Table 3 OLS and fixed-effects results –...

Table 3

OLS and fixed-effects results – baseline interlock definition

Variables	OLS				Panel – Fixed effect
Variables	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)
AvgID_Total	0.018***				0.016**
AvgID_Total	(5.07)				(1.98)
AvgID_Inside		0.011***		0.011***		0.006		0.006
AvgID_Inside		(4.75)		(4.86)		(1.07)		(1.00)
AvgID_Outside			0.011***	0.011***			0.011**	0.011**
AvgID_Outside			(2.85)	(2.92)			(1.97)	(1.99)
SIZE	−0.002**	−0.002**	−0.002**	−0.002**	0.011	0.011	0.011	0.011
SIZE	(−2.39)	(−2.11)	(−2.07)	(−2.40)	(1.41)	(1.44)	(1.42)	(1.44)
LEV	0.024***	0.024***	0.023***	0.024***	0.063***	0.063***	0.062***	0.063***
LEV	(4.98)	(4.94)	(4.69)	(4.86)	(3.11)	(3.11)	(3.09)	(2.95)
CFO_t-1	0.032**	0.033**	0.031**	0.032**	0.018	0.018	0.017	0.018
CFO_t-1	(2.19)	(2.23)	(2.14)	(2.17)	(0.60)	(0.60)	(0.57)	(0.60)
MB	0.003***	0.003***	0.003***	0.004***	0.001	0.001	0.001	0.003
MB	(5.79)	(5.82)	(5.57)	(4.20)	(1.35)	(1.35)	(1.32)	(1.49)
ROA_t-1	−0.059***	−0.058***	−0.060***	−0.064***	0.015	0.016	0.013	0.013
ROA_t-1	(−4.21)	(−4.18)	(−4.33)	(−4.59)	(0.64)	(0.68)	(0.56)	(0.54)
PPE_t-1	−0.042***	−0.042***	−0.041***	−0.043***	−0.006	−0.006	−0.006	−0.007
PPE_t-1	(−9.18)	(−9.22)	(−8.95)	(−9.47)	(−0.42)	(−0.40)	(−0.41)	(−0.43)
INTAN_t-1	−0.009	−0.008	−0.007	−0.006	0.216***	0.215***	0.209***	0.216***
INTAN_t-1	(−0.38)	(−0.33)	(−0.30)	(−0.24)	(2.72)	(2.70)	(2.63)	(2.73)
OWN	−0.033***	−0.033***	−0.029***	−0.034***	−0.038	−0.038	−0.036	−0.035
OWN	(−5.93)	(−5.91)	(−5.20)	(−5.92)	(−1.22)	(−1.23)	(−1.13)	(−1.11)
FOR	−0.016*	−0.016*	−0.016*	−0.018**	−0.006	−0.007	−0.006	−0.008
FOR	(−1.76)	(−1.82)	(−1.76)	(−1.98)	(−0.21)	(−0.28)	(−0.23)	(−0.31)
AGE	−0.005***	−0.005***	−0.005***	−0.005***	−0.001	−0.001	−0.001	−0.000
AGE	(−4.80)	(−4.78)	(−4.62)	(−4.72)	(−0.16)	(−0.09)	(−0.12)	(−0.04)
LOSS	0.008***	0.008***	0.008***	0.008***	0.002	0.002	0.002	0.002
LOSS	(3.63)	(3.59)	(3.46)	(3.73)	(0.85)	(0.83)	(0.86)	(0.94)
BIG4	0.004*	0.004**	0.004**	0.004*	–	–	–	–
BIG4	(1.96)	(1.99)	(2.04)	(1.96)	–	–	–	–
N	3,195	3,195	3,195	3,195	3,195	3,195	3,195	3,195
Fixed Effects
Year	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Industry	Yes	Yes	Yes	Yes	No	No	No	No
Firm	No	No	No	No	Yes	Yes	Yes	Yes
Adj R2	0.11	0.11	0.10	0.10	–	–	–	–
within R2	–	–	–	–	0.03	0.03	0.03	0.03
F-Statistics	16.68***	16.53***	15.83***	15.48***	2.69***	2.33***	2.52***	2.76***

