Diversification and excess value [estimated based on Eqns 2 and 3]
| Dependent variables: excess value | ||||
|---|---|---|---|---|
| 1 | 2 | 3 | 4 | |
| Constant | −0.678* (0.077) | −0.536 (0.158) | −0.419 (0.286) | −0.296 (0.462) |
| Diversification indexes | ||||
| HERF | 0.538** (0.010) | −1.282* (0.096) | ||
| HERF2 | 2.585** (0.015) | |||
| Total entropy | 0.242** (0.042) | −0.404 (0.304) | ||
| Total entropy2 | 0.482* (0.085) | |||
| Control variables | ||||
| EBIT_S | 0.937** (0.030) | 1.025** (0.018) | 0.992** (0.021) | 1.084** (0.012) |
| CAPEX_S | −0.728** (0.026) | −0.727** (0.028) | −0.741** (0.023) | −0.725** (0.027) |
| LDTA | −0.967*** (0.006) | −0.953*** (0.008) | −0.860** (0.015) | −0.926*** (0.009) |
| Size | 0.037 (0.163) | 0.030 (0.263) | 0.031(0.241) | 0.023 (0.402) |
| Number of Obs | 270 | 270 | 270 | 270 |
| Adjusted R square | 0.075 | 0.066 | 0.094 | 0.073 |
| Sargan test: p-value | 0.321 | 0.341 | 0.352 | 0.335 |
| M2: p-value | 0.354 | 0.286 | 0.305 | 0.281 |
| Durbin–Watson | 1.915 | 1.925 | 1.945 | 1.977 |
| Dependent variables: excess value | ||||
|---|---|---|---|---|
| 1 | 2 | 3 | 4 | |
| Constant | −0.678* (0.077) | −0.536 (0.158) | −0.419 (0.286) | −0.296 (0.462) |
| HERF | 0.538** (0.010) | −1.282* (0.096) | ||
| HERF2 | 2.585** (0.015) | |||
| Total entropy | 0.242** (0.042) | −0.404 (0.304) | ||
| Total entropy2 | 0.482* (0.085) | |||
| EBIT_S | 0.937** (0.030) | 1.025** (0.018) | 0.992** (0.021) | 1.084** (0.012) |
| CAPEX_S | −0.728** (0.026) | −0.727** (0.028) | −0.741** (0.023) | −0.725** (0.027) |
| LDTA | −0.967*** (0.006) | −0.953*** (0.008) | −0.860** (0.015) | −0.926*** (0.009) |
| Size | 0.037 (0.163) | 0.030 (0.263) | 0.031(0.241) | 0.023 (0.402) |
| Number of Obs | 270 | 270 | 270 | 270 |
| Adjusted | 0.075 | 0.066 | 0.094 | 0.073 |
| Sargan test: | 0.321 | 0.341 | 0.352 | 0.335 |
| 0.354 | 0.286 | 0.305 | 0.281 | |
| Durbin–Watson | 1.915 | 1.925 | 1.945 | 1.977 |
Note(s): Figures in parentheses are probability values based on White robust standard errors for heteroskedasticity. *, **, *** denote statistically significance at 1, 5 and 10% level, respectively. m2 is a serial correlation test of second-order using residuals of first differences, asymptotically distributed as N(0,1) under null hypothesis of no serial correlation. Sargan test is a test of overidentifying restrictions distributed asymptotically under null hypothesis of validity of instruments as Chi-squared
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