Determinants of HCM_Disclosure and its dimensions
| Panel A. Determinants of HCM_Disclosure | ||||||
|---|---|---|---|---|---|---|
| (1) | (2) | (3) | (4) | (5) | (6) | |
| ROA | 0.085*** (9.985) | 0.047*** (7.312) | ||||
| Cash/assets | 0.027** (2.468) | 0.019* (1.930) | ||||
| R&D/assets | 0.101*** (8.854) | 0.035*** (3.305) | ||||
| Sales growth | −0.014*** (−3.033) | −0.014*** (−3.551) | ||||
| Log(employee/total assets) | 0.054*** (3.913) | 0.061*** (3.435) | ||||
| Tangibility | 0.030** (2.245) | −0.003 (−0.211) | ||||
| Leverage | −0.096*** (−7.127) | −0.058*** (−4.434) | ||||
| MTB | −0.042*** (−4.354) | −0.016** (−2.251) | ||||
| Log(assets) | −0.088*** (−5.683) | 0.010 (0.454) | ||||
| Local SOE | −0.119*** (−4.450) | −0.023 (−0.583) | ||||
| Central SOE | −0.099 (−1.055) | −0.091 (−1.075) | ||||
| Foreign capital | −0.106** (−2.411) | −0.100 (−1.536) | ||||
| Industry competition | −0.003 (−0.241) | −0.021 (−1.477) | ||||
| Provincial GDP per capita | −0.022 (−0.818) | −0.033 (−1.213) | ||||
| Observations | 39,825 | 39,825 | 39,825 | 39,301 | 36,502 | 36,049 |
| Adjusted R2 | 0.061 | 0.134 | 0.075 | 0.559 | 0.198 | 0.583 |
| Fixed effects | Year | Industry + Year | Province + Year | Firm + Year | Industry + Province + Year | Firm + Year |
| Panel A. Determinants of HCM_Disclosure | ||||||
|---|---|---|---|---|---|---|
| (1) | (2) | (3) | (4) | (5) | (6) | |
| ROA | 0.085*** (9.985) | 0.047*** (7.312) | ||||
| Cash/assets | 0.027** (2.468) | 0.019* (1.930) | ||||
| R&D/assets | 0.101*** (8.854) | 0.035*** (3.305) | ||||
| Sales growth | −0.014*** (−3.033) | −0.014*** (−3.551) | ||||
| Log(employee/total assets) | 0.054*** (3.913) | 0.061*** (3.435) | ||||
| Tangibility | 0.030** (2.245) | −0.003 (−0.211) | ||||
| Leverage | −0.096*** (−7.127) | −0.058*** (−4.434) | ||||
| MTB | −0.042*** (−4.354) | −0.016** (−2.251) | ||||
| Log(assets) | −0.088*** (−5.683) | 0.010 (0.454) | ||||
| Local SOE | −0.119*** (−4.450) | −0.023 (−0.583) | ||||
| Central SOE | −0.099 (−1.055) | −0.091 (−1.075) | ||||
| Foreign capital | −0.106** (−2.411) | −0.100 (−1.536) | ||||
| Industry competition | −0.003 (−0.241) | −0.021 (−1.477) | ||||
| Provincial GDP per capita | −0.022 (−0.818) | −0.033 (−1.213) | ||||
| Observations | 39,825 | 39,825 | 39,825 | 39,301 | 36,502 | 36,049 |
| Adjusted | 0.061 | 0.134 | 0.075 | 0.559 | 0.198 | 0.583 |
| Fixed effects | Year | Industry + Year | Province + Year | Firm + Year | Industry + Province + Year | Firm + Year |
| Panel B. Determinants of HCM_Exposures of the ten HCM dimensions | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| (1) | (2) | (3) | (4) | (5) | (6) | (7) | (8) | (9) | (10) | |
| Turnover retention | Safety and health | Succession planning | Recruiting | Pay equity | Employment engagement | Employee development | Diversity | Culture | Compensation | |
| ROA | 0.005 (0.624) | 0.034*** (4.407) | 0.059*** (7.616) | 0.029*** (3.533) | 0.001 (0.054) | 0.020** (2.408) | 0.028*** (3.498) | 0.025*** (3.035) | 0.076*** (8.822) | 0.120*** (14.395) |
| Cash/assets | 0.002 (0.181) | −0.003 (−0.294) | 0.014 (1.341) | 0.043*** (3.999) | −0.022* (−1.929) | 0.001 (0.066) | 0.049*** (4.717) | −0.000 (−0.013) | 0.003 (0.314) | 0.005 (0.459) |
