Table 6 Entropy balancing Panel A:...

Table 6

Entropy balancing

Panel A: Summary statistics
	Original sample (mean)			Re-weighted sample (mean)
Variables	Treatment (N = 13,750)	Control (40,279)	Standardized difference (%) (t-stat)	Treatment (N = 13,750)	Control (N = 40,279)	Standardized difference (%) (t-stat)
TP∆/P	0.013	−0.008	0.081 (7.68)	0.013	0.013	−0.000 (−0.06)
Size	8.587	8.488	0.058 (5.89)	8.587	8.587	−0.000 (−0.002)
Broker Size	3.798	3.848	−0.047 (−4.75)	3.798	3.798	−0.000 (−0.004)
B/M	−1.094	−1.109	0.019 (1.92)	−1.094	−1.094	−0.000 (−0.001)
Experience	55.068	55.381	−0.009 (−0.99)	55.067	55.068	0.000 (0.002)
IO	0.775	0.771	0.027 (2.43)	0.775	0.775	−0.000 (−0.39)
Ext Fin	0.001	0.006	−0.033 (−3.23)	0.001	0.001	−0.000 (−0.02)
Coverage	2.114	2.136	−0.034 (−3.48)	2.114	2.114	−0.000 (−0.003)
Dispersion	0.133	0.132	0.010 (1.15)	0.133	0.133	−0.000 (−0.29)
Leverage	0.201	0.203	0.041 (4.22)	0.201	0.201	0.000 (0.01)
∆VIX	−0.018	−0.001	−0.126 (−12.91)	−0.018	−0.018	−0.000 (−0.40)
EPS Frsct	0.562	0.480	0.165 (16.70)	0.562	0.562	0.000 (0.05)
Recession	0.107	0.109	−0.005 (−0.65)	0.107	0.107	−0.000 (−0.04)
SIR	0.045	0.049	−0.085 (−8.45)	0.045	0.046	0.000 (−2.16)
Momentum	0.132	0.135	−0.008 (−0.78)	0.132	0.132	0.000 (0.00)

Panel A: Summary statistics
	Original sample (mean)			Re-weighted sample (mean)
Variables	Treatment (N = 13,750)	Control (40,279)	Standardized difference (%) (t-stat)	Treatment (N = 13,750)	Control (N = 40,279)	Standardized difference (%) (t-stat)
TP∆/P	0.013	−0.008	0.081 (7.68)	0.013	0.013	−0.000 (−0.06)
Size	8.587	8.488	0.058 (5.89)	8.587	8.587	−0.000 (−0.002)
Broker Size	3.798	3.848	−0.047 (−4.75)	3.798	3.798	−0.000 (−0.004)
B/M	−1.094	−1.109	0.019 (1.92)	−1.094	−1.094	−0.000 (−0.001)
Experience	55.068	55.381	−0.009 (−0.99)	55.067	55.068	0.000 (0.002)
IO	0.775	0.771	0.027 (2.43)	0.775	0.775	−0.000 (−0.39)
Ext Fin	0.001	0.006	−0.033 (−3.23)	0.001	0.001	−0.000 (−0.02)
Coverage	2.114	2.136	−0.034 (−3.48)	2.114	2.114	−0.000 (−0.003)
Dispersion	0.133	0.132	0.010 (1.15)	0.133	0.133	−0.000 (−0.29)
Leverage	0.201	0.203	0.041 (4.22)	0.201	0.201	0.000 (0.01)
∆VIX	−0.018	−0.001	−0.126 (−12.91)	−0.018	−0.018	−0.000 (−0.40)
EPS Frsct	0.562	0.480	0.165 (16.70)	0.562	0.562	0.000 (0.05)
Recession	0.107	0.109	−0.005 (−0.65)	0.107	0.107	−0.000 (−0.04)
SIR	0.045	0.049	−0.085 (−8.45)	0.045	0.046	0.000 (−2.16)
Momentum	0.132	0.135	−0.008 (−0.78)	0.132	0.132	0.000 (0.00)

Panel B: Weighted regression results
	(1)
Variables	CAR(−1,+1)
LT (%)	−0.00347
LT (%)	(−0.73)
TP∆/P	0.0205^***
TP∆/P	(4.14)
LT (%) × TP∆/P	0.0424^**
LT (%) × TP∆/P	(2.20)
N	53,988
Adj. R²	0.150
Firm & Year FEs	Yes
Controls	Yes

Panel B: Weighted regression results
LT (%)	−0.00347
(−0.73)
TP∆/P	0.0205^***
(4.14)
LT (%) × TP∆/P	0.0424^**
(2.20)
N	53,988
Adj. R²	0.150
Firm & Year FEs	Yes
Controls	Yes

Note(s): This table estimates the effect of long-term institutional shareholdings (LT (%)) on the stock market response (CARs) to target price revisions (TP∆/P), using the entropy balancing approach. Panel A provides the summary statistics for the original and the reweighted samples. Panel B presents the regression results for the reweighted sample. All the variables are defined in table A1 in Appendix. The t-statistics are reported in parentheses. Standard errors are clustered at the firm level. *, ** and *** denote statistical significance for the coefficients at 10%, 5% and 1% respectively

Source(s): Authors’ own work

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