Table 6 Robustness tests I I I I D O M I...

Table 6

Robustness tests

	$I I$	$I I D O M$	$I I L T$	$I I B L O$
	(1)	(2)	(3)	(4)
Panel A: Exclusion of specific period
$P C F$	0.070*** (0.014)	0.052** (0.021)	0.029** (0.013)	0.037** (0.019)
Constant	0.119** (0.056)	0.133** (0.057)	0.885*** (0.044)	0.572*** (0.070)
Adjusted R²	0.132	0.127	0.126	0.155
Obs	9,947	9,947	9,947	9,947
Panel B: Alternative measure of political connections
$P C F_S H R$	0.326*** (0.068)	0.305*** (0.073)	0.113** (0.053)	0.231*** (0.065)
Constant	0.115** (0.047)	0.132*** (0.046)	0.849*** (0.045)	0.651*** (0.066)
Adjusted R²	0.175	0.190	0.181	0.169
Obs	16,190	16,190	16,190	16,190
Panel C: Propensity score matching
$P C F$	0.076*** (0.014)	0.070*** (0.014)	0.026* (0.013)	0.048** (0.020)
Constant	0.102** (0.044)	0.112** (0.045)	0.684*** (0.051)	0.157*** (0.058)
Adjusted R²	0.140	0.130	0.127	0.141
Obs.	6,664	6,664	6,664	6,664
Panel D: System GMM
${I I}_{t - 1}$	0.982*** (0.048)
${I I D O M}_{t - 1}$		0.897*** (0.053)
${I I L T}_{t - 1}$			0.853*** (0.029)
${I I B L O}_{t - 1}$				0.910*** (0.048)
$P C F$	0.022*** (0.004)	0.017** (0.008)	0.006*** (0.002)	0.015** (0.007)
Constant	0.005 (0.010)	0.000 (0.010)	0.096*** (0.021)	0.016 (0.014)
Obs.	16,190	16,190	16,190	16,190
AR1 (p-value)	0.000	0.000	0.000	0.000
AR2 (p-value)	0.385	0.415	0.995	0.242
Hansen J (p-value)	0.765	0.816	0.785	0.831

	$I I$	$I I D O M$	$I I L T$	$I I B L O$
	(1)	(2)	(3)	(4)
Panel A: Exclusion of specific period
$P C F$	0.070*** (0.014)	0.052** (0.021)	0.029** (0.013)	0.037** (0.019)
Constant	0.119** (0.056)	0.133** (0.057)	0.885*** (0.044)	0.572*** (0.070)
Adjusted R²	0.132	0.127	0.126	0.155
Obs	9,947	9,947	9,947	9,947
Panel B: Alternative measure of political connections
$P C F_S H R$	0.326*** (0.068)	0.305*** (0.073)	0.113** (0.053)	0.231*** (0.065)
Constant	0.115** (0.047)	0.132*** (0.046)	0.849*** (0.045)	0.651*** (0.066)
Adjusted R²	0.175	0.190	0.181	0.169
Obs	16,190	16,190	16,190	16,190
Panel C: Propensity score matching
$P C F$	0.076*** (0.014)	0.070*** (0.014)	0.026* (0.013)	0.048** (0.020)
Constant	0.102** (0.044)	0.112** (0.045)	0.684*** (0.051)	0.157*** (0.058)
Adjusted R²	0.140	0.130	0.127	0.141
Obs.	6,664	6,664	6,664	6,664
Panel D: System GMM
${I I}_{t - 1}$	0.982*** (0.048)
${I I D O M}_{t - 1}$		0.897*** (0.053)
${I I L T}_{t - 1}$			0.853*** (0.029)
${I I B L O}_{t - 1}$				0.910*** (0.048)
$P C F$	0.022*** (0.004)	0.017** (0.008)	0.006*** (0.002)	0.015** (0.007)
Constant	0.005 (0.010)	0.000 (0.010)	0.096*** (0.021)	0.016 (0.014)
Obs.	16,190	16,190	16,190	16,190
AR1 (p-value)	0.000	0.000	0.000	0.000
AR2 (p-value)	0.385	0.415	0.995	0.242
Hansen J (p-value)	0.765	0.816	0.785	0.831

Note(s): Control variables, industry and year fixed effects are included, but not reported for brevity. The superscripts *, ** and *** denote significance at the confidence levels of 90%, 95% and 99%, respectively

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