Table 6 Empirical results of applying...

Table 6

Empirical results of applying GMM method to test for endogeneity

	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)
$A E M$	−0.024*			−0.018*			−0.048*
$A E M$	(−1.67)			(−1.65)			(−2.33)
$R E M$		−0.024*			−0.009*			−0.005*
$R E M$		(−1.78)			(−1.84)			(−2.18)
$C S R$			0.213***	0.132***	0.123***		0.923***	0.088**
$C S R$			(3.67)	(2.99)	(2.85)		(3.95)	(2.13)
$S T A T E$						0.027*	0.355*	0.032*
$S T A T E$						(1.76)	(1.72)	(1.94)
$A E M \times C S R$				0.072**			0.042*
$A E M \times C S R$				(2.39)			(1.94)
$R E M \times C S R$					0.083***			0.129
$R E M \times C S R$					(2.62)			(0.42)
$A E M \times S T A T E$							0.006*
$A E M \times S T A T E$							(1.73)
$R E M \times S T A T E$								0.009*
$R E M \times S T A T E$								(2.03)
$C S R \times S T A T E$							0.178*	0.035*
$C S R \times S T A T E$							(1.81)	(1.63)
$A E M \times C S R \times S T A T E$							0.819**
$A E M \times C S R \times S T A T E$							(2.37)
$R E M \times C S R \times S T A T E$								0.407**
$R E M \times C S R \times S T A T E$								(2.67)
$S I Z E$	−0.022	−0.095	−0.090	−0.054	−0.046	−0.049	−0.372	−0.143
$S I Z E$	(−0.37)	(−1.08)	(−1.45)	(−0.92)	(−0.73)	(−0.75)	(−1.26)	(−0.29)
$A G E$	−0.004	−0.230	−0.134	−0.031	−0.036	−0.148	−0.577*	−0.026
$A G E$	(−0.06)	(−1.19)	(−1.28)	(−0.56)	(−0.64)	(−1.39)	(−1.74)	(−0.06)
$R O A$	0.070**	0.041	0.043	0.066**	0.069**	0.039	0.083	0.037
$R O A$	(2.30)	(0.99)	(1.15)	(2.23)	(2.36)	(1.08)	(0.88)	(0.29)
$L E V$	0.263***	0.192***	0.233***	0.248***	0.245***	0.246***	0.121**	0.125***
$L E V$	(5.55)	(2.78)	(5.05)	(5.37)	(5.28)	(5.32)	(2.02)	(3.68)
$B O A R D$	−0.028	0.051	−0.074	−0.071	−0.073	0.002	−0.551***	−0.682**
$B O A R D$	(−0.55)	(0.55)	(−1.37)	(−1.42)	(−1.44)	(0.03)	(−2.57)	(−2.51)
$W O M E N$	−0.027	−0.304	−0.127	−0.012	−0.009	−0.193*	−0.066	0.601
$W O M E N$	(−0.66)	(−1.32)	(−1.33)	(−0.30)	(−0.23)	(−1.82)	(−0.32)	(0.52)
$I N D E P$	−0.028	0.133	−0.014	−0.038	−0.035	0.011	−0.031	−0.351
$I N D E P$	(−0.75)	(1.04)	(−0.37)	(−1.23)	(−0.94)	(0.28)	(−1.54)	(−1.48)
Industry effects	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Year effects	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Arellano–Bond test AR(1) (p–value)	0.001	0.001	0.000	0.000	0.000	0.001	0.003	0.004
Arellano–Bond test AR(2) (p–value)	0.189	0.180	0.158	0.123	0.126	0.157	0.133	0.127
Observations	1,239	1,290	1,287	1,237	1,237	1,290	1,237	1,237

