Table 12.

Mediation test for internal control costs

Variable(1)(2)(3)(4)
IccExploreExploitBalance
Digital−0.005*** (0.001)0.223*** (0.027)0.129*** (0.025)0.076*** (0.013)
Icc −1.380*** (0.220)−1.796*** (0.202)−0.359*** (0.117)
Constant term0.124*** (0.013)0.449 (0.289)0.955*** (0.284)1.191*** (0.128)
Control variableControlControlControlControl
Industry/year fixed effectsYesYesYesYes
Sample size20,97820,97820,97820,978
Adjusted R20.2460.2420.2970.148
Sobel test 6.567***7.062***4.108***
Bootstrap mediation confidence interval of effect [0.198, 0.249][0.109, 0.151][0.060, 0.090]
Source(s): Table created by the authors

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