Table 7 Endogeneity tests Panel A: 2SLS...

Table 7

Endogeneity tests

Panel A: 2SLS results
	(1)	(2)	(3)	(4)	(5)	(6)
Variables	1st stage GP	2nd stage PEG	2nd stage PEG	1st stage GPR	2nd stage MPEG	2nd stage MPEG
INAVGP	0.039***	–	–	–	–	–
	[9.34]
GP	–	0.054*	–	–	0.057*	–
		[1.81]			[1.93]
INAVGPR	–	–	–	0.085***	–	–
				[16.84]
GPR	–	–	0.034*	–	–	0.038*
			[1.80]			[1.88]
SIZE	0.088***	−0.016***	−0.015***	0.067***	−0.016***	−0.015***
	[14.41]	[−6.29]	[−6.49]	[13.30]	[−6.29]	[−6.50]
TOBIN_Q	0.012***	−0.004***	−0.004***	0.008**	−0.004***	−0.004***
	[2.84]	[−6.30]	[−6.74]	[2.43]	[−6.02]	[−6.48]
DEBT	0.066**	0.049***	0.050***	0.071***	0.049***	0.051***
	[2.29]	[5.70]	[6.16]	[2.96]	[5.65]	[6.13]
ROA	−0.098	−0.100***	−0.102***	−0.053	−0.102***	−0.104***
	[−1.32]	[−3.66]	[−3.82]	[−0.87]	[−3.68]	[−3.83]
AGE	−0.153***	0.012***	0.014***	−0.106***	0.012***	0.014***
	[−13.47]	[3.30]	[4.36]	[−11.21]	[3.10]	[4.19]
REST	−0.001	−0.001	−0.001	−0.006	−0.001	−0.001
	[−0.09]	[−0.61]	[−0.60]	[−0.58]	[−0.59]	[−0.58]
DAC	−0.040	0.003	0.003	−0.019	0.003	0.003
	[−1.50]	[0.97]	[0.85]	[−0.83]	[0.98]	[0.85]
CSRR	0.000	0.000	0.000	0.000	0.000	0.000
	[0.50]	[1.36]	[0.87]	[1.05]	[1.36]	[0.85]
SOE	0.019	−0.011	−0.013*	0.007	−0.010	−0.012*
	[1.64]	[−1.52]	[−1.86]	[0.75]	[−1.30]	[−1.66]
TOP10	−0.124***	−0.008	−0.011	−0.071**	−0.007	−0.010
	[−3.33]	[−0.60]	[−0.85]	[−2.28]	[−0.47]	[−0.74]
IOWN	0.005	−0.013**	−0.016***	0.009	−0.013**	−0.016***
	[0.19]	[−2.47]	[−3.40]	[0.39]	[−2.43]	[−3.33]
BSIZE	0.096***	−0.006	−0.005	0.076***	−0.006	−0.005
	[3.34]	[−0.65]	[−0.69]	[3.18]	[−0.67]	[−0.66]
BIND	0.215**	0.019	0.023	0.207**	0.016	0.021
	[2.08]	[0.82]	[1.07]	[2.40]	[0.66]	[0.93]
DUAL	−0.013	0.001	−0.000	−0.012	0.001	0.000
	[−1.04]	[0.29]	[−0.03]	[−1.13]	[0.37]	[0.10]
Constant	−1.851***	0.443***	0.431***	−1.486***	0.419***	0.406***
	[−12.62]	[8.07]	[8.41]	[−12.17]	[7.50]	[7.81]
Industry	No	No	No	No	No	No
Year	Yes	Yes	Yes	Yes	Yes	Yes
Firm	Yes	Yes	Yes	Yes	Yes	Yes
Observations	10,641	10,641	10,641	10,641	10,641	10,641
Adjusted R²	0.14	0.12	0.11	0.14	0.13	0.12
Note(s): This table reports the results of the 2SLS model, the variables INAVGP and INAVGPR use as instruments. Robust t-statistics (clustered at the firm level) are reported in brackets. , , ** denote a two-tailed p value of less than 0.10, 0.05, and 0.01, respectively. All variables are defined in Table 2. This table is prepared by the authors

