM [Treatment (HIGHCORPCULTURE = 1) Vs. Control (LOWCORPCULTURE = 0)]
ACSIZE	2.522	2.508	1.1	0.21	0.832	1.09
ACIND	0.288	0.305	−8.1	−1.52	0.128	0.77*
ACFEXPRT	0.331	0.286	9.6	1.89	0.059
INSTOWN	0.665	0.674	−2.9	−0.62	0.532	0.84*
BDINDEP	0.653	0.648	2.8	0.57	0.569	0.95
BDSIZE	5.032	5.016	6.5	1.29	0.199	2.66*
AUDOPN	0.416	0.453	−7.4	−1.45	0.147
AUDTEN	4.434	4.800	−8.9	−1.6	0.111	0.94
AQ	−0.487	−0.522	9	1.78	0.075	1.14
MB	4.074	4.552	−9.3	−2.01	0.044	0.9
ROA	0.168	0.178	−6.3	−1.23	0.218	0.98
INVREC	0.494	0.516	−11.7	−2.26	0.024	1.09
DEBTRATIO	1.967	2.161	−9.3	−1.77	0.077	0.75*
INVEST	0.387	0.365	5	1.07	0.285	1.25*
STDSALE	0.312	0.301	3.9	0.79	0.43	1.43*
STDOCF	0.093	0.097	−5.6	−1.14	0.254	1.09
AGE	3.592	3.564	7.2	1.39	0.164	1.02
FINANCING	0.582	0.607	−5.1	−0.99	0.321
ZMJSCORE	−2.239	−2.063	−9.7	−1.84	0.066	0.88
Overall Balance	Ps R2	0.021		MedBias	7.2
	LR χ²	45.18		B	34.7
	p > χ²	0.001		R	0.87
	MeanBias	6.8		%Var	38

Variables	TRNSP1	TRNSP2	TRNSP3	TRNSP4	TRNSP5
Panel B. Post-matching Regression Results
CORPCULTURE	0.753***	1.433***	1.048***	0.084***	0.008***
	(0.203)	(0.413)	(0.350)	(0.019)	(0.002)
CONST and CONTROLS	YES	YES	YES	YES	YES
YEAR_FE	YES	YES	YES	YES	YES
INDUSTRY_FE	YES	YES	YES	YES	YES
Observations	1,060	1,060	1,060	1,060	1,060
R-squared	0.211	0.185	0.186	0.284	0.264
Adj R-squared	0.172	0.145	0.145	0.248	0.227
F (Sig)	7.808 (0.000)	5.210 (0.000)	5.286 (0.000)	3.155 (0.000)	3.602 (0.000)

Variables	TRNSP1	TRNSP2	TRNSP3	TRNSP4	TRNSP5
Panel B. Post-matching Regression Results
CORPCULTURE	0.753***	1.433***	1.048***	0.084***	0.008***
	(0.203)	(0.413)	(0.350)	(0.019)	(0.002)
CONST and CONTROLS	YES	YES	YES	YES	YES
YEAR_FE	YES	YES	YES	YES	YES
INDUSTRY_FE	YES	YES	YES	YES	YES
Observations	1,060	1,060	1,060	1,060	1,060
R-squared	0.211	0.185	0.186	0.284	0.264
Adj R-squared	0.172	0.145	0.145	0.248	0.227
F (Sig)	7.808 (0.000)	5.210 (0.000)	5.286 (0.000)	3.155 (0.000)	3.602 (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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