Note(s): The table reproduces the main regression estimates using several alternative measures of investment inefficiency, namely, Above or below, Biddle et al. (2009), the absolute value of Chen et al. (2011) and Richardson (2006). Above or below is a dummy variable equal to one if a firm as a firm takes it is above median sample investment efficiency and zero otherwise. Biddle et al. (2009)’s measure is constructed as investment is a function of growth opportunities only. Chen et al. (2011)’s measure is constructed as investment as a function of opportunities and revenue growth. Richardson (2006)’s measure is constructed as investment as a function of growth opportunities and other firm characteristics (leverage, firm age, firm size, cash, stock returns, historical firm investments, industry-fixed effects, and year-fixed effects). Figures between parentheses are standard errors. ^***, ^**, and ^* refer to 1%, 5%, and 10% significance levels, respectively. All other variables are as defined in  Appendix 1

Source(s): Authors’ own work