Table 7.

Two-stage least squares regression results of managerial ability (MARank) and IPRI effect on R&D (LogRD)

Panel A: All firmsPanel B: Mature FirmsPanel C: Young Firms
(1)(2)(3)(4)(5)(6)(7)(8)(9)
IPR-ALogRDLogRDIPR-ALogRDLogRDIPR-ALogRDLogRD
VariablesFirst stageSecond stageFirst stageSecond stageFirst stageSecond stage
IQ0.0786*** (0.000)  0.0864*** (0.000)  0.0731*** (0.000)  
MARank −2.155*** (0.000)1.006 (0.080) −2.819*** (0.000)0.820 (0.308) −1.630*** (0.000)0.262 (0.809)
IPR-A 0.298*** (0.000)0.643*** (0.000) 0.396*** (0.000)0.748*** (0.000) 0.158*** (0.000)0.398** (0.010)
MARank × IPR-A  −0.604*** (0.000)  −0.706*** (0.000)  −0.361 (0.080)
TobinQ−0.00213 (0.096)−0.000629 (0.807)0.000918 (0.724)−0.0122*** (0.000)0.0418*** (0.000)0.0427*** (0.000)−0.00174 (0.225)−0.00519* (0.041)−0.00438 (0.088)
Tangibility−0.143** (0.001)−0.786*** (0.000)−0.773*** (0.000)−0.166** (0.006)−0.647*** (0.000)−0.635*** (0.000)−0.0896 (0.149)−0.651*** (0.000)−0.651*** (0.000)
AdvIntensity−0.00264* (0.014)0.00333 (0.121)0.00384 (0.076)−0.00399 (0.073)0.00568 (0.261)0.00819 (0.113)−0.00224 (0.070)0.00217 (0.318)0.00222 (0.309)
Leverage0.102** (0.005)−0.239** (0.001)−0.300*** (0.000)0.204*** (0.000)−0.435*** (0.000)−0.453*** (0.000)0.00980 (0.837)−0.206* (0.015)−0.237** (0.005)
ROA0.0491*** (0.000)−0.104*** (0.000)−0.132*** (0.000)0.0943*** (0.000)−0.155*** (0.000)−0.192*** (0.000)0.0240 (0.094)−0.0707** (0.007)−0.0825** (0.002)
Age0.103*** (0.000)0.244*** (0.000)0.227*** (0.000)      
GDP−0.0414*** (0.000)−0.0636*** (0.000)−0.0450** (0.002)−0.0816*** (0.000)−0.0383 (0.142)−0.00605 (0.834)−0.0179* (0.032)−0.0650*** (0.000)−0.0579*** (0.000)
Inflation0.0154* (0.019)−0.109*** (0.000)−0.108*** (0.000)0.0677*** (0.000)−0.138*** (0.000)−0.125*** (0.000)−0.00690 (0.462)−0.0497** (0.003)−0.0560** (0.001)
Constant−0.745*** (0.000)0.218 (0.280)−1.663*** (0.000)−0.948*** (0.000)0.168 (0.622)−1.874** (0.003)−0.346** (0.007)0.806*** (0.000)−0.470 (0.575)
Year effectsYesYesYesYesYesYesYesYesYes
Country effectYesYesYesYesYesYesYesYesYes
N2,6602,6602,6601,3291,3291,3291,3311,3311,331
R-sq0.8260.5780.5710.8620.6580.6440.8040.3950.395
Adj. R-sq0.8250.5750.5680.8600.6540.6390.8020.3870.387
F/Wald Chi2698.9***3,665.30***3,609.23***482.0***2,614.31***2,512.39***317.6***863.51***864.01***

Notes:

This table presents the 2SLS/IV results of MARank, IPR-A, the interaction between MARank and IPR-A, and control variables on LogRD for 2011 to 2020. Year and country dummies are not reported for brevity. P-values are reported in parentheses. The statistical significance is denoted as *p < 0.05; **p < 0.01 and ***p < 0.001, respectively

Source: Table by authors

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