Informed foreign ownership and firm performance: alternative outcomes
| MTBVt+1 | MTBVt+2 | MTBVt+3 | MTBVt+4 | MTBVt+5 | ROAt+1 | ROAt+2 | ROAt+3 | ROAt+4 | ROAt+5 | |
|---|---|---|---|---|---|---|---|---|---|---|
| Panel A. Full sample | ||||||||||
| AFIt | 0.81*** | 0.77*** | 0.59** | 0.60** | 0.50* | 0.12*** | 0.10*** | 0.10*** | 0.09*** | 0.10*** |
| (2.62) | (2.44) | (1.92) | (2.02) | (1.76) | (3.08) | (2.67) | (2.60) | (2.56) | (2.70) | |
| lnTAt | 13.98*** | 13.39*** | 12.84*** | 12.37*** | 10.81*** | −0.02 | −0.02 | −0.03 | −0.04 | −0.08 |
| (22.32) | (20.81) | (19.55) | (18.45) | (17.78) | (−0.44) | (−0.45) | (−0.55) | (−0.69) | (−1.30) | |
| Leveraget | −93.55*** | −96.07*** | −97.57*** | −98.43*** | −85.70*** | −6.19*** | −5.59*** | −5.18*** | −4.74*** | −4.06*** |
| (−24.32) | (−24.52) | (−24.22) | (−23.61) | (−21.39) | (−13.80) | (−12.40) | (−11.14) | (−10.15) | (−8.43) | |
| lnAget | −6.59*** | −3.63*** | −0.11 | −2.14** | −6.75*** | −1.08*** | −0.97*** | −0.91*** | −0.82*** | −0.70*** |
| (−7.05) | (−3.77) | (0.11) | (2.14) | (7.12) | (−10.56) | (−9.27) | (−8.39) | (−7.29) | (−5.98) | |
| CAPEXt | 176.40*** | 183.46*** | 177.56*** | 170.10*** | 142.18*** | 22.32*** | 20.08*** | −19.60*** | 18.21*** | 16.76*** |
| (15.77) | (15.57) | (14.96) | (14.70) | (13.27) | (15.15) | (15.30) | (14.72) | (13.39) | (12.83) | |
| SGAt | 0.01 | −0.03* | −0.03* | −0.04** | −0.03 | −0.02** | −0.02** | −0.02** | −0.02*** | −0.00 |
| (−0.84) | (−1.80) | (−1.74) | (−2.32) | (−1.34) | (−2.07) | (−2.03) | (−2.11) | (−3.87) | (−0.43) | |
| αt | −135.23*** | −135.29*** | −139.94*** | −138.38*** | −123.18*** | 12.81*** | 12.22*** | 11.93*** | 11.60*** | 11.75*** |
| (−11.11) | (−10.83) | (−10.96) | (−10.61) | (−10.34) | (11.85) | (11.05) | (10.45) | (9.95) | (9.51) | |
| N | 13,608 | 13,095 | 12,584 | 12,089 | 13,327 | 13,032 | 12,389 | 11,766 | 11,302 | 10,824 |
| Panel B. Nonfinancial-firm sample | ||||||||||
| AFIt | 0.78*** | 0.75** | 0.57* | 0.56* | 0.47 | 0.12*** | 0.10*** | 0.09*** | 0.08*** | 0.10*** |
| (2.46) | (2.32) | (1.80) | (1.84) | (1.62) | (2.92) | (2.58) | (2.50) | (2.41) | (2.68) | |
| Controls | yes | yes | yes | yes | yes | yes | yes | yes | yes | yes |
| N | 13,023 | 12,531 | 12,040 | 11,566 | 12,759 | 12,468 | 11,845 | 11,242 | 10,799 | 10,343 |
| MTBV | MTBV | MTBV | MTBV | MTBV | ROA | ROA | ROA | ROA | ROA | |
|---|---|---|---|---|---|---|---|---|---|---|
| AFI | 0.81*** | 0.77*** | 0.59** | 0.60** | 0.50* | 0.12*** | 0.10*** | 0.10*** | 0.09*** | 0.10*** |
| (2.62) | (2.44) | (1.92) | (2.02) | (1.76) | (3.08) | (2.67) | (2.60) | (2.56) | (2.70) | |
| lnTA | 13.98*** | 13.39*** | 12.84*** | 12.37*** | 10.81*** | −0.02 | −0.02 | −0.03 | −0.04 | −0.08 |
| (22.32) | (20.81) | (19.55) | (18.45) | (17.78) | (−0.44) | (−0.45) | (−0.55) | (−0.69) | (−1.30) | |
| Leverage | −93.55*** | −96.07*** | −97.57*** | −98.43*** | −85.70*** | −6.19*** | −5.59*** | −5.18*** | −4.74*** | −4.06*** |
| (−24.32) | (−24.52) | (−24.22) | (−23.61) | (−21.39) | (−13.80) | (−12.40) | (−11.14) | (−10.15) | (−8.43) | |
| lnAge | −6.59*** | −3.63*** | −0.11 | −2.14** | −6.75*** | −1.08*** | −0.97*** | −0.91*** | −0.82*** | −0.70*** |
| (−7.05) | (−3.77) | (0.11) | (2.14) | (7.12) | (−10.56) | (−9.27) | (−8.39) | (−7.29) | (−5.98) | |
| CAPEX | 176.40*** | 183.46*** | 177.56*** | 170.10*** | 142.18*** | 22.32*** | 20.08*** | −19.60*** | 18.21*** | 16.76*** |
| (15.77) | (15.57) | (14.96) | (14.70) | (13.27) | (15.15) | (15.30) | (14.72) | (13.39) | (12.83) | |
| SGA | 0.01 | −0.03* | −0.03* | −0.04** | −0.03 | −0.02** | −0.02** | −0.02** | −0.02*** | −0.00 |
| (−0.84) | (−1.80) | (−1.74) | (−2.32) | (−1.34) | (−2.07) | (−2.03) | (−2.11) | (−3.87) | (−0.43) | |
| −135.23*** | −135.29*** | −139.94*** | −138.38*** | −123.18*** | 12.81*** | 12.22*** | 11.93*** | 11.60*** | 11.75*** | |
| (−11.11) | (−10.83) | (−10.96) | (−10.61) | (−10.34) | (11.85) | (11.05) | (10.45) | (9.95) | (9.51) | |
| 13,608 | 13,095 | 12,584 | 12,089 | 13,327 | 13,032 | 12,389 | 11,766 | 11,302 | 10,824 | |
| AFI | 0.78*** | 0.75** | 0.57* | 0.56* | 0.47 | 0.12*** | 0.10*** | 0.09*** | 0.08*** | 0.10*** |
| (2.46) | (2.32) | (1.80) | (1.84) | (1.62) | (2.92) | (2.58) | (2.50) | (2.41) | (2.68) | |
| Controls | yes | yes | yes | yes | yes | yes | yes | yes | yes | yes |
| 13,023 | 12,531 | 12,040 | 11,566 | 12,759 | 12,468 | 11,845 | 11,242 | 10,799 | 10,343 | |
Note(s): This table reports the results of Equation (2) where MTBV or ROA are used as alternative proxies for the firm performance. Controls are control variables used in Equation (2). The subscript t indicates the current quarter. We use the two-step GMM model. z-statistics in the parentheses. *, ** and *** indicate statistical significance at the 10, 5 and 1% levels, respectively
Source(s): Authors' own work