Table 4 Results of system GMM –... | Emerald Publishing

Table 4

Results of system GMM – moderating role of corporate governance

	Dependent variable
Independent variable	Firm performance (Model III) (Without moderator)	Firm performance (Model IV) (With moderator)
L.I. TQ	0.23*	0.24**
Leverage	−0.38***	−0.9***
Leverage*Corporate governance		0.35**
Corporate governance	0.28**	0.42***
Size	0.26**	0.26***
Age	−0.28	−0.34
Tax rate	−0.003	−0.003
Dividend payout ratio	0.026	−0.02
Nondebt tax shields	0.165**	0.12**
Market to book value	0.405***	0.40***
Fixed asset ratio	4.15*	4.2**
Free cash flow	−0.659	−0.298
Constant	−10.49***	−6.50***
N	2,762	2,762
Year dummies	Yes	Yes
AR1	0.00	0.00
AR2	0.40	0.10
Sargan/Hansen	0.177	0.176

	Dependent variable
Independent variable	Firm performance (Model III)(Without moderator)	Firm performance (Model IV)(With moderator)
L.I. TQ	0.23*	0.24**
Leverage	−0.38***	−0.9***
Leverage*Corporate governance		0.35**
Corporate governance	0.28**	0.42***
Size	0.26**	0.26***
Age	−0.28	−0.34
Tax rate	−0.003	−0.003
Dividend payout ratio	0.026	−0.02
Nondebt tax shields	0.165**	0.12**
Market to book value	0.405***	0.40***
Fixed asset ratio	4.15*	4.2**
Free cash flow	−0.659	−0.298
Constant	−10.49***	−6.50***
N	2,762	2,762
Year dummies	Yes	Yes
AR1	0.00	0.00
AR2	0.40	0.10
Sargan/Hansen	0.177	0.176

Note(s): ***, ** and * represent the significance level at 0.01, 0.05 and 0.10, respectively

Source(s): Authors’ own calculations