Table 4 Standalone RMC and corporate...

Table 4

Standalone RMC and corporate litigation (test of H1)

	(1)	(2)	(3)
Variables	Poisson LAWSUIT	FFE model (Poisson) LAWSUIT	OLS SUIT_COST
RMC	−0.120**	−0.208***	−0.644**
RMC	[−1.98]	[−3.00]	[−2.22]
AC	−0.343***	−0.102	−0.065
AC	[−2.75]	[−0.77]	[−0.11]
BSIZE	−0.038***	−0.142***	−0.029
BSIZE	[−5.16]	[−11.52]	[−0.58]
BIND	−0.668***	−0.552*	−0.001
BIND	[−3.24]	[−1.92]	[−0.00]
DUAL	−0.003	−0.072**	0.032
DUAL	[−0.13]	[−2.18]	[0.22]
BTM	−0.007	0.303***	−0.535*
BTM	[−0.13]	[5.06]	[−1.78]
ROA	−1.577***	−1.015***	−5.465***
ROA	[−10.82]	[−6.24]	[−5.04]
SIZE	−0.332***	−0.070***	0.002
SIZE	[−28.84]	[−3.87]	[0.03]
LOSS	0.361***	0.253***	0.723***
LOSS	[10.42]	[6.87]	[3.09]
DEBT	2.518***	1.899***	2.269***
DEBT	[48.01]	[24.51]	[5.26]
FCS	0.118***	0.890***	0.219
FCS	[5.35]	[27.47]	[1.56]
BIG4	−0.152*	−0.214*	0.321
BIG4	[−1.90]	[−1.67]	[0.62]
SOE	0.138***	0.222***	0.109
SOE	[5.81]	[3.70]	[0.56]
LNALPHA	–	1.675***	–
LNALPHA	–	[43.18]	–
Constant	6.071***	0.750*	0.570
Constant	[20.75]	[1.77]	[0.25]
Industry Year FE	Yes	Yes	Yes
Firm FE	No	Yes	No
Observations	21,738	21,738	21,738
Pseudo R2	0.19		0.15

	(1)	(2)	(3)
Variables	Poisson LAWSUIT	FFE model (Poisson) LAWSUIT	OLSSUIT_COST
RMC	−0.120**	−0.208***	−0.644**
RMC	[−1.98]	[−3.00]	[−2.22]
AC	−0.343***	−0.102	−0.065
AC	[−2.75]	[−0.77]	[−0.11]
BSIZE	−0.038***	−0.142***	−0.029
BSIZE	[−5.16]	[−11.52]	[−0.58]
BIND	−0.668***	−0.552*	−0.001
BIND	[−3.24]	[−1.92]	[−0.00]
DUAL	−0.003	−0.072**	0.032
DUAL	[−0.13]	[−2.18]	[0.22]
BTM	−0.007	0.303***	−0.535*
BTM	[−0.13]	[5.06]	[−1.78]
ROA	−1.577***	−1.015***	−5.465***
ROA	[−10.82]	[−6.24]	[−5.04]
SIZE	−0.332***	−0.070***	0.002
SIZE	[−28.84]	[−3.87]	[0.03]
LOSS	0.361***	0.253***	0.723***
LOSS	[10.42]	[6.87]	[3.09]
DEBT	2.518***	1.899***	2.269***
DEBT	[48.01]	[24.51]	[5.26]
FCS	0.118***	0.890***	0.219
FCS	[5.35]	[27.47]	[1.56]
BIG4	−0.152*	−0.214*	0.321
BIG4	[−1.90]	[−1.67]	[0.62]
SOE	0.138***	0.222***	0.109
SOE	[5.81]	[3.70]	[0.56]
LNALPHA	–	1.675***	–
LNALPHA	–	[43.18]	–
Constant	6.071***	0.750*	0.570
Constant	[20.75]	[1.77]	[0.25]
Industry Year FE	Yes	Yes	Yes
Firm FE	No	Yes	No
Observations	21,738	21,738	21,738
Pseudo R2	0.19		0.15

Note(s): This table reports the regression results of the relationship between a standalone RMC and corporate litigation. Robust t-statistics (clustered at the firm level) are reported in brackets. Continuous variables are winsorized at the 1st and 99th percentiles. *, **, *** denote a two-tailed p-value of less than 0.10, 0.05 and 0.01, respectively. All variables are defined in Appendix

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