Panel A – Heckman 2SLS selection bias test
| Variables | (1) | (2) | (3) | (4) | (5) |
|---|---|---|---|---|---|
| GAPU_median | TOBINQ | MKTBK | BMEET | LNBMEET | |
| 1st stage | 2nd stage | 2nd stage | 2nd stage | 2nd stage | |
| GAPU | −0.005*** | −0.000*** | −0.001*** | −0.001** | |
| (−3.616) | (−3.152) | (−3.248) | (−2.511) | ||
| CRG | 1.876*** | ||||
| (57.725) | |||||
| IMR | 0.013 | 0.000** | 0.011*** | 0.019*** | |
| (0.769) | (2.327) | (2.770) | (4.451) | ||
| Controls | Yes | Yes | Yes | Yes | Yes |
| Constant | −0.625** | 16.733*** | 2.406*** | 1.083*** | 0.646*** |
| (−2.238) | (22.073) | (308.711) | (14.222) | (8.468) | |
| Industry | Yes | Yes | Yes | Yes | Yes |
| Year | Yes | Yes | Yes | Yes | Yes |
| Observations | 37,200 | 37,200 | 37,200 | 37,200 | 37,200 |
| Adjusted-R2/Pseudo R2 | 0.1733 | 0.4165 | 0.8904 | 0.0637 | 0.2105 |
| Variables | (1) | (2) | (3) | (4) | (5) |
|---|---|---|---|---|---|
| GAPU_median | TOBINQ | MKTBK | BMEET | LNBMEET | |
| 1st stage | 2nd stage | 2nd stage | 2nd stage | 2nd stage | |
| GAPU | −0.005*** | −0.000*** | −0.001*** | −0.001** | |
| (−3.616) | (−3.152) | (−3.248) | (−2.511) | ||
| CRG | 1.876*** | ||||
| (57.725) | |||||
| IMR | 0.013 | 0.000** | 0.011*** | 0.019*** | |
| (0.769) | (2.327) | (2.770) | (4.451) | ||
| Controls | Yes | Yes | Yes | Yes | Yes |
| Constant | −0.625** | 16.733*** | 2.406*** | 1.083*** | 0.646*** |
| (−2.238) | (22.073) | (308.711) | (14.222) | (8.468) | |
| Industry | Yes | Yes | Yes | Yes | Yes |
| Year | Yes | Yes | Yes | Yes | Yes |
| Observations | 37,200 | 37,200 | 37,200 | 37,200 | 37,200 |
| Adjusted- | 0.1733 | 0.4165 | 0.8904 | 0.0637 | 0.2105 |
| Panel B – Heckman 2SLS selection bias test | |||||
|---|---|---|---|---|---|
| Variables | (1) | (2) | (3) | (4) | (5) |
| GAPS_median | TOBINQ | MKTBK | BMEET | LNBMEET | |
| 1st stage | 2nd stage | 2nd stage | 2nd stage | 2nd stage | |
| GAPS | −0.002*** | −0.000** | −0.001*** | −0.001*** | |
| (−2.798) | (−2.213) | (−3.617) | (−4.142) | ||
| CRG | 1.239*** | ||||
| (40.416) | |||||
| IMR | 0.063*** | 0.001*** | 0.018*** | 0.026*** | |
| (2.679) | (3.697) | (3.205) | (4.764) | ||
| Controls | Yes | Yes | Yes | Yes | Yes |
| Constant | −1.709*** | 16.589*** | 2.404*** | 1.056*** | 0.617*** |
| (−7.203) | (21.646) | (305.349) | (13.586) | (7.974) | |
| Industry | Yes | Yes | Yes | Yes | Yes |
| Year | Yes | Yes | Yes | Yes | Yes |
| Observations | 37,200 | 37,200 | 37,200 | 37,200 | 37,125 |
| Adjusted-R2/Pseudo R2 | 0.1292 | 0.4165 | 0.8904 | 0.0637 | 0.2106 |
| Panel B – Heckman 2SLS selection bias test | |||||
|---|---|---|---|---|---|
| Variables | (1) | (2) | (3) | (4) | (5) |
| GAPS_median | TOBINQ | MKTBK | BMEET | LNBMEET | |
| 1st stage | 2nd stage | 2nd stage | 2nd stage | 2nd stage | |
| GAPS | −0.002*** | −0.000** | −0.001*** | −0.001*** | |
| (−2.798) | (−2.213) | (−3.617) | (−4.142) | ||
| CRG | 1.239*** | ||||
| (40.416) | |||||
| IMR | 0.063*** | 0.001*** | 0.018*** | 0.026*** | |
| (2.679) | (3.697) | (3.205) | (4.764) | ||
| Controls | Yes | Yes | Yes | Yes | Yes |
| Constant | −1.709*** | 16.589*** | 2.404*** | 1.056*** | 0.617*** |
| (−7.203) | (21.646) | (305.349) | (13.586) | (7.974) | |
| Industry | Yes | Yes | Yes | Yes | Yes |
| Year | Yes | Yes | Yes | Yes | Yes |
| Observations | 37,200 | 37,200 | 37,200 | 37,200 | 37,125 |
| Adjusted- | 0.1292 | 0.4165 | 0.8904 | 0.0637 | 0.2106 |
Note(s): Table 13 Panel A (Dependent = GAPU) and Panel B (Dependent = GAPS) report the Heckman 2SLS Selection Bias Test. t-statistics in parentheses. Standard error clustered based on industry and year. *p < 0.10, **p < 0.05, ***p < 0.01. Refer to Appendix for variable definitions. Column (1) is Logit regression, columns (2), (3), and (5) are OLS regressions, and column (4) is Poisson regression
Source(s): Authors’ own calculation