Table 11 Effect of GPR_IND,... | Emerald Publishing

Table 11

Effect of GPR_IND, GPR_DECEMBER, ΔTWO_YEAR_LN_GPR, and ΔLN_GPR on investment inefficiency, overinvestment, and underinvestment

GPR =	GPR_India			GPR_DECEMBER			ΔTWO_YEAR_LN_GPR			ΔLN_GPR
	Investment inefficiency	Overinvestment	Underinvestment	Investment inefficiency	Overinvestment	Underinvestment	Investment inefficiency	Overinvestment	Underinvestment	Investment inefficiency	Overinvestment	Underinvestment
Variables	Model 1	Model 2	Model 3	Model 4	Model 5	Model 6	Model 7	Model 8	Model 9	Model 10	Model 11	Model 12
GPR	0.0226***	0.0396***	0.0498***	0.0119***	0.0652***	0.0036***	0.0839***	0.4252***	0.0090***	0.1156***	0.2590***	0.0146***
GPR	(0.002)	(0.007)	(0.001)	(0.003)	(0.013)	(0.001)	(0.012)	(0.031)	(0.002)	(0.025)	(0.050)	(0.002)
TANG	0.0516***	0.0819***	−0.0185***	0.0531***	0.0805***	−0.0185***	0.0050**	0.0749***	−0.0186***	0.0022*	0.0805***	−0.0185***
TANG	(0.004)	(0.009)	(0.002)	(0.004)	(0.012)	(0.003)	(0.002)	(0.012)	(0.002)	(0.001)	(0.012)	(0.002)
SIZE	−0.0065***	−0.0176***	−0.0021***	−0.0068***	−0.0160***	−0.0021***	−0.0046***	−0.0148***	−0.0018***	−0.0050***	−0.0160***	−0.0021***
SIZE	(0.001)	(0.002)	(0.000)	(0.001)	(0.002)	(0.000)	(0.001)	(0.002)	(0.000)	(0.001)	(0.002)	(0.000)
ROA	0.0890***	0.1088**	−0.0255***	0.0946***	0.0898	−0.0255***	0.0867***	0.0744	−0.0299***	0.0974***	0.0898	−0.0255***
ROA	(0.016)	(0.044)	(0.004)	(0.016)	(0.056)	(0.004)	(0.030)	(0.062)	(0.004)	(0.030)	(0.056)	(0.004)
LEVE	0.0357***	0.0559***	0.0130***	0.0360***	0.0513***	0.0130***	0.0436***	0.0510***	0.0123***	0.0471***	0.0513***	0.0130***
LEVE	(0.003)	(0.008)	(0.002)	(0.003)	(0.010)	(0.001)	(0.007)	(0.010)	(0.001)	(0.007)	(0.010)	(0.001)
CASH	0.0354***	0.0788***	−0.0036**	0.0359***	0.0751***	−0.0030	0.0329***	0.0898***	−0.0023	0.0294***	0.0751***	−0.0030
CASH	(0.007)	(0.018)	(0.001)	(0.007)	(0.016)	(0.002)	(0.010)	(0.020)	(0.002)	(0.009)	(0.016)	(0.002)
SLACK	0.0016***	0.0069***	0.0013***	0.0016***	0.0072***	0.0013***	0.0003	0.0055**	0.0013***	0.0004	0.0072***	0.0013***
SLACK	(0.000)	(0.002)	(0.000)	(0.000)	(0.002)	(0.000)	(0.000)	(0.002)	(0.000)	(0.000)	(0.002)	(0.000)
Ln_OC	0.0001	−0.0049	0.0008**	0.0001	−0.0052*	0.0008*	−0.0032**	−0.0061*	0.0009**	−0.0033**	−0.0052*	0.0008**
Ln_OC	(0.001)	(0.003)	(0.000)	(0.001)	(0.003)	(0.000)	(0.001)	(0.003)	(0.000)	(0.001)	(0.003)	(0.000)
ROE	0.0005	0.0017	−0.0029***	0.0000	−0.0013	−0.0029***	−0.0019	−0.0067	−0.0024***	−0.0017	−0.0013	−0.0029***
ROE	(0.002)	(0.010)	(0.001)	(0.002)	(0.011)	(0.001)	(0.002)	(0.012)	(0.001)	(0.002)	(0.011)	(0.001)
CFO	−0.0004	−0.0148	0.0003*	−0.0004	−0.0145	0.0003	−0.0173**	−0.0159	0.0004*	−0.0075*	−0.0145	0.0003
CFO	(0.000)	(0.012)	(0.000)	(0.000)	(0.010)	(0.000)	(0.007)	(0.012)	(0.000)	(0.004)	(0.010)	(0.000)
Ln_Age	−0.0061***	−0.0126***	−0.0010***	−0.0063***	−0.0121***	−0.0010***	−0.0052***	−0.0119***	−0.0008***	−0.0055***	−0.0121***	−0.0010***
Ln_Age	(0.001)	(0.002)	(0.000)	(0.001)	(0.002)	(0.000)	(0.001)	(0.002)	(0.000)	(0.001)	(0.002)	(0.000)
GDP_GRO	0.0009***	0.0013***	0.0139***	0.0005***	−0.0020***	0.0020***	−0.0143***	0.0046***	0.0069***	−0.0123***	−0.0040***	0.0075***
GDP_GRO	(0.000)	(0.000)	(0.000)	(0.000)	(0.000)	(0.000)	(0.001)	(0.001)	(0.000)	(0.001)	(0.001)	(0.000)
TOBINSQ	0.0010	0.0080	−0.0017***	0.0008	0.0088	−0.0017***	0.0009	0.0083	−0.0016***	0.0008	0.0088	−0.0017***
TOBINSQ	(0.002)	(0.006)	(0.000)	(0.002)	(0.006)	(0.000)	(0.002)	(0.005)	(0.000)	(0.002)	(0.006)	(0.000)
Intercept	0.1339***	0.2979***	0.0312***	0.0462***	−0.0545	0.1961***	0.2404***	0.1497***	0.0174***	0.2432***	0.2468***	0.0131***
Intercept	(0.009)	(0.029)	(0.004)	(0.015)	(0.063)	(0.004)	(0.008)	(0.026)	(0.002)	(0.017)	(0.023)	(0.004)
Industry FE	YES	YES	YES	YES	YES	YES	YES	YES	YES	YES	YES	YES
Year FE	YES	YES	YES	YES	YES	YES	YES	YES	YES	YES	YES	YES
Observations	40,895	12,297	28,595	40,889	12,294	28,595	36,470	10,882	25,615	40,886	12,294	28,592
Adj. R2	0.0740	0.1115	0.1222	0.0717	0.1216	0.1222	0.0667	0.1125	0.1199	0.0721	0.1216	0.1222

