Propensity score matching (PSM) analysis
| Panel A: first-stage regression using caliper matching | |||
|---|---|---|---|
| Dependent Variable = FF | |||
| Coefficient | z-statistic | p-value | |
| SIZE | −0.051 | −3.310 | 0.001 |
| LEV | 1.317 | 7.010 | 0.000 |
| ROA | 0.710 | 2.780 | 0.005 |
| BM | 0.018 | 0.220 | 0.827 |
| RET | −0.043 | −1.160 | 0.247 |
| SGROWTH | 0.039 | 0.680 | 0.497 |
| CFO | −0.141 | −2.050 | 0.040 |
| STD_CFO | −0.324 | −0.860 | 0.389 |
| FAGE | 0.831 | 18.230 | 0.000 |
| EMPTURN | 0.298 | 2.120 | 0.034 |
| BLOCK | 0.011 | 1.700 | 0.090 |
| BSIZE | −0.834 | −10.700 | 0.000 |
| BIND | −0.720 | −5.640 | 0.000 |
| CEO_DUAL | −0.022 | −0.580 | 0.564 |
| CEO_GENDER | −0.211 | −2.550 | 0.011 |
| CEO_OWN | −0.661 | −1.710 | 0.088 |
| Constant | 0.365 | 1.010 | 0.312 |
| Year fixed effects | Yes | ||
| Industry fixed effects | Yes | ||
| Observations | 15,726 | ||
| Pseudo-R2 | 0.097 | ||
| Panel A: first-stage regression using caliper matching | |||
|---|---|---|---|
| Dependent Variable = | |||
| Coefficient | |||
| −0.051 | −3.310 | 0.001 | |
| 1.317 | 7.010 | 0.000 | |
| 0.710 | 2.780 | 0.005 | |
| 0.018 | 0.220 | 0.827 | |
| −0.043 | −1.160 | 0.247 | |
| 0.039 | 0.680 | 0.497 | |
| −0.141 | −2.050 | 0.040 | |
| −0.324 | −0.860 | 0.389 | |
| 0.831 | 18.230 | 0.000 | |
| 0.298 | 2.120 | 0.034 | |
| 0.011 | 1.700 | 0.090 | |
| −0.834 | −10.700 | 0.000 | |
| −0.720 | −5.640 | 0.000 | |
| −0.022 | −0.580 | 0.564 | |
| −0.211 | −2.550 | 0.011 | |
| −0.661 | −1.710 | 0.088 | |
| Constant | 0.365 | 1.010 | 0.312 |
| Year fixed effects | Yes | ||
| Industry fixed effects | Yes | ||
| Observations | 15,726 | ||
| Pseudo- | 0.097 | ||
| Panel B: comparison of firm characteristics between treatment and control groups | |||
|---|---|---|---|
| FF = 1 | FF = 0 | p-value | |
| SIZE | 8.055 | 8.126 | 0.011 |
| LEV | 0.075 | 0.069 | 0.003 |
| ROA | 0.033 | 0.036 | 0.169 |
| BM | 0.507 | 0.505 | 0.646 |
| RET | 0.122 | 0.124 | 0.874 |
| SGROWTH | 0.053 | 0.0540 | 0.900 |
| CFO | 0.053 | 0.057 | 0.414 |
| STD_CFO | 0.072 | 0.073 | 0.362 |
| FAGE | 3.188 | 3.137 | 0.000 |
| EMPTURN | 0.142 | 0.139 | 0.226 |
| BLOCK | 0.495 | 0.465 | 0.583 |
| BSIZE | 1.943 | 1.960 | 0.000 |
| BIND | 0.239 | 0.246 | 0.017 |
| CEO_DUAL | 0.345 | 0.344 | 0.921 |
| CEO_GENDER | 0.944 | 0.953 | 0.036 |
| CEO_OWN | 0.007 | 0.007 | 0.915 |
| Panel B: comparison of firm characteristics between treatment and control groups | |||
|---|---|---|---|
| 8.055 | 8.126 | 0.011 | |
| 0.075 | 0.069 | 0.003 | |
| 0.033 | 0.036 | 0.169 | |
| 0.507 | 0.505 | 0.646 | |
| 0.122 | 0.124 | 0.874 | |
| 0.053 | 0.0540 | 0.900 | |
| 0.053 | 0.057 | 0.414 | |
| 0.072 | 0.073 | 0.362 | |
| 3.188 | 3.137 | 0.000 | |
| 0.142 | 0.139 | 0.226 | |
| 0.495 | 0.465 | 0.583 | |
| 1.943 | 1.960 | 0.000 | |
| 0.239 | 0.246 | 0.017 | |
| 0.345 | 0.344 | 0.921 | |
| 0.944 | 0.953 | 0.036 | |
| 0.007 | 0.007 | 0.915 | |
| Panel C: second-stage regression results using propensity score matching (PSM) sample | ||
|---|---|---|
| Dependent Variable = CEO_TURN | ||
| Model (1) | Model (2) | |
