Table 5 Agency cost mechanism test (1)...

Table 5

Agency cost mechanism test

	(1)	(2)	(3)	(4)	(5)	(6)
	SEP > p50	SEP<p50	ATO>p50	ATO<p50	Aq>p50	Aq < p50
	lnCOGS	lnCOGS	lnCOGS	lnCOGS	lnCOGS	lnCOGS
lnREV	0.963^***	0.980^***	0.970^***	0.968^***	0.985^***	0.957^***
lnREV	(179.54)	(200.73)	(226.84)	(166.73)	(148.59)	(156.15)
DEC×lnREV	−0.112^***	−0.078^***	−0.023	−0.108^***	−0.068^**	−0.097^***
DEC×lnREV	(−3.96)	(−3.12)	(−0.99)	(−3.65)	(−2.10)	(−3.13)
DT	0.003^***	0.004^***	0.002^***	0.003^***	0.001	0.003^***
DT	(3.51)	(5.77)	(3.71)	(2.92)	(0.61)	(2.98)
DEC×lnREV×DT	0.014^**	0.023^***	0.017^***	0.019^***	0.020^**	0.025^***
DEC×lnREV×DT	(2.30)	(4.66)	(3.76)	(3.27)	(2.49)	(3.53)
EInt	−0.001	−0.001	−0.003^***	−0.001	−0.000	−0.003^**
EInt	(−1.00)	(−1.29)	(−3.11)	(−0.41)	(−0.25)	(−2.22)
DEC×lnREV×EInt	−0.036^***	−0.052^***	−0.048^***	−0.042^***	−0.037^***	−0.037^***
DEC×lnREV×EInt	(−6.48)	(−9.55)	(−8.98)	(−7.53)	(−5.63)	(−5.99)
AInt	−0.000	0.001	−0.004^***	−0.001^**	−0.001^*	−0.001^*
AInt	(−0.14)	(1.41)	(−5.42)	(−2.09)	(−1.78)	(−1.79)
DEC×lnREV×AInt	0.002	−0.010^***	−0.010^***	−0.004	−0.006^***	−0.003
DEC×lnREV×AInt	(0.87)	(−4.72)	(−3.16)	(−1.57)	(−2.69)	(−1.12)
Sdec	−0.004	−0.003	−0.002	0.001	0.002	−0.003
Sdec	(−0.94)	(−0.71)	(−0.69)	(0.16)	(0.32)	(−0.72)
DEC×lnREV×Sdec	0.004	−0.000	0.045^***	−0.025	0.001	0.033
DEC×lnREV×Sdec	(0.23)	(−0.00)	(3.00)	(−1.22)	(0.04)	(1.56)
GDPgrow	−0.010	0.057	−0.026	0.183^***	0.060	0.161^***
GDPgrow	(−0.25)	(1.52)	(−0.58)	(2.59)	(0.98)	(2.76)
DEC×lnREV×GDPgrow	1.471^***	1.589^***	0.509^**	1.877^***	1.310^***	1.238^***
DEC×lnREV×GDPgrow	(5.89)	(6.86)	(2.42)	(7.13)	(4.65)	(4.38)
Independ	0.015	−0.003	−0.004	0.014	0.014	0.025
Independ	(0.75)	(−0.21)	(−0.34)	(0.64)	(0.64)	(1.22)
Top1	−0.003	−0.004	−0.000	−0.011	−0.005	−0.006
Top1	(−0.43)	(−0.55)	(−0.01)	(−1.29)	(−0.59)	(−0.75)
Mshare	0.020^*	0.014^**	0.022^***	0.008	0.010	−0.007
Mshare	(1.94)	(2.06)	(3.94)	(0.99)	(0.77)	(−0.66)
Dual	0.001	0.003	0.002	0.003	−0.001	0.005^*
Dual	(0.25)	(1.23)	(0.96)	(0.96)	(−0.24)	(1.65)
Age	−0.009^***	−0.007^***	−0.003^**	−0.012^***	−0.008^***	−0.008^***
Age	(−4.76)	(−3.62)	(−2.33)	(−5.12)	(−2.67)	(−2.98)
Soe	0.003	0.002	0.000	0.003	0.003	0.002
Soe	(1.44)	(0.67)	(0.22)	(0.93)	(1.06)	(0.58)
Lev	0.024^***	0.016^***	0.025^***	0.016^**	0.014^*	0.019^***
Lev	(4.11)	(3.05)	(5.78)	(2.32)	(1.89)	(2.82)
Size	0.000	0.002^*	−0.000	0.002^*	0.001	0.001
Size	(0.28)	(1.94)	(−0.53)	(1.85)	(0.77)	(0.65)
_cons	0.003	−0.034^*	0.011	−0.016	0.006	−0.022
_cons	(0.12)	(−1.69)	(0.60)	(−0.50)	(0.18)	(−0.79)
Industry and year FE	Yes	Yes	Yes	Yes	Yes	Yes
N	11,570	13,761	12,955	12,376	8,106	9,063
adj. R2	0.862	0.866	0.902	0.842	0.868	0.862
F	3603.187	4432.725	2288.171	1270.510	1045.842	1091.204
Chin2	5.67^**		3.37^*		2.27