Panel A: 2SLS results
	(1)	(2)	(3)	(4)	(5)	(6)
Variables	1st stage GP	2nd stage PEG	2nd stage PEG	1st stage GPR	2nd stage MPEG	2nd stage MPEG
INAVGP	0.039***	–	–	–	–	–
	[9.34]
GP	–	0.054*	–	–	0.057*	–
		[1.81]			[1.93]
INAVGPR	–	–	–	0.085***	–	–
				[16.84]
GPR	–	–	0.034*	–	–	0.038*
			[1.80]			[1.88]
SIZE	0.088***	−0.016***	−0.015***	0.067***	−0.016***	−0.015***
	[14.41]	[−6.29]	[−6.49]	[13.30]	[−6.29]	[−6.50]
TOBIN_Q	0.012***	−0.004***	−0.004***	0.008**	−0.004***	−0.004***
	[2.84]	[−6.30]	[−6.74]	[2.43]	[−6.02]	[−6.48]
DEBT	0.066**	0.049***	0.050***	0.071***	0.049***	0.051***
	[2.29]	[5.70]	[6.16]	[2.96]	[5.65]	[6.13]
ROA	−0.098	−0.100***	−0.102***	−0.053	−0.102***	−0.104***
	[−1.32]	[−3.66]	[−3.82]	[−0.87]	[−3.68]	[−3.83]
AGE	−0.153***	0.012***	0.014***	−0.106***	0.012***	0.014***
	[−13.47]	[3.30]	[4.36]	[−11.21]	[3.10]	[4.19]
REST	−0.001	−0.001	−0.001	−0.006	−0.001	−0.001
	[−0.09]	[−0.61]	[−0.60]	[−0.58]	[−0.59]	[−0.58]
DAC	−0.040	0.003	0.003	−0.019	0.003	0.003
	[−1.50]	[0.97]	[0.85]	[−0.83]	[0.98]	[0.85]
CSRR	0.000	0.000	0.000	0.000	0.000	0.000
	[0.50]	[1.36]	[0.87]	[1.05]	[1.36]	[0.85]
SOE	0.019	−0.011	−0.013*	0.007	−0.010	−0.012*
	[1.64]	[−1.52]	[−1.86]	[0.75]	[−1.30]	[−1.66]
TOP10	−0.124***	−0.008	−0.011	−0.071**	−0.007	−0.010
	[−3.33]	[−0.60]	[−0.85]	[−2.28]	[−0.47]	[−0.74]
IOWN	0.005	−0.013**	−0.016***	0.009	−0.013**	−0.016***
	[0.19]	[−2.47]	[−3.40]	[0.39]	[−2.43]	[−3.33]
BSIZE	0.096***	−0.006	−0.005	0.076***	−0.006	−0.005
	[3.34]	[−0.65]	[−0.69]	[3.18]	[−0.67]	[−0.66]
BIND	0.215**	0.019	0.023	0.207**	0.016	0.021
	[2.08]	[0.82]	[1.07]	[2.40]	[0.66]	[0.93]
DUAL	−0.013	0.001	−0.000	−0.012	0.001	0.000
	[−1.04]	[0.29]	[−0.03]	[−1.13]	[0.37]	[0.10]
Constant	−1.851***	0.443***	0.431***	−1.486***	0.419***	0.406***
	[−12.62]	[8.07]	[8.41]	[−12.17]	[7.50]	[7.81]
Industry	No	No	No	No	No	No
Year	Yes	Yes	Yes	Yes	Yes	Yes
Firm	Yes	Yes	Yes	Yes	Yes	Yes
Observations	10,641	10,641	10,641	10,641	10,641	10,641
Adjusted R²	0.14	0.12	0.11	0.14	0.13	0.12
Note(s): This table reports the results of the 2SLS model, the variables INAVGP and INAVGPR use as instruments. Robust t-statistics (clustered at the firm level) are reported in brackets. , , ** denote a two-tailed p value of less than 0.10, 0.05, and 0.01, respectively. All variables are defined in Table 2. This table is prepared by the authors

