Table 7 Interaction terms when adding...

Table 7

Interaction terms when adding additional control variables

Panel A: actual ownership concentration (main results in Table 3)
	OWN = 1 for bottom quintile			OWN = 1 for top quintile
Variable	All firms	Positive earnings	Negative earnings	All firms	Positive earnings	Negative earnings
With IFRS
OWN*BPS	0.340**	0.351**	1.100	0.117***	0.009	0.156
	(0.016)	(0.013)	(0.166)	(<0.001)	(0.973)	(0.203)
OWN*EPS	−0.630	−0.716	5.963	−1.222	−0.650	−0.080
	(0.375)	(0.486)	(0.153)	(0.451)	(0.690)	(0.940)
With headline
OWN*BPS	0.310***	0.334**	0.170	0.460***	0.362	0.057
	(0.006)	(0.043)	(0.403)	(0.007)	(0.185)	(0.810)
OWN*HEPS	−1.430	−1.690	10.098***	−3.066***	−2.396***	3.483
	(0.341)	(0.333)	(0.002)	(0.005)	(<0.001)	(0.558)
OWN*APS	−1.780	−1.677	1.889	1.206	2.618	−0.782
	(0.175)	(0.321)	(0.307)	(0.635)	(0.170)	(0.626)

Panel A: actual ownership concentration (main results in Table 3)
	OWN = 1 for bottom quintile			OWN = 1 for top quintile
Variable	All firms	Positive earnings	Negative earnings	All firms	Positive earnings	Negative earnings
With IFRS
OWN*BPS	0.340**	0.351**	1.100	0.117***	0.009	0.156
	(0.016)	(0.013)	(0.166)	(<0.001)	(0.973)	(0.203)
OWN*EPS	−0.630	−0.716	5.963	−1.222	−0.650	−0.080
	(0.375)	(0.486)	(0.153)	(0.451)	(0.690)	(0.940)
With headline
OWN*BPS	0.310***	0.334**	0.170	0.460***	0.362	0.057
	(0.006)	(0.043)	(0.403)	(0.007)	(0.185)	(0.810)
OWN*HEPS	−1.430	−1.690	10.098***	−3.066***	−2.396***	3.483
	(0.341)	(0.333)	(0.002)	(0.005)	(<0.001)	(0.558)
OWN*APS	−1.780	−1.677	1.889	1.206	2.618	−0.782
	(0.175)	(0.321)	(0.307)	(0.635)	(0.170)	(0.626)

Panel B: Abnormal ownership concentration (main results in Table 4)
	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
With IFRS
OWN_AB *BPS	0.245	0.545***	−0.786***	0.334***	0.236*	−0.955
	(0.200)	(0.004)	(0.003)	(0.001)	(0.082)	(0.156)
OWN_AB *EPS	−2.149**	−3.594***	−12.642	−1.609	−1.109	12.453
	(0.034)	(0.004)	(0.112)	(0.213)	(0.402)	(0.115)
With headline
OWN_AB *BPS	0.506***	0.662***	0.277	0.519***	0.406**	−0.081
	(0.002)	(<0.001)	(0.118)	(<0.001)	(0.025)	(0.863)
OWN_AB *HEPS	−4.513***	5.074***	−15.229***	−3.354***	−2.669***	−13.405**
	(<0.001)	(<0.001)	(0.007)	(0.001)	(<0.001)	(0.027)
OWN_AB *APS	1.027	−2.034	−4.037**	1.394	1.877***	−1.918
	(0.603)	(0.307)	(0.014)	(0.247)	(<0.001)	(0.425)

Panel B: Abnormal ownership concentration (main results in Table 4)
	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
With IFRS
OWN_AB *BPS	0.245	0.545***	−0.786***	0.334***	0.236*	−0.955
	(0.200)	(0.004)	(0.003)	(0.001)	(0.082)	(0.156)
OWN_AB *EPS	−2.149**	−3.594***	−12.642	−1.609	−1.109	12.453
	(0.034)	(0.004)	(0.112)	(0.213)	(0.402)	(0.115)
With headline
OWN_AB *BPS	0.506***	0.662***	0.277	0.519***	0.406**	−0.081
	(0.002)	(<0.001)	(0.118)	(<0.001)	(0.025)	(0.863)
OWN_AB *HEPS	−4.513***	5.074***	−15.229***	−3.354***	−2.669***	−13.405**
	(<0.001)	(<0.001)	(0.007)	(0.001)	(<0.001)	(0.027)
OWN_AB *APS	1.027	−2.034	−4.037**	1.394	1.877***	−1.918
	(0.603)	(0.307)	(0.014)	(0.247)	(<0.001)	(0.425)