	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)
$A E M$	−0.024*			−0.018*			−0.048*
$A E M$	(−1.67)			(−1.65)			(−2.33)
$R E M$		−0.024*			−0.009*			−0.005*
$R E M$		(−1.78)			(−1.84)			(−2.18)
$C S R$			0.213***	0.132***	0.123***		0.923***	0.088**
$C S R$			(3.67)	(2.99)	(2.85)		(3.95)	(2.13)
$S T A T E$						0.027*	0.355*	0.032*
$S T A T E$						(1.76)	(1.72)	(1.94)
$A E M \times C S R$				0.072**			0.042*
$A E M \times C S R$				(2.39)			(1.94)
$R E M \times C S R$					0.083***			0.129
$R E M \times C S R$					(2.62)			(0.42)
$A E M \times S T A T E$							0.006*
$A E M \times S T A T E$							(1.73)
$R E M \times S T A T E$								0.009*
$R E M \times S T A T E$								(2.03)
$C S R \times S T A T E$							0.178*	0.035*
$C S R \times S T A T E$							(1.81)	(1.63)
$A E M \times C S R \times S T A T E$							0.819**
$A E M \times C S R \times S T A T E$							(2.37)
$R E M \times C S R \times S T A T E$								0.407**
$R E M \times C S R \times S T A T E$								(2.67)
$S I Z E$	−0.022	−0.095	−0.090	−0.054	−0.046	−0.049	−0.372	−0.143
$S I Z E$	(−0.37)	(−1.08)	(−1.45)	(−0.92)	(−0.73)	(−0.75)	(−1.26)	(−0.29)
$A G E$	−0.004	−0.230	−0.134	−0.031	−0.036	−0.148	−0.577*	−0.026
$A G E$	(−0.06)	(−1.19)	(−1.28)	(−0.56)	(−0.64)	(−1.39)	(−1.74)	(−0.06)
$R O A$	0.070**	0.041	0.043	0.066**	0.069**	0.039	0.083	0.037
$R O A$	(2.30)	(0.99)	(1.15)	(2.23)	(2.36)	(1.08)	(0.88)	(0.29)
$L E V$	0.263***	0.192***	0.233***	0.248***	0.245***	0.246***	0.121**	0.125***
$L E V$	(5.55)	(2.78)	(5.05)	(5.37)	(5.28)	(5.32)	(2.02)	(3.68)
$B O A R D$	−0.028	0.051	−0.074	−0.071	−0.073	0.002	−0.551***	−0.682**
$B O A R D$	(−0.55)	(0.55)	(−1.37)	(−1.42)	(−1.44)	(0.03)	(−2.57)	(−2.51)
$W O M E N$	−0.027	−0.304	−0.127	−0.012	−0.009	−0.193*	−0.066	0.601
$W O M E N$	(−0.66)	(−1.32)	(−1.33)	(−0.30)	(−0.23)	(−1.82)	(−0.32)	(0.52)
$I N D E P$	−0.028	0.133	−0.014	−0.038	−0.035	0.011	−0.031	−0.351
$I N D E P$	(−0.75)	(1.04)	(−0.37)	(−1.23)	(−0.94)	(0.28)	(−1.54)	(−1.48)
Industry effects	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Year effects	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Arellano–Bond test AR(1) (p–value)	0.001	0.001	0.000	0.000	0.000	0.001	0.003	0.004
Arellano–Bond test AR(2) (p–value)	0.189	0.180	0.158	0.123	0.126	0.157	0.133	0.127
Observations	1,239	1,290	1,287	1,237	1,237	1,290	1,237	1,237

Source(s): Author's own creation/work

The table reports the GMM regression results for testing Hypotheses (1)-(4), where the dependent variable is Tobin's Q. The results related to the relationship between earnings management proxies and Tobin's Q are presented in Columns (1)–(3). The moderating effect of CSR disclosure in this relationship is presented in Columns (4) and (5). Columns (6) to (8) represent the results of the empirical analysis for the effect of state ownership on the above mentioned relationship. The description of all the variables is represented in Appendix B. *, ** and *** indicate statistical significance at less than the 10%, 5% and 1% levels, respectively

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