Multilevel mixed-effects linear regression results with divestment t+1 as dependent variable and debt covenant-related and efficiency-related APM disclosures and loss as independent variables (subsample analysis)
| DIVESTMENTSit+1a | ||||||
|---|---|---|---|---|---|---|
| Subsamples | Subsamples | |||||
| Total sample | High leverage | Low leverage | Total sample | High leverage | Low leverage | |
| Variables | Model 1 | Model 2 | Model 3 | Model 4 | Model 5 | Model 6 |
| DISCLOSURE SCORE OF DEBT-COVENANT-RELATED (DC) APMsit-1 | 0.275*** (0.094) | 0.383*** (0.141) | 0.253* (0.132) | |||
| LOSSit-1 | 0.061 (0.092) | 0.170 (0.138) | −0.046 (0.127) | 0.087 (0.093) | 0.219 (0.134) | −0.059 (0.134) |
| DISCLOSURE SCORE OF DC APMsiit-1 × LOSSit-1 | 0.685* (0.386) | 1.015** (0.529) | −0.122 (0.576) | |||
| DISCLOSURE SCORE OF EFFICIENCY-RELATED (ER) APMsit-1 | −0.256*** (0.099) | −0.528*** (0.147) | −0.019 (0.137) | |||
| DISCLOSURE SCORE OF ER APMsii-1t × LOSSit-1 | 0.350 (0.365) | 0.694 (0.550) | −0.157 (0.501) | |||
| SIZEit | 0.287*** (0.030) | 0.404*** (0.050) | 0.242*** (0.040) | 0.309*** (0.030) | 0.444*** (0.051) | 0.256*** (0.040) |
| MARKET-TO-BOOKit | 0.037 (0.073) | 0.045 (0.109) | 0.038 (0.101) | 0.060 (0.073) | 0.106 (0.108) | 0.060 (0.101) |
| SALES GROWTHit | 0.007 (0.032) | 0.018 (0.047) | 0.008 (0.045) | 0.014 (0.032) | 0.040 (0.047) | 0.007 (0.045) |
| BIG4it | −0.070 (0.070) | −0.040 (0.109) | −0.134 (0.097) | −0.033 (0.071) | 0.037 (0.110) | −0.121 (0.096) |
| INSTITUTIONAL INVESTORSit | −0.104 (0.303) | −0.666 (1.197) | −0.053 (0.311) | −0.103 (0.304) | −0.621 (1.198) | −0.056 (0.311) |
| FIRM AGEit | −0.183 (0.133) | −0.260 (0.187) | −0.149 (0.197) | −0.156 (0.134) | −0.179 (0.188) | −0.135 (0.197) |
| LAW AND ENFORCEMENTit | −0.104 (0.064) | −0.234** (0.104) | −0.010 (0.086) | −0.094 (0.064) | −0.223** (0.108) | −0.005 (0.086) |
| INVESTOR PROTECTIONit | 0.105 (0.074) | 0.218* (0.124) | 0.028 (0.103) | 0.100 (0.074) | 0.220* (0.130) | 0.028 (0.102) |
| Industry fixed effects | Included | Included | Included | Included | Included | Included |
| Year fixed effects | Included | Included | Included | Included | Included | Included |
| Random country effects | Included | Included | Included | Included | Included | Included |
| Random firm effects | Included | Included | Included | Included | Included | Included |
| Constant | −2.463*** (0.316) | −3.635*** (0.540) | −2.000*** (0.430) | −2.549*** (0.317) | −3.837*** (0.546) | −2.088*** (0.426) |
| No. of observations | 3.130 | 1.520 | 1.610 | 3.130 | 1.520 | 1.610 |
| Wald_Chi2 | 157.98*** | 118.93*** | 66.57*** | 149.45*** | 116.71*** | 63.18*** |
| Subsamples | Subsamples | |||||
|---|---|---|---|---|---|---|
| Total sample | High leverage | Low leverage | Total sample | High leverage | Low leverage | |
| Variables | Model 1 | Model 2 | Model 3 | Model 4 | Model 5 | Model 6 |
| DISCLOSURE SCORE OF DEBT-COVENANT-RELATED ( | 0.275 | 0.383 | 0.253 | |||
| 0.061 (0.092) | 0.170 (0.138) | −0.046 (0.127) | 0.087 (0.093) | 0.219 (0.134) | −0.059 (0.134) | |
| DISCLOSURE SCORE OF DC APMsiit-1 × | 0.685 | 1.015 | −0.122 (0.576) | |||
| DISCLOSURE SCORE OF EFFICIENCY-RELATED ( | −0.256 | −0.528 | −0.019 (0.137) | |||
| DISCLOSURE SCORE OF ER APMsii-1t × | 0.350 (0.365) | 0.694 (0.550) | −0.157 (0.501) | |||
| SIZEit | 0.287 | 0.404 | 0.242 | 0.309 | 0.444 | 0.256 |
| MARKET-TO-BOOKit | 0.037 (0.073) | 0.045 (0.109) | 0.038 (0.101) | 0.060 (0.073) | 0.106 (0.108) | 0.060 (0.101) |
| SALES GROWTHit | 0.007 (0.032) | 0.018 (0.047) | 0.008 (0.045) | 0.014 (0.032) | 0.040 (0.047) | 0.007 (0.045) |
| BIG4it | −0.070 (0.070) | −0.040 (0.109) | −0.134 (0.097) | −0.033 (0.071) | 0.037 (0.110) | −0.121 (0.096) |
| INSTITUTIONAL INVESTORSit | −0.104 (0.303) | −0.666 (1.197) | −0.053 (0.311) | −0.103 (0.304) | −0.621 (1.198) | −0.056 (0.311) |
| FIRM AGEit | −0.183 (0.133) | −0.260 (0.187) | −0.149 (0.197) | −0.156 (0.134) | −0.179 (0.188) | −0.135 (0.197) |
| LAW AND ENFORCEMENTit | −0.104 (0.064) | −0.234 | −0.010 (0.086) | −0.094 (0.064) | −0.223 | −0.005 (0.086) |
| INVESTOR PROTECTIONit | 0.105 (0.074) | 0.218 | 0.028 (0.103) | 0.100 (0.074) | 0.220 | 0.028 (0.102) |
| Industry fixed effects | Included | Included | Included | Included | Included | Included |
| Year fixed effects | Included | Included | Included | Included | Included | Included |
| Random country effects | Included | Included | Included | Included | Included | Included |
| Random firm effects | Included | Included | Included | Included | Included | Included |
| Constant | −2.463 | −3.635 | −2.000 | −2.549 | −3.837 | −2.088 |
| No. of observations | 3.130 | 1.520 | 1.610 | 3.130 | 1.520 | 1.610 |
| Wald_Chi2 | 157.98 | 118.93 | 66.57 | 149.45 | 116.71 | 63.18 |
Note(s):Table 2 provides the definitions of the variables. ***p < 0.01, **p < 0.05, *p < 0.1 (Standard errors in parentheses). aAll coefficients have been multiplied by 1000
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