Table 7 Propensity score matching...

Table 7

Propensity score matching diagnostic tests

Variables	N	Treated	N	Control	Mean difference	t-statistics
Panel A: Post-matched sample univariate analysis
DTA	918	0.546	918	0.531	0.015	1.62
FIRM_AGE	918	3.503	918	3.497	0.006	0.20
FIRM_SIZE	918	8.657	918	8.692	−0.035	−0.66
FAR	918	0.497	918	0.498	−0.001	−0.12
SALES_GROW	918	2.009	918	1.951	0.058	0.76
MARK_CAP	918	2.837	918	2.838	−0.001	−0.34
PPE	918	3.068	918	3.064	0.004	1.24
Panel B: Propensity score matching estimator
ROA	2,314	0.063	5,042	0.033	0.029	6.32

Variables	N	Treated	N	Control	Mean difference	t-statistics
Panel A: Post-matched sample univariate analysis
DTA	918	0.546	918	0.531	0.015	1.62
FIRM_AGE	918	3.503	918	3.497	0.006	0.20
FIRM_SIZE	918	8.657	918	8.692	−0.035	−0.66
FAR	918	0.497	918	0.498	−0.001	−0.12
SALES_GROW	918	2.009	918	1.951	0.058	0.76
MARK_CAP	918	2.837	918	2.838	−0.001	−0.34
PPE	918	3.068	918	3.064	0.004	1.24
Panel B: Propensity score matching estimator
ROA	2,314	0.063	5,042	0.033	0.029	6.32

Notes:

Panels A and B of Table 7 present the mean differences in firm-level financial control variables and the main dependent variable as the estimator for the treatment and control groups based on the post-match sample; firms where the proportion of CG compliance (CGCI_UW) is above the industry-year average is defined as belonging to the treatment group; control firms are matched firms where the proportion of CG compliance (CGCI_UW) is below the industry-year average; control firms are matched using PSM (nearest firm with replacement) on the same control variables in Table 4

[ViewLarge]

Sharing Unavailable