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Table 12 Estimation results of investment models by categories (Business group affiliation)

From: Alternative measure of financial development and investment-cash flow sensitivity: evidence from an emerging economy

Variables

Q-Model (Eq. 6)

Euler Equation (Eq. 13)

Q-Model (Eq. 8)

Euler Equation (Eq. 15)

(1)

(2)

(3)

(4)

\( {\left(\raisebox{1ex}{$I$}\!\left/ \!\raisebox{-1ex}{$K$}\right.\right)}_{it-1} \)

0.1105*** (3.4)

0.0750*** (3.61)

0.1218*** (4.26)

0.0913*** (3.21)

Q it

0.0245** (2.45)

–

0.0416** (2.41)

–

\( {\left(\raisebox{1ex}{$S$}\!\left/ \!\raisebox{-1ex}{$K$}\right.\right)}_{it} \)

–

0.0499*** (2.52)

–

0.0512** (2.13)

\( {\left(\raisebox{1ex}{$ CF$}\!\left/ \!\raisebox{-1ex}{$K$}\right.\right)}_{it} \)

0.1859*** (2.87)

0.1154*** (4.44)

0.1611** (2.18)

0.1014** (2.19)

\( {\left(\raisebox{1ex}{$ CF$}\!\left/ \!\raisebox{-1ex}{$K$}\right.\right)}_{it}\kern0.5em \times {FDI}_t\times {STAND}_i \)

−0.0471** (−2.46)

− 0.0553*** (− 2.85)

−0.0511** (− 2.32)

−0.0718** (− 2.15)

\( {\left(\raisebox{1ex}{$ CF$}\!\left/ \!\raisebox{-1ex}{$K$}\right.\right)}_{it}\kern0.5em \times {FDI}_t\times {GROUP}_i \)

− 0.0731 (−1.45)

−0.0621 (− 1.22)

−0.0914 (− 1.03)

−0.0684 (− 1.19)

FDI t

–

–

0.1018** (2.11)

0.0918** (2.33)

m1 (p)

(0.00)

(0.00)

(0.00)

(0.00)

m2 (p)

(0.42)

(0.56)

(0.48)

(0.59)

Sargan Test

(0.38)

(0.41)

(0.41)

(0.46)

Hansen-J Test

(0.55)

(0.68)

(0.53)

(0.58)

Wald Test

χ2(06) = 855.60 (0.0000)

χ2(06) = 950.72 (0.0000)

χ2(07) = 912.29 (0.0000)

χ2(07) = 998.18 (0.0000)

  1. Notes: (1) The z values are in parentheses. (2) Time dummies are included, but are not reported. (3) The m1 and m2 are p values of the test for first- and second-order serial correlation of residuals, respectively. (4) Sargan test and Hansen J-test results present p value of the test for over identification, (5) Wald test results present p value of test for joint significance of coefficients. (6)*, **, and *** present the 10%, 5% and 1% level of significance respectively