| R&D/assets | 0.089*** (6.712) | 0.001 (0.061) | 0.049*** (4.336) | 0.044*** (3.543) | 0.000 (0.003) | 0.010 (0.928) | 0.022** (2.349) | 0.006 (0.617) | 0.090*** (7.955) | 0.150*** (11.331) |
| Sales growth | 0.007 (1.430) | −0.009** (−2.014) | −0.004 (−0.806) | 0.007 (1.461) | −0.010* (−1.828) | −0.005 (−1.011) | −0.007 (−1.547) | −0.022*** (−4.316) | −0.028*** (−5.801) | −0.000 (−0.022) |
| Log(employee/total assets) | 0.004 (0.282) | 0.057*** (4.007) | 0.017 (1.325) | 0.051*** (4.004) | 0.001 (0.095) | 0.036*** (2.806) | −0.002 (−0.144) | 0.003 (0.208) | 0.036** (2.523) | 0.063*** (5.250) |
| Tangibility | −0.014 (−1.084) | 0.121*** (8.258) | −0.031*** (−2.833) | −0.018 (−1.566) | −0.014 (−0.970) | 0.037*** (2.810) | 0.028** (2.335) | 0.039*** (2.821) | 0.033** (2.402) | 0.002 (0.178) |
| Leverage | −0.029** (−2.080) | −0.035*** (−2.634) | −0.067*** (−5.479) | −0.057*** (−4.666) | 0.005 (0.315) | −0.018 (−1.378) | −0.085*** (−6.780) | −0.002 (−0.156) | −0.071*** (−5.306) | −0.031*** (−2.687) |
| MTB | −0.010 (−1.010) | −0.033*** (−3.826) | −0.007 (−0.773) | −0.013 (−1.497) | −0.036*** (−3.687) | −0.016* (−1.698) | −0.045*** (−5.041) | −0.003 (−0.284) | −0.046*** (−5.082) | 0.019** (1.995) |
| Log(assets) | −0.098*** (−6.989) | −0.007 (−0.446) | −0.035** (−2.485) | −0.020 (−1.476) | −0.072*** (−4.169) | −0.040*** (−2.714) | −0.123*** (−8.474) | −0.087*** (−5.252) | −0.017 (−1.129) | 0.030** (2.021) |
| Local SOE | −0.121*** (−4.919) | 0.179*** (6.517) | −0.110*** (−4.725) | −0.088*** (−3.663) | 0.012 (0.372) | 0.097*** (3.551) | −0.017 (−0.711) | 0.046 (1.470) | −0.105*** (−3.929) | −0.383*** (−16.978) |
| Central SOE | −0.048 (−0.589) | 0.139* (1.721) | −0.073 (−1.216) | −0.191** (−2.566) | 0.088 (1.101) | 0.089 (0.956) | 0.024 (0.318) | −0.005 (−0.061) | −0.087 (−1.037) | −0.309*** (−5.061) |
| Foreign capital | −0.014 (−0.300) | −0.033 (−0.833) | −0.086** (−2.059) | −0.070* (−1.823) | 0.055 (1.028) | 0.020 (0.467) | −0.090** (−2.110) | −0.080* (−1.790) | −0.117*** (−2.591) | 0.003 (0.062) |
| Industry competition | 0.039*** (2.618) | −0.018 (−1.374) | −0.000 (−0.013) | 0.004 (0.228) | −0.011 (−0.806) | −0.031** (−1.998) | −0.001 (−0.031) | −0.027* (−1.861) | −0.014 (−0.944) | 0.041*** (3.041) |
| Provincial GDP per capita | −0.005 (−0.205) | −0.055** (−2.189) | −0.015 (−0.612) | −0.014 (−0.486) | 0.018 (0.677) | −0.048* (−1.795) | −0.053** (−2.035) | −0.025 (−0.935) | 0.049* (1.760) | 0.018 (0.669) |
| Observations | 36,502 | 36,502 | 36,502 | 36,502 | 36,502 | 36,502 | 36,502 | 36,502 | 36,502 | 36,502 |
| Adjusted R2 | 0.098 | 0.306 | 0.090 | 0.095 | 0.035 | 0.047 | 0.243 | 0.217 | 0.150 | 0.263 |
| Fixed effects | Industry + Province + Year | |||||||||
| Panel B. Determinants of HCM_Exposures of the ten HCM dimensions | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| (1) | (2) | (3) | (4) | (5) | (6) | (7) | (8) | (9) | (10) | |
| Turnover retention | Safety and health | Succession planning | Recruiting | Pay equity | Employment engagement | Employee development | Diversity | Culture | Compensation | |
| ROA | 0.005 (0.624) | 0.034*** (4.407) | 0.059*** (7.616) | 0.029*** (3.533) | 0.001 (0.054) | 0.020** (2.408) | 0.028*** (3.498) | 0.025*** (3.035) | 0.076*** (8.822) | 0.120*** (14.395) |
