Table 7 Entropy balancing Panel A: Proof...

Table 7

Entropy balancing

Panel A: Proof of convergence
	Treatment			Control
	Mean	Variance	Skewness	Mean	Variance	Skewness
Before balancing
PPE to Assets	0.6597	0.0475	−0.9317	0.2663	0.0606	1.0851
CAPEX Ratio	0.1101	0.0087	2.1421	0.1313	0.0259	20.4201
Leverage	0.3119	0.0328	0.7827	0.2267	0.0536	2.5971
ROA	0.1016	0.0068	1.4561	0.1017	0.0117	0.1312
Firm Size	7.8310	1.5001	−0.7597	6.9010	2.3141	−0.1941
Market to Book Equity	4.6810	8748.0000	14.6701	7.3681	24446.0000	23.4202
Cash Flow to Assets	0.0890	0.0084	−0.4297	0.0531	0.0304	−5.5451
Net Working Capital	0.0045	0.0099	1.0662	0.0312	0.0231	−0.1363
After balancing
PPE to Assets	0.6597	0.0475	−0.9317	0.6597	0.0475	−0.9317
CAPEX Ratio	0.1101	0.0087	2.1421	0.1101	0.0087	2.1421
Leverage	0.3119	0.0328	0.7827	0.3119	0.0328	0.7827
ROA	0.1016	0.0068	1.4561	0.1016	0.0068	1.4561
Firm Size	7.8310	1.5001	−0.7597	7.8310	1.5001	−0.7597
Market to Book Equity	4.6810	8748.0000	14.6701	4.6810	8748.0000	14.6701
Cash Flow to Assets	0.0890	0.0084	−0.4297	0.0890	0.0084	−0.4297
Net Working Capital	0.0045	0.0099	1.0662	0.0045	0.0099	1.0662

Panel A: Proof of convergence
	Treatment			Control
	Mean	Variance	Skewness	Mean	Variance	Skewness
Before balancing
PPE to Assets	0.6597	0.0475	−0.9317	0.2663	0.0606	1.0851
CAPEX Ratio	0.1101	0.0087	2.1421	0.1313	0.0259	20.4201
Leverage	0.3119	0.0328	0.7827	0.2267	0.0536	2.5971
ROA	0.1016	0.0068	1.4561	0.1017	0.0117	0.1312
Firm Size	7.8310	1.5001	−0.7597	6.9010	2.3141	−0.1941
Market to Book Equity	4.6810	8748.0000	14.6701	7.3681	24446.0000	23.4202
Cash Flow to Assets	0.0890	0.0084	−0.4297	0.0531	0.0304	−5.5451
Net Working Capital	0.0045	0.0099	1.0662	0.0312	0.0231	−0.1363
After balancing
PPE to Assets	0.6597	0.0475	−0.9317	0.6597	0.0475	−0.9317
CAPEX Ratio	0.1101	0.0087	2.1421	0.1101	0.0087	2.1421
Leverage	0.3119	0.0328	0.7827	0.3119	0.0328	0.7827
ROA	0.1016	0.0068	1.4561	0.1016	0.0068	1.4561
Firm Size	7.8310	1.5001	−0.7597	7.8310	1.5001	−0.7597
Market to Book Equity	4.6810	8748.0000	14.6701	4.6810	8748.0000	14.6701
Cash Flow to Assets	0.0890	0.0084	−0.4297	0.0890	0.0084	−0.4297
Net Working Capital	0.0045	0.0099	1.0662	0.0045	0.0099	1.0662

Panel B: Regression with entropy balanced matched sample
Dependent variable	(1)	(2)
Dependent variable	Ln (1 + dividend)	Dividend payout ratio
BioRegulation	−0.5469***	−0.0640***
BioRegulation	(0.0872)	(0.0240)
PPE to Assets	0.2497	0.0693
PPE to Assets	(0.1907)	(0.0545)
CAPEX Ratio	−0.6885	−0.0813
CAPEX Ratio	(0.6554)	(0.0546)
Leverage	−1.9216***	−0.0818*
Leverage	(0.1953)	(0.0452)
ROA	1.5656***	0.0518
ROA	(0.5674)	(0.1365)
Firm Size	0.9169***	−0.0007
Firm Size	(0.0297)	(0.0085)
Market to Book Equity	0.0007	−0.0002
Market to Book Equity	(0.0001)	(0.0001)
Cash Flow to Assets	0.1983	0.3283***
Cash Flow to Assets	(0.3736)	(0.1244)
Net Working Capital	−3.5083***	−0.3604***
Net Working Capital	(0.3462)	(0.0847)
Constant	−3.9898***	0.1916***
Constant	(0.2589)	(0.0655)
Observations	30,652	30,625
Adjusted R-squared	0.5368	0.1531
Year FE	YES	YES
Industry FE	YES	YES

Panel B: Regression with entropy balanced matched sample
Dependent variable	(1)	(2)
Dependent variable	Ln (1 + dividend)	Dividend payout ratio
BioRegulation	−0.5469***	−0.0640***
BioRegulation	(0.0872)	(0.0240)
PPE to Assets	0.2497	0.0693
PPE to Assets	(0.1907)	(0.0545)
CAPEX Ratio	−0.6885	−0.0813
CAPEX Ratio	(0.6554)	(0.0546)
Leverage	−1.9216***	−0.0818*
Leverage	(0.1953)	(0.0452)
ROA	1.5656***	0.0518
ROA	(0.5674)	(0.1365)
Firm Size	0.9169***	−0.0007
Firm Size	(0.0297)	(0.0085)
Market to Book Equity	0.0007	−0.0002
Market to Book Equity	(0.0001)	(0.0001)
Cash Flow to Assets	0.1983	0.3283***
Cash Flow to Assets	(0.3736)	(0.1244)
Net Working Capital	−3.5083***	−0.3604***
Net Working Capital	(0.3462)	(0.0847)
Constant	−3.9898***	0.1916***
Constant	(0.2589)	(0.0655)
Observations	30,652	30,625
Adjusted R-squared	0.5368	0.1531
Year FE	YES	YES
Industry FE	YES	YES

Note(s): This table shows result for Entropy Balancing. Panel A present results for proof of entropy balancing convergence and Panel B present results for regression using entropy balanced matched sample. In Panel B, Ln (1 + Dividend) is the dependent variable in specification 1, and Dividend Payout Ratio is the dependent variable in specification 2. Year and industry fixed effects are taken into account in both specifications. Appendix Table A1 provides an explanation of each variable. Robust standard errors, clustered at the firm level, are in parentheses. Significance at the 1%, 5%, and 10% levels is denoted by the symbols ***, **, and *, respectively

[ViewLarge]

Sharing Unavailable