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Table 10 Findings of Investment equation with an alternative proxy of investment in SOEs and NSOEs

From: Debt choice, growth opportunities and corporate investment: evidence from China

  Dependent Variable: INVST2 (alternative proxy of investment)
SOEs NSOEs
(1) (2) (3) (4)
Variables DIFF GMM
INVST2t-1 0.0650*** 0.0681*** 0.0374 0.0412*
(0.0212) (0.0212) (0.0235) (0.0236)
LEVt-1 −0.00373* −0.0627*** − 0.0246* −0.0766***
(0.0242) (0.0219) (0.0190) (0.0202)
GTHt-1 0.0140***   0.00847***  
(0.00226)   (0.00164)  
LEVt-1* GTHt-1   0.0284***   0.0193***
  (0.00514)   (0.00321)
ROAt-1 −0.0634 − 0.0676* − 0.116*** − 0.114***
(0.0393) (0.0384) (0.0366) (0.0375)
TGt-1 −0.690*** −0.692*** − 0.710*** −0.708***
(0.0294) (0.0289) (0.0382) (0.0385)
CFLOWt-1 0.0560*** 0.0537*** 0.0571*** 0.0573***
(0.0168) (0.0169) (0.0165) (0.0164)
CASHt-1 −0.145*** − 0.141*** −0.128*** − 0.128***
(0.0275) (0.0275) (0.0216) (0.0213)
BSIZEt-1 −0.000971 − 0.00110 − 0.00132 − 0.00125
(0.00159) (0.00158) (0.00161) (0.00164)
CEODUAt-1 0.000985 0.000172 −0.00358 − 0.00306
(0.00555) (0.00557) (0.00390) (0.00388)
INDBOARDt-1 0.000962 −0.00717 − 0.00770 − 0.0103
(0.0351) (0.0346) (0.0371) (0.0371)
Constant 0.206*** 0.260*** 0.220*** 0.244***
(0.0317) (0.0297) (0.0299) (0.0281)
Year Yes Yes Yes Yes
Observations 3401 3401 2553 2553
AR (1) −9.12*** −9.00*** −7.93*** −7.88
AR (2) 0.43 0.56 −0.91 − 0.85
Sargan (p-value) 0.52 0.46 0.55 0.59
  1. Note. This table reports findings of investment equation with an alternative proxy of investment in SOEs and NSOEs. Arrellano-Bond tests are represented by AR (1) & AR (2) for serial correlation in residuals. Sargan (p-value) refers to the p-value of Sargan test to check the over-identification of instruments. Values of standard errors are given in parenthesis. Definitions of variables are given in Table 1. ***, and * shows the level of significance at 1%, 5%, and 10%