Table 6 Results when using absolute...

Table 6

Results when using absolute abnormal ownership concentration

Panel A: absolute abnormal ownership concentration and IFRS earnings
	\|OWN_AB\| = 1 for bottom quintile			\|OWN_AB\| = 1 for top quintile
Variable	All firms	Positive earnings	Negative earnings	All firms	Positive earnings	Negative earnings
BPS	0.667***	0.699***	0.648	0.678***	0.664***	1.001***
	(0.006)	(0.005)	(0.281)	(<0.001)	(0.001)	(0.004)
EPS	4.058***	4.156***	6.570	4.108***	4.460***	7.026
	(<0.001)	(0.001)	(0.184)	(0.001)	(0.002)	(0.156)
NEG	5.569**			6.182**
	(0.024)			(0.034)
\|OWN_AB\|	0.714	0.567	−5.048*	−0.139	−0.224	−1.551
	(0.743)	(0.850)	(0.086)	(0.914)	(0.900)	(0.784)
\|OWN_AB\|*BPS	−0.218**	−0.231***	0.038	0.104	0.002	−1.116***
	(0.025)	(0.009)	(0.953)	(0.241)	(0.993)	(0.003)
\|OWN_AB\|*EPS	1.818**	1.940*	−4.900	0.199	0.985	−7.747*
	(0.025)	(0.066)	(0.337)	(0.801)	(0.447)	(0.080)
Fixed effects:
- Firm	Yes	Yes	Yes	Yes	Yes	Yes
- Year	Yes	Yes	Yes	Yes	Yes	Yes
N	1,621	1,388	233	1,621	1,383	238
Within R²	25.5%	24.7%	22.9%	27.2%	28.0%	37.8%

Panel A: absolute abnormal ownership concentration and IFRS earnings
	\|OWN_AB\| = 1 for bottom quintile			\|OWN_AB\| = 1 for top quintile
Variable	All firms	Positive earnings	Negative earnings	All firms	Positive earnings	Negative earnings
BPS	0.667***	0.699***	0.648	0.678***	0.664***	1.001***
	(0.006)	(0.005)	(0.281)	(<0.001)	(0.001)	(0.004)
EPS	4.058***	4.156***	6.570	4.108***	4.460***	7.026
	(<0.001)	(0.001)	(0.184)	(0.001)	(0.002)	(0.156)
NEG	5.569**			6.182**
	(0.024)			(0.034)
\|OWN_AB\|	0.714	0.567	−5.048*	−0.139	−0.224	−1.551
	(0.743)	(0.850)	(0.086)	(0.914)	(0.900)	(0.784)
\|OWN_AB\|*BPS	−0.218**	−0.231***	0.038	0.104	0.002	−1.116***
	(0.025)	(0.009)	(0.953)	(0.241)	(0.993)	(0.003)
\|OWN_AB\|*EPS	1.818**	1.940*	−4.900	0.199	0.985	−7.747*
	(0.025)	(0.066)	(0.337)	(0.801)	(0.447)	(0.080)
Fixed effects:
- Firm	Yes	Yes	Yes	Yes	Yes	Yes
- Year	Yes	Yes	Yes	Yes	Yes	Yes
N	1,621	1,388	233	1,621	1,383	238
Within R²	25.5%	24.7%	22.9%	27.2%	28.0%	37.8%

Panel B: absolute abnormal ownership concentration and headline earnings
	\|OWN_AB\| = 1 for bottom quintile			\|OWN_AB\| = 1 for top quintile
Variable	All firms	Positive earnings	Negative earnings	All firms	Positive earnings	Negative earnings
BPS	0.371	0.402	0.770	0.428*	0.432*	0.449*
	(0.153)	(0.131)	(0.250)	(0.056)	(0.054)	(0.051)
HEPS	6.594***	6.563***	10.018***	6.115***	6.233***	11.017***
	(<0.001)	(0.001)	(0.001)	(<0.001)	(0.001)	(0.001)
APS	−0.351	−0.442	1.797	−0.199	0.016	2.686
	(0.728)	(0.645)	(0.614)	(0.865)	(0.988)	(0.486)
NEG	2.964			3.361
	(0.112)			(0.249)
\|OWN_AB\|	−0.786	−1.811	−5.298*	−1.000	−1.251	0.827
	(0.616)	(0.297)	(0.067)	(0.493)	(0.522)	(0.509)
\|OWN_AB\|*BPS	−0.242***	−0.311***	0.547	0.238*	0.072	−0.588***
	(0.005)	(<0.001)	(0.166)	(0.088)	(0.777)	(0.002)
\|OWN_AB\|*HEPS	2.783***	3.381***	−14.856***	−0.384	0.962	−3.873
	(<0.001)	(<0.001)	(0.002)	(0.721)	(0.605)	(0.296)
\|OWN_AB\|*APS	0.939	1.119	−0.869	1.916**	1.917*	−3.874
	(0.119)	(0.329)	(0.856)	(0.036)	(0.088)	(0.448)
Fixed effects:
- Firm	Yes	Yes	Yes	Yes	Yes	Yes
- Year	Yes	Yes	Yes	Yes	Yes	Yes
N	1,621	1,388	233	1,621	1,383	238
Within R²	33.8%	32.4%	59.6%	33.0%	32.9%	70.0%

Panel B: absolute abnormal ownership concentration and headline earnings
	\|OWN_AB\| = 1 for bottom quintile			\|OWN_AB\| = 1 for top quintile
Variable	All firms	Positive earnings	Negative earnings	All firms	Positive earnings	Negative earnings
BPS	0.371	0.402	0.770	0.428*	0.432*	0.449*
	(0.153)	(0.131)	(0.250)	(0.056)	(0.054)	(0.051)
HEPS	6.594***	6.563***	10.018***	6.115***	6.233***	11.017***
	(<0.001)	(0.001)	(0.001)	(<0.001)	(0.001)	(0.001)
APS	−0.351	−0.442	1.797	−0.199	0.016	2.686
	(0.728)	(0.645)	(0.614)	(0.865)	(0.988)	(0.486)
NEG	2.964			3.361
	(0.112)			(0.249)
\|OWN_AB\|	−0.786	−1.811	−5.298*	−1.000	−1.251	0.827
	(0.616)	(0.297)	(0.067)	(0.493)	(0.522)	(0.509)
\|OWN_AB\|*BPS	−0.242***	−0.311***	0.547	0.238*	0.072	−0.588***
	(0.005)	(<0.001)	(0.166)	(0.088)	(0.777)	(0.002)
\|OWN_AB\|*HEPS	2.783***	3.381***	−14.856***	−0.384	0.962	−3.873
	(<0.001)	(<0.001)	(0.002)	(0.721)	(0.605)	(0.296)
\|OWN_AB\|*APS	0.939	1.119	−0.869	1.916**	1.917*	−3.874
	(0.119)	(0.329)	(0.856)	(0.036)	(0.088)	(0.448)
Fixed effects:
- Firm	Yes	Yes	Yes	Yes	Yes	Yes
- Year	Yes	Yes	Yes	Yes	Yes	Yes
N	1,621	1,388	233	1,621	1,383	238
Within R²	33.8%	32.4%	59.6%	33.0%	32.9%	70.0%

Note(s): Ownership concentration for this table was sorted into quintiles based on absolute abnormal strategic shareholding. The dependent variable for all regression models is p. Variables are defined in the Appendix. The impact of absolute abnormal 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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