Table 6

Endogeneity test results

VariableAbTonetAbTonetAbTonet+1
PSMHeckman two-stageLagged one-stage
(1)(2)(3)
ETt3.5246***3.5180***5.2191***
(4.104)(4.097)(5.422)
IMR 0.0506 
 (0.162) 
ControlsYesYesYes
Year FEYesYesYes
Industry FEYesYesYes
Constant−0.1641−0.8584***−0.3149
(−0.444)(−0.976)(−0.797)
Observations36,11636,11630,430
Adjusted R20.03430.03430.0384

Note(s): t-values are reported in parentheses. *, ** and *** indicate significance at the 10%, 5% and 1% levels, respectively. All regressions control for firm characteristics, year-fixed effects and industry-fixed effects. “PSM” denotes Propensity Score Matching; “Heckman two-stage” refers to the Heckman two-stage method; “lagged one-stage” indicates regressions using the lagged value of external blockholder exit threat. IMR represents the inverse Mills ratio. Variable definitions are provided in Table 1 

Source(s): Table by authors

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