OLS and fixed-effects results using interlocks extended to KOSDAQ firms
| Variables | OLS | Panel – Fixed effect | ||||||
|---|---|---|---|---|---|---|---|---|
| (17) | (18) | (19) | (20) | (21) | (22) | (23) | (24) | |
| AvgID_Total | 0.016*** | 0.018*** | ||||||
| (5.99) | (2.99) | |||||||
| AvgID_Inside | 0.009*** | 0.009*** | 0.008* | 0.008* | ||||
| (5.38) | (5.53) | (1.84) | (1.71) | |||||
| AvgID_Outside | 0.010*** | 0.010*** | 0.012** | 0.011** | ||||
| (3.23) | (3.47) | (2.51) | (2.42) | |||||
| SIZE | −0.002** | −0.002** | −0.001** | −0.002*** | 0.010 | 0.010 | 0.011 | 0.010 |
| (−2.28) | (−2.04) | (−1.97) | (−2.60) | (1.31) | (1.37) | (1.42) | (1.34) | |
| LEV | 0.024*** | 0.024*** | 0.023*** | 0.024*** | 0.063*** | 0.063*** | 0.063*** | 0.064*** |
| (5.04) | (4.96) | (4.68) | (4.99) | (3.16) | (3.14) | (3.14) | (3.19) | |
| CFOt-1 | 0.031** | 0.033** | 0.031** | 0.032** | 0.016 | 0.017 | 0.016 | 0.016 |
| (2.16) | (2.23) | (2.11) | (2.18) | (0.55) | (0.58) | (0.54) | (0.54) | |
| MB | 0.003*** | 0.003*** | 0.003*** | 0.003*** | 0.001 | 0.001 | 0.001 | 0.001 |
| (5.86) | (5.85) | (5.64) | (5.94) | (1.33) | (1.35) | (1.32) | (1.32) | |
| ROAt-1 | −0.059*** | −0.058*** | −0.061*** | −0.059*** | 0.016 | 0.016 | 0.014 | 0.015 |
| (−4.22) | (−4.20) | (−4.35) | (−4.23) | (0.68) | (0.70) | (0.58) | (0.65) | |
| PPEt-1 | −0.041*** | −0.042*** | −0.041*** | −0.041*** | −0.006 | −0.006 | −0.006 | −0.007 |
| (−9.12) | (−9.21) | (−8.93) | (−9.14) | (−0.42) | (−0.41) | (−0.42) | (−0.45) | |
| INTANt-1 | −0.011 | −0.008 | −0.010 | −0.011 | 0.219*** | 0.217*** | 0.209*** | 0.216*** |
| (−0.44) | (−0.33) | (−0.40) | (−0.46) | (2.72) | (2.72) | (2.63) | (2.70) | |
| OWN | −0.031*** | −0.031*** | −0.028*** | −0.031*** | −0.036 | −0.038 | −0.034 | −0.035 |
| (−5.53) | (−5.61) | (−5.06) | (−5.51) | (−1.14) | (−1.20) | (−1.07) | (−1.11) | |
| FOR | −0.013 | −0.014 | −0.015* | −0.013 | −0.004 | −0.007 | −0.005 | −0.004 |
| (−1.47) | (−1.61) | (−1.69) | (−1.43) | (−0.14) | (−0.26) | (−0.20) | (−0.16) | |
| AGE | −0.005*** | −0.005*** | −0.005*** | −0.005*** | −0.002 | −0.001 | −0.002 | −0.003 |
| (−4.64) | (−4.67) | (−4.55) | (−4.62) | (−0.31) | (−0.16) | (−0.24) | (−0.35) | |
| LOSS | 0.008*** | 0.008*** | 0.008*** | 0.008*** | 0.002 | 0.002 | 0.002 | 0.002 |
| (3.54) | (3.51) | (3.48) | (3.59) | (0.79) | (0.78) | (0.90) | (0.84) | |
| BIG4 | 0.004** | 0.004** | 0.004** | 0.004** | – | – | – | |
| (2.10) | (2.17) | (1.99) | (2.10) | – | – | – | ||
| 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 | 17.18*** | 16.84*** | 15.95*** | 16.70*** | 2.88*** | 2.40*** | 2.64*** | 2.69*** |