Panel C: results where ownership concentration is closest to expectation (main results in Table 5)
	Abnormal ownership concentration and IFRS earnings			Abnormal ownership concentration and headline earnings
Variable	All firms	Positive earnings	Negative earnings	All firms	Positive earnings	Negative earnings
OWN_AB*BPS	−0.253***	−0.205***	0.243	−0.287***	−0.278**	0.670**
	(0.010)	(<0.001)	(0.617)	(<0.001)	(0.029)	(0.031)
OWN_AB *EPS	1.678***	1.314***	−1.406
	(0.005)	(0.002)	(0.698)
OWN_AB *HEPS				2.592**	2.518*	−9.443***
				(0.018)	(0.080)	(<0.001)
OWN_AB *APS				0.302	0.048	1.059
				(0.621)	(0.958)	(0.766)

Panel C: results where ownership concentration is closest to expectation (main results in Table 5)
	Abnormal ownership concentration and IFRS earnings			Abnormal ownership concentration and headline earnings
Variable	All firms	Positive earnings	Negative earnings	All firms	Positive earnings	Negative earnings
OWN_AB*BPS	−0.253***	−0.205***	0.243	−0.287***	−0.278**	0.670**
	(0.010)	(<0.001)	(0.617)	(<0.001)	(0.029)	(0.031)
OWN_AB *EPS	1.678***	1.314***	−1.406
	(0.005)	(0.002)	(0.698)
OWN_AB *HEPS				2.592**	2.518*	−9.443***
				(0.018)	(0.080)	(<0.001)
OWN_AB *APS				0.302	0.048	1.059
				(0.621)	(0.958)	(0.766)

Panel D: absolute abnormal ownership concentration (main results in Table 6)
	\|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
With IFRS
\|OWN_AB\| *BPS	−0.252***	−0.252***	0.004	0.040	−0.060	−1.116***
	(0.003)	(<0.001)	(0.995)	(0.700)	(0.769)	(0.002)
\|OWN_AB\| *EPS	1.816***	1.764***	−5.719	0.193	0.986	−8.503*
	(<0.001)	(0.006)	(0.272)	(0.800)	(0.394)	(0.069)
With headline
\|OWN_AB\| *BPS	−0.272***	−0.320***	0.490	0.163	0.005	−0.618***
	(<0.001)	(0.002)	(0.225)	(0.226)	(0.985)	(0.005)
\|OWN_AB\| *HEPS	2.682***	3.000***	−14.213***	−0.362	0.888	4.447*
	(<0.001)	(0.007)	(<0.001)	(0.720)	(0.590)	(0.081)
\|OWN_AB\| *APS	0.980*	1.270	−1.895	1.827**	2.052*	−5.105
	(0.064)	(0.282)	(0.654)	(0.033)	(0.054)	(0.365)

Panel D: absolute abnormal ownership concentration (main results in Table 6)
	\|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
With IFRS
\|OWN_AB\| *BPS	−0.252***	−0.252***	0.004	0.040	−0.060	−1.116***
	(0.003)	(<0.001)	(0.995)	(0.700)	(0.769)	(0.002)
\|OWN_AB\| *EPS	1.816***	1.764***	−5.719	0.193	0.986	−8.503*
	(<0.001)	(0.006)	(0.272)	(0.800)	(0.394)	(0.069)
With headline
\|OWN_AB\| *BPS	−0.272***	−0.320***	0.490	0.163	0.005	−0.618***
	(<0.001)	(0.002)	(0.225)	(0.226)	(0.985)	(0.005)
\|OWN_AB\| *HEPS	2.682***	3.000***	−14.213***	−0.362	0.888	4.447*
	(<0.001)	(0.007)	(<0.001)	(0.720)	(0.590)	(0.081)
\|OWN_AB\| *APS	0.980*	1.270	−1.895	1.827**	2.052*	−5.105
	(0.064)	(0.282)	(0.654)	(0.033)	(0.054)	(0.365)

Note(s): Ownership concentration for this table was sorted into quintiles as described in the earlier tables. The dependent variable for all regression models is P. Firm and year fixed effects are included in all regressions as well as the following firm characteristic variables: LEV, MTB, SIZE, DY, AGE and AF. Variables are defined in the Appendix. 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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