Table 6

Moderating effect of pyramid government ownership on the impact of institutional voids and socio-cultural 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)
Pyramid government ownership−49.274*** (0.614)−48.734*** (0.997)−49.249*** (0.615)−49.507*** (0.637)
Market conditions−3.409*** (1.045)−3.036*** (1.998)−3.708*** (1.062)−2.492*** (1.558)
Market conditions × Pyramid government ownership−2.974* (1.629)−3.461* (1.817)−3.009* (1.653)−3.929*** (2.689)
Control of corruption−5.674*** (1.003)−5.216*** (1.016)−5.674*** (1.047)−6.653*** (1.356)
Control of corruption × Pyramid government ownership−4.256*** (1.310)−3.890*** (1.301)−4.310*** (1.311)−5.556** (1.919)
Property rights−0.180*** (0.0369)−0.167* (0.0396)−0.192*** (0.0392)−0.233*** (0.0767)
Property rights × Pyramid government ownership−0.215** (0.101)−0.212** (0.108)−0.214** (0.101)−0.586*** (0.141)
Political constraints−5.295** (2.395)−4.268 (2.095)−4.914** (2.422)−3.444*** (2.977)
Political constraints × Pyramid government ownership−8.271*** (2.601)−7.003*** (2.506)−8.246*** (2.608)−9.418*** (2.935)
Power distance0.470*** (0.0593)0.379** (0.0751)0.483*** (0.0600)0.384** (0.0632)
Power distance × Pyramid government ownership0.320*** (0.0939)0.216*** (0.00789)0.321*** (0.0950)0.423** (0.170)
Firm size1.843** (0.737)1.818** (0.746)1.979*** (0.741)1.820 (1.337)
Firm age2.030*** (0.385)1.955*** (0.383)1.958*** (0.390)1.643** (0.761)
ROA0.111*** (0.0306)0.116*** (0.0306)0.109*** (0.0308)0.173** (0.0698)
Tobin’s Q0.507 (0.331)0.520* (0.335)0.483 (0.332)0.548* (0.389)
Board size−0.716*** (0.109)−0.708*** (0.108)−0.721*** (0.109)−1.165*** (0.203)
Board independence0.023* (0.0135)0.020 (0.0133)0.022 (0.0137)0.009 (0.0342)
Female board representation0.098*** (0.0277)0.095*** (0.0276)0.097*** (0.0278)0.131*** (0.0340)
Board committee−0.810*** (0.218)−0.843*** (0.218)−0.802*** (0.219)−0.829** (0.402)
Audit committee1.452* (0.770)1.296* (0.767)1.378* (0.773)0.784 (1.591)
Shareholders’ rights−0.458 (0.791)−0.517 (0.800)−0.566 (0.794)−1.233 (1.344)
Revenue growth0.009 (0.00793)0.009 (0.00828)0.009 (0.00790)0.024*** (0.00785)
Leverage ratio0.495 (2.017)0.587 (2.034)0.016 (2.036)0.614* (3.027)
GDP per capita−6.045*** (0.552)−4.851 (1.241)−6.215*** (0.571)−5.261 (1.654)
GPD growth−1.627*** (0.388)−1.398*** (0.363)−1.541*** (0.436)−1.953 (0.743)
IndustryYesYesYesYes
Year  Yes 
Country   Yes
Constant8.857** (4.236)9.259*** (5.283)8.232* (4.422)9.482*** (6.850)
Hausman test (p-value) 3.402 (0.144)  
R20.2180.2190.2170.320
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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