Table 3 Results when using actual...

Table 3

Results when using actual ownership concentration

Panel A: comparison of quintile means
	Ownership concentration
Variable	Bottom quintile	Top quintile	Difference
NOSHST	18.877	80.807	−61.930***
			(<0.001)
LIQ	13.865	60.186	−46.320***
			(<0.001)
VOL	5.012	20.621	−15.609***
			(<0.001)
LEV	3.800	2.916	0.884**
			(0.010)
MTB	0.057	0.008	0.049***
			(<0.001)
BETA	0.020	0.039	−0.019***
			(<0.001)
AGE	0.211	0.176	0.034***
			(<0.001)
AR	2.818	1.678	1.141***
			(<0.001)
AF	0.534	0.393	0.140***
			(<0.001)
DY	18.925	15.000	3.925***
			(<0.001)
SIZE	1.926	0.739	1.187***
			(<0.001)
MAR	0.728	0.270	0.459***
			(<0.001)
ΔEPS	0.036	0.027	0.009***
			(<0.001)
NEG	16.218	14.245	1.972***
			(<0.001)
N	416	404

Panel A: comparison of quintile means
	Ownership concentration
Variable	Bottom quintile	Top quintile	Difference
NOSHST	18.877	80.807	−61.930***
			(<0.001)
LIQ	13.865	60.186	−46.320***
			(<0.001)
VOL	5.012	20.621	−15.609***
			(<0.001)
LEV	3.800	2.916	0.884**
			(0.010)
MTB	0.057	0.008	0.049***
			(<0.001)
BETA	0.020	0.039	−0.019***
			(<0.001)
AGE	0.211	0.176	0.034***
			(<0.001)
AR	2.818	1.678	1.141***
			(<0.001)
AF	0.534	0.393	0.140***
			(<0.001)
DY	18.925	15.000	3.925***
			(<0.001)
SIZE	1.926	0.739	1.187***
			(<0.001)
MAR	0.728	0.270	0.459***
			(<0.001)
ΔEPS	0.036	0.027	0.009***
			(<0.001)
NEG	16.218	14.245	1.972***
			(<0.001)
N	416	404

Panel B: ownership concentration and IFRS earnings
	OWN = 1 for bottom quintile			OWN = 1 for top quintile
Variable	All firms	Positive earnings	Negative earnings	All firms	Positive earnings	Negative earnings
BPS	0.469**	0.460***	0.813	0.504***	0.400**	0.404***
	(0.014)	(0.005)	(0.163)	(0.006)	(0.016)	(0.001)
EPS	4.570***	4.942***	1.262	4.952***	5.549***	0.794
	(0.001)	(0.002)	(0.425)	(0.001)	(0.001)	(0.569)
NEG	5.098**			6.348***
	(0.048)			(0.009)
OWN	−0.352	0.073	4.242**	−0.989	−1.659	0.401
	(0.906)	(0.985)	(0.028)	(0.589)	(0.644)	(0.310)
OWN*BPS	0.300**	0.335**	0.997	0.082**	−0.038	0.167
	(0.015)	(0.019)	(0.249)	(0.027)	(0.879)	(0.318)
OWN*EPS	−0.711	−0.979	6.660	−1.181	−0.487	0.152
	(0.366)	(0.416)	(0.224)	(0.499)	(0.789)	(0.862)
Fixed effects:
- Firm	Yes	Yes	Yes	Yes	Yes	Yes
- Year	Yes	Yes	Yes	Yes	Yes	Yes
N	1,622	1,392	230	1,610	1,357	253
Within R²	24.5%	22.8%	22.0%	26.5%	27.1%	18.5%

Panel B: ownership concentration and IFRS earnings
	OWN = 1 for bottom quintile			OWN = 1 for top quintile
Variable	All firms	Positive earnings	Negative earnings	All firms	Positive earnings	Negative earnings
BPS	0.469**	0.460***	0.813	0.504***	0.400**	0.404***
	(0.014)	(0.005)	(0.163)	(0.006)	(0.016)	(0.001)
EPS	4.570***	4.942***	1.262	4.952***	5.549***	0.794
	(0.001)	(0.002)	(0.425)	(0.001)	(0.001)	(0.569)
NEG	5.098**			6.348***
	(0.048)			(0.009)
OWN	−0.352	0.073	4.242**	−0.989	−1.659	0.401
	(0.906)	(0.985)	(0.028)	(0.589)	(0.644)	(0.310)
OWN*BPS	0.300**	0.335**	0.997	0.082**	−0.038	0.167
	(0.015)	(0.019)	(0.249)	(0.027)	(0.879)	(0.318)
OWN*EPS	−0.711	−0.979	6.660	−1.181	−0.487	0.152
	(0.366)	(0.416)	(0.224)	(0.499)	(0.789)	(0.862)
Fixed effects:
- Firm	Yes	Yes	Yes	Yes	Yes	Yes
- Year	Yes	Yes	Yes	Yes	Yes	Yes
N	1,622	1,392	230	1,610	1,357	253
Within R²	24.5%	22.8%	22.0%	26.5%	27.1%	18.5%