	(1)	(2)	(3)	(4)	(5)	(6)
	SEP > p50	SEP<p50	ATO>p50	ATO<p50	Aq>p50	Aq < p50
	lnCOGS	lnCOGS	lnCOGS	lnCOGS	lnCOGS	lnCOGS
lnREV	0.963^***	0.980^***	0.970^***	0.968^***	0.985^***	0.957^***
lnREV	(179.54)	(200.73)	(226.84)	(166.73)	(148.59)	(156.15)
DEC×lnREV	−0.112^***	−0.078^***	−0.023	−0.108^***	−0.068^**	−0.097^***
DEC×lnREV	(−3.96)	(−3.12)	(−0.99)	(−3.65)	(−2.10)	(−3.13)
DT	0.003^***	0.004^***	0.002^***	0.003^***	0.001	0.003^***
DT	(3.51)	(5.77)	(3.71)	(2.92)	(0.61)	(2.98)
DEC×lnREV×DT	0.014^**	0.023^***	0.017^***	0.019^***	0.020^**	0.025^***
DEC×lnREV×DT	(2.30)	(4.66)	(3.76)	(3.27)	(2.49)	(3.53)
EInt	−0.001	−0.001	−0.003^***	−0.001	−0.000	−0.003^**
EInt	(−1.00)	(−1.29)	(−3.11)	(−0.41)	(−0.25)	(−2.22)
DEC×lnREV×EInt	−0.036^***	−0.052^***	−0.048^***	−0.042^***	−0.037^***	−0.037^***
DEC×lnREV×EInt	(−6.48)	(−9.55)	(−8.98)	(−7.53)	(−5.63)	(−5.99)
AInt	−0.000	0.001	−0.004^***	−0.001^**	−0.001^*	−0.001^*
AInt	(−0.14)	(1.41)	(−5.42)	(−2.09)	(−1.78)	(−1.79)
DEC×lnREV×AInt	0.002	−0.010^***	−0.010^***	−0.004	−0.006^***	−0.003
DEC×lnREV×AInt	(0.87)	(−4.72)	(−3.16)	(−1.57)	(−2.69)	(−1.12)
Sdec	−0.004	−0.003	−0.002	0.001	0.002	−0.003
Sdec	(−0.94)	(−0.71)	(−0.69)	(0.16)	(0.32)	(−0.72)
DEC×lnREV×Sdec	0.004	−0.000	0.045^***	−0.025	0.001	0.033
DEC×lnREV×Sdec	(0.23)	(−0.00)	(3.00)	(−1.22)	(0.04)	(1.56)
GDPgrow	−0.010	0.057	−0.026	0.183^***	0.060	0.161^***
GDPgrow	(−0.25)	(1.52)	(−0.58)	(2.59)	(0.98)	(2.76)
DEC×lnREV×GDPgrow	1.471^***	1.589^***	0.509^**	1.877^***	1.310^***	1.238^***
DEC×lnREV×GDPgrow	(5.89)	(6.86)	(2.42)	(7.13)	(4.65)	(4.38)
Independ	0.015	−0.003	−0.004	0.014	0.014	0.025
Independ	(0.75)	(−0.21)	(−0.34)	(0.64)	(0.64)	(1.22)
Top1	−0.003	−0.004	−0.000	−0.011	−0.005	−0.006
Top1	(−0.43)	(−0.55)	(−0.01)	(−1.29)	(−0.59)	(−0.75)
Mshare	0.020^*	0.014^**	0.022^***	0.008	0.010	−0.007
Mshare	(1.94)	(2.06)	(3.94)	(0.99)	(0.77)	(−0.66)
Dual	0.001	0.003	0.002	0.003	−0.001	0.005^*
Dual	(0.25)	(1.23)	(0.96)	(0.96)	(−0.24)	(1.65)
Age	−0.009^***	−0.007^***	−0.003^**	−0.012^***	−0.008^***	−0.008^***
Age	(−4.76)	(−3.62)	(−2.33)	(−5.12)	(−2.67)	(−2.98)
Soe	0.003	0.002	0.000	0.003	0.003	0.002
Soe	(1.44)	(0.67)	(0.22)	(0.93)	(1.06)	(0.58)
Lev	0.024^***	0.016^***	0.025^***	0.016^**	0.014^*	0.019^***
Lev	(4.11)	(3.05)	(5.78)	(2.32)	(1.89)	(2.82)
Size	0.000	0.002^*	−0.000	0.002^*	0.001	0.001
Size	(0.28)	(1.94)	(−0.53)	(1.85)	(0.77)	(0.65)
_cons	0.003	−0.034^*	0.011	−0.016	0.006	−0.022
_cons	(0.12)	(−1.69)	(0.60)	(−0.50)	(0.18)	(−0.79)
Industry and year FE	Yes	Yes	Yes	Yes	Yes	Yes
N	11,570	13,761	12,955	12,376	8,106	9,063
adj. R2	0.862	0.866	0.902	0.842	0.868	0.862
F	3603.187	4432.725	2288.171	1270.510	1045.842	1091.204
Chin2	5.67^**		3.37^*		2.27

Note(s): Table 5 examines the mechanism through which agency costs influence the cost stickiness of corporate digital transformation. Agency costs are measured as the separation of voting rights and cash flow rights (SEP), total asset turnover (ATO) and information transparency (AQ). In Table 5, we have divided the sample into two subsamples based on the median of the separation of voting rights and cash flow rights (SEP), total asset turnover (ATO),and information transparency (AQ) in the three years prior to digital transformation implementation and repeat Model 2. Definitions of all variables are provided in Appendix table 1. All models are controlled for industry and year effects

t-values are in parentheses. ^***p < 0.01, ^**p < 0.05 and ^*p < 0.1

Source(s): Table created by authors

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