Note(s): The table displays sensitivity analyses of the impact of OK on investment inefficiency based on several subsamples. First, we split the sample equally into two subsamples based on the degree of tangible or intangible products or services firms produce ((e.g. a subsample of industries that produce more tangible assets: agriculture (01–09), mining (10–14), construction (15–17), manufacturing (20–39)), and those that produce more intangible assets ((transportation (40–49), wholesale trade (50–51), retail trade (52–59), finance, insurance, and real estate (60–67), and services (70–89)). Second, we report regression estimates where the sample period is divided into two equal subperiods from 2009 to 2014, and from 2015 to 2020 to test whether the effect of OK on investment inefficiency holds over time. The last two columns report regression estimates where the sample is split based on the company beta into above median and below median subsamples, given that the relationship between OK and investment efficiency may vary based on firm risk. Figures between parentheses are standard errors. ^***, ^**, and ^* refer to 1%, 5%, and 10% significance levels, respectively. Definitions of variables are as presented in  Appendix 1

Source(s): Authors’ own work