| FF | −0.272*** | −0.255*** |
| (–5.413) | (–4.982) | |
| FF×TRANS | 0.042* | |
| (1.789) | ||
| TRANS | −0.059*** | |
| (–3.386) | ||
| SIZE | 0.021 | −0.011 |
| (0.963) | (–0.431) | |
| LEV | −0.035 | −0.088 |
| (–0.134) | (–0.329) | |
| ROA | −3.465*** | −3.336*** |
| (–9.900) | (–9.228) | |
| BM | −0.061 | −0.059 |
| (–0.532) | (–0.506) | |
| RET | 0.160*** | 0.164*** |
| (3.300) | (3.190) | |
| SGROWTH | 0.073 | 0.075 |
| (0.933) | (0.881) | |
| CFO | 0.164* | 0.157 |
| (1.695) | (1.545) | |
| STD_CFO | 2.113*** | 2.067*** |
| (4.156) | (4.034) | |
| FAGE | −0.033 | −0.027 |
| (–0.504) | (–0.405) | |
| EMPTURN | 1.312*** | 1.309*** |
| (7.104) | (7.047) | |
| BLOCK | 0.007 | 0.006 |
| (0.829) | (0.765) | |
| BSIZE | 0.316*** | 0.319*** |
| (2.882) | (2.915) | |
| BIND | −0.235 | −0.272 |
| (–1.199) | (–1.388) | |
| CEO_DUAL | −0.303*** | −0.306*** |
| (–5.368) | (–5.356) | |
| CEO_GENDER | −0.114 | −0.125 |
| (–1.024) | (–1.085) | |
| CEO_OWN | −0.273 | −0.243 |
| (–0.484) | (–0.434) | |
| Constant | −1.140** | −0.863 |
| (–2.296) | (–1.645) | |
| Year fixed effects | Yes | Yes |
| Industry fixed effects | Yes | Yes |
| Observations | 10,152 | 10,152 |
| Pseudo-R2 | 0.038 | 0.039 |
| Test: TRANS + FF×TRANS | 11.47*** | |
| Panel C: second-stage regression results using propensity score matching (PSM) sample | ||
|---|---|---|
| Dependent Variable = | ||
| Model (1) | Model (2) | |
| −0.272*** | −0.255*** | |
| (–5.413) | (–4.982) | |
| 0.042* | ||
| (1.789) | ||
| −0.059*** | ||
| (–3.386) | ||
| 0.021 | −0.011 | |
| (0.963) | (–0.431) | |
| −0.035 | −0.088 | |
| (–0.134) | (–0.329) | |
| −3.465*** | −3.336*** | |
| (–9.900) | (–9.228) | |
| −0.061 | −0.059 | |
| (–0.532) | (–0.506) | |
| 0.160*** | 0.164*** | |
| (3.300) | (3.190) | |
| 0.073 | 0.075 | |
| (0.933) | (0.881) | |
| 0.164* | 0.157 | |
| (1.695) | (1.545) | |
| 2.113*** | 2.067*** | |
| (4.156) | (4.034) | |
| −0.033 | −0.027 | |
| (–0.504) | (–0.405) | |
| 1.312*** | 1.309*** | |
| (7.104) | (7.047) | |
| 0.007 | 0.006 | |
| (0.829) | (0.765) | |
| 0.316*** | 0.319*** | |
| (2.882) | (2.915) | |
| −0.235 | −0.272 | |
| (–1.199) | (–1.388) | |
| −0.303*** | −0.306*** | |
| (–5.368) | (–5.356) | |
| −0.114 | −0.125 | |
| (–1.024) | (–1.085) | |
| −0.273 | −0.243 | |
| (–0.484) | (–0.434) | |
| Constant | −1.140** | −0.863 |
| (–2.296) | (–1.645) | |
| Year fixed effects | Yes | Yes |
| Industry fixed effects | Yes | Yes |
| Observations | 10,152 | 10,152 |
| Pseudo- | 0.038 | 0.039 |
| Test: | 11.47*** | |
Note(s): This table presents the propensity score matching (PSM) analysis. Panel A presents the first-stage logistic regression results. Panel B presents the comparison of firm characteristics between treatment and control groups. Panel C presents the second-stage regression results for the PSM analysis. Numbers in parentheses are t-statistics clustered by firm and year. Superscript ***, ** and * represent significance levels at the 1, 5 and 10% levels, respectively. Variables are defined in Appendix
Source(s): Authors' own work
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