Table 13

Robustness test and additional analysis

Independent variablesVariablesBaselineGMMInterpretation
Fixed effect (FE)
Board attributesBOID***(3.77)**(2.52)Robustly significant
BENVC*(1.82)(−0.19)FE-only significance
BENEX*(1.79)(−0.82)FE-only significance
CEOGD***(3.72)0.0443GMM slightly weaker but still significant
   The instrumental variables are valid and uncorrelated with the error term
Hansen J test L2 PV 0.334 
Audit committee attributesACIND***(3.26)***(2.37)Robustly significant
ACMT***(−2.49)(−0.69)FE-only significance
ACFEX**(2.22)(−0.16)FE-only significance
ACGD***(3.49)**(2.54)GMM slightly weaker but still significant
   The instrumental variables are valid and uncorrelated with the error term
Hansen J test L2 PV 0.319 
Ownership attributesINOWN(0.11)(−1.43)Not robust in GMM
FROWN**(2.08)(−0.61)FE-only significance
GOVOWN**(2.31)(−0.00)FE-only significance
MGOWN(−0.05)*(1.70)GMM slightly significant
   The instrumental variables are valid and uncorrelated with the error term
Hansen J test L2 PV 0.414 

Note(s): ***p < 0.01, **p < 0.05, *p < 0.10

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