Panel C: ownership concentration and headline earnings
	OWN = 1 for bottom quintile			OWN = 1 for top quintile
Variable	All firms	Positive earnings	Negative earnings	All firms	Positive earnings	Negative earnings
BPS	0.137	0.092	0.302**	0.172	0.077	0.284
	(0.528)	(0.644)	(0.012)	(0.412)	(0.701)	(0.303)
HEPS	7.999***	8.472***	1.888	7.875***	8.278***	0.318
	(<0.001)	(<0.001)	(0.416)	(<0.001)	(<0.001)	(0.844)
APS	0.670	0.375	0.815	1.315*	1.236	1.064
	(0.350)	(0.640)	(0.715)	(0.056)	(0.123)	(0.591)
NEG	3.355			5.283**
	(0.186)			(0.015)
OWN	0.798	1.762	−0.684	−2.284	−3.116	1.080*
	(0.804)	(0.654)	(0.589)	(0.303)	(0.423)	(0.071)
OWN*BPS	0.283***	0.334**	0.074	0.483***	0.390	0.074
	(0.008)	(0.048)	(0.811)	(0.001)	(0.158)	(0.780)
OWN*HEPS	−1.680	−2.147	10.566***	−3.337***	−2.606***	3.379
	(0.303)	(0.259)	(<0.001)	(0.005)	(0.005)	(0.578)
OWN*APS	−1.745	−1.676	2.668***	1.804	3.536*	−0.460
	(0.176)	(0.321)	(<0.001)	(0.501)	(0.065)	(0.716)
Fixed effects:
- Firm	Yes	Yes	Yes	Yes	Yes	Yes
- Year	Yes	Yes	Yes	Yes	Yes	Yes
N	1,622	1,392	230	1,610	1,357	253
Within R²	33.9%	31.5%	60.0%	32.5%	33.1%	19.6%

Panel C: ownership concentration and headline earnings
	OWN = 1 for bottom quintile			OWN = 1 for top quintile
Variable	All firms	Positive earnings	Negative earnings	All firms	Positive earnings	Negative earnings
BPS	0.137	0.092	0.302**	0.172	0.077	0.284
	(0.528)	(0.644)	(0.012)	(0.412)	(0.701)	(0.303)
HEPS	7.999***	8.472***	1.888	7.875***	8.278***	0.318
	(<0.001)	(<0.001)	(0.416)	(<0.001)	(<0.001)	(0.844)
APS	0.670	0.375	0.815	1.315*	1.236	1.064
	(0.350)	(0.640)	(0.715)	(0.056)	(0.123)	(0.591)
NEG	3.355			5.283**
	(0.186)			(0.015)
OWN	0.798	1.762	−0.684	−2.284	−3.116	1.080*
	(0.804)	(0.654)	(0.589)	(0.303)	(0.423)	(0.071)
OWN*BPS	0.283***	0.334**	0.074	0.483***	0.390	0.074
	(0.008)	(0.048)	(0.811)	(0.001)	(0.158)	(0.780)
OWN*HEPS	−1.680	−2.147	10.566***	−3.337***	−2.606***	3.379
	(0.303)	(0.259)	(<0.001)	(0.005)	(0.005)	(0.578)
OWN*APS	−1.745	−1.676	2.668***	1.804	3.536*	−0.460
	(0.176)	(0.321)	(<0.001)	(0.501)	(0.065)	(0.716)
Fixed effects:
- Firm	Yes	Yes	Yes	Yes	Yes	Yes
- Year	Yes	Yes	Yes	Yes	Yes	Yes
N	1,622	1,392	230	1,610	1,357	253
Within R²	33.9%	31.5%	60.0%	32.5%	33.1%	19.6%

Note(s): Ownership concentration for this table was sorted into quintiles based on actual strategic shareholding. The dependent variable for all regression models is p. Variables are defined in the Appendix. The impact of actual ownership concentration is determined with reference to the middle quintiles as the base sample. For multivariate regression results, two-tailed p-values based on robust standard errors clustered by firm and year (Petersen, 2009; Cameron et al., 2011) are reported in brackets, with a correction where the covariance matrix is not positive semi-definite. ***, ** and * denote significance at the 1%, 5% and 10% levels respectively

Source(s): Authors’ own work

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