Estimated results using HP-filter technique to measure overinvestment
| Firm performance (FP) | Overinvestment measured by HP filter | ||
|---|---|---|---|
| EBIT | EBT | EAT | |
| Lag _ FP | 0.926*** (0.0796) | 0.830*** (0.0764) | 0.727*** (0.0676) |
| Company size | 0.00102* (0.000599) | 0.00183*** (0.000595) | 0.00210*** (0.000426) |
| Growth | 0.00235* (0.00120) | 0.00214* (0.00114) | 0.00158* (0.000952) |
| Risk | −0.125*** (0.0334) | −0.120*** (0.0302) | −0.0965*** (0.0226) |
| Liquidity | 0.000658 (0.000417) | 0.00125** (0.000506) | 0.00109** (0.000454) |
| Tangibility | 0.00331 (0.00577) | 0.000844 (0.00588) | 0.000846 (0.00491) |
| Dividend policy | −0.000319*** (5.70e-05) | −0.000287*** (6.23e-05) | −0.000274*** (5.11e-05) |
| Debt policy | −0.0395** (0.0168) | −0.0678*** (0.0193) | −0.0737*** (0.0144) |
| Dividend × debt | 0.000554***(0.000138) | 0.000501***(0.000142) | 0.000436***(0.000112) |
| Overinvestment | −0.0153* (0.00906) | −0.0146* (0.00877) | −0.0136* (0.00750) |
| Overinvestment × dividend | 0.00460 (0.00343) | 0.00473 (0.00327) | 0.00370 (0.00253) |
| Overinvestment × debt | 0.0267* (0.0146) | 0.0228 (0.0141) | 0.0212* (0.0121) |
| Overinvestment × dividend × debt | −0.00681 (0.00535) | −0.00727 (0.00512) | −0.00562 (0.00396) |
| Observations | 2,318 | 2,318 | 2,318 |
| Number of instruments | 22 | 22 | 22 |
| Number of groups | 599 | 599 | 599 |
| F-statistics | 1120.7 | 565.30 | 422.50 |
| Prob. | 0.0000 | 0.0000 | 0.0000 |
| Arellano–Bond test for AR(1) | −6.5690 | −6.3590 | −6.3140 |
| Prob. | 5.06E-11 | 2.03E-10 | 2.71E-10 |
| Arellano–Bond test for AR(2) | 0.6620 | 0.5080 | 0.7280 |
| Prob. | 0.5080 | 0.6120 | 0.4660 |
| Hansen test of overid | 5.5820 | 7.2240 | 8.5180 |
| Prob. | 0.3490 | 0.2040 | 0.1300 |
| Firm performance (FP) | Overinvestment measured by HP filter | ||
|---|---|---|---|
| EBIT | EBT | EAT | |
| Lag _ FP | 0.926*** (0.0796) | 0.830*** (0.0764) | 0.727*** (0.0676) |
| Company size | 0.00102* (0.000599) | 0.00183*** (0.000595) | 0.00210*** (0.000426) |
| Growth | 0.00235* (0.00120) | 0.00214* (0.00114) | 0.00158* (0.000952) |
| Risk | −0.125*** (0.0334) | −0.120*** (0.0302) | −0.0965*** (0.0226) |
| Liquidity | 0.000658 (0.000417) | 0.00125** (0.000506) | 0.00109** (0.000454) |
| Tangibility | 0.00331 (0.00577) | 0.000844 (0.00588) | 0.000846 (0.00491) |
| Observations | 2,318 | 2,318 | 2,318 |
| Number of instruments | 22 | 22 | 22 |
| Number of groups | 599 | 599 | 599 |
| 1120.7 | 565.30 | 422.50 | |
| Prob. | 0.0000 | 0.0000 | 0.0000 |
| Arellano–Bond test for AR(1) | −6.5690 | −6.3590 | −6.3140 |
| Prob. | 5.06E-11 | 2.03E-10 | 2.71E-10 |
| Arellano–Bond test for AR(2) | 0.6620 | 0.5080 | 0.7280 |
| Prob. | 0.5080 | 0.6120 | 0.4660 |
| Hansen test of overid | 5.5820 | 7.2240 | 8.5180 |
| Prob. | 0.3490 | 0.2040 | 0.1300 |
Note(s): Standard errors in parentheses. ***p < 0.01, **p < 0.05, *p < 0.1
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