Regression results of mediation tests (mediation effects)
| Panel-A - the Baron and Kenny’s (1986) causal step regression results (Tobin’s Q) | ||||||
|---|---|---|---|---|---|---|
| Variables | (1) | (2) | (3) | (4) | (5) | (6) |
| TOBINQ | LNBMEET | TOBINQ | TOBINQ | LNBMEET | TOBINQ | |
| GAPS | −0.003*** | −0.001*** | −0.003*** | |||
| (−3.854) | (−5.406) | (−3.687) | ||||
| LNBMEET | 0.104*** | 0.104*** | ||||
| (4.257) | (4.231) | |||||
| GAPU | −0.005*** | −0.001*** | −0.005*** | |||
| (−4.202) | (−4.837) | (−4.093) | ||||
| Controls | Yes | Yes | Yes | Yes | Yes | Yes |
| Constant | 16.754*** | 0.684*** | 16.683*** | 16.766*** | 0.693*** | 16.694*** |
| (22.757) | (9.176) | (22.806) | (22.702) | (9.329) | (22.758) | |
| Industry | Yes | Yes | Yes | Yes | Yes | Yes |
| Year | Yes | Yes | Yes | Yes | Yes | Yes |
| Observations | 37,200 | 37,200 | 37,200 | 37,200 | 37,200 | 37,200 |
| Adjusted-R2 | 0.4164 | 0.2101 | 0.4168 | 0.4165 | 0.2100 | 0.4169 |
| Panel-A - the | ||||||
|---|---|---|---|---|---|---|
| Variables | (1) | (2) | (3) | (4) | (5) | (6) |
| TOBINQ | LNBMEET | TOBINQ | TOBINQ | LNBMEET | TOBINQ | |
| GAPS | −0.003*** | −0.001*** | −0.003*** | |||
| (−3.854) | (−5.406) | (−3.687) | ||||
| LNBMEET | 0.104*** | 0.104*** | ||||
| (4.257) | (4.231) | |||||
| GAPU | −0.005*** | −0.001*** | −0.005*** | |||
| (−4.202) | (−4.837) | (−4.093) | ||||
| Controls | Yes | Yes | Yes | Yes | Yes | Yes |
| Constant | 16.754*** | 0.684*** | 16.683*** | 16.766*** | 0.693*** | 16.694*** |
| (22.757) | (9.176) | (22.806) | (22.702) | (9.329) | (22.758) | |
| Industry | Yes | Yes | Yes | Yes | Yes | Yes |
| Year | Yes | Yes | Yes | Yes | Yes | Yes |
| Observations | 37,200 | 37,200 | 37,200 | 37,200 | 37,200 | 37,200 |
| Adjusted- | 0.4164 | 0.2101 | 0.4168 | 0.4165 | 0.2100 | 0.4169 |
| Panel-B - bootstrap approach results (mediation effects) | ||||
|---|---|---|---|---|
| TOBINQ | MKTBK | |||
| (1) | (2) | (3) | (4) | |
| GAPS | GAPU | GAPS | GAPU | |
| Direct effect | −0.002943 | −0.005009 | −0.000031 | −0.000058 |
| Indirect effect | −0.000133 | −0.000149 | −0.000003 | −0.000004 |
| Total effect | −0.003076 | −0.005158 | −0.000034 | −0.000062 |
| Indirect/total | 0.043173 | 0.028943 | 0.094687 | 0.058289 |
| Indirect/direct | 0.045121 | 0.029806 | 0.104590 | 0.061897 |
| Total/direct | 1.045121 | 1.029806 | 1.104590 | 1.061897 |
| LNBMEET | Yes | Yes | Yes | Yes |
| Controls | Yes | Yes | Yes | Yes |
| Industry | Yes | Yes | Yes | Yes |
| Year | Yes | Yes | Yes | Yes |
| Observations | 37,200 | 37,200 | 37,200 | 37,200 |
| Panel-B - bootstrap approach results (mediation effects) | ||||
|---|---|---|---|---|
| TOBINQ | MKTBK | |||
| (1) | (2) | (3) | (4) | |
| GAPS | GAPU | GAPS | GAPU | |
| Direct effect | −0.002943 | −0.005009 | −0.000031 | −0.000058 |
| Indirect effect | −0.000133 | −0.000149 | −0.000003 | −0.000004 |
| Total effect | −0.003076 | −0.005158 | −0.000034 | −0.000062 |
| Indirect/total | 0.043173 | 0.028943 | 0.094687 | 0.058289 |
| Indirect/direct | 0.045121 | 0.029806 | 0.104590 | 0.061897 |
| Total/direct | 1.045121 | 1.029806 | 1.104590 | 1.061897 |
| LNBMEET | Yes | Yes | Yes | Yes |
| Controls | Yes | Yes | Yes | Yes |
| Industry | Yes | Yes | Yes | Yes |
| Year | Yes | Yes | Yes | Yes |
| Observations | 37,200 | 37,200 | 37,200 | 37,200 |
Note(s): Table 12 Panel A reports the Mediation effects Test (Baron and Kenny’s (1986) causal step regression results (GAPS, GAPU, Tobin’s Q & LNBMEET)). Panel B reports the Mediation effects Test using Bootstrap approach. t-statistics are in parentheses. *p < 0.10, **p < 0.05, ***p < 0.01. Robust t-statistics (in parentheses) are based on standard errors clustered by industry and year. All the variables are defined in Appendix
Source(s): Authors’ own calculation