Table 7 The RMC and corporate...

Table 7

The RMC and corporate litigation: the moderating effect of state ownership (H4)

	(1)	(2)	(3)
Variables	Poisson LAWSUIT	Poisson LAWSUIT	Poisson LAWSUIT
	SOE = = 1	SOE = = O	Pooled
Panel A: The standalone RMC and corporate litigation
RMC	0.032	−0.598**	−0.477***
RMC	[0.15]	[−2.15]	[−4.06]
SOE	–	–	0.125***
SOE	–	–	[5.18]
RMCSOE*	–	–	0.514***
RMCSOE*	–	–	[3.78]
Other control variables	Yes	Yes	Yes
Constant	5.617***	6.375***	6.135***
Constant	[3.76]	[4.63]	[20.92]
Year and Industry FE	Yes	Yes	Yes
Observations	7,485	14,253	21,738
Adj.R2	0.18	0.23	0.21
Panel B: RMC characteristics, state ownership and corporate litigation
RMCSIZE	−0.272***	−0.265***	−0.226***
RMCSIZE	[−8.86]	[−4.16]	[−4.76]
RMCIND	0.003	−2.951***	−3.402***
RMCIND	[0.01]	[−2.65]	[−3.80]
RMC_HC	−0.187	−0.328	−0.553
RMC_HC	[−0.85]	[−0.31]	[−1.03]
RMC_LEGEXPER	0.140	−1.852***	−1.966***
RMC_LEGEXPER	[0.42]	[−5.24]	[−6.58]
SOE	–	–	0.090*
SOE	–	–	[1.65]
RMCSIZE*SOE	–	–	−0.018
RMCSIZE*SOE	–	–	[−0.34]
RMCIND*SOE	–	–	3.167***
RMCIND*SOE	–	–	[3.47]
RMC_HC*SOE	–	–	0.618
RMC_HC*SOE	–	–	[1.11]
RMC_LEGEXPER*SOE	–	–	0.959**
RMC_LEGEXPER*SOE	–	–	[2.53]
Other control variables	Yes	Yes	Yes
Constant	−19.781	16.542	3.699
Constant	[−0.001]	[0.012]	[0.05]
Year and Industry FE	Yes	Yes	Yes
Observations	513	217	730
R-squared	0.21	0.37	0.31

	(1)	(2)	(3)
Variables	Poisson LAWSUIT	Poisson LAWSUIT	Poisson LAWSUIT
	SOE = = 1	SOE = = O	Pooled
Panel A: The standalone RMC and corporate litigation
RMC	0.032	−0.598**	−0.477***
RMC	[0.15]	[−2.15]	[−4.06]
SOE	–	–	0.125***
SOE	–	–	[5.18]
RMC*SOE	–	–	0.514***
RMC*SOE	–	–	[3.78]
Other control variables	Yes	Yes	Yes
Constant	5.617***	6.375***	6.135***
Constant	[3.76]	[4.63]	[20.92]
Year and Industry FE	Yes	Yes	Yes
Observations	7,485	14,253	21,738
Adj.R2	0.18	0.23	0.21
Panel B: RMC characteristics, state ownership and corporate litigation
RMCSIZE	−0.272***	−0.265***	−0.226***
RMCSIZE	[−8.86]	[−4.16]	[−4.76]
RMCIND	0.003	−2.951***	−3.402***
RMCIND	[0.01]	[−2.65]	[−3.80]
RMC_HC	−0.187	−0.328	−0.553
RMC_HC	[−0.85]	[−0.31]	[−1.03]
RMC_LEGEXPER	0.140	−1.852***	−1.966***
RMC_LEGEXPER	[0.42]	[−5.24]	[−6.58]
SOE	–	–	0.090*
SOE	–	–	[1.65]
RMCSIZE*SOE	–	–	−0.018
RMCSIZE*SOE	–	–	[−0.34]
RMCIND*SOE	–	–	3.167***
RMCIND*SOE	–	–	[3.47]
RMC_HC*SOE	–	–	0.618
RMC_HC*SOE	–	–	[1.11]
RMC_LEGEXPER*SOE	–	–	0.959**
RMC_LEGEXPER*SOE	–	–	[2.53]
Other control variables	Yes	Yes	Yes
Constant	−19.781	16.542	3.699
Constant	[−0.001]	[0.012]	[0.05]
Year and Industry FE	Yes	Yes	Yes
Observations	513	217	730
R-squared	0.21	0.37	0.31

	(1)
Variables	Poisson LAWSUIT
Panel C: Dual effect of RMC and audit committee on corporate litigation
RMC	−0.364***
RMC	[−2.75]
AC	0.049
AC	[0.22]
RMC_AC	−0.177
RMC_AC	[−1.00]
Other controls	Yes
Constant	5.090***
Constant	[11.39]
Observations	9,794
Pseudo R2	0.20

	(1)
Variables	Poisson LAWSUIT
Panel C: Dual effect of RMC and audit committee on corporate litigation
RMC	−0.364***
RMC	[−2.75]
AC	0.049
AC	[0.22]
RMC_AC	−0.177
RMC_AC	[−1.00]
Other controls	Yes
Constant	5.090***
Constant	[11.39]
Observations	9,794
Pseudo R2	0.20

Note(s): This table reports the Poisson regression results of the moderating effect of state ownership on the relationship between RMC, its characteristics and corporate litigation (Panels A and B). Panel C shows the results of the robustness test including the overlapping membership between RMC and audit committee (RMC_AC). 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 other variables are defined in appendix

[ViewLarge]

Sharing Unavailable