GPR =	GPR_India			GPR_DECEMBER			ΔTWO_YEAR_LN_GPR			ΔLN_GPR
	Investment inefficiency	Overinvestment	Underinvestment	Investment inefficiency	Overinvestment	Underinvestment	Investment inefficiency	Overinvestment	Underinvestment	Investment inefficiency	Overinvestment	Underinvestment
Variables	Model 1	Model 2	Model 3	Model 4	Model 5	Model 6	Model 7	Model 8	Model 9	Model 10	Model 11	Model 12
GPR	0.0226***	0.0396***	0.0498***	0.0119***	0.0652***	0.0036***	0.0839***	0.4252***	0.0090***	0.1156***	0.2590***	0.0146***
GPR	(0.002)	(0.007)	(0.001)	(0.003)	(0.013)	(0.001)	(0.012)	(0.031)	(0.002)	(0.025)	(0.050)	(0.002)
TANG	0.0516***	0.0819***	−0.0185***	0.0531***	0.0805***	−0.0185***	0.0050**	0.0749***	−0.0186***	0.0022*	0.0805***	−0.0185***
TANG	(0.004)	(0.009)	(0.002)	(0.004)	(0.012)	(0.003)	(0.002)	(0.012)	(0.002)	(0.001)	(0.012)	(0.002)
SIZE	−0.0065***	−0.0176***	−0.0021***	−0.0068***	−0.0160***	−0.0021***	−0.0046***	−0.0148***	−0.0018***	−0.0050***	−0.0160***	−0.0021***
SIZE	(0.001)	(0.002)	(0.000)	(0.001)	(0.002)	(0.000)	(0.001)	(0.002)	(0.000)	(0.001)	(0.002)	(0.000)
ROA	0.0890***	0.1088**	−0.0255***	0.0946***	0.0898	−0.0255***	0.0867***	0.0744	−0.0299***	0.0974***	0.0898	−0.0255***
ROA	(0.016)	(0.044)	(0.004)	(0.016)	(0.056)	(0.004)	(0.030)	(0.062)	(0.004)	(0.030)	(0.056)	(0.004)
LEVE	0.0357***	0.0559***	0.0130***	0.0360***	0.0513***	0.0130***	0.0436***	0.0510***	0.0123***	0.0471***	0.0513***	0.0130***
LEVE	(0.003)	(0.008)	(0.002)	(0.003)	(0.010)	(0.001)	(0.007)	(0.010)	(0.001)	(0.007)	(0.010)	(0.001)
CASH	0.0354***	0.0788***	−0.0036**	0.0359***	0.0751***	−0.0030	0.0329***	0.0898***	−0.0023	0.0294***	0.0751***	−0.0030
CASH	(0.007)	(0.018)	(0.001)	(0.007)	(0.016)	(0.002)	(0.010)	(0.020)	(0.002)	(0.009)	(0.016)	(0.002)
SLACK	0.0016***	0.0069***	0.0013***	0.0016***	0.0072***	0.0013***	0.0003	0.0055**	0.0013***	0.0004	0.0072***	0.0013***
SLACK	(0.000)	(0.002)	(0.000)	(0.000)	(0.002)	(0.000)	(0.000)	(0.002)	(0.000)	(0.000)	(0.002)	(0.000)
Ln_OC	0.0001	−0.0049	0.0008**	0.0001	−0.0052*	0.0008*	−0.0032**	−0.0061*	0.0009**	−0.0033**	−0.0052*	0.0008**