Panel B: Results of the PSM analysis: Entropy balanced method
Covariate matching table
	Treatment variable: TREATGP
	Treat			Control (before matching)			Control (after matching)
Variables	Mean	Variance	Skewness	Mean	Variance	Skewness	Mean	Variance	Skewness
SIZE	22.650	2.031	0.557	22.130	1.593	0.734	22.640	2.208	0.610
TOBIN_Q	1.940	1.426	4.493	2.141	2.107	3.643	1.940	1.646	3.774
DEBT	0.469	0.035	−0.146	0.443	0.043	0.090	0.469	0.046	0.023
ROA	0.048	0.003	0.411	0.048	0.003	1.877	0.048	0.003	4.630
AGE	20.51	0.576	−0.618	21.65	0.598	−0.786	20.51	0.700	−0.603
REST	0.221	0.172	1.345	0.219	0.171	1.358	0.221	0.172	1.346
DAC	0.010	0.018	−6.893	0.020	0.034	0.886	0.010	0.043	−5.938
CSRR	27.690	309.100	1.484	26.990	260.300	1.482	27.690	264.400	1.496
SOE	0.402	0.241	0.399	0.432	0.245	0.275	0.402	0.240	0.399
TOP10	0.357	0.024	0.451	0.356	0.022	0.441	0.357	0.023	0.448
IOWN	0.429	0.057	−0.079	0.407	0.055	0.036	0.429	0.058	−0.020
BSIZE	2.158	0.043	−0.126	2.153	0.038	−0.274	2.158	0.040	−0.158
BIND	0.374	0.003	1.510	0.372	0.003	1.492	0.374	0.003	1.495
DUAL	0.246	0.186	1.179	0.239	0.182	1.222	0.246	0.186	1.180

Panel B: Results of the PSM analysis: Entropy balanced method
Covariate matching table
	Treatment variable: TREATGP
	Treat			Control (before matching)			Control (after matching)
Variables	Mean	Variance	Skewness	Mean	Variance	Skewness	Mean	Variance	Skewness
SIZE	22.650	2.031	0.557	22.130	1.593	0.734	22.640	2.208	0.610
TOBIN_Q	1.940	1.426	4.493	2.141	2.107	3.643	1.940	1.646	3.774
DEBT	0.469	0.035	−0.146	0.443	0.043	0.090	0.469	0.046	0.023
ROA	0.048	0.003	0.411	0.048	0.003	1.877	0.048	0.003	4.630
AGE	20.51	0.576	−0.618	21.65	0.598	−0.786	20.51	0.700	−0.603
REST	0.221	0.172	1.345	0.219	0.171	1.358	0.221	0.172	1.346
DAC	0.010	0.018	−6.893	0.020	0.034	0.886	0.010	0.043	−5.938
CSRR	27.690	309.100	1.484	26.990	260.300	1.482	27.690	264.400	1.496
SOE	0.402	0.241	0.399	0.432	0.245	0.275	0.402	0.240	0.399
TOP10	0.357	0.024	0.451	0.356	0.022	0.441	0.357	0.023	0.448
IOWN	0.429	0.057	−0.079	0.407	0.055	0.036	0.429	0.058	−0.020
BSIZE	2.158	0.043	−0.126	2.153	0.038	−0.274	2.158	0.040	−0.158
BIND	0.374	0.003	1.510	0.372	0.003	1.492	0.374	0.003	1.495
DUAL	0.246	0.186	1.179	0.239	0.182	1.222	0.246	0.186	1.180

PSM regression results
	(1)	(2)
Variables	PEG	MPEG
TREATGP	−0.023*	−0.022**
	[−1.90]	[−2.05]
SIZE	0.003***	0.003***
	[3.22]	[3.30]
TOBIN_Q	−0.005***	−0.004***
	[−6.74]	[−5.93]
DEBT	0.037***	0.036***
	[6.86]	[6.73]
ROA	−0.085***	−0.089***
	[−4.13]	[−4.27]
AGE	0.008***	0.008***
	[6.77]	[6.74]
REST	0.001	0.001
	[0.66]	[0.69]
DAC	0.005*	0.005*
	[1.80]	[1.71]
CSRR	−0.000*	−0.000**
	[−1.79]	[−1.97]
SOE	−0.003*	−0.003*
	[−1.75]	[−1.66]
TOP10	0.015***	0.016***
	[2.74]	[2.88]
IOWN	−0.012***	−0.013***
	[−3.37]	[−3.50]
BSIZE	−0.002	−0.001
	[−0.38]	[−0.22]
BIND	−0.012	−0.011
	[−0.68]	[−0.65]
DUAL	0.002	0.001
	[0.96]	[0.87]
Constant	0.043*	0.009
	[1.89]	[0.41]
Industry	Yes	Yes
Year	Yes	Yes
Observations	10,641	10,641
Adjusted R²	0.16	0.16
Note(s): This table reports the results of the Entropy balanced model. Robust t-statistics (clustered at the firm level) are reported in brackets. , , ** denote a two-tailed p value of less than 0.10, 0.05, and 0.01, respectively. All variables are defined in Table 2. This table is prepared by the authors

