The relationship between corruption and corporate investment efficiency by shareholder protection
| Variables | Weak shareholder protection | Strong shareholder protection | ||
|---|---|---|---|---|
| AD ≤ 0.5 | IP ≤ 0.5 | AD > 0.5 | IP > 0.5 | |
| Panel A. CI is based on the Corruption Perception Index | ||||
| TOBi,t−1 | 0.0197*** (12.17) | 0.0218*** (26.27) | 0.0217*** (26.20) | 0.0205*** (12.82) |
| CIt | 0.0874*** (7.25) | 0.0874*** (7.04) | 0.0680*** (4.65) | 0.0303** (2.41) |
| TOBi,t−1*CIt | −0.0238*** (−8.10) | −0.0251*** (−14.44) | −0.0251*** (−14.25) | −0.0260*** (−8.94) |
| Panel B. CI is based on the Corruption Control Index | ||||
| TOBi,t−1 | 0.0196*** (12.70) | 0.0199*** (13.19) | 0.0227*** (25.43) | 0.0228*** (25.48) |
| CIt | 0.1244*** (3.61) | 0.1370** (2.27) | 0.0290 (0.00) | 0.0360 (1.39) |
| TOBi,t−1*CIt | −0.0271*** (−8.66) | −0.0284*** (−9.27) | −0.0307*** (−14.21) | −0.0308*** (−14.40) |
| Panel C. CI is based on the International Country Risk Guide | ||||
| TOBi,t−1 | 0.0102*** (9.42) | 0.0135*** (20.36) | 0.0138*** (20.56) | 0.0117*** (10.37) |
| CIt | −0.0007 (−0.23) | 0.0077*** (3.07) | 0.0079*** (3.11) | 0.0027 (0.86) |
| TOBi,t−1*CIt | 0.0003 (0.16) | −0.0014 (−1.32) | −0.0018* (−1.68) | −0.0021 (−1.02) |
| Variables | Weak shareholder protection | Strong shareholder protection | ||
|---|---|---|---|---|
| AD ≤ 0.5 | IP ≤ 0.5 | AD > 0.5 | IP > 0.5 | |
| TOB | 0.0197*** (12.17) | 0.0218*** (26.27) | 0.0217*** (26.20) | 0.0205*** (12.82) |
| CI | 0.0874*** (7.25) | 0.0874*** (7.04) | 0.0680*** (4.65) | 0.0303** (2.41) |
| TOB | −0.0238*** (−8.10) | −0.0251*** (−14.44) | −0.0251*** (−14.25) | −0.0260*** (−8.94) |
| TOB | 0.0196*** (12.70) | 0.0199*** (13.19) | 0.0227*** (25.43) | 0.0228*** (25.48) |
| CI | 0.1244*** (3.61) | 0.1370** (2.27) | 0.0290 (0.00) | 0.0360 (1.39) |
| TOB | −0.0271*** (−8.66) | −0.0284*** (−9.27) | −0.0307*** (−14.21) | −0.0308*** (−14.40) |
| TOB | 0.0102*** (9.42) | 0.0135*** (20.36) | 0.0138*** (20.56) | 0.0117*** (10.37) |
| CI | −0.0007 (−0.23) | 0.0077*** (3.07) | 0.0079*** (3.11) | 0.0027 (0.86) |
| TOB | 0.0003 (0.16) | −0.0014 (−1.32) | −0.0018* (−1.68) | −0.0021 (−1.02) |
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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