Mechanism test: reduce agency cost
| Variables | (1) | (2) |
|---|---|---|
| AC | LnSGA | |
| LnIncome | 0.464*** | |
| (42.37) | ||
| LnIncome×D | −0.092 | |
| (−1.30) | ||
| LnIncome×D×Treat | −0.086** | |
| (−2.14) | ||
| LnIncome×D×Post | −0.091** | |
| (−2.21) | ||
| LnIncome×D×Treat×Post | 0.091* | |
| (1.83) | ||
| Treat | 0.003** | −0.034*** |
| (2.32) | (−6.50) | |
| Post | 0.005*** | 0.072*** |
| (5.28) | (7.37) | |
| Treat×Post | −0.003*** | 0.020*** |
| (−3.62) | (3.44) | |
| AC | 1.207*** | |
| (17.64) | ||
| LnIncome×D×AC | −2.445*** | |
| (−3.96) | ||
| LnIncome×D×D_Twoyear | 0.132*** | |
| (4.79) | ||
| LnIncome×D×Eco_Growth | 0.366 | |
| (0.87) | ||
| LnIncome×D×Employ_Inten | −0.009 | |
| (−1.42) | ||
| LnIncome×D×Asset_Inten | −0.021*** | |
| (−7.18) | ||
| D_Twoyear | −0.016*** | |
| (−2.76) | ||
| Employ_Inten | −0.002 | |
| (−1.60) | ||
| Asset_Inten | 0.001 | |
| (0.56) | ||
| Size | −0.002*** | |
| (−7.18) | ||
| Growth | −0.000 | |
| (−0.72) | ||
| ROA | 0.016*** | 0.014 |
| (3.54) | (0.50) | |
| Lev | 0.004** | −0.002 |
| (2.08) | (−0.22) | |
| MKI | 0.001*** | 0.002** |
| (6.24) | (2.39) | |
| Firsthold | 0.001 | 0.057*** |
| (0.42) | (6.25) | |
| Ind | −0.007 | −0.030 |
| (−1.24) | (−1.26) | |
| Dual | 0.000 | −0.001 |
| (0.35) | (−0.31) | |
| Mshare | −0.005 | 0.135*** |
| (−1.61) | (11.82) | |
| Constant | 0.036*** | −0.030 |
| (4.91) | (−1.52) | |
| Industry | Yes | Yes |
| Year | Yes | Yes |
| Observations | 29,240 | 29,240 |
| Adjusted R-squared | 0.019 | 0.346 |
| Variables | (1) | (2) |
|---|---|---|
| 0.464*** | ||
| (42.37) | ||
| −0.092 | ||
| (−1.30) | ||
| −0.086** | ||
| (−2.14) | ||
| −0.091** | ||
| (−2.21) | ||
| 0.091* | ||
| (1.83) | ||
| 0.003** | −0.034*** | |
| (2.32) | (−6.50) | |
| 0.005*** | 0.072*** | |
| (5.28) | (7.37) | |
| −0.003*** | 0.020*** | |
| (−3.62) | (3.44) | |
| 1.207*** | ||
| (17.64) | ||
| −2.445*** | ||
| (−3.96) | ||
| 0.132*** | ||
| (4.79) | ||
| 0.366 | ||
| (0.87) | ||
| −0.009 | ||
| (−1.42) | ||
| −0.021*** | ||
| (−7.18) | ||
| −0.016*** | ||
| (−2.76) | ||
| −0.002 | ||
| (−1.60) | ||
| 0.001 | ||
| (0.56) | ||
| −0.002*** | ||
| (−7.18) | ||
| −0.000 | ||
| (−0.72) | ||
| 0.016*** | 0.014 | |
| (3.54) | (0.50) | |
| 0.004** | −0.002 | |
| (2.08) | (−0.22) | |
| 0.001*** | 0.002** | |
| (6.24) | (2.39) | |
| 0.001 | 0.057*** | |
| (0.42) | (6.25) | |
| −0.007 | −0.030 | |
| (−1.24) | (−1.26) | |
| 0.000 | −0.001 | |
| (0.35) | (−0.31) | |
| −0.005 | 0.135*** | |
| (−1.61) | (11.82) | |
| 0.036*** | −0.030 | |
| (4.91) | (−1.52) | |
| Yes | Yes | |
| Yes | Yes | |
| 29,240 | 29,240 | |
| 0.019 | 0.346 |
Note(s): ***, ** and * denote statistical significance at the 1, 5 and 10% levels, respectively; robust t-statistics are in parentheses; standard errors clustered at the firm level
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