PSM regression results
	(1)	(2)
Variables	PEG	MPEG
TREATGP	−0.023*	−0.022**
	[−1.90]	[−2.05]
SIZE	0.003***	0.003***
	[3.22]	[3.30]
TOBIN_Q	−0.005***	−0.004***
	[−6.74]	[−5.93]
DEBT	0.037***	0.036***
	[6.86]	[6.73]
ROA	−0.085***	−0.089***
	[−4.13]	[−4.27]
AGE	0.008***	0.008***
	[6.77]	[6.74]
REST	0.001	0.001
	[0.66]	[0.69]
DAC	0.005*	0.005*
	[1.80]	[1.71]
CSRR	−0.000*	−0.000**
	[−1.79]	[−1.97]
SOE	−0.003*	−0.003*
	[−1.75]	[−1.66]
TOP10	0.015***	0.016***
	[2.74]	[2.88]
IOWN	−0.012***	−0.013***
	[−3.37]	[−3.50]
BSIZE	−0.002	−0.001
	[−0.38]	[−0.22]
BIND	−0.012	−0.011
	[−0.68]	[−0.65]
DUAL	0.002	0.001
	[0.96]	[0.87]
Constant	0.043*	0.009
	[1.89]	[0.41]
Industry	Yes	Yes
Year	Yes	Yes
Observations	10,641	10,641
Adjusted R²	0.16	0.16
Note(s): This table reports the results of the Entropy balanced model. Robust t-statistics (clustered at the firm level) are reported in brackets. , , ** denote a two-tailed p value of less than 0.10, 0.05, and 0.01, respectively. All variables are defined in Table 2. This table is prepared by the authors

Panel C: ITCV analysis
	PEG (GP)		PEG (GPR)		MPEG (GP)		MPEG (GPR)
Variables	Impact	Variables	Impact	Variables	Impact	Variables	Impact
ROA	0.001	ROA	0.000	ROA	0.001	ROA	0.001
CSRR	0.000	CSRR	0.000	CSRR	0.000	CSRR	0.000
SOE	0.000	REST	0.000	SOE	0.000	SOE	0.000
REST	0.000	SOE	0.000	REST	0.000	REST	0.000
BSIZE	0.000	DUAL	0.000	BSIZE	0.000	DACC	−0.000
DUAL	0.000	DACC	−0.000	DUAL	0.000	BSIZE	−0.000
DACC	−0.000	BSIZE	−0.000	DACC	−0.000	BIND	−0.000
BIND	−0.000	BIND	−0.000	BIND	−0.000	DUAL	−0.000
INST	−0.000	INST	−0.000	INST	−0.000	INST	−0.000
TOP10	−0.001	TOP10	−0.001	TOP10	−0.001	TOP10	−0.001
SIZE	−0.002	DEBT	−0.001	DEBT	−0.003	DEBT	−0.001
DEBT	−0.003	SIZE	−0.002	SIZE	−0.003	SIZE	−0.003
TOBIN_Q	−0.005	TOBIN_Q	−0.004	TOBIN_Q	−0.004	TOBIN_Q	−0.004
AGE	−0.009	AGE	−0.009	AGE	−0.010	AGE	−0.010
ITCV	−0.017	ITCV	−0.012	ITCV	−0.022	ITCV	−0.017

