Table A2 Drivers of capital efficiency...

Table A2

Drivers of capital efficiency

Year	Model	$α$	W*EFF	GIL	CMAN	AGL	QCT	EAI	PDOM	PFOR	GOV
Panel A: 2006 Results	1	8.373***	0.020***	0.435***	0.041	−1.362***	0.016	0.714**
	2	7.087***	0.021***	0.472***	0.038				−1.858**	−2.639***	−5.761**
	3	9.516***	0.021***	0.444***	0.033	−1.368***	0.237	0.753**	−1.087	−2.346**	−4.574
Panel B: 2009 Results	1	12.320***	0.015***	0.189	0.047	−2.871***	0.778	−1.800***
	2	8.744***	0.017***	0.249*	0.029				−4.436***	−5.805***	−15.855***
	3	17.085***	0.014***	0.229	0.036	−2.999***	1.070**	−1.252***	−4.875***	−6.384***	−14.176***
Panel C: 2013 Results	1	4.986***	0.052***	0.289**	−0.133***	−1.189***	1.567***	0.356
	2	2.720***	0.051***	0.328***	−0.129***				−0.257	0.323	−3.623
	3	4.908***	0.051***	0.287**	−0.133***	−1.179***	1.597***	0.362	0.063	0.075	−3.257
Panel D: 2016 Results	1	66.678***	0.142***	−0.130	−0.312***	−1.371***	6.634	−4.549
	2	48.257***	0.156***	−0.165	−0.320***				12.738	14.746	−9.116
	3	53.467***	0.139***	−0.112	−0.264**	−1.068**	6.626	−4.842	12.956	14.999	−9.329
Panel E: 2019 Results	1	6.696***	0.030***	−0.043	0.089**	−1.705***	0.735**	−0.239
	2	1.755**	0.033***	−0.074	0.084**				0.639	1.513	−2.579
	3	5.765***	0.033***	−0.046	0.088**	−1.702***	0.705*	−0.226	0.925	1.556	−1.846

Year	Model	$α$	W*EFF	GIL	CMAN	AGL	QCT	EAI	PDOM	PFOR	GOV
Panel A: 2006 Results	1	8.373***	0.020***	0.435***	0.041	−1.362***	0.016	0.714**
	2	7.087***	0.021***	0.472***	0.038				−1.858**	−2.639***	−5.761**
	3	9.516***	0.021***	0.444***	0.033	−1.368***	0.237	0.753**	−1.087	−2.346**	−4.574
Panel B: 2009 Results	1	12.320***	0.015***	0.189	0.047	−2.871***	0.778	−1.800***
	2	8.744***	0.017***	0.249*	0.029				−4.436***	−5.805***	−15.855***
	3	17.085***	0.014***	0.229	0.036	−2.999***	1.070**	−1.252***	−4.875***	−6.384***	−14.176***
Panel C: 2013 Results	1	4.986***	0.052***	0.289**	−0.133***	−1.189***	1.567***	0.356
	2	2.720***	0.051***	0.328***	−0.129***				−0.257	0.323	−3.623
	3	4.908***	0.051***	0.287**	−0.133***	−1.179***	1.597***	0.362	0.063	0.075	−3.257
Panel D: 2016 Results	1	66.678***	0.142***	−0.130	−0.312***	−1.371***	6.634	−4.549
	2	48.257***	0.156***	−0.165	−0.320***				12.738	14.746	−9.116
	3	53.467***	0.139***	−0.112	−0.264**	−1.068**	6.626	−4.842	12.956	14.999	−9.329
Panel E: 2019 Results	1	6.696***	0.030***	−0.043	0.089**	−1.705***	0.735**	−0.239
	2	1.755**	0.033***	−0.074	0.084**				0.639	1.513	−2.579
	3	5.765***	0.033***	−0.046	0.088**	−1.702***	0.705*	−0.226	0.925	1.556	−1.846

Note(s): The Table presents the results of estimating the equation

${EFF}_{i}^{j} = α_{0} + γ \sum_{i = 1}^{N} w_{j, i} {EFF}_{i} + β^{1} {CMAN}_{j} + β^{2} {QCT}_{j} + β^{3} {EAS}_{j} + β^{4} P D O M_{j} + β^{5} P F O R_{j} + β^{6} G O V_{j} + β^{7} {AGL}_{j} + β^{8} {GIL}_{j} + μ_{j} + ε_{j}$

$E F F = c a p i t a l e f f i c i e n c y, Q C T = q u a l i t y c e r t i f i c a t i o n, C M A N = c r i m e m a n a g e m e n t, G I L = L o g o f g r a f t i n d e x A G L = \log o f f i r m^{'} s a g e, a = i n t e r c e p t,$

$E A S = E x t e r n a l a u d i t o r s e r v i c e s, γ = t h e s p a t i a l a u t o c o r r e l a t i o n c o e f f i c i e n t, μ = s p a t i a l s p e c i f i c e f f e c t s, G O V = g o v e r n m e n t o w n e r s h i p,$

$β = c o e f f i c i e n t s, P D O M = p r i v a t e d o m e s t i c o w n e r s h i p, P F O R = p r i v a t e f o r e i g n o w n e r s h i p, w_{j, i} = e l e m e n t o f t h e a d j a c e n c y m a t r i x W .$

***, ** and * are 1, 5 and 10% significant levels respectively

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