Robustness checks
| Variables | Alternative proxy for IV | Alternate proxy for IV | Alternate proxy for DV | Additional controls | Excluding GFC |
|---|---|---|---|---|---|
| (1) | (2) | (3) | (4) | (5) | |
| ROA | ROA | TBQ | ROA | ROA | |
| CGCI_UW | 0.048*** (0.009) | – | 0.027** (0.013) | – | – |
| CGCI_W | – | 0.077*** (0.027) | – | 0.048*** (0.016) | 0.049*** (0.017) |
| DTA | −0.163*** (0.010) | −0.132*** (0.020) | 0.077*** (0.010) | −0.158*** (0.010) | −0.154*** (0.011) |
| AUD_COM_SIZE | – | – | – | 0.025* (0.013) | – |
| BOARD_SIZE | – | – | – | 0.026* (0.015) | – |
| IND_BOARD | – | – | – | 0.007 (0.014) | – |
| CEO_DUAL | – | – | – | 0.001 (0.005) | – |
| OWN_CON | – | – | – | 0.006 (0.009) | – |
| MAN_CON | – | – | – | 0.003 (0.007) | – |
| Constant | −0.381*** (0.116) | −0.912*** (0.218) | 1.963*** (0.111) | −0.428*** (0.129) | −0.470*** (0.146) |
| All controls | Yes | Yes | Yes | Yes | Yes |
| Observations | 2,314 | 2,314 | 2,314 | 2,314 | 1,483 |
| Industry | Yes | Yes | Yes | Yes | Yes |
| Year | Yes | Yes | Yes | Yes | Yes |
| Adjusted R2 | 0.407 | 0.268 | 0.519 | 0.405 | 0.382 |
| F-statistics | 56.17 | 27.85 | 79.37 | 40.33 | 44.62 |
| Variables | Alternative proxy for IV | Alternate proxy for IV | Alternate proxy for DV | Additional controls | Excluding GFC |
|---|---|---|---|---|---|
| (1) | (2) | (3) | (4) | (5) | |
| ROA | ROA | TBQ | ROA | ROA | |
| 0.048 | – | 0.027 | – | – | |
| – | 0.077 | – | 0.048 | 0.049 | |
| −0.163 | −0.132 | 0.077 | −0.158 | −0.154 | |
| – | – | – | 0.025 | – | |
| – | – | – | 0.026 | – | |
| – | – | – | 0.007 (0.014) | – | |
| – | – | – | 0.001 (0.005) | – | |
| – | – | – | 0.006 (0.009) | – | |
| – | – | – | 0.003 (0.007) | – | |
| Constant | −0.381 | −0.912 | 1.963 | −0.428 | −0.470 |
| All controls | Yes | Yes | Yes | Yes | Yes |
| Observations | 2,314 | 2,314 | 2,314 | 2,314 | 1,483 |
| Industry | Yes | Yes | Yes | Yes | Yes |
| Year | Yes | Yes | Yes | Yes | Yes |
| Adjusted | 0.407 | 0.268 | 0.519 | 0.405 | 0.382 |
| F-statistics | 56.17 | 27.85 | 79.37 | 40.33 | 44.62 |
Notes:
This table presents robustness checks for the relationship between CG compliance and FP with mediation of CS; Model 1 replaces the main independent variable of this study CGCI_UW with a weighed CG compliance index, CGCI_W; Models 2 and 3 replace the main proxy of firm performance and profitability (ROA) with ROE and Tobin’s Q; Model 4 presents results after controlling for several additional corporate governance variables; in Model 5, the main analysis was re-estimated after excluding GFC years (2008 and 2009) from the sample; all estimations control for industry and year fixed effects; the standard errors are reported in parentheses; ***, ** and * denote significance at the 1, 5, and 10% levels, respectively
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