The effect of young and old family firms and joint effects of agency costs and shareholder protection on cash holdings
| D. Var: CH | (3) | (4) | (5) |
|---|---|---|---|
| Coef. | Coef. | Coef. | |
| Constant | 0.0618*** (13.09) | 0.0776*** (50.82) | 0.0764*** (46.38) |
| L1.CH | 0.5434*** (117.25) | 0.6006*** (436.12) | 0.6029*** (396.59) |
| FAM | 0.0035*** (5.19) | ||
| LSHP | 0.0544*** (12.25) | ||
| YNGFAM | 0.0055*** (5.47) | ||
| OLDFAM | 0.0037*** (6.65) | ||
| SIZE | −0.0007*** (−1.91) | −0.0051*** (−24.36) | −0.0047*** (−21.43) |
| Q | 0.0130*** (24.56) | 0.0096*** (42.10) | 0.0098*** (43.77) |
| CFVOL | 0.0701*** (11.34) | 0.0661*** (26.38) | 0.0655*** (26.40) |
| CF | 0.0174*** (9.59) | 0.0393*** (41.89) | 0.0403*** (40.65) |
| I | −0.1951*** (−20.58) | −0.2133*** (−49.05) | −0.2131*** (−48.07) |
| NWC | −0.1079*** (−48.28) | −0.0791*** (−47.51) | −0.0753*** (−45.27) |
| STD | −0.1104*** (−32.51) | −0.1155*** (−75.29) | −0.1057*** (−72.50) |
| N | 18,588 | 7,525 | 7,525 |
| z1 | 2875.81 (9) | 34212.02 (9) | 27638.02 (10) |
| z2 | 110.17 (11) | 609.25 (11) | 780.18 (11) |
| z3 | 93.83 (14) | 187.33 (7) | 189.19 (7) |
| m1 | −15.24 | −10.60 | −10.61 |
| m2 | 1.41 | 1.03 | 1.03 |
| Hansen | 868.61 (692) | 527.79 (608) | 522.14 (608) |
| D. Var: CH | (3) | (4) | (5) |
|---|---|---|---|
| Coef. | Coef. | Coef. | |
| Constant | 0.0618*** (13.09) | 0.0776*** (50.82) | 0.0764*** (46.38) |
| L1.CH | 0.5434*** (117.25) | 0.6006*** (436.12) | 0.6029*** (396.59) |
| FAM | 0.0035*** (5.19) | ||
| LSHP | 0.0544*** (12.25) | ||
| YNGFAM | 0.0055*** (5.47) | ||
| OLDFAM | 0.0037*** (6.65) | ||
| SIZE | −0.0007*** (−1.91) | −0.0051*** (−24.36) | −0.0047*** (−21.43) |
| Q | 0.0130*** (24.56) | 0.0096*** (42.10) | 0.0098*** (43.77) |
| CFVOL | 0.0701*** (11.34) | 0.0661*** (26.38) | 0.0655*** (26.40) |
| CF | 0.0174*** (9.59) | 0.0393*** (41.89) | 0.0403*** (40.65) |
| I | −0.1951*** (−20.58) | −0.2133*** (−49.05) | −0.2131*** (−48.07) |
| NWC | −0.1079*** (−48.28) | −0.0791*** (−47.51) | −0.0753*** (−45.27) |
| STD | −0.1104*** (−32.51) | −0.1155*** (−75.29) | −0.1057*** (−72.50) |
| N | 18,588 | 7,525 | 7,525 |
| z1 | 2875.81 (9) | 34212.02 (9) | 27638.02 (10) |
| z2 | 110.17 (11) | 609.25 (11) | 780.18 (11) |
| z3 | 93.83 (14) | 187.33 (7) | 189.19 (7) |
| m1 | −15.24 | −10.60 | −10.61 |
| m2 | 1.41 | 1.03 | 1.03 |
| Hansen | 868.61 (692) | 527.79 (608) | 522.14 (608) |
Note(s): LSHP is a dummy variable that equals 1 for firms in countries with low shareholder protection and 0 otherwise. Other variables and tests are as defined in Tables 2 and 3; ***, ** and * indicate significance levels of 0.01, 0.05 and 0.10, respectively
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