Table 4 Earnings quality for private...

Table 4

Earnings quality for private subsidiary firms versus standalone firms (full sample)

Variables	(1)	(2)
Variables	ABSDTA	ABSWCA
Subs	0.006***	0.008***
Subs	(0.002)	(0.003)
Capneed	0.000***	0.000***
Capneed	(0.000)	(0.000)
Size	−0.005***	−0.009***
Size	(0.000)	(0.001)
ROE	−0.000*	−0.000
ROE	(0.000)	(0.000)
Loss	0.000***	0.001***
Loss	(0.000)	(0.000)
Std_ROA	0.000***	0.000**
Std_ROA	(0.000)	(0.000)
Lev	−0.012***	−0.021***
Lev	(0.003)	(0.004)
Growth	0.020***	0.029***
Growth	(0.005)	(0.007)
Inv	−0.038***	−0.014*
Inv	(0.003)	(0.007)
Constant	0.154***	0.155***
Constant	(0.004)	(0.005)
Year FE	Yes	Yes
Industry FE	Yes	Yes
Observations	66,823	55,129
R-squared	0.079	0.083

Variables	(1)	(2)
Variables	ABSDTA	ABSWCA
Subs	0.006***	0.008***
Subs	(0.002)	(0.003)
Capneed	0.000***	0.000***
Capneed	(0.000)	(0.000)
Size	−0.005***	−0.009***
Size	(0.000)	(0.001)
ROE	−0.000*	−0.000
ROE	(0.000)	(0.000)
Loss	0.000***	0.001***
Loss	(0.000)	(0.000)
Std_ROA	0.000***	0.000**
Std_ROA	(0.000)	(0.000)
Lev	−0.012***	−0.021***
Lev	(0.003)	(0.004)
Growth	0.020***	0.029***
Growth	(0.005)	(0.007)
Inv	−0.038***	−0.014*
Inv	(0.003)	(0.007)
Constant	0.154***	0.155***
Constant	(0.004)	(0.005)
Year FE	Yes	Yes
Industry FE	Yes	Yes
Observations	66,823	55,129
R-squared	0.079	0.083

Note(s): Subs is an indicator variable for private subsidiary firms. Please see Appendix 1 for detailed variable definitions. All continuous variables are winsorized at the 1st and 99th percentiles. The symbol ***, ** and * denote significance at 1, 5 and 10% levels, respectively. Robust standard errors (clustered at the firm level) are reported in the parentheses

Source(s): Table created by authors'

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