Table 18

Value relevance of normal and opportunistic capitalization firms

Pi,90Pi,120
EPSi,t5.401***5.331***
(13.19)(12.50)
BVPSi,t0.208***0.217***
(4.44)(4.41)
OTCi,t−0.063−0.245
(−0.07)(−0.26)
RDCi,t−0.674−0.709
(−1.20)(−1.26)
EPSi,t× OTCi,t−2.225−2.151
(−1.41)(−1.26)
EPSi,t× RDCi,t1.953**2.074**
(2.43)(2.45)
BVPSi,t× OTCi,t0.0840.097
(0.51)(0.59)
BVPSi,t× RDCi,t−0.012−0.025
(−0.11)(−0.22)
Constant9.620***8.041***
(6.64)(5.55)
Fixed Effects
IndustryYESYES
YearYESYES
# of Obs.10,84710,842
Adj. R20.3970.393

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

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