Table 3 Dynamic GMM estimation Model 1...

Table 3

Dynamic GMM estimation

	Model 1	Model 2	Model 3	Model 4
${R O I C}_{t - 1}$	0.1591^***	0.1059^**	0.1056^**	0.1090^**
Risk (std ROIC)	0.2354^***
Risk level 1		0.4763^***	0.4672^***	0.5799^***
Risk level 2		−0.1677^***	−0.1666^***	−0.1508^***
Risk level 3		−0.6610^***	−0.6440^***	−0.7946^***
Family business			−0.0057^**	−0.0008
Risk level 1 × FB				−0.1596^*
Risk level 2 × FB				−0.0381
Risk level 3 × FB				0.2560^*
Efficiency	0.5161^***	0.4078^***	0.4289^***	0.4101^***
Size	0.0704^***	0.0436^***	0.0449^***	0.0348^***
Age	−0.0811^***	−0.0442^***	−0.0473^***	−0.0360^***
GDP	0.0016^***	0.0007^***	0.0007^***	0.0004^**
Constant	0.0480^***	0.0416^***	0.0495^***	0.0462^**
Industry	yes	yes	yes	yes
Year	yes	yes	yes	yes
AR(1)	−4.81^***	−4.01^***	−3.95^***	−3.95^***
AR(2)	0.72 (0.472)	−0.31 (0.759)	−0.16 (0.874)	−0.37 (0.711)
Hansen test	1.61 (0.204)	0.22 (0.641)	2.21 (0.137)	1.79 (0.181)
Observations	11,460	11,460	11,266	11,266
IV	89	115	128	167

	Model 1	Model 2	Model 3	Model 4
${R O I C}_{t - 1}$	0.1591^***	0.1059^**	0.1056^**	0.1090^**
Risk (std ROIC)	0.2354^***
Risk level 1		0.4763^***	0.4672^***	0.5799^***
Risk level 2		−0.1677^***	−0.1666^***	−0.1508^***
Risk level 3		−0.6610^***	−0.6440^***	−0.7946^***
Family business			−0.0057^**	−0.0008
Risk level 1 × FB				−0.1596^*
Risk level 2 × FB				−0.0381
Risk level 3 × FB				0.2560^*
Efficiency	0.5161^***	0.4078^***	0.4289^***	0.4101^***
Size	0.0704^***	0.0436^***	0.0449^***	0.0348^***
Age	−0.0811^***	−0.0442^***	−0.0473^***	−0.0360^***
GDP	0.0016^***	0.0007^***	0.0007^***	0.0004^**
Constant	0.0480^***	0.0416^***	0.0495^***	0.0462^**
Industry	yes	yes	yes	yes
Year	yes	yes	yes	yes
AR(1)	−4.81^***	−4.01^***	−3.95^***	−3.95^***
AR(2)	0.72 (0.472)	−0.31 (0.759)	−0.16 (0.874)	−0.37 (0.711)
Hansen test	1.61 (0.204)	0.22 (0.641)	2.21 (0.137)	1.79 (0.181)
Observations	11,460	11,460	11,266	11,266
IV	89	115	128	167

Note(s): Abbreviation: ROIC, return on invested capital. All estimations have been carried out using the 2-stage GMM estimator. AR(2) is a test for second-order serial autocorrelation in first difference residuals, distributed asymptotically as N(0.1) under the null hypothesis of no serial correlation. The Hansen Test is a test of over-identifying restrictions distributed asymptotically under the null hypothesis of validity of instruments as Chi-squared. Standard errors in parenthesis. (^*), (^**), and (^***) indicate statistical significance at the 10%, 5%, and 1% levels, respectively

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