Table 7. Cross-sectional analyses Panel...

Table 7.

Cross-sectional analyses


Panel A: Internal monitoring environment
	High CG	Low CG	High CG	Low CG	High CG	Low CG
	(1)	(2)	(3)	(4)	(5)	(6)
	Big10	Big10	Big10	Big10	Big10	Big10
ln_con_1	0.094*** (6.085)	0.023* (1.681)
ln_con_2			0.108*** (7.203)	0.037*** (2.824)
ln_con_3					0.058*** (3.740)	−0.008(−0.613)
Controls	Y	Y	Y	Y	Y	Y
Industry	Y	Y	Y	Y	Y	Y
Year	Y	Y	Y	Y	Y	Y
N	17,023	17,023	17,023	17,023	17,023	17,023
Pseudo R²	0.076	0.121	0.077	0.122	0.075	0.121
P value	0.001		0.000		0.001
Panel B: External cultural environment – OPENCITY
	OPENCITY	Non-OPENCITY	OPENCITY	Non-OPENCITY	OPENCITY	Non-OPENCITY
	(1)	(2)	(3)	(4)	(5)	(6)
	Big10	Big10	Big10	Big10	Big10	Big10
ln_con_1	0.224*** (10.705)	0.004(0.323)
ln_con_2			0.277*** (13.987)	−0.009(−0.730)
ln_con_3					0.327*** (13.973)	−0.046*** (−3.872)
Controls	Y	Y	Y	Y	Y	Y
Industry	Y	Y	Y	Y	Y	Y
Year	Y	Y	Y	Y	Y	Y
N	10,543	23,503	10,543	23,503	10,543	23,503
Pseudo R²	0.112	0.114	0.118	0.114	0.118	0.115
P value	0.000		0.000		0.000


Panel A: Internal monitoring environment
	High CG	Low CG	High CG	Low CG	High CG	Low CG
	(1)	(2)	(3)	(4)	(5)	(6)
	Big10	Big10	Big10	Big10	Big10	Big10
ln_con_1	0.094*** (6.085)	0.023* (1.681)
ln_con_2			0.108*** (7.203)	0.037*** (2.824)
ln_con_3					0.058*** (3.740)	−0.008(−0.613)
Controls	Y	Y	Y	Y	Y	Y
Industry	Y	Y	Y	Y	Y	Y
Year	Y	Y	Y	Y	Y	Y
N	17,023	17,023	17,023	17,023	17,023	17,023
Pseudo R²	0.076	0.121	0.077	0.122	0.075	0.121
P value	0.001		0.000		0.001
Panel B: External cultural environment – OPENCITY
	OPENCITY	Non-OPENCITY	OPENCITY	Non-OPENCITY	OPENCITY	Non-OPENCITY
	(1)	(2)	(3)	(4)	(5)	(6)
	Big10	Big10	Big10	Big10	Big10	Big10
ln_con_1	0.224*** (10.705)	0.004(0.323)
ln_con_2			0.277*** (13.987)	−0.009(−0.730)
ln_con_3					0.327*** (13.973)	−0.046*** (−3.872)
Controls	Y	Y	Y	Y	Y	Y
Industry	Y	Y	Y	Y	Y	Y
Year	Y	Y	Y	Y	Y	Y
N	10,543	23,503	10,543	23,503	10,543	23,503
Pseudo R²	0.112	0.114	0.118	0.114	0.118	0.115
P value	0.000		0.000		0.000

Note(s): All variables are defined in Appendix. All continuous variables are winsorized at the top and bottom 1%. Year and industry fixed effects are included. We report two-sided t-statistics computed using standard errors clustered by firm. *, ** and ***indicate significance at the 10, 5 and 1% levels

Source(s): Authors’ own work

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