Table 1 Sample selection, summary...

Table 1

Sample selection, summary statistics and correlation matrix

Panel A: Sample selection
	Observation
Initial observations from NIKKEI CGES database	54,106
Less: Financial companies	11,539
Remaining observations	42,567
Less: Merging data for distance-to-default from CRI database	1,912
Remaining observation	40,655
Less: Missing data from control variables	4,539
Remaining observation	36,116

Panel A: Sample selection
	Observation
Initial observations from NIKKEI CGES database	54,106
Less: Financial companies	11,539
Remaining observations	42,567
Less: Merging data for distance-to-default from CRI database	1,912
Remaining observation	40,655
Less: Missing data from control variables	4,539
Remaining observation	36,116

Panel B: Summary statistics
	N	Mean	Std. Dev	Median	Min	Max
DD	36116	4.464	2.429	3.986	0.185	12.690
DIR	36116	7.535	12.079	1.653	0.000	99.400
CEOIR	31618	5.637	10.529	0.574	0.000	88.520
EMPIR	36116	2.893	3.454	1.800	0.000	39.900
LNS	36116	10.674	1.652	10.538	2.079	16.955
K/S	36116	0.328	0.338	0.256	0.004	2.290
Y/S	36116	0.084	0.078	0.075	−0.251	0.354
R&D/K	36116	0.182	2.438	0.018	−0.091	216.857
RDUM	36116	1.000	0.017	1.000	0.000	1.000
I/K	36116	0.156	0.361	0.108	0.000	39.957
ROA	36116	5.561	6.666	4.672	−20.459	35.202
LEVERAGE	36116	0.190	0.174	0.152	0.000	2.309
Age	36116	2.991	0.945	3.045	0.000	4.234
Note(s): Panel A of Table 1 presents the sample election process and Panel B of Table 1 presents summary statistics of DD, insider ownership proxies and other control variables used in this study. All variables are defined in Appendix and winsorized at the 1–99% levels

Panel B: Summary statistics
	N	Mean	Std. Dev	Median	Min	Max
DD	36116	4.464	2.429	3.986	0.185	12.690
DIR	36116	7.535	12.079	1.653	0.000	99.400
CEOIR	31618	5.637	10.529	0.574	0.000	88.520
EMPIR	36116	2.893	3.454	1.800	0.000	39.900
LNS	36116	10.674	1.652	10.538	2.079	16.955
K/S	36116	0.328	0.338	0.256	0.004	2.290
Y/S	36116	0.084	0.078	0.075	−0.251	0.354
R&D/K	36116	0.182	2.438	0.018	−0.091	216.857
RDUM	36116	1.000	0.017	1.000	0.000	1.000
I/K	36116	0.156	0.361	0.108	0.000	39.957
ROA	36116	5.561	6.666	4.672	−20.459	35.202
LEVERAGE	36116	0.190	0.174	0.152	0.000	2.309
Age	36116	2.991	0.945	3.045	0.000	4.234
Note(s): Panel A of Table 1 presents the sample election process and Panel B of Table 1 presents summary statistics of DD, insider ownership proxies and other control variables used in this study. All variables are defined in Appendix and winsorized at the 1–99% levels

Panel C: Pairwise correlations
Variables	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)	(9)	(10)	(11)	(12)	(13)
(1) DD	1.00
(2) DIR	−0.06*	1.00
(3) CEOIR	−0.07*	0.95*	1.00
(4) EMPIR	−0.06*	−0.01	−0.04*	1.00
(5) LNS	0.13*	−0.36*	−0.33*	−0.10*	1.00
(6) K/S	0.05*	−0.11*	−0.11*	−0.10*	−0.05*	1.00
(7) Y/S	0.35*	0.00	0.00	−0.15*	0.14*	0.28*	1.00
(8) R&D/K	0.01	0.02*	0.02*	−0.04*	−0.09*	−0.04*	−0.10*	1.00
(9) RDUM	0.01	0.01*	0.01	0.01	−0.04*	0.00	0.00	0.00	1.00
(10) I/K	−0.01	0.08*	0.09*	−0.10*	−0.07*	−0.11*	0.00	0.14*	0.00	1.00
(11) ROA	0.33*	0.15*	0.13*	−0.08*	0.11*	−0.14*	0.56*	−0.07*	0.01	0.06*	1.00
(12) LEVERAGE	−0.43*	0.04*	0.06*	−0.04*	0.04*	0.28*	−0.13*	−0.04*	−0.01	−0.03*	−0.29*	−0.33*	1.00
(13) Age	0.03*	−0.54*	−0.49*	−0.03*	0.41*	0.20*	0.02*	−0.06*	−0.02*	−0.12*	−0.19*	−0.35*	0.05*	1.00
VIF					1.38	1.44	1.84	1.04	1.00	1.04	1.84	1.22	1.63

Panel C: Pairwise correlations
Variables	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)	(9)	(10)	(11)	(12)	(13)
(1) DD	1.00
(2) DIR	−0.06*	1.00
(3) CEOIR	−0.07*	0.95*	1.00
(4) EMPIR	−0.06*	−0.01	−0.04*	1.00
(5) LNS	0.13*	−0.36*	−0.33*	−0.10*	1.00
(6) K/S	0.05*	−0.11*	−0.11*	−0.10*	−0.05*	1.00
(7) Y/S	0.35*	0.00	0.00	−0.15*	0.14*	0.28*	1.00
(8) R&D/K	0.01	0.02*	0.02*	−0.04*	−0.09*	−0.04*	−0.10*	1.00
(9) RDUM	0.01	0.01*	0.01	0.01	−0.04*	0.00	0.00	0.00	1.00
(10) I/K	−0.01	0.08*	0.09*	−0.10*	−0.07*	−0.11*	0.00	0.14*	0.00	1.00
(11) ROA	0.33*	0.15*	0.13*	−0.08*	0.11*	−0.14*	0.56*	−0.07*	0.01	0.06*	1.00
(12) LEVERAGE	−0.43*	0.04*	0.06*	−0.04*	0.04*	0.28*	−0.13*	−0.04*	−0.01	−0.03*	−0.29*	−0.33*	1.00
(13) Age	0.03*	−0.54*	−0.49*	−0.03*	0.41*	0.20*	0.02*	−0.06*	−0.02*	−0.12*	−0.19*	−0.35*	0.05*	1.00
VIF					1.38	1.44	1.84	1.04	1.00	1.04	1.84	1.22	1.63

Note(s): Panel C of Table 1 presents the pairwise correlations matrix for all variables used in this study. * denotes statistical significance of coefficient estimates at the 5% level. All variables are defined in Appendix

Source(s): Table created by the authors

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