Table 10 Estimation results of base line investment models (Low dividend paying firms)
Variables | Q-Model (Eq. 2) | Euler Equation (Eq. 6) | Q-Model (Eq. 3) | Euler Equation (Eq. 7) | Q-Model (Eq. 4) | Euler Equation (Eq. 11) |
|---|---|---|---|---|---|---|
(1) | (2) | (3) | (4) | (5) | (6) | |
Constant | 0.0612* (1.68) | 0.0812* (1.88) | 0.0312* (1.84) | 0.0718* (1.91) | 0.0511** (2.11) | 0.0748** (2.19) |
\( {\left(\raisebox{1ex}{$I$}\!\left/ \!\raisebox{-1ex}{$K$}\right.\right)}_{it-1} \) | 0.0821** (2.44) | 0.0919** (2.48) | 0.0912** (2.11) | 0.1051** (2.36) | 0.0746** (2.03) | 0.0915** (2.15) |
Q it | 0.0612** (2.33) | – | 0.0811*** (3.69) | – | 0.0938*** (3.51) | – |
\( {\left(\raisebox{1ex}{$S$}\!\left/ \!\raisebox{-1ex}{$K$}\right.\right)}_{it} \) | – | 0.1218** (2.54) | – | 0.1014** (2.19) | – | 0.1052** (2.03) |
\( {\left(\raisebox{1ex}{$ CF$}\!\left/ \!\raisebox{-1ex}{$K$}\right.\right)}_{it} \) | 0.2219*** (4.56) | 0.2611*** (3.98) | 0.2315*** (3.21) | 0.2282*** (2.88) | 0.2118*** (3.31) | 0.1914*** (3.91) |
\( {\left(\raisebox{1ex}{$ CF$}\!\left/ \!\raisebox{-1ex}{$K$}\right.\right)}_{it}\kern0.5em \times \kern0.5em {FDI}_t \) | – | – | −0.1018* (−1.83) | − 0.1241* (−1.88) | −0.1183* (− 1.81) | −0.1217** (− 2.12) |
FDI t | – | – | – | – | 0.1803** (2.19) | 0.2115** (2.46) |
m1 (p) | (0.00) | (0.00) | (0.00) | (0.00) | (0.00) | (0.00) |
m2 (p) | (0.56) | (0.29) | (0.48) | (0.35) | (0.45) | (0.33) |
Sargan Test | (0.33) | (0.49) | (0.51) | (0.29) | (0.38) | (0.31) |
Hansen-J Test | (0.47) | (0.32) | (0.23) | (0.49) | (0.44) | (0.41) |
Wald Test | χ2 (04) = 489.11 (0.0000) | χ2 (04) = 515.06 (0.0000) | χ2 (05) = 421.15 (0.0000) | χ2(05) = 626.10 (0.0000) | χ2 (06) = 515.21 (0.0000) | χ2(06) = 818.99 (0.0000) |