Under and over-investment (2006–2022, n = 3,404)
| (1) | (2) | (3) | (4) | |
|---|---|---|---|---|
| Variables | OV_INV | OV_INV | UN_INV | UN_INV |
| LDON | 0.001* (1.79) | 0.000 (1.37) | ||
| DOND | 0.011* (1.80) | 0.002 (1.43) | ||
| DUAL | 0.009 (0.98) | 0.009 (0.98) | −0.002 (−0.98) | −0.002 (−0.99) |
| BIGN | −0.007 (−1.07) | −0.007 (−1.06) | 0.001 (0.71) | 0.001 (0.72) |
| BOD | −0.003*** (−3.37) | −0.003*** (−3.38) | −0.000** (−2.13) | −0.000** (−2.13) |
| DIVD | −0.060*** (−9.77) | −0.060*** (−9.77) | 0.002 (1.29) | 0.002 (1.29) |
| MTB | −0.000 (−0.37) | −0.000 (−0.36) | −0.000*** (−2.95) | −0.000*** (−2.96) |
| FEMALE | −0.017 (−0.93) | −0.017 (−0.94) | −0.004 (−1.24) | −0.004 (−1.24) |
| BIND | −0.018 (−1.54) | −0.018 (−1.53) | 0.004 (1.49) | 0.004 (1.49) |
| AGE | −0.000 (−0.07) | −0.000 (−0.07) | 0.001 (1.46) | 0.001 (1.46) |
| SIZE | −0.002 (−1.22) | −0.002 (−1.23) | 0.000 (0.54) | 0.000 (0.54) |
| NDTS | −0.011 (−0.14) | −0.011 (−0.15) | −0.015 (−1.39) | −0.015 (−1.39) |
| LIQIUD | −0.001*** (−2.76) | −0.001*** (−2.76) | −0.000*** (−4.42) | −0.000*** (−4.42) |
| RISK | −0.073** (−2.41) | −0.073** (−2.41) | −0.016*** (−2.76) | −0.016*** (−2.76) |
| CAFLR | 0.094*** (2.89) | 0.094*** (2.89) | 0.035*** (5.00) | 0.035*** (5.01) |
| ROA | −0.114*** (−2.99) | −0.114*** (−2.99) | −0.017** (−2.15) | −0.017** (−2.16) |
| Constant | 0.205*** (6.49) | 0.205*** (6.49) | −0.030*** (−3.43) | −0.030*** (−3.44) |
| Observations | 1,721 | 1,721 | 1,679 | 1,679 |
| Adj-R2 | 0.268 | 0.268 | 0.477 | 0.477 |
| Year | Yes | Yes | Yes | Yes |
| Industry | Yes | Yes | Yes | Yes |
| (1) | (2) | (3) | (4) | |
|---|---|---|---|---|
| Variables | OV_INV | OV_INV | UN_INV | UN_INV |
| 0.001 | 0.000 (1.37) | |||
| 0.011 | 0.002 (1.43) | |||
| 0.009 (0.98) | 0.009 (0.98) | −0.002 (−0.98) | −0.002 (−0.99) | |
| −0.007 (−1.07) | −0.007 (−1.06) | 0.001 (0.71) | 0.001 (0.72) | |
| −0.003 | −0.003 | −0.000 | −0.000 | |
| −0.060 | −0.060 | 0.002 (1.29) | 0.002 (1.29) | |
| −0.000 (−0.37) | −0.000 (−0.36) | −0.000 | −0.000 | |
| −0.017 (−0.93) | −0.017 (−0.94) | −0.004 (−1.24) | −0.004 (−1.24) | |
| −0.018 (−1.54) | −0.018 (−1.53) | 0.004 (1.49) | 0.004 (1.49) | |
| −0.000 (−0.07) | −0.000 (−0.07) | 0.001 (1.46) | 0.001 (1.46) | |
| −0.002 (−1.22) | −0.002 (−1.23) | 0.000 (0.54) | 0.000 (0.54) | |
| −0.011 (−0.14) | −0.011 (−0.15) | −0.015 (−1.39) | −0.015 (−1.39) | |
| −0.001 | −0.001 | −0.000 | −0.000 | |
| −0.073 | −0.073 | −0.016 | −0.016 | |
| 0.094 | 0.094 | 0.035 | 0.035 | |
| −0.114 | −0.114 | −0.017 | −0.017 | |
| 0.205 | 0.205 | −0.030 | −0.030 | |
| 1,721 | 1,721 | 1,679 | 1,679 | |
| 0.268 | 0.268 | 0.477 | 0.477 | |
| Yes | Yes | Yes | Yes | |
| Yes | Yes | Yes | Yes |
Please refer to Table 2 for operational definitions. Robust t-statistics in parentheses ***p < 0.01, **p < 0.05, *p < 0.1