Table 9 GMM results (1) (2) Variables...

Table 9

GMM results

	(1)	(2)
Variables	LAWSUIT	LAWSUIT
L.LAWSUIT	0.637***	0.532***
L.LAWSUIT	[21.40]	[3.94]
RMC	−1.001**	–
RMC	[−1.99]	–
RMCSIZE	–	−0.072*
RMCSIZE	–	[−1.68]
RMCIND	–	−1.500**
RMCIND	–	[−2.19]
RMC_HC	–	0.418
RMC_HC	–	[0.61]
RMC_LEGEXPER	–	−1.295*
RMC_LEGEXPER	–	[−1.83]
Other control variables	Yes	Yes
Constant	86.48*	7.984*
Constant	[1.72]	[1.84]
Year and Industry	Yes	Yes
Observations	18,478	668
AR(1)	z = −13.51, p = 0.000	z = −1.69, p = 0.090
AR(2)	z = 0.81, p = 0.414	z = −0.44, p = 0.661
Sargan test	χ² = −423.99, p = 0.000	χ² = −227.87, p = 0.000
Hansen test	χ² = 235.91, p = 0.866	χ² = 99.26, p = 0.982

	(1)	(2)
Variables	LAWSUIT	LAWSUIT
L.LAWSUIT	0.637***	0.532***
L.LAWSUIT	[21.40]	[3.94]
RMC	−1.001**	–
RMC	[−1.99]	–
RMCSIZE	–	−0.072*
RMCSIZE	–	[−1.68]
RMCIND	–	−1.500**
RMCIND	–	[−2.19]
RMC_HC	–	0.418
RMC_HC	–	[0.61]
RMC_LEGEXPER	–	−1.295*
RMC_LEGEXPER	–	[−1.83]
Other control variables	Yes	Yes
Constant	86.48*	7.984*
Constant	[1.72]	[1.84]
Year and Industry	Yes	Yes
Observations	18,478	668
AR(1)	z = −13.51, p = 0.000	z = −1.69, p = 0.090
AR(2)	z = 0.81, p = 0.414	z = −0.44, p = 0.661
Sargan test	χ² = −423.99, p = 0.000	χ² = −227.87, p = 0.000
Hansen test	χ² = 235.91, p = 0.866	χ² = 99.26, p = 0.982

Note(s): This table reports the GMM results on the relationship between RMC, RMC's characteristics and corporate litigation. Robust t-statistics (clustered at the firm level) are reported in parentheses. 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. Robust t-statistics (clustered at the firm level) are reported in parentheses. All other variables are defined in appendix

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