Table 4 Corporate governance compliance,...

Table 4

Corporate governance compliance, firm performance and capital structure

Variables	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)
Variables	DTA		ROA
CGCI_UW	−0.099** (0.040)	−0.019** (0.008)	0.060*** (0.018)	0.060*** (0.018)	-	-	0.073*** (0.014)	0.049*** (0.015)
DTA	-	-	-	-	−0.165*** (0.010)	−0.165*** (0.010)	−0.163*** (0.010)	−0.164*** (0.010)
FIRM_AGE	−0.014** (0.007)	−0.014* (0.007)	0.022*** (0.004)	0.022*** (0.004)	0.008*** (0.003)	0.007** (0.003)	0.021*** (0.003)	0.022** (0.004)
FIRM_SIZE	0.013** (0.006)	0.020*** (0.006)	−0.004 (0.003)	−0.005* (0.003)	−0.004* (0.002)	−0.004 (0.002)	0.007** (0.003)	0.007** (0.003)
FAR	−0.086*** (0.026)	−0.086*** (0.027)	−0.025** (0.012)	−0.012 (0.012)	−0.072*** (0.011)	−0.057*** (0.011)	−0.005** (0.002)	−0.004* (0.002)
SALES_GROW	−0.001 (0.003)	−0.001 (0.002)	0.001 (0.001)	0.001 (0.001)	0.000 (0.001)	0.000 (0.001)	−0.069*** (0.011)	−0.055*** (0.011)
MARK_CAP	−0.953*** (0.055)	−1.025*** (0.060)	0.520*** (0.028)	0.604*** (0.030)	0.327*** (0.025)	0.394*** (0.028)	0.000 (0.001)	0.000 (0.001)
PPE	0.812*** (0.101)	0.790*** (0.102)	−0.352*** (0.048)	−0.410*** (0.048)	−0.175*** (0.044)	−0.250*** (0.044)	0.319*** (0.025)	0.386*** (0.028)
Constant	−0.039 (0.033)	−0.017 (0.035)	−0.714*** (0.141)	0.060*** (0.018)	−0.201* (0.110)	−0.163 (0.110)	−0.477*** (0.122)	−0.343*** (0.123)
Observations	2,314	2,314	2,314	2,314	2,314	2,314	2,314	2,314
Industry	No	Yes	No	Yes	No	Yes	No	Yes
Year	No	Yes	No	Yes	No	Yes	No	Yes
Adjusted R²	0.162	0.206	0.239	0.265	0.372	0.405	0.380	0.408
F-statistics	51.97	22.73	92.17	34.31	155.17	56.41	51.97	22.73

Variables	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)
Variables	DTA		ROA
CGCI_UW	−0.099** (0.040)	−0.019** (0.008)	0.060*** (0.018)	0.060*** (0.018)	-	-	0.073*** (0.014)	0.049*** (0.015)
DTA	-	-	-	-	−0.165*** (0.010)	−0.165*** (0.010)	−0.163*** (0.010)	−0.164*** (0.010)
FIRM_AGE	−0.014** (0.007)	−0.014* (0.007)	0.022*** (0.004)	0.022*** (0.004)	0.008*** (0.003)	0.007** (0.003)	0.021*** (0.003)	0.022** (0.004)
FIRM_SIZE	0.013** (0.006)	0.020*** (0.006)	−0.004 (0.003)	−0.005* (0.003)	−0.004* (0.002)	−0.004 (0.002)	0.007** (0.003)	0.007** (0.003)
FAR	−0.086*** (0.026)	−0.086*** (0.027)	−0.025** (0.012)	−0.012 (0.012)	−0.072*** (0.011)	−0.057*** (0.011)	−0.005** (0.002)	−0.004* (0.002)
SALES_GROW	−0.001 (0.003)	−0.001 (0.002)	0.001 (0.001)	0.001 (0.001)	0.000 (0.001)	0.000 (0.001)	−0.069*** (0.011)	−0.055*** (0.011)
MARK_CAP	−0.953*** (0.055)	−1.025*** (0.060)	0.520*** (0.028)	0.604*** (0.030)	0.327*** (0.025)	0.394*** (0.028)	0.000 (0.001)	0.000 (0.001)
PPE	0.812*** (0.101)	0.790*** (0.102)	−0.352*** (0.048)	−0.410*** (0.048)	−0.175*** (0.044)	−0.250*** (0.044)	0.319*** (0.025)	0.386*** (0.028)
Constant	−0.039 (0.033)	−0.017 (0.035)	−0.714*** (0.141)	0.060*** (0.018)	−0.201* (0.110)	−0.163 (0.110)	−0.477*** (0.122)	−0.343*** (0.123)
Observations	2,314	2,314	2,314	2,314	2,314	2,314	2,314	2,314
Industry	No	Yes	No	Yes	No	Yes	No	Yes
Year	No	Yes	No	Yes	No	Yes	No	Yes
Adjusted R²	0.162	0.206	0.239	0.265	0.372	0.405	0.380	0.408
F-statistics	51.97	22.73	92.17	34.31	155.17	56.41	51.97	22.73

Notes:

Table 4 presents regression results of relationships between CG compliance and FP with mediation of CS; all regressions include firm financial control variables specified in Table 1; Models 1–2 report the relationship between CG compliance and CS; Models 3–4 report the association between CG compliance and FP; models 5–6 report the association between CS and FP; finally, Models 7–8 report the association between CG compliance and FP with mediation of CS; the standard errors are reported in parentheses; ***, ** and * denote significance at the 1, 5 and 10% levels, respectively

Source: Authors’ own work

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