OLS and fixed-effects results using expanded interlock definition
| Variables | OLS | Panel – Fixed effect | ||||||
|---|---|---|---|---|---|---|---|---|
| (9) | (10) | (11) | (12) | (13) | (14) | (15) | (16) | |
| AvgID_Total | 0.017*** | 0.017** | ||||||
| (5.45) | (2.23) | |||||||
| AvgID_Inside | 0.010*** | 0.011*** | 0.008 | 0.008 | ||||
| (5.50) | (5.56) | (1.47) | (1.45) | |||||
| AvgID_Outside | 0.010*** | 0.010*** | 0.011** | 0.011** | ||||
| (2.74) | (2.85) | (2.27) | (2.26) | |||||
| SIZE | −0.002** | −0.002** | −0.002** | −0.002*** | 0.011 | 0.011 | 0.011 | 0.011 |
| (−2.41) | (−2.30) | (−2.03) | (−2.87) | (1.41) | (1.46) | (1.40) | (1.40) | |
| LEV | 0.024*** | 0.024*** | 0.023*** | 0.025*** | 0.063*** | 0.063*** | 0.062*** | 0.063*** |
| (5.05) | (5.06) | (4.73) | (5.13) | (3.10) | (3.11) | (3.09) | (3.12) | |
| CFOt-1 | 0.032** | 0.033** | 0.031** | 0.032** | 0.017 | 0.017 | 0.017 | 0.017 |
| (2.19) | (2.24) | (2.14) | (2.23) | (0.58) | (0.59) | (0.57) | (0.58) | |
| MB | 0.003*** | 0.003*** | 0.003*** | 0.003*** | 0.001 | 0.001 | 0.001 | 0.001 |
| (5.82) | (5.87) | (5.55) | (5.87) | (1.35) | (1.37) | (1.30) | (1.31) | |
| ROAt-1 | −0.058*** | −0.057*** | −0.060*** | −0.057*** | 0.016 | 0.017 | 0.013 | 0.015 |
| (−4.17) | (−4.08) | (−4.32) | (−4.08) | (0.69) | (0.72) | (0.56) | (0.64) | |
| PPEt-1 | −0.042*** | −0.042*** | −0.041*** | −0.042*** | −0.006 | −0.006 | −0.006 | −0.007 |
| (−9.20) | (−9.26) | (−8.92) | (−9.19) | (−0.41) | (−0.41) | (−0.38) | (−0.42) | |
| INTANt-1 | −0.011 | −0.011 | −0.007 | −0.011 | 0.217*** | 0.214*** | 0.209*** | 0.214*** |
| (−0.44) | (−0.43) | (−0.27) | (−0.43) | (2.70) | (2.68) | (2.63) | (2.67) | |
| OWN | −0.034*** | −0.034*** | −0.029*** | −0.034*** | −0.039 | −0.040 | −0.034 | −0.037 |
| (−6.01) | (−6.06) | (−5.19) | (−6.09) | (−1.24) | (−1.28) | (−1.09) | (−1.20) | |
| FOR | −0.015* | −0.015* | −0.016* | −0.014 | −0.006 | −0.008 | −0.006 | −0.006 |
| (−1.69) | (−1.73) | (−1.73) | (−1.61) | (−0.23) | (−0.31) | (−0.23) | (−0.22) | |
| AGE | −0.005*** | −0.005*** | −0.005*** | −0.005*** | −0.001 | −0.001 | −0.001 | −0.002 |
| (−4.74) | (−4.69) | (−4.63) | (−4.72) | (−0.17) | (−0.14) | (−0.09) | (−0.19) | |
| LOSS | 0.008*** | 0.008*** | 0.008*** | 0.008*** | 0.002 | 0.002 | 0.002 | 0.002 |
| (3.64) | (3.59) | (3.45) | (3.63) | (0.84) | (0.83) | (0.86) | (0.84) | |
| BIG4 | 0.004* | 0.004* | 0.004** | 0.004* | – | – | – | |
| (1.84) | (1.89) | (1.99) | (1.82) | – | – | – | ||
| 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 | 0.10 | 0.10 | 0.10 | 0.10 | – | – | – | – |
| within R2 | – | – | – | – | 0.03 | 0.03 | 0.03 | 0.03 |
| F-Statistics | 16.88*** | 16.90*** | 15.80*** | 16.57*** | 2.69*** | 2.33*** | 2.52*** | 2.52*** |
| Variables | OLS | Panel – Fixed effect | ||||||
|---|---|---|---|---|---|---|---|---|
