Corruption and corporate investment efficiency
| Variables | CI is based on the Corruption Perception Index | CI is based on the Corruption Control Index | CI is based on the International Country Risk Guide |
|---|---|---|---|
| Intercept | −0.0234 (−1.20) | −0.0523*** (−3.01) | 0.0203 (1.08) |
| TOBi,t−1 | 0.0217*** (29.95) | 0.0223*** (29.27) | 0.0129*** (22.51) |
| CIt | 0.0694*** (8.61) | 0.1311*** (6.06) | 0.0065*** (3.37) |
| TOB i,t−1*CIt | −0.0257*** (−17.59) | −0.0300*** (−17.29) | −0.0009* (−1.91) |
| PROi,t−1 | −0.1218*** (−18.27) | −0.1224*** (−18.34) | −0.1300*** (−19.28) |
| CASi,t−1 | 0.0719*** (10.39) | 0.0716*** (10.35) | 0.0759*** (10.89) |
| OCFi,t−1 | 0.0727*** (12.03) | 0.0727*** (12.01) | 0.0733*** (11.99) |
| LEVi,t−1 | −0.0167*** (−7.49) | −0.0166*** (−7.44) | −0.0147*** (−6.56) |
| TANi,t−1 | 0.1070*** (46.97) | 0.1070*** (46.97) | 0.1067*** (46.40) |
| SIZi,t−1 | 0.0002 (0.66) | 0.0002 (0.68) | 0.0002 (0.79) |
| NWCi,t−1 | −0.0721*** (−10.76) | −0.0725*** (−10.81) | −0.0737*** (−10.91) |
| DPRi,t−1 | −0.1848*** (−10.55) | −0.1864*** (−10.63) | −0.1847*** (−10.35) |
| AD | −0.0254* (−1.87) | −0.0158 (−1.33) | −0.0164 (−1.21) |
| CR | −0.0067** (−2.48) | −0.0110*** (−3.67) | −0.0059** (−2.22) |
| ID | 0.0006*** (8.15) | 0.0008*** (8.04) | 0.0005*** (8.57) |
| Pcret | 0.0001*** (3.71) | 0.0001*** (4.08) | 0.0001*** (4.56) |
| Mcapt | 0.0001*** (6.98) | 0.0001*** (6.78) | 0.0000*** (6.24) |
| Gcapt | −0.0035** (−2.44) | −0.0044*** (−3.03) | −0.0062*** (−4.22) |
| Inflat | −0.0010*** (−5.64) | −0.0009*** (−5.28) | −0.0011*** (−5.97) |
| Rlaw | 0.0102*** (10.15) | 0.0107*** (10.59) | 0.0073*** (5.87) |
| Industry dummies | Yes | Yes | Yes |
| Year dummies | Yes | Yes | Yes |
| Country dummies | Yes | Yes | Yes |
| Clustered by firm | Yes | Yes | Yes |
| R-squared | 0.2683 | 0.2681 | 0.2623 |
| Number of observations | 218,045 | 218,045 | 218,045 |
| Variables | CI is based on the Corruption Perception Index | CI is based on the Corruption Control Index | CI is based on the International Country Risk Guide |
|---|---|---|---|
| Intercept | −0.0234 (−1.20) | −0.0523*** (−3.01) | 0.0203 (1.08) |
| TOB | 0.0217*** (29.95) | 0.0223*** (29.27) | 0.0129*** (22.51) |
| CI | 0.0694*** (8.61) | 0.1311*** (6.06) | 0.0065*** (3.37) |
| TOB | −0.0257*** (−17.59) | −0.0300*** (−17.29) | −0.0009* (−1.91) |
| PRO | −0.1218*** (−18.27) | −0.1224*** (−18.34) | −0.1300*** (−19.28) |
| CAS | 0.0719*** (10.39) | 0.0716*** (10.35) | 0.0759*** (10.89) |
| OCF | 0.0727*** (12.03) | 0.0727*** (12.01) | 0.0733*** (11.99) |
| LEV | −0.0167*** (−7.49) | −0.0166*** (−7.44) | −0.0147*** (−6.56) |
| TAN | 0.1070*** (46.97) | 0.1070*** (46.97) | 0.1067*** (46.40) |
| SIZ | 0.0002 (0.66) | 0.0002 (0.68) | 0.0002 (0.79) |
| NWC | −0.0721*** (−10.76) | −0.0725*** (−10.81) | −0.0737*** (−10.91) |
| DPR | −0.1848*** (−10.55) | −0.1864*** (−10.63) | −0.1847*** (−10.35) |
| AD | −0.0254* (−1.87) | −0.0158 (−1.33) | −0.0164 (−1.21) |
| CR | −0.0067** (−2.48) | −0.0110*** (−3.67) | −0.0059** (−2.22) |
| ID | 0.0006*** (8.15) | 0.0008*** (8.04) | 0.0005*** (8.57) |
| Pcre | 0.0001*** (3.71) | 0.0001*** (4.08) | 0.0001*** (4.56) |
| Mcap | 0.0001*** (6.98) | 0.0001*** (6.78) | 0.0000*** (6.24) |
| Gcap | −0.0035** (−2.44) | −0.0044*** (−3.03) | −0.0062*** (−4.22) |
| Infla | −0.0010*** (−5.64) | −0.0009*** (−5.28) | −0.0011*** (−5.97) |
| Rlaw | 0.0102*** (10.15) | 0.0107*** (10.59) | 0.0073*** (5.87) |
| Industry dummies | Yes | Yes | Yes |
| Year dummies | Yes | Yes | Yes |
| Country dummies | Yes | Yes | Yes |
| Clustered by firm | Yes | Yes | Yes |
| 0.2683 | 0.2681 | 0.2623 | |
| Number of observations | 218,045 | 218,045 | 218,045 |
Note(s): The dependent variable is corporate investment in year t (INVt). TOB is Tobin's Q. CI is corruption index. PRO is profitability. CAS is cash holdings. OCF is operating cash flow. LEV is financial leverage. TAN is asset tangibility. SIZ is firm size. NWC is net working capital. DPR is dividend payout ratio. AD is shareholder protection index. CR is creditor protection. ID is Hofstede's individualism dimension. Pcre is private credit to GDP. Mcap is market capitalization to GDP. Gcap is annual GDP per capita. Inlfat is annual inflation rate in year t. Rlawt is rule of law in year t. t-statistics are in parentheses. * is 10% of significance. ** is 5% of significance. *** is 1% of significance
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