Ln_OC	(0.001)	(0.003)	(0.000)	(0.001)	(0.003)	(0.000)	(0.001)	(0.003)	(0.000)	(0.001)	(0.003)	(0.000)
ROE	0.0005	0.0017	−0.0029***	0.0000	−0.0013	−0.0029***	−0.0019	−0.0067	−0.0024***	−0.0017	−0.0013	−0.0029***
ROE	(0.002)	(0.010)	(0.001)	(0.002)	(0.011)	(0.001)	(0.002)	(0.012)	(0.001)	(0.002)	(0.011)	(0.001)
CFO	−0.0004	−0.0148	0.0003*	−0.0004	−0.0145	0.0003	−0.0173**	−0.0159	0.0004*	−0.0075*	−0.0145	0.0003
CFO	(0.000)	(0.012)	(0.000)	(0.000)	(0.010)	(0.000)	(0.007)	(0.012)	(0.000)	(0.004)	(0.010)	(0.000)
Ln_Age	−0.0061***	−0.0126***	−0.0010***	−0.0063***	−0.0121***	−0.0010***	−0.0052***	−0.0119***	−0.0008***	−0.0055***	−0.0121***	−0.0010***
Ln_Age	(0.001)	(0.002)	(0.000)	(0.001)	(0.002)	(0.000)	(0.001)	(0.002)	(0.000)	(0.001)	(0.002)	(0.000)
GDP_GRO	0.0009***	0.0013***	0.0139***	0.0005***	−0.0020***	0.0020***	−0.0143***	0.0046***	0.0069***	−0.0123***	−0.0040***	0.0075***
GDP_GRO	(0.000)	(0.000)	(0.000)	(0.000)	(0.000)	(0.000)	(0.001)	(0.001)	(0.000)	(0.001)	(0.001)	(0.000)
TOBINSQ	0.0010	0.0080	−0.0017***	0.0008	0.0088	−0.0017***	0.0009	0.0083	−0.0016***	0.0008	0.0088	−0.0017***
TOBINSQ	(0.002)	(0.006)	(0.000)	(0.002)	(0.006)	(0.000)	(0.002)	(0.005)	(0.000)	(0.002)	(0.006)	(0.000)
Intercept	0.1339***	0.2979***	0.0312***	0.0462***	−0.0545	0.1961***	0.2404***	0.1497***	0.0174***	0.2432***	0.2468***	0.0131***
Intercept	(0.009)	(0.029)	(0.004)	(0.015)	(0.063)	(0.004)	(0.008)	(0.026)	(0.002)	(0.017)	(0.023)	(0.004)
Industry FE	YES	YES	YES	YES	YES	YES	YES	YES	YES	YES	YES	YES
Year FE	YES	YES	YES	YES	YES	YES	YES	YES	YES	YES	YES	YES
Observations	40,895	12,297	28,595	40,889	12,294	28,595	36,470	10,882	25,615	40,886	12,294	28,592
Adj. R2	0.0740	0.1115	0.1222	0.0717	0.1216	0.1222	0.0667	0.1125	0.1199	0.0721	0.1216	0.1222

Note(s): All models employing pooled panel OLS estimation. Robust standard errors in brackets are clustered by firm and year to address serial correlation and heteroskedasticity. The measurement of the variables is in Appendix Table A1. *, **, and *** indicate significance levels of 10%, 5%, and 1%, respectively

Source(s): Authors own work

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