Table 4

Impact of institutional voids and sociocultural norms on government ownership

Lead-lag regressionIV-2SLSFixed effect (year)Fixed effect (country)
(1)(2)(3)(4)
Government ownership %(t+1)Government ownership %(t+1)Government ownership %(t+1)Government ownership %(t+1)
Market conditions−5.654*** (1.020)−10.067*** (1.680)−6.819*** (1.168)−5.585*** (1.022)
Control of corruption−6.670*** (0.900)−6.300*** (0.888)−6.563*** (0.976)−6.255*** (0.897)
Property rights−0.129*** (0.0336)−0.083** (0.0344)−0.119*** (0.0367)−0.129*** (0.0336)
Political constraints−6.826*** (0.907)−7.461*** (0.910)−8.211*** (1.053)−7.449*** (0.998)
Power distance6.826*** (0.0506)7.461*** (0.0606)8.211*** (0.0522)7.449*** (0.0503)
Firm size−0.248 (0.633)−0.237 (0.635)−0.056 (0.624)−0.239 (0.631)
Firm age1.161*** (0.331)1.111*** (0.330)1.100*** (0.335)1.170*** (0.331)
ROA0.189*** (0.0233)0.190*** (0.0234)0.183*** (0.0236)0.190*** (0.0234)
Tobin’s Q1.739*** (0.320)1.811*** (0.322)1.678*** (0.320)1.723*** (0.320)
Board size−0.716*** (0.0749)−0.710*** (0.0748)−0.729*** (0.0752)−0.718*** (0.0750)
Board independence−0.015 (0.0125)−0.014 (0.0125)−0.018 (0.0128)−0.009 (0.0136)
Female board representation0.054** (0.0263)0.053** (0.0262)0.052** (0.0262)0.053** (0.0263)
Board committees0.814*** (0.198)0.771*** (0.198)0.839*** (0.198)0.804*** (0.198)
Audit committee−3.431*** (0.675)−3.433*** (0.673)−3.676*** (0.680)−3.339*** (0.676)
Shareholders’ rights1.795*** (0.679)1.749** (0.682)1.636** (0.668)1.762*** (0.677)
Revenue growth−0.006 (0.00430)−0.006 (0.00432)−0.006 (0.00419)−0.006 (0.00437)
Leverage ratio1.853 (1.714)1.902 (1.718)1.032 (1.707)1.821 (1.710)
GDP per capita−2.866*** (0.692)−0.269 (1.008)−2.456*** (0.739)−1.749* (0.997)
GPD growth0.168 (0.292)0.102 (0.293)0.321 (0.349)0.107 (0.297)
IndustryYesYesYesYes
Year  Yes 
Country   Yes
Constant2.661 (3.447)13.407*** (3.924)5.554 (3.968)−5.924 (6.941)
Hausman test (p-value) 5.940 (0.110)  
R20.1560.1540.1590.156
Observations8,6818,6818,6818,681

Note(s): Standard errors in parentheses *p < 0.1; **p < 0.05 and ***p < 0.01

Source(s): Author’s own work

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