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Table 11 Findings of Investment equation with an alternative proxy of investment for high growth and low growth firms in SOEs and NSOEs

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

  Dependent Variable: INVST2 (