Determinants of reputation building: Logit regressions
| Panel A: RPT5 | Panel B: RPT3 | Panel C: RPT7 | ||||||
|---|---|---|---|---|---|---|---|---|
| Log(DY) | 0.849*** (9.66) | 0.842*** (9.58) | 0.850*** (9.68) | 0.844*** (9.61) | 1.146*** (18.98) | 1.148*** (18.91) | 0.685*** (5.38) | 0.691*** (5.42) |
| Log(MV) | 0.270*** (6.48) | 0.247*** (6.61) | 0.279*** (6.73) | 0.253*** (6.79) | 0.238*** (8.47) | 0.240*** (8.54) | 0.253*** (5.20) | 0.264*** (5.42) |
| Log(Age) | 0.676*** (10.06) | 0.671*** (10.02) | 0.668*** (10.03) | 0.663*** (9.96) | 0.459*** (9.22) | 0.453*** (9.16) | 0.833*** (9.28) | 0.820*** (9.17) |
| ROA | 7.566*** (7.65) | 7.485*** (7.44) | 7.535*** (7.68) | 7.443*** (7.42) | 8.835*** (11.98) | 8.681*** (11.82) | 6.748*** (5.09) | 6.646*** (5.08) |
| Cashflow | 0.285 (0.65) | 0.273 (0.62) | 0.316 (0.71) | 0.297 (0.67) | 0.290 (0.90) | 0.338 (1.04) | 0.478 (0.76) | 0.553 (0.87) |
| r1Y | −0.071* (−1.80) | −0.069* (−1.76) | −0.083** (−2.09) | −0.079** (−1.99) | −0.099*** (−3.49) | −0.105*** (−3.70) | −0.113** (−1.91) | −0.142** (−2.34) |
| GS | −0.021 (−0.08) | −0.036 (−0.14) | −0.029 (−0.12) | −0.038 (−0.15) | 0.212 (1.21) | 0.228 (1.29) | −0.865** (−2.21) | −0.847** (−2.15) |
| MB | 0.009*** (4.70) | 0.009*** (5.30) | 0.009*** (4.82) | 0.009*** (5.24) | 0.008*** (5.60) | 0.008*** (5.74) | 0.007 (1.34) | 0.006 (0.88) |
| LVRG | −1.018*** (−3.86) | −0.996*** (−3.80) | −0.966*** (−3.67) | −0.942*** (−3.60) | −0.845*** (−4.55) | −0.811*** (−4.38) | −1.091*** (−3.05) | −1.022*** (−2.84) |
| σr1Y | −20.729*** (−4.53) | −19.821*** (−4.35) | −17.764*** (−3.94) | −17.031*** (−3.78) | −13.594*** (−4.53) | −11.764*** (−3.87) | −25.892*** (−3.80) | −21.736*** (−3.24) |
| σROA | −18.209*** (−5.36) | −18.169*** (−5.34) | −17.517*** (−5.22) | −17.487*** (−5.21) | −11.433*** (−5.59) | −11.200*** (−5.53) | −13.537*** (−3.04) | −12.587*** (−2.92) |
| LargeSh | 0.439 (1.48) | 0.495* (1.67) | 0.545*** (2.62) | 0.737* (1.83) | ||||
| MinorSh | −0.841*** (−2.70) | −0.838*** (−2.68) | −0.683*** (−3.14) | −1.220*** (−2.83) | ||||
| ForeignSh | 0.206 (0.49) | 0.087 (0.21) | ||||||
| FMsh | 0.199** (2.06) | 0.173** (1.80) | 0.094 (1.31) | 0.063 (0.89) | 0.297** (2.23) | 0.252* (1.91) | ||
| Constant | −10.461 (−9.52) | −9.939 (−9.39) | −10.217 (−9.59) | −9.615 (−9.42) | −9.386 (−11.81) | −8.935 (−11.61) | −11.318 (−8.06) | −10.886*** (−8.06) |
| Observations | 22,689 | 22,689 | 22,346 | 22,346 | 22,801 | 22,458 | 22,622 | 22,280 |
| Year dummy | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Industry dummy | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Clusters (firms) | 2,046 | 2,046 | 2,044 | 2,044 | 2,054 | 2,052 | 2,040 | 2,038 |
| R2 | 0.256 | 0.257 | 0.256 | 0.257 | 0.265 | 0.265 | 0.252 | 0.251 |
| Panel A: | Panel B: | Panel C: | ||||||
|---|---|---|---|---|---|---|---|---|
| 0.849 | 0.842 | 0.850 | 0.844 | 1.146 | 1.148 | 0.685 | 0.691 | |
| 0.270 | 0.247 | 0.279 | 0.253 | 0.238 | 0.240 | 0.253 | 0.264 | |
| 0.676 | 0.671 | 0.668 | 0.663 | 0.459 | 0.453 | 0.833 | 0.820 | |
| 7.566 | 7.485 | 7.535 | 7.443 | 8.835 | 8.681 | 6.748 | 6.646 | |
| 0.285 (0.65) | 0.273 (0.62) | 0.316 (0.71) | 0.297 (0.67) | 0.290 (0.90) | 0.338 (1.04) | 0.478 (0.76) | 0.553 (0.87) | |
| −0.071 | −0.069 | −0.083 | −0.079 | −0.099 | −0.105 | −0.113 | −0.142 | |
| −0.021 (−0.08) | −0.036 (−0.14) | −0.029 (−0.12) | −0.038 (−0.15) | 0.212 (1.21) | 0.228 (1.29) | −0.865 | −0.847 | |
| 0.009 | 0.009 | 0.009 | 0.009 | 0.008 | 0.008 | 0.007 (1.34) | 0.006 (0.88) | |
| −1.018 | −0.996 | −0.966 | −0.942 | −0.845 | −0.811 | −1.091 | −1.022 | |
| −20.729 | −19.821 | −17.764 | −17.031 | −13.594 | −11.764 | −25.892 | −21.736 | |
| −18.209 | −18.169 | −17.517 | −17.487 | −11.433 | −11.200 | −13.537 | −12.587 | |
| 0.439 (1.48) | 0.495 | 0.545 | 0.737 | |||||
| −0.841 | −0.838 | −0.683 | −1.220 | |||||
| 0.206 (0.49) | 0.087 (0.21) | |||||||
| 0.199 | 0.173 | 0.094 (1.31) | 0.063 (0.89) | 0.297 | 0.252 | |||
| Constant | −10.461 (−9.52) | −9.939 (−9.39) | −10.217 (−9.59) | −9.615 (−9.42) | −9.386 (−11.81) | −8.935 (−11.61) | −11.318 (−8.06) | −10.886 |
| Observations | 22,689 | 22,689 | 22,346 | 22,346 | 22,801 | 22,458 | 22,622 | 22,280 |
| Year dummy | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Industry dummy | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Clusters (firms) | 2,046 | 2,046 | 2,044 | 2,044 | 2,054 | 2,052 | 2,040 | 2,038 |
| 0.256 | 0.257 | 0.256 | 0.257 | 0.265 | 0.265 | 0.252 | 0.251 | |
Notes:
This table reports the results from logit regressions of dividend reputation dummies, RPT3, RPT5 and RPT7. The variables are defined in Table 1. The dependent variables are RPT5 in Panel A, RPT3 in Panel B and RPT7 in Panel C. t-statistics are based on standard errors adjusted for firm-clustering effect and are in parentheses.
,
and
denote statistical significance at the 1, 5 and 10% levels. The sample period is from 1998 to 2019
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