Variables	OLS				Panel – Fixed effect
Variables	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)
AvgID_Total	0.018***				0.016**
AvgID_Total	(5.07)				(1.98)
AvgID_Inside		0.011***		0.011***		0.006		0.006
AvgID_Inside		(4.75)		(4.86)		(1.07)		(1.00)
AvgID_Outside			0.011***	0.011***			0.011**	0.011**
AvgID_Outside			(2.85)	(2.92)			(1.97)	(1.99)
SIZE	−0.002**	−0.002**	−0.002**	−0.002**	0.011	0.011	0.011	0.011
SIZE	(−2.39)	(−2.11)	(−2.07)	(−2.40)	(1.41)	(1.44)	(1.42)	(1.44)
LEV	0.024***	0.024***	0.023***	0.024***	0.063***	0.063***	0.062***	0.063***
LEV	(4.98)	(4.94)	(4.69)	(4.86)	(3.11)	(3.11)	(3.09)	(2.95)
CFO_t-1	0.032**	0.033**	0.031**	0.032**	0.018	0.018	0.017	0.018
CFO_t-1	(2.19)	(2.23)	(2.14)	(2.17)	(0.60)	(0.60)	(0.57)	(0.60)
MB	0.003***	0.003***	0.003***	0.004***	0.001	0.001	0.001	0.003
MB	(5.79)	(5.82)	(5.57)	(4.20)	(1.35)	(1.35)	(1.32)	(1.49)
ROA_t-1	−0.059***	−0.058***	−0.060***	−0.064***	0.015	0.016	0.013	0.013
ROA_t-1	(−4.21)	(−4.18)	(−4.33)	(−4.59)	(0.64)	(0.68)	(0.56)	(0.54)
PPE_t-1	−0.042***	−0.042***	−0.041***	−0.043***	−0.006	−0.006	−0.006	−0.007
PPE_t-1	(−9.18)	(−9.22)	(−8.95)	(−9.47)	(−0.42)	(−0.40)	(−0.41)	(−0.43)
INTAN_t-1	−0.009	−0.008	−0.007	−0.006	0.216***	0.215***	0.209***	0.216***
INTAN_t-1	(−0.38)	(−0.33)	(−0.30)	(−0.24)	(2.72)	(2.70)	(2.63)	(2.73)
OWN	−0.033***	−0.033***	−0.029***	−0.034***	−0.038	−0.038	−0.036	−0.035
OWN	(−5.93)	(−5.91)	(−5.20)	(−5.92)	(−1.22)	(−1.23)	(−1.13)	(−1.11)
FOR	−0.016*	−0.016*	−0.016*	−0.018**	−0.006	−0.007	−0.006	−0.008
FOR	(−1.76)	(−1.82)	(−1.76)	(−1.98)	(−0.21)	(−0.28)	(−0.23)	(−0.31)
AGE	−0.005***	−0.005***	−0.005***	−0.005***	−0.001	−0.001	−0.001	−0.000
AGE	(−4.80)	(−4.78)	(−4.62)	(−4.72)	(−0.16)	(−0.09)	(−0.12)	(−0.04)
LOSS	0.008***	0.008***	0.008***	0.008***	0.002	0.002	0.002	0.002
LOSS	(3.63)	(3.59)	(3.46)	(3.73)	(0.85)	(0.83)	(0.86)	(0.94)
BIG4	0.004*	0.004**	0.004**	0.004*	–	–	–	–
BIG4	(1.96)	(1.99)	(2.04)	(1.96)	–	–	–	–
N	3,195	3,195	3,195	3,195	3,195	3,195	3,195	3,195
Fixed Effects
Year	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Industry	Yes	Yes	Yes	Yes	No	No	No	No
Firm	No	No	No	No	Yes	Yes	Yes	Yes
Adj R2	0.11	0.11	0.10	0.10	–	–	–	–
within R2	–	–	–	–	0.03	0.03	0.03	0.03
F-Statistics	16.68***	16.53***	15.83***	15.48***	2.69***	2.33***	2.52***	2.76***

Note(s): Standard errors are clustered at the firm level

Additional VIF diagnostics indicate that multicollinearity is unlikely to affect the results. The mean VIF is 1.92, and the VIFs for AvgID_Total, SIZE, and FOR are 1.13, 2.15, and 1.71, respectively. The highest VIF among substantive explanatory variables is 2.15 for SIZE

*, **, and *** indicate statistical significance at the 10%, 5%, and 1% levels, respectively

Source(s): Table by author

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