| Cash/assets | 0.002 (0.181) | −0.003 (−0.294) | 0.014 (1.341) | 0.043*** (3.999) | −0.022* (−1.929) | 0.001 (0.066) | 0.049*** (4.717) | −0.000 (−0.013) | 0.003 (0.314) | 0.005 (0.459) |
| R&D/assets | 0.089*** (6.712) | 0.001 (0.061) | 0.049*** (4.336) | 0.044*** (3.543) | 0.000 (0.003) | 0.010 (0.928) | 0.022** (2.349) | 0.006 (0.617) | 0.090*** (7.955) | 0.150*** (11.331) |
| Sales growth | 0.007 (1.430) | −0.009** (−2.014) | −0.004 (−0.806) | 0.007 (1.461) | −0.010* (−1.828) | −0.005 (−1.011) | −0.007 (−1.547) | −0.022*** (−4.316) | −0.028*** (−5.801) | −0.000 (−0.022) |
| Log(employee/total assets) | 0.004 (0.282) | 0.057*** (4.007) | 0.017 (1.325) | 0.051*** (4.004) | 0.001 (0.095) | 0.036*** (2.806) | −0.002 (−0.144) | 0.003 (0.208) | 0.036** (2.523) | 0.063*** (5.250) |
| Tangibility | −0.014 (−1.084) | 0.121*** (8.258) | −0.031*** (−2.833) | −0.018 (−1.566) | −0.014 (−0.970) | 0.037*** (2.810) | 0.028** (2.335) | 0.039*** (2.821) | 0.033** (2.402) | 0.002 (0.178) |
| Leverage | −0.029** (−2.080) | −0.035*** (−2.634) | −0.067*** (−5.479) | −0.057*** (−4.666) | 0.005 (0.315) | −0.018 (−1.378) | −0.085*** (−6.780) | −0.002 (−0.156) | −0.071*** (−5.306) | −0.031*** (−2.687) |
| MTB | −0.010 (−1.010) | −0.033*** (−3.826) | −0.007 (−0.773) | −0.013 (−1.497) | −0.036*** (−3.687) | −0.016* (−1.698) | −0.045*** (−5.041) | −0.003 (−0.284) | −0.046*** (−5.082) | 0.019** (1.995) |
| Log(assets) | −0.098*** (−6.989) | −0.007 (−0.446) | −0.035** (−2.485) | −0.020 (−1.476) | −0.072*** (−4.169) | −0.040*** (−2.714) | −0.123*** (−8.474) | −0.087*** (−5.252) | −0.017 (−1.129) | 0.030** (2.021) |
| Local SOE | −0.121*** (−4.919) | 0.179*** (6.517) | −0.110*** (−4.725) | −0.088*** (−3.663) | 0.012 (0.372) | 0.097*** (3.551) | −0.017 (−0.711) | 0.046 (1.470) | −0.105*** (−3.929) | −0.383*** (−16.978) |
| Central SOE | −0.048 (−0.589) | 0.139* (1.721) | −0.073 (−1.216) | −0.191** (−2.566) | 0.088 (1.101) | 0.089 (0.956) | 0.024 (0.318) | −0.005 (−0.061) | −0.087 (−1.037) | −0.309*** (−5.061) |
| Foreign capital | −0.014 (−0.300) | −0.033 (−0.833) | −0.086** (−2.059) | −0.070* (−1.823) | 0.055 (1.028) | 0.020 (0.467) | −0.090** (−2.110) | −0.080* (−1.790) | −0.117*** (−2.591) | 0.003 (0.062) |
| Industry competition | 0.039*** (2.618) | −0.018 (−1.374) | −0.000 (−0.013) | 0.004 (0.228) | −0.011 (−0.806) | −0.031** (−1.998) | −0.001 (−0.031) | −0.027* (−1.861) | −0.014 (−0.944) | 0.041*** (3.041) |
| Provincial GDP per capita | −0.005 (−0.205) | −0.055** (−2.189) | −0.015 (−0.612) | −0.014 (−0.486) | 0.018 (0.677) | −0.048* (−1.795) | −0.053** (−2.035) | −0.025 (−0.935) | 0.049* (1.760) | 0.018 (0.669) |
| Observations | 36,502 | 36,502 | 36,502 | 36,502 | 36,502 | 36,502 | 36,502 | 36,502 | 36,502 | 36,502 |
| Adjusted | 0.098 | 0.306 | 0.090 | 0.095 | 0.035 | 0.047 | 0.243 | 0.217 | 0.150 | 0.263 |
| Fixed effects | ||||||||||
Note(s): This table presents the results from regressing HCM_Disclosure and its dimensions on fixed effects and control variables. Standard errors are adjusted for clustering at the firm level, and t-statistics are in parentheses. All continuous variables are winsorized at the 1% and 99% levels, and standardized to have a mean of zero and a standard deviation of one. Statistical significance at the 1, 5 and 10% levels is indicated by ***, ** and *, respectively