| Variables | OLS | Panel – Fixed effect | ||||||
|---|---|---|---|---|---|---|---|---|
| (17) | (18) | (19) | (20) | (21) | (22) | (23) | (24) | |
| AvgID_Total | 0.016*** | 0.018*** | ||||||
| (5.99) | (2.99) | |||||||
| AvgID_Inside | 0.009*** | 0.009*** | 0.008* | 0.008* | ||||
| (5.38) | (5.53) | (1.84) | (1.71) | |||||
| AvgID_Outside | 0.010*** | 0.010*** | 0.012** | 0.011** | ||||
| (3.23) | (3.47) | (2.51) | (2.42) | |||||
| SIZE | −0.002** | −0.002** | −0.001** | −0.002*** | 0.010 | 0.010 | 0.011 | 0.010 |
| (−2.28) | (−2.04) | (−1.97) | (−2.60) | (1.31) | (1.37) | (1.42) | (1.34) | |
| LEV | 0.024*** | 0.024*** | 0.023*** | 0.024*** | 0.063*** | 0.063*** | 0.063*** | 0.064*** |
| (5.04) | (4.96) | (4.68) | (4.99) | (3.16) | (3.14) | (3.14) | (3.19) | |
| CFOt-1 | 0.031** | 0.033** | 0.031** | 0.032** | 0.016 | 0.017 | 0.016 | 0.016 |
| (2.16) | (2.23) | (2.11) | (2.18) | (0.55) | (0.58) | (0.54) | (0.54) | |
| MB | 0.003*** | 0.003*** | 0.003*** | 0.003*** | 0.001 | 0.001 | 0.001 | 0.001 |
| (5.86) | (5.85) | (5.64) | (5.94) | (1.33) | (1.35) | (1.32) | (1.32) | |
| ROAt-1 | −0.059*** | −0.058*** | −0.061*** | −0.059*** | 0.016 | 0.016 | 0.014 | 0.015 |
| (−4.22) | (−4.20) | (−4.35) | (−4.23) | (0.68) | (0.70) | (0.58) | (0.65) | |
| PPEt-1 | −0.041*** | −0.042*** | −0.041*** | −0.041*** | −0.006 | −0.006 | −0.006 | −0.007 |
| (−9.12) | (−9.21) | (−8.93) | (−9.14) | (−0.42) | (−0.41) | (−0.42) | (−0.45) | |
| INTANt-1 | −0.011 | −0.008 | −0.010 | −0.011 | 0.219*** | 0.217*** | 0.209*** | 0.216*** |
| (−0.44) | (−0.33) | (−0.40) | (−0.46) | (2.72) | (2.72) | (2.63) | (2.70) | |
| OWN | −0.031*** | −0.031*** | −0.028*** | −0.031*** | −0.036 | −0.038 | −0.034 | −0.035 |
| (−5.53) | (−5.61) | (−5.06) | (−5.51) | (−1.14) | (−1.20) | (−1.07) | (−1.11) | |
| FOR | −0.013 | −0.014 | −0.015* | −0.013 | −0.004 | −0.007 | −0.005 | −0.004 |
| (−1.47) | (−1.61) | (−1.69) | (−1.43) | (−0.14) | (−0.26) | (−0.20) | (−0.16) | |
| AGE | −0.005*** | −0.005*** | −0.005*** | −0.005*** | −0.002 | −0.001 | −0.002 | −0.003 |
| (−4.64) | (−4.67) | (−4.55) | (−4.62) | (−0.31) | (−0.16) | (−0.24) | (−0.35) | |
| LOSS | 0.008*** | 0.008*** | 0.008*** | 0.008*** | 0.002 | 0.002 | 0.002 | 0.002 |
| (3.54) | (3.51) | (3.48) | (3.59) | (0.79) | (0.78) | (0.90) | (0.84) | |
| BIG4 | 0.004** | 0.004** | 0.004** | 0.004** | – | – | – | |
| (2.10) | (2.17) | (1.99) | (2.10) | – | – | – | ||
| 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 | 17.18*** | 16.84*** | 15.95*** | 16.70*** | 2.88*** | 2.40*** | 2.64*** | 2.69*** |
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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