Table 12 Regression analysis of the PSM...

Table 12

Regression analysis of the PSM samples

Panel A: Regression analysis of the PSM samples
	Return on assets			Return on equity
	ROA_i,t+1	ROA_i,t+2	ROA_i,t+3	ROE_i,t+1	ROE_i,t+2	ROE_i,t+3
NMC_i,t	−0.007^***	−0.008^***	−0.004^*	−0.015^***	−0.017^***	−0.012^***
NMC_i,t	(−5.96)	(−4.42)	(−1.79)	(−6.33)	(−5.17)	(−3.02)
ROA_i,t	0.493^***	0.406^***	0.373^***
ROA_i,t	(21.12)	(13.14)	(9.94)
ROE_i,t				0.460^***	0.356^***	0.301^***
ROE_i,t				(20.79)	(10.86)	(8.12)
Size_i,t	0.007^***	0.006^***	0.006^***	0.013^***	0.011^***	0.013^***
Size_i,t	(8.86)	(5.46)	(3.89)	(9.18)	(5.13)	(4.83)
Lev_i,t	−0.036^***	−0.037^***	−0.038^***	−0.002	0.012	0.016
Lev_i,t	(−8.83)	(−5.82)	(−4.57)	(−0.27)	(1.05)	(1.24)
MB_i,t	0.014^***	0.010^***	0.006^**	0.022^***	0.014^***	0.011^*
MB_i,t	(9.38)	(4.59)	(2.11)	(8.37)	(3.07)	(1.95)
Growth_i,t	0.004	−0.009^**	−0.015^***	0.015^**	−0.002	−0.012
Growth_i,t	(1.40)	(−2.02)	(−3.09)	(2.36)	(−0.24)	(−1.30)
RDint_i,t	0.548^***	0.622^***	0.618^***	1.129^***	1.330^***	1.206^***
RDint_i,t	(9.48)	(7.68)	(6.06)	(11.22)	(9.61)	(7.25)
Constant	−0.098^***	−0.050	−0.129^***	−0.233^***	−0.140^**	−0.325^***
Constant	(−4.13)	(−1.58)	(−2.61)	(−5.98)	(−2.53)	(−3.07)
Fixed Effects
Industry	YES	YES	YES	YES	YES	YES
Year	YES	YES	YES	YES	YES	YES
# of Obs.	4,928	3,665	2,678	4,926	3,617	2,643
Adj. R²	0.500	0.335	0.264	0.413	0.269	0.209

Panel A: Regression analysis of the PSM samples
	Return on assets			Return on equity
	ROA_i,t+1	ROA_i,t+2	ROA_i,t+3	ROE_i,t+1	ROE_i,t+2	ROE_i,t+3
NMC_i,t	−0.007^***	−0.008^***	−0.004^*	−0.015^***	−0.017^***	−0.012^***
NMC_i,t	(−5.96)	(−4.42)	(−1.79)	(−6.33)	(−5.17)	(−3.02)
ROA_i,t	0.493^***	0.406^***	0.373^***
ROA_i,t	(21.12)	(13.14)	(9.94)
ROE_i,t				0.460^***	0.356^***	0.301^***
ROE_i,t				(20.79)	(10.86)	(8.12)
Size_i,t	0.007^***	0.006^***	0.006^***	0.013^***	0.011^***	0.013^***
Size_i,t	(8.86)	(5.46)	(3.89)	(9.18)	(5.13)	(4.83)
Lev_i,t	−0.036^***	−0.037^***	−0.038^***	−0.002	0.012	0.016
Lev_i,t	(−8.83)	(−5.82)	(−4.57)	(−0.27)	(1.05)	(1.24)
MB_i,t	0.014^***	0.010^***	0.006^**	0.022^***	0.014^***	0.011^*
MB_i,t	(9.38)	(4.59)	(2.11)	(8.37)	(3.07)	(1.95)
Growth_i,t	0.004	−0.009^**	−0.015^***	0.015^**	−0.002	−0.012
Growth_i,t	(1.40)	(−2.02)	(−3.09)	(2.36)	(−0.24)	(−1.30)
RDint_i,t	0.548^***	0.622^***	0.618^***	1.129^***	1.330^***	1.206^***
RDint_i,t	(9.48)	(7.68)	(6.06)	(11.22)	(9.61)	(7.25)
Constant	−0.098^***	−0.050	−0.129^***	−0.233^***	−0.140^**	−0.325^***
Constant	(−4.13)	(−1.58)	(−2.61)	(−5.98)	(−2.53)	(−3.07)
Fixed Effects
Industry	YES	YES	YES	YES	YES	YES
Year	YES	YES	YES	YES	YES	YES
# of Obs.	4,928	3,665	2,678	4,926	3,617	2,643
Adj. R²	0.500	0.335	0.264	0.413	0.269	0.209

