Robustness checks
| 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 |
|---|---|---|---|
| Panel A. Reduced sample without USA, Japan and China | |||
| TOBi,t−1 | 0.0223*** (22.81) | 0.0229*** (23.31) | 0.0118*** (16.64) |
| CIt | 0.0581*** (5.77) | −0.0085 (−0.58) | 0.0065*** (2.76) |
| TOBi,t−1*CIt | −0.0272*** (−14.62) | −0.0329*** (−15.52) | −0.0005* (−1.77) |
| Panel B. Alternative measures of firm investment | |||
| Capital expenditure | |||
| TOBi,t−1 | 0.0043*** (16.89) | 0.0043*** (16.37) | 0.0035*** (16.87) |
| CIt | 0.0102** (2.21) | 0.0161 (1.45) | 0.0032*** (3.39) |
| TOBi,t−1*CIt | −0.0032*** (−5.00) | −0.0037*** (−5.03) | −0.0008** (−2.27) |
| R&D expenditure | |||
| TOBi,t−1 | 0.0055*** (12.10) | 0.0058*** (12.22) | 0.0030*** (9.11) |
| CIt | 0.0338*** (8.94) | 0.0423*** (3.56) | 0.0042*** (4.32) |
| TOBi,t−1*CIt | −0.0078*** (−9.40) | −0.0094*** (−9.61) | −0.0006* (−1.74) |
| Panel C. Alternative regression approaches | |||
| Weighted least squares regression | |||
| TOBi,t−1 | 0.0198*** (76.68) | 0.0199*** (75.98) | 0.0115*** (39.93) |
| CIt | 0.0614*** (10.89) | 0.0976*** (8.04) | 0.0069*** (4.39) |
| TOBi,t−1*CIt | −0.0227*** (−39.92) | −0.0258*** (−39.55) | −0.0017*** (−3.14) |
| Fama–Macbeth regression | |||
| TOBi,t−1 | 0.0218*** (29.62) | 0.0225*** (25.16) | 0.0134*** (5.96) |
| CIt | 0.0193* (1.89) | 0.0192* (1.91) | 0.0014 (0.22) |
| TOBi,t−1*CIt | −0.0262*** (−14.20) | −0.0307*** (−14.01) | −0.0024* (−1.73) |
| 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 |
|---|---|---|---|
| TOB | 0.0223*** (22.81) | 0.0229*** (23.31) | 0.0118*** (16.64) |
| CI | 0.0581*** (5.77) | −0.0085 (−0.58) | 0.0065*** (2.76) |
| TOB | −0.0272*** (−14.62) | −0.0329*** (−15.52) | −0.0005* (−1.77) |
| Capital expenditure | |||
| TOB | 0.0043*** (16.89) | 0.0043*** (16.37) | 0.0035*** (16.87) |
| CI | 0.0102** (2.21) | 0.0161 (1.45) | 0.0032*** (3.39) |
| TOB | −0.0032*** (−5.00) | −0.0037*** (−5.03) | −0.0008** (−2.27) |
| R&D expenditure | |||
| TOB | 0.0055*** (12.10) | 0.0058*** (12.22) | 0.0030*** (9.11) |
| CI | 0.0338*** (8.94) | 0.0423*** (3.56) | 0.0042*** (4.32) |
| TOB | −0.0078*** (−9.40) | −0.0094*** (−9.61) | −0.0006* (−1.74) |
| Weighted least squares regression | |||
| TOB | 0.0198*** (76.68) | 0.0199*** (75.98) | 0.0115*** (39.93) |
| CI | 0.0614*** (10.89) | 0.0976*** (8.04) | 0.0069*** (4.39) |
| TOB | −0.0227*** (−39.92) | −0.0258*** (−39.55) | −0.0017*** (−3.14) |
| Fama–Macbeth regression | |||
| TOB | 0.0218*** (29.62) | 0.0225*** (25.16) | 0.0134*** (5.96) |
| CI | 0.0193* (1.89) | 0.0192* (1.91) | 0.0014 (0.22) |
| TOB | −0.0262*** (−14.20) | −0.0307*** (−14.01) | −0.0024* (−1.73) |
Note(s): The dependent variable is corporate investment in year t (INVt). TOB is Tobin's Q. CI is corruption index. t-statistics are in parentheses. * is 10% of significance. ** is 5% of significance. *** is 1% of significance
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