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Table 8 Estimation results of base line investment models (During crises period)

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

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

0.0811 (1.19)

0.0651* (1.83)

0.1014** (2.46)

0.1107** (2.12)

0.1127** (2.47)

0.1334** (2.39)

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

0.0759** (2.36)

0.0716** (2.16)

0.0813** (2.44)

0.1167** (2.48)

0.1052** (2.45)

0.1216** (1.99)

Q it

0.0408** (2.38)

–

0.0419*** (2.89)

–

0.0612*** (3.59)

–

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

–

0.0913** (2.53)

–

0.1404*** (3.17)

–

0.1123*** (5.54)

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

0.1914*** (4.16)

0.2219** (2.15)

0.2215*** (3.88)

0.1901** (2.11)

0.2012*** (3.14)

0.1704** (2.16)

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

–

–

−0.1302** (−2.09)

− 0.1116** (− 2.18)

−0.0891** (− 2.01)

−0.0652** (− 2.11)

FDI t

–

–

–

–

0.1419** (2.51)

0.1708** (2.14)

m1 (p)

(0.00)

(0.00)

(0.00)

(0.00)

(0.00)

(0.00)

m2 (p)

(0.17)

(0.62)

(0.18)

(0.53)

(0.14)

(0.37)

Sargan Test

(0.21)

(0.26)

(0.23)

(0.27)

(0.33)

(0.35)

Hansen-J Test

(0.27)

(0.31)

(0.18)

(0.34)

(0.26)

(0.38)

Wald Test

χ2 (04) = 382.11 (0.0000)

χ2 (04) = 523.41 (0.0000)

χ2 (05) = 388.26 (0.0000)

χ2(05) = 611.29 (0.0000)

χ2 (06) = 426.35 (0.0000)

χ2(06) = 655.35 (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