Table 8 Regression tests for dividend...

Table 8

Regression tests for dividend payout ratio with matched sample (CEM)

		(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)
	Expected	DPR	DPR	DPR	DPR	DPR	DPR	DPR	DPR
	Sign	Median_CAPEX		Mean- CAPEX		Median_WC		Mean_WC
		Mean reg	Median reg	Mean reg	Median reg	Mean reg	Median reg	Mean reg	Median reg
CAPEX	–	−0.345^**	−0.239^*	−0.365^**	−0.287^**	−0.542^***	−0.473^**	−0.249	−0.306^**
CAPEX		(−2.34)	(−1.76)	(−2.46)	(−2.24)	(−2.77)	(−2.46)	(−1.49)	(−2.03)
WC	–	−0.176^***	−0.188^***	−0.213^***	−0.228^***	−0.345^***	−0.278^***	−0.143^**	−0.181^***
WC		(−2.99)	(−3.40)	(−3.33)	(−3.94)	(−2.66)	(−2.65)	(−2.33)	(−3.28)
SGR	–	−0.143^**	−0.203^***	−0.112	−0.136^*	−0.122	−0.177	−0.132^*	−0.222^***
SGR		(−2.01)	(−3.06)	(−1.44)	(−1.78)	(−0.70)	(−1.22)	(−1.85)	(−2.98)
SIZE	+	0.010	0.020^***	0.004	0.012	−0.014	−0.014	0.010	0.012^**
SIZE		(1.37)	(2.95)	(0.54)	(1.56)	(−0.79)	(−1.07)	(1.22)	(2.05)
DER	–	−0.028^**	−0.027^***	−0.034^***	−0.038^***	−0.012	0.036^*	−0.027^**	−0.027^***
DER		(−2.50)	(−2.99)	(−2.90)	(−4.20)	(−0.55)	(1.69)	(−2.19)	(−3.58)
ROA	+	0.876^***	1.042^***	0.679^***	0.756^***	−0.015	−0.122	0.661^***	0.810^***
ROA		(7.21)	(5.76)	(5.53)	(4.17)	(−0.06)	(−0.79)	(5.35)	(3.96)
CR	+	0.017	0.022^**	0.019	0.031^**	0.045^*	0.054^**	0.026^**	0.029^***
CR		(1.65)	(2.03)	(1.61)	(2.02)	(1.82)	(2.31)	(2.14)	(3.94)
SOE		−0.011	−0.002	−0.033	−0.033	0.120	0.259^***	−0.020	−0.008
SOE		(−0.25)	(−0.07)	(−0.71)	(−0.74)	(1.39)	(3.50)	(−0.38)	(−0.11)
_cons		0.069	−0.244	0.271	0.041	0.839	0.766^**	0.124	0.055
_cons		(0.30)	(−1.23)	(1.11)	(0.18)	(1.53)	(2.02)	(0.54)	(0.30)
Year FE		Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Industry FE		Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Pseudo R²			0.0941		0.0705		0.1189		0.0895
N		471	471	438	438	123	123	473	473

		(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)
	Expected	DPR	DPR	DPR	DPR	DPR	DPR	DPR	DPR
	Sign	Median_CAPEX		Mean- CAPEX		Median_WC		Mean_WC
		Mean reg	Median reg	Mean reg	Median reg	Mean reg	Median reg	Mean reg	Median reg
CAPEX	–	−0.345^**	−0.239^*	−0.365^**	−0.287^**	−0.542^***	−0.473^**	−0.249	−0.306^**
CAPEX		(−2.34)	(−1.76)	(−2.46)	(−2.24)	(−2.77)	(−2.46)	(−1.49)	(−2.03)
WC	–	−0.176^***	−0.188^***	−0.213^***	−0.228^***	−0.345^***	−0.278^***	−0.143^**	−0.181^***
WC		(−2.99)	(−3.40)	(−3.33)	(−3.94)	(−2.66)	(−2.65)	(−2.33)	(−3.28)
SGR	–	−0.143^**	−0.203^***	−0.112	−0.136^*	−0.122	−0.177	−0.132^*	−0.222^***
SGR		(−2.01)	(−3.06)	(−1.44)	(−1.78)	(−0.70)	(−1.22)	(−1.85)	(−2.98)
SIZE	+	0.010	0.020^***	0.004	0.012	−0.014	−0.014	0.010	0.012^**
SIZE		(1.37)	(2.95)	(0.54)	(1.56)	(−0.79)	(−1.07)	(1.22)	(2.05)
DER	–	−0.028^**	−0.027^***	−0.034^***	−0.038^***	−0.012	0.036^*	−0.027^**	−0.027^***
DER		(−2.50)	(−2.99)	(−2.90)	(−4.20)	(−0.55)	(1.69)	(−2.19)	(−3.58)
ROA	+	0.876^***	1.042^***	0.679^***	0.756^***	−0.015	−0.122	0.661^***	0.810^***
ROA		(7.21)	(5.76)	(5.53)	(4.17)	(−0.06)	(−0.79)	(5.35)	(3.96)
CR	+	0.017	0.022^**	0.019	0.031^**	0.045^*	0.054^**	0.026^**	0.029^***
CR		(1.65)	(2.03)	(1.61)	(2.02)	(1.82)	(2.31)	(2.14)	(3.94)
SOE		−0.011	−0.002	−0.033	−0.033	0.120	0.259^***	−0.020	−0.008
SOE		(−0.25)	(−0.07)	(−0.71)	(−0.74)	(1.39)	(3.50)	(−0.38)	(−0.11)
_cons		0.069	−0.244	0.271	0.041	0.839	0.766^**	0.124	0.055
_cons		(0.30)	(−1.23)	(1.11)	(0.18)	(1.53)	(2.02)	(0.54)	(0.30)
Year FE		Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Industry FE		Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Pseudo R²			0.0941		0.0705		0.1189		0.0895
N		471	471	438	438	123	123	473	473

Note(s): Coarsened Exact Matching (CEM) model of CAPEX, WC, and the firm control variables (SGR and SIZE)

The dependent variable is DPR. t statistics in parentheses

^*p < 0.1, ^**p < 0.05, ^***p < 0.01

Source(s): Authors' own work

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