The moderating effect of internal corporate governance
| (1) | (2) | |
|---|---|---|
| Variable | Good internal governance | Poor internal governance |
| BoardOverseaRatio | 0.161*** (2.79) | 0.079 (1.65) |
| lnSize | −0.036* (−1.96) | 0.013 (0.45) |
| Leverage | 0.072 (0.93) | −0.153 (−1.41) |
| ROE | 0.112* (1.98) | 0.043 (0.57) |
| lnFirmAge | 0.031 (0.23) | 0.045 (0.61) |
| SOE | −0.025 (−1.00) | −0.016 (−0.61) |
| IndDirRatio | 0.077 (0.46) | −0.028 (−0.15) |
| lnBoardAgeAvg | −0.181 (−1.17) | 0.003 (0.03) |
| lnMtgFreq | 0.016 (1.41) | −0.006 (−0.46) |
| Duality | 0.009 (0.62) | −0.003 (−0.22) |
| TopTenHoldersRate | 0.003** (2.63) | 0.003*** (4.44) |
| Constant | 1.425* (1.75) | −0.419 (−0.54) |
| Year fixed | Yes | Yes |
| Firm fixed | Yes | Yes |
| Observations | 456 | 664 |
| Within R2 | 0.135 | 0.141 |
| Adjusted R2 | 0.760 | 0.714 |
| (1) | (2) | |
|---|---|---|
| Variable | Good internal governance | Poor internal governance |
| BoardOverseaRatio | 0.161 | 0.079 (1.65) |
| lnSize | −0.036 | 0.013 (0.45) |
| Leverage | 0.072 (0.93) | −0.153 (−1.41) |
| 0.112 | 0.043 (0.57) | |
| lnFirmAge | 0.031 (0.23) | 0.045 (0.61) |
| −0.025 (−1.00) | −0.016 (−0.61) | |
| IndDirRatio | 0.077 (0.46) | −0.028 (−0.15) |
| lnBoardAgeAvg | −0.181 (−1.17) | 0.003 (0.03) |
| lnMtgFreq | 0.016 (1.41) | −0.006 (−0.46) |
| Duality | 0.009 (0.62) | −0.003 (−0.22) |
| TopTenHoldersRate | 0.003 | 0.003 |
| Constant | 1.425 | −0.419 (−0.54) |
| Year fixed | Yes | Yes |
| Firm fixed | Yes | Yes |
| Observations | 456 | 664 |
| Within | 0.135 | 0.141 |
| Adjusted | 0.760 | 0.714 |
Appendix 2 provides variables definitions. t-statistics (in brackets) use firm-level clustered errors. Significance: *p < 0.10, **p < 0.05, ***p < 0.01
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