Table 4 Two-stage least square (2SLS)...

Table 4

Two-stage least square (2SLS) and firm fixed effects regressions

Parameter	First stage (relevance)	Second stage (main results H1)	Firm fixed effects and robust standard errors
Parameter	(1)	(2)	(3)
Intercept	−0.121	−102.32^***	−66.227^**
Intercept	[1.640]	[9.110]	[2.460]
LAG_BBENIV	0.738^***
LAG_BBENIV	[32.570]
PRED_BBEN		12.155^***
PRED_BBEN		[2.670]
BOARDBEN			5.901^*
BOARDBEN			[1.817]
CEOBEN	0.024^***	1.139	−0.207
CEOBEN	[4.740]	[1.410]	[0.292]
ROE	0.000	0.009	−0.009
ROE	[0.590]	[0.430]	[1.033]
LNCAPEX	0.000	0.200	−0.558^*
LNCAPEX	[0.060]	[0.430]	[1.733]
LEV	−0.062^**	2.671	−5.089
LEV	[2.220]	[0.620]	[0.968]
FAGE	−0.000	0.067	1.406^***
FAGE	[0.490]	[1.600]	[4.905]
LNTA	0.017^***	3.208^***	1.842
LNTA	[3.640]	[4.400]	[1.409]
MBV	0.001^**	0.092	0.072
MBV	[2.310]	[0.460]	[0.642]
BDIND	−0.001	4.411	−7.261
BDIND	[0.350]	[1.130]	[1.245]
BDSIZE	−0.000	4.283^***	1.281^**
BDSIZE	[0.300]	[8.500]	[2.569]
BDDIV	0.175^***	41.683^***	−7.297
BDDIV	[3.760]	[5.770]	[1.293]
CEODUA	0.005	2.011	−1.240
CEODUA	[0.310]	[0.790]	[0.436]
CEOGEN	0.005	−13.456^***	4.580
CEOGEN	[0.240]	[3.680]	[1.003]
CEOTEN	−0.000	0.432^**	0.046
CEOTEN	[0.560]	[2.730]	[0.283]
Year and Industry FE	Yes	Yes	Yes
Number of Observations	920	920	920
Adj. R-squared/Log Likelihood	0.73	−3179	−5706
F-statistic	78.21

Parameter	First stage (relevance)	Second stage (main results H1)	Firm fixed effects and robust standard errors
Parameter	(1)	(2)	(3)
Intercept	−0.121	−102.32^***	−66.227^**
Intercept	[1.640]	[9.110]	[2.460]
LAG_BBENIV	0.738^***
LAG_BBENIV	[32.570]
PRED_BBEN		12.155^***
PRED_BBEN		[2.670]
BOARDBEN			5.901^*
BOARDBEN			[1.817]
CEOBEN	0.024^***	1.139	−0.207
CEOBEN	[4.740]	[1.410]	[0.292]
ROE	0.000	0.009	−0.009
ROE	[0.590]	[0.430]	[1.033]
LNCAPEX	0.000	0.200	−0.558^*
LNCAPEX	[0.060]	[0.430]	[1.733]
LEV	−0.062^**	2.671	−5.089
LEV	[2.220]	[0.620]	[0.968]
FAGE	−0.000	0.067	1.406^***
FAGE	[0.490]	[1.600]	[4.905]
LNTA	0.017^***	3.208^***	1.842
LNTA	[3.640]	[4.400]	[1.409]
MBV	0.001^**	0.092	0.072
MBV	[2.310]	[0.460]	[0.642]
BDIND	−0.001	4.411	−7.261
BDIND	[0.350]	[1.130]	[1.245]
BDSIZE	−0.000	4.283^***	1.281^**
BDSIZE	[0.300]	[8.500]	[2.569]
BDDIV	0.175^***	41.683^***	−7.297
BDDIV	[3.760]	[5.770]	[1.293]
CEODUA	0.005	2.011	−1.240
CEODUA	[0.310]	[0.790]	[0.436]
CEOGEN	0.005	−13.456^***	4.580
CEOGEN	[0.240]	[3.680]	[1.003]
CEOTEN	−0.000	0.432^**	0.046
CEOTEN	[0.560]	[2.730]	[0.283]
Year and Industry FE	Yes	Yes	Yes
Number of Observations	920	920	920
Adj. R-squared/Log Likelihood	0.73	−3179	−5706
F-statistic	78.21

Note(s): Significance is denoted by ^*p < 0.10, ^**p < 0.05, ^***p < 0.01 and t-values are reported in parentheses below estimates. All the variable descriptions are provided in Appendix

Source(s): Authors’ own work

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