Table 6

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.
Constant0.0618*** (13.09)0.0776*** (50.82)0.0764*** (46.38)
L1.CH0.5434*** (117.25)0.6006*** (436.12)0.6029*** (396.59)
FAM 0.0035*** (5.19) 
LSHP0.0544*** (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)
Q0.0130*** (24.56)0.0096*** (42.10)0.0098*** (43.77)
CFVOL0.0701*** (11.34)0.0661*** (26.38)0.0655*** (26.40)
CF0.0174*** (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)
N18,5887,5257,525
z12875.81 (9)34212.02 (9)27638.02 (10)
z2110.17 (11)609.25 (11)780.18 (11)
z393.83 (14)187.33 (7)189.19 (7)
m1−15.24−10.60−10.61
m21.411.031.03
Hansen868.61 (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

Source(s): Authors’ own elaboration

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