Table 5 Earnings quality for private...

Table 5

Earnings quality for private subsidiary firms versus standalone firms (matched sample based on size, industry and year)

Variables	(1)	(2)
Variables	ABSDTA	ABSWCA
Subs	0.008***	0.011***
Subs	(0.002)	(0.004)
Capneed	0.000**	0.000***
Capneed	(0.000)	(0.000)
Size	−0.004***	−0.008***
Size	(0.001)	(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	−0.018***	−0.043***
Lev	(0.006)	(0.009)
Growth	0.018**	0.027**
Growth	(0.008)	(0.011)
Inv	−0.056***	0.014
Inv	(0.008)	(0.022)
Constant	0.169***	0.157***
Constant	(0.009)	(0.013)
Year FE	Yes	Yes
Industry FE	Yes	Yes
Observations	10,464	8,611
R-squared	0.083	0.097

Variables	(1)	(2)
Variables	ABSDTA	ABSWCA
Subs	0.008***	0.011***
Subs	(0.002)	(0.004)
Capneed	0.000**	0.000***
Capneed	(0.000)	(0.000)
Size	−0.004***	−0.008***
Size	(0.001)	(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	−0.018***	−0.043***
Lev	(0.006)	(0.009)
Growth	0.018**	0.027**
Growth	(0.008)	(0.011)
Inv	−0.056***	0.014
Inv	(0.008)	(0.022)
Constant	0.169***	0.157***
Constant	(0.009)	(0.013)
Year FE	Yes	Yes
Industry FE	Yes	Yes
Observations	10,464	8,611
R-squared	0.083	0.097

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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