Table 12

Cross-sectional analysis

Investment inefficiency
VariablesModel 1Model 2Model 3Model 4Model 5Model 6Model 7
GPR0.0385***0.0245***0.0242**0.0233***0.0270***0.0238***0.0982***
(0.006)(0.004)(0.011)(0.004)(0.004)(0.004)(0.025)
HIGH_CH−0.1085***      
(0.032)      
HIGH_CH × GPR−0.0257***      
(0.007)      
HIGH_AT 0.0134***     
 (0.001)     
HIGH_AT × GPR 0.0351***     
 (0.007)     
HIGH_SAINDEX  0.0198***    
  (0.005)    
HIGH_SAINDEX × GPR  −0.0045***    
  (0.001)    
HIGH_FCPINDEX   0.0060***   
   (0.002)   
HIGH_FCPINDEX × GPR   −0.0008**   
   (0.000)   
HIGH_Size    0.0587***  
    (0.005)  
HIGH_Size × GPR    −0.0105***  
    (0.001)  
HIGH_HHI     −0.0011 
     (0.002) 
HIGH_HHI × GPR     0.0010** 
     (0.000) 
High_Exposure_Industry      −0.1203***
      (0.031)
High_Exposure_Industry × GPR      0.0268***
      (0.007)
Constant0.0402*0.0034−0.0128−0.0107−0.0171−0.0114−0.9137***
(0.022)(0.021)(0.052)(0.020)(0.020)(0.020)(0.252)
Industry FEYESYESYESYESYESYESYES
Year FEYESYESYESYESYESYESYES
Control VariablesYESYESYESYESYESYESYES
N40,88940,88940,88940,88940,88940,88940,889
Adj. R20.07270.06310.07460.07310.08340.07280.0778

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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