Panel C: ITCV analysis
	PEG (GP)		PEG (GPR)		MPEG (GP)		MPEG (GPR)
Variables	Impact	Variables	Impact	Variables	Impact	Variables	Impact
ROA	0.001	ROA	0.000	ROA	0.001	ROA	0.001
CSRR	0.000	CSRR	0.000	CSRR	0.000	CSRR	0.000
SOE	0.000	REST	0.000	SOE	0.000	SOE	0.000
REST	0.000	SOE	0.000	REST	0.000	REST	0.000
BSIZE	0.000	DUAL	0.000	BSIZE	0.000	DACC	−0.000
DUAL	0.000	DACC	−0.000	DUAL	0.000	BSIZE	−0.000
DACC	−0.000	BSIZE	−0.000	DACC	−0.000	BIND	−0.000
BIND	−0.000	BIND	−0.000	BIND	−0.000	DUAL	−0.000
INST	−0.000	INST	−0.000	INST	−0.000	INST	−0.000
TOP10	−0.001	TOP10	−0.001	TOP10	−0.001	TOP10	−0.001
SIZE	−0.002	DEBT	−0.001	DEBT	−0.003	DEBT	−0.001
DEBT	−0.003	SIZE	−0.002	SIZE	−0.003	SIZE	−0.003
TOBIN_Q	−0.005	TOBIN_Q	−0.004	TOBIN_Q	−0.004	TOBIN_Q	−0.004
AGE	−0.009	AGE	−0.009	AGE	−0.010	AGE	−0.010
ITCV	−0.017	ITCV	−0.012	ITCV	−0.022	ITCV	−0.017

Panel D: The GMM test
	(1)	(2)	(3)	(4)
Variables	PEG	MPEG	PEG	MPEG
L.PEG	0.335***	–	0.335***	–
	[22.16]		[22.15]
GP	−0.030**	−0.030***	–	–
	[−2.51]	[−2.71]
L.MPEG	–	0.329***	–	0.328***
		[21.66]		[21.43]
GPR	–	–	−0.020**	−0.030**
			[−2.12]	[−2.26]
Control variables	Yes	Yes	Yes	Yes
Industry	Yes	Yes	Yes	Yes
Year	Yes	Yes	Yes	Yes
Constant	0.000	−0.022	−0.001	−0.022
	[0.03]	[−1.58]	[−0.05]	[−1.60]
Observations	5,916	5,818	5,916	5,818
AR(1)	z = −7.04, p ≥ 0.00	z = −6.91, p ≥ 0.00	z = −9.07, p ≥ 0.000	z = −6.93, p ≥ 0.00
AR(2)	z = 1.06, p ≥ 0.289	z = 1.13, p ≥ 0.259	z = 1.06, p ≥ 0.299	z = 1.12, p ≥ 0.263
Sargan test	χ² = 6,714.8, p ≥ 0.00	χ² = 6,634.9, p ≥ 0.00	χ² = 6,714.5, p ≥ 0.00	χ² = 6,634.4, p ≥ 0.00
Hansen test	χ² = 815.9, p ≥ 0.132	χ² = 794.7, p ≥ 0.150	χ² = 825.7, p ≥ 0.164	χ² = 805.5, p ≥ 0.172

Panel D: The GMM test
	(1)	(2)	(3)	(4)
Variables	PEG	MPEG	PEG	MPEG
L.PEG	0.335***	–	0.335***	–
	[22.16]		[22.15]
GP	−0.030**	−0.030***	–	–
	[−2.51]	[−2.71]
L.MPEG	–	0.329***	–	0.328***
		[21.66]		[21.43]
GPR	–	–	−0.020**	−0.030**
			[−2.12]	[−2.26]
Control variables	Yes	Yes	Yes	Yes
Industry	Yes	Yes	Yes	Yes
Year	Yes	Yes	Yes	Yes
Constant	0.000	−0.022	−0.001	−0.022
	[0.03]	[−1.58]	[−0.05]	[−1.60]
Observations	5,916	5,818	5,916	5,818
AR(1)	z = −7.04, p ≥ 0.00	z = −6.91, p ≥ 0.00	z = −9.07, p ≥ 0.000	z = −6.93, p ≥ 0.00
AR(2)	z = 1.06, p ≥ 0.289	z = 1.13, p ≥ 0.259	z = 1.06, p ≥ 0.299	z = 1.12, p ≥ 0.263
Sargan test	χ² = 6,714.8, p ≥ 0.00	χ² = 6,634.9, p ≥ 0.00	χ² = 6,714.5, p ≥ 0.00	χ² = 6,634.4, p ≥ 0.00
Hansen test	χ² = 815.9, p ≥ 0.132	χ² = 794.7, p ≥ 0.150	χ² = 825.7, p ≥ 0.164	χ² = 805.5, p ≥ 0.172

Note(s): This table reports the results of the GMM test. Robust t-statistics (clustered at the firm level) are reported in brackets. *, **, *** denote a two-tailed p value of less than 0.10, 0.05, and 0.01, respectively. All variables are defined in Table 2. This table is prepared by the authors

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