Table 2 Main regression SGMM estimation...

Table 2

Main regression

SGMM estimation	Firm performance (FP)
SGMM estimation	EBIT	EBT	EAT
Lag _ FP	0.883*** (0.0876)	0.766*** (0.0811)	0.748*** (0.0637)
Company size	0.00148** (0.000723)	0.00235*** (0.000684)	0.00199*** (0.000445)
Growth	0.00219* (0.00113)	0.00170* (0.00101)	0.00155* (0.000894)
Risk	−0.0917** (0.0427)	−0.0636 (0.0407)	−0.106*** (0.0257)
Liquidity	0.000414 (0.000492)	0.00229** (0.000980)	0.00102** (0.000432)
Tangibility	−0.00340 (0.00697)	0.00254 (0.00623)	−0.00139 (0.00539)
Dividend policy	−0.000364** (6.14e-05)*	−0.0003** (5.69e-05)*	−0.000281** (4.70e-05)*
Debt policy	−0.0528* (0.0213)*	−0.0956** (0.0231)*	−0.0699** (0.0156)*
Dividend $\times$ debt	0.000762** (0.000271)*	0.000579* (0.000237)*	0.000421* (0.000195)*
Overinvestment	−0.0219 (0.0118)*	−0.0219 (0.0114)*	−0.0144 (0.00842)*
Overinvestment $\times$ dividend	0.00437** (0.00127)*	0.00440** (0.00130)*	0.00339** (0.00119)*
Overinvestment $\times$ debt	0.0358 (0.0192)*	0.0375* (0.0186)*	0.0254 (0.0142)*
Overinvestment $\times$ dividend $\times$ debt	−0.00679** (0.00193)*	−0.00667** (0.00197)*	−0.00510** (0.00178)*
Observations	2,269	2,269	2,269
Number of instruments	19	19	22
Number of groups	597	597	597
F-statistics	1100.8	587.20	440.00
Prob.	0.0000	0.0000	0.0000
Arellano–Bond test for AR(1)	−6.0090	−5.9780	−6.3050
Prob.	1.86E-09	2.27E-09	2.88E-10
Arellano–Bond test for AR(2)	0.5780	0.3950	0.5630
Prob.	0.5630	0.6930	0.5730
Hansen test of overid	3.9670	4.3610	8.2890
Prob.	0.1380	0.1130	0.1410

SGMM estimation	Firm performance (FP)
SGMM estimation	EBIT	EBT	EAT
Lag _ FP	0.883*** (0.0876)	0.766*** (0.0811)	0.748*** (0.0637)
Company size	0.00148** (0.000723)	0.00235*** (0.000684)	0.00199*** (0.000445)
Growth	0.00219* (0.00113)	0.00170* (0.00101)	0.00155* (0.000894)
Risk	−0.0917** (0.0427)	−0.0636 (0.0407)	−0.106*** (0.0257)
Liquidity	0.000414 (0.000492)	0.00229** (0.000980)	0.00102** (0.000432)
Tangibility	−0.00340 (0.00697)	0.00254 (0.00623)	−0.00139 (0.00539)
Dividend policy	−0.000364*** (6.14e-05)	−0.0003*** (5.69e-05)	−0.000281*** (4.70e-05)
Debt policy	−0.0528** (0.0213)	−0.0956*** (0.0231)	−0.0699*** (0.0156)
Dividend $\times$ debt	0.000762*** (0.000271)	0.000579** (0.000237)	0.000421** (0.000195)
Overinvestment	−0.0219* (0.0118)	−0.0219* (0.0114)	−0.0144* (0.00842)
Overinvestment $\times$ dividend	0.00437*** (0.00127)	0.00440*** (0.00130)	0.00339*** (0.00119)
Overinvestment $\times$ debt	0.0358* (0.0192)	0.0375** (0.0186)	0.0254* (0.0142)
Overinvestment $\times$ dividend $\times$ debt	−0.00679*** (0.00193)	−0.00667*** (0.00197)	−0.00510*** (0.00178)
Observations	2,269	2,269	2,269
Number of instruments	19	19	22
Number of groups	597	597	597
F-statistics	1100.8	587.20	440.00
Prob.	0.0000	0.0000	0.0000
Arellano–Bond test for AR(1)	−6.0090	−5.9780	−6.3050
Prob.	1.86E-09	2.27E-09	2.88E-10
Arellano–Bond test for AR(2)	0.5780	0.3950	0.5630
Prob.	0.5630	0.6930	0.5730
Hansen test of overid	3.9670	4.3610	8.2890
Prob.	0.1380	0.1130	0.1410

Note(s): Standard errors in parentheses. ***p < 0.01, **p < 0.05, *p < 0.1

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