Instrumental variable approach
| Variables | (1) | (2) | (3) | (4) |
|---|---|---|---|---|
| LNPEN | LAF | LNNUM | LAF | |
| LNPEN_LOCAL | 0.642*** (10.554) | 0.660*** (14.809) | ||
| P_LNPEN | 0.014* (1.835) | |||
| LNNUM_LOCAL | ||||
| P_LNNUM | 0.124* (1.779) | |||
| Intercept | −2.746** (−2.268) | 10.389*** (54.068) | −0.646*** (−2.862) | 10.438*** (59.842) |
| Control variables | Yes | Yes | Yes | Yes |
| Year and industry FE | Yes | Yes | Yes | Yes |
| N | 10,233 | 10,233 | 10,233 | 10,233 |
| Adjusted R2 | 0.338 | 0.794 | 0.441 | 0.795 |
| Diagnostic tests: | ||||
| First-stage F-statistic | 621.22 | 720.327 | ||
| Shea’s Partial R2 | 0.058 | 0.066 | ||
| Kleibergen–Paap LM statistic | 146.582*** | 59.633*** |
| Variables | (1) | (2) | (3) | (4) |
|---|---|---|---|---|
| LNPEN_LOCAL | 0.642 | 0.660 | ||
| P_LNPEN | 0.014 | |||
| LNNUM_LOCAL | ||||
| P_LNNUM | 0.124 | |||
| Intercept | −2.746 | 10.389 | −0.646 | 10.438 |
| Control variables | Yes | Yes | Yes | Yes |
| Year and industry | Yes | Yes | Yes | Yes |
| 10,233 | 10,233 | 10,233 | 10,233 | |
| Adjusted | 0.338 | 0.794 | 0.441 | 0.795 |
| Diagnostic tests: | ||||
| First-stage F-statistic | 621.22 | 720.327 | ||
| Shea’s Partial | 0.058 | 0.066 | ||
| Kleibergen–Paap | 146.582 | 59.633 |
*, ** and *** indicate significance (two-tailed) at 0.10, 0.05 and 0.01 levels, respectively. Standard errors are robust to heteroscedasticity and clustered by firm. The control variables are obtained from Model 1
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