| (9) | (10) | (11) | (12) | (13) | (14) | (15) | (16) | |
| AvgID_Total | 0.017*** | 0.017** | ||||||
| (5.45) | (2.23) | |||||||
| AvgID_Inside | 0.010*** | 0.011*** | 0.008 | 0.008 | ||||
| (5.50) | (5.56) | (1.47) | (1.45) | |||||
| AvgID_Outside | 0.010*** | 0.010*** | 0.011** | 0.011** | ||||
| (2.74) | (2.85) | (2.27) | (2.26) | |||||
| SIZE | −0.002** | −0.002** | −0.002** | −0.002*** | 0.011 | 0.011 | 0.011 | 0.011 |
| (−2.41) | (−2.30) | (−2.03) | (−2.87) | (1.41) | (1.46) | (1.40) | (1.40) | |
| LEV | 0.024*** | 0.024*** | 0.023*** | 0.025*** | 0.063*** | 0.063*** | 0.062*** | 0.063*** |
| (5.05) | (5.06) | (4.73) | (5.13) | (3.10) | (3.11) | (3.09) | (3.12) | |
| CFOt-1 | 0.032** | 0.033** | 0.031** | 0.032** | 0.017 | 0.017 | 0.017 | 0.017 |
| (2.19) | (2.24) | (2.14) | (2.23) | (0.58) | (0.59) | (0.57) | (0.58) | |
| MB | 0.003*** | 0.003*** | 0.003*** | 0.003*** | 0.001 | 0.001 | 0.001 | 0.001 |
| (5.82) | (5.87) | (5.55) | (5.87) | (1.35) | (1.37) | (1.30) | (1.31) | |
| ROAt-1 | −0.058*** | −0.057*** | −0.060*** | −0.057*** | 0.016 | 0.017 | 0.013 | 0.015 |
| (−4.17) | (−4.08) | (−4.32) | (−4.08) | (0.69) | (0.72) | (0.56) | (0.64) | |
| PPEt-1 | −0.042*** | −0.042*** | −0.041*** | −0.042*** | −0.006 | −0.006 | −0.006 | −0.007 |
| (−9.20) | (−9.26) | (−8.92) | (−9.19) | (−0.41) | (−0.41) | (−0.38) | (−0.42) | |
| INTANt-1 | −0.011 | −0.011 | −0.007 | −0.011 | 0.217*** | 0.214*** | 0.209*** | 0.214*** |
| (−0.44) | (−0.43) | (−0.27) | (−0.43) | (2.70) | (2.68) | (2.63) | (2.67) | |
| OWN | −0.034*** | −0.034*** | −0.029*** | −0.034*** | −0.039 | −0.040 | −0.034 | −0.037 |
| (−6.01) | (−6.06) | (−5.19) | (−6.09) | (−1.24) | (−1.28) | (−1.09) | (−1.20) | |
| FOR | −0.015* | −0.015* | −0.016* | −0.014 | −0.006 | −0.008 | −0.006 | −0.006 |
| (−1.69) | (−1.73) | (−1.73) | (−1.61) | (−0.23) | (−0.31) | (−0.23) | (−0.22) | |
| AGE | −0.005*** | −0.005*** | −0.005*** | −0.005*** | −0.001 | −0.001 | −0.001 | −0.002 |
| (−4.74) | (−4.69) | (−4.63) | (−4.72) | (−0.17) | (−0.14) | (−0.09) | (−0.19) | |
| LOSS | 0.008*** | 0.008*** | 0.008*** | 0.008*** | 0.002 | 0.002 | 0.002 | 0.002 |
| (3.64) | (3.59) | (3.45) | (3.63) | (0.84) | (0.83) | (0.86) | (0.84) | |
| BIG4 | 0.004* | 0.004* | 0.004** | 0.004* | – | – | – | |
| (1.84) | (1.89) | (1.99) | (1.82) | – | – | – | ||
| 3,195 | 3,195 | 3,195 | 3,195 | 3,195 | 3,195 | 3,195 | 3,195 | |
| 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 | 0.10 | 0.10 | 0.10 | 0.10 | – | – | – | – |
| within | – | – | – | – | 0.03 | 0.03 | 0.03 | 0.03 |
| F-Statistics | 16.88*** | 16.90*** | 15.80*** | 16.57*** | 2.69*** | 2.33*** | 2.52*** | 2.52*** |
Note(s): Standard errors are clustered at the firm level
*, **, and *** indicate statistical significance at the 10%, 5%, and 1% levels, respectively
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