Panel B: Balance test for the PSM samples: ROA
Variable	Matching	Mean			T test
Variable	Matching	Treatment group	Control group	Bias reduction	T	p>\|t\|
Size_i,t	Before	22.538	22.079	93.50%	16.88	0.000
	After	22.477	22.507	93.50%	−0.81	0.418
ROA_i,t	Before	0.059	0.067	84.00%	−6.82	0.000
	After	0.059	0.058	84.00%	0.85	0.397
Lev_i,t	Before	0.433	0.394	97.70%	9.20	0.000
	After	0.429	0.430	97.70%	−0.16	0.870
MB_i,t	Before	0.979	1.017	91.30%	−2.56	0.011
	After	0.976	0.979	91.30%	−0.17	0.863
Growth_i,t	Before	0.129	0.122	42.50%	1.87	0.061
	After	0.130	0.126	42.50%	0.81	0.416
RDint_i,t	Before	0.026	0.201	95.30%	15.06	0.000
RDint_i,t	After	0.024	0.023	95.30%	0.51	0.610
# of Obs	Before	2,628	7,733
	After	2,464	2,464

Panel B: Balance test for the PSM samples: ROA
Variable	Matching	Mean			T test
Variable	Matching	Treatment group	Control group	Bias reduction	T	p>\|t\|
Size_i,t	Before	22.538	22.079	93.50%	16.88	0.000
	After	22.477	22.507	93.50%	−0.81	0.418
ROA_i,t	Before	0.059	0.067	84.00%	−6.82	0.000
	After	0.059	0.058	84.00%	0.85	0.397
Lev_i,t	Before	0.433	0.394	97.70%	9.20	0.000
	After	0.429	0.430	97.70%	−0.16	0.870
MB_i,t	Before	0.979	1.017	91.30%	−2.56	0.011
	After	0.976	0.979	91.30%	−0.17	0.863
Growth_i,t	Before	0.129	0.122	42.50%	1.87	0.061
	After	0.130	0.126	42.50%	0.81	0.416
RDint_i,t	Before	0.026	0.201	95.30%	15.06	0.000
RDint_i,t	After	0.024	0.023	95.30%	0.51	0.610
# of Obs	Before	2,628	7,733
	After	2,464	2,464

Panel C: Balance test for the PSM samples: ROE
Variable	Matching	Mean			T test
Variable	Matching	Treatment group	Control group	Bias reduction	T	p>\|t\|
Size_i,t	Before	22.538	22.079	93.80%	16.880	0.000
Size_i,t	After	22.472	22.501	93.80%	−0.790	0.431
ROE_i,t	Before	0.104	0.110	94.10%	−3.480	0.001
ROE_i,t	After	0.104	0.104	94.10%	0.150	0.880
Lev_i,t	Before	0.433	0.394	82.40%	9.200	0.000
Lev_i,t	After	0.429	0.436	82.40%	−1.270	0.204
MB_i,t	Before	0.979	1.017	90.90%	−2.560	0.011
MB_i,t	After	0.979	0.982	90.90%	−0.180	0.857
Growth_i,t	Before	0.129	0.122	12.70%	1.870	0.061
Growth_i,t	After	0.131	0.125	12.70%	1.260	0.206
RDint_i,t	Before	0.026	0.020	97.00%	15.060	0.000
RDint_i,t	After	0.024	0.024	97.00%	−0.320	0.747
# of Obs	Before	2,628	7,733
# of Obs	After	2,463	2,463

Panel C: Balance test for the PSM samples: ROE
Variable	Matching	Mean			T test
Variable	Matching	Treatment group	Control group	Bias reduction	T	p>\|t\|
Size_i,t	Before	22.538	22.079	93.80%	16.880	0.000
Size_i,t	After	22.472	22.501	93.80%	−0.790	0.431
ROE_i,t	Before	0.104	0.110	94.10%	−3.480	0.001
ROE_i,t	After	0.104	0.104	94.10%	0.150	0.880
Lev_i,t	Before	0.433	0.394	82.40%	9.200	0.000
Lev_i,t	After	0.429	0.436	82.40%	−1.270	0.204
MB_i,t	Before	0.979	1.017	90.90%	−2.560	0.011
MB_i,t	After	0.979	0.982	90.90%	−0.180	0.857
Growth_i,t	Before	0.129	0.122	12.70%	1.870	0.061
Growth_i,t	After	0.131	0.125	12.70%	1.260	0.206
RDint_i,t	Before	0.026	0.020	97.00%	15.060	0.000
RDint_i,t	After	0.024	0.024	97.00%	−0.320	0.747
# of Obs	Before	2,628	7,733
# of Obs	After	2,463	2,463

Note(s): All variables are defined in Appendix. The robust t statistics shown in parentheses are based on firm clustered standard errors. ^*, ^** and ^*** represent the statistical significance level of 10%, 5% and 1%, respectively

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