Alternative estimators
| Variables | WLS (1) | Petersen (2009) (2) | Newey–West (3) | Tobit (4) |
|---|---|---|---|---|
| Constant | 0.016*** | 0.014*** | 0.028*** | 0.025*** |
| (0.007) | (0.010) | (0.001) | (0.003) | |
| OKTA | 0.011*** | 0.034** | 0.026*** | 0.034** |
| (0.001) | (0.001) | (0.004) | (0.017) | |
| Controls | Yes | Yes | Yes | Yes |
| Firm FE | Yes | Yes | Yes | Yes |
| Year FE | Yes | Yes | Yes | Yes |
| Adj. R2 | 53.75 | 50.05 | 51.29 | 53.12 |
| F-statistic | 30.06 | 28.21 | ||
| p-value | (0.000) | (0.000) | ||
| Observations | 4,913 | 4,925 | 4,920 | 4,919 |
| Variables | WLS (1) | Newey–West (3) | Tobit (4) | |
|---|---|---|---|---|
| Constant | 0.016*** | 0.014*** | 0.028*** | 0.025*** |
| (0.007) | (0.010) | (0.001) | (0.003) | |
| Controls | Yes | Yes | Yes | Yes |
| Firm FE | Yes | Yes | Yes | Yes |
| Year FE | Yes | Yes | Yes | Yes |
| Adj. | 53.75 | 50.05 | 51.29 | 53.12 |
| 30.06 | 28.21 | |||
| (0.000) | (0.000) | |||
| Observations | 4,913 | 4,925 | 4,920 | 4,919 |
Note(s): The table displays the results of regressions of the effect of OK on investment inefficiency using four different estimators, namely, WLS, Petersen (2009), Newey-West, and Tobit. Figures between parentheses are standard errors. ***, **, and * refer to 1%, 5%, and 10% significance levels. Definitions of all variables are as presented in Appendix 1
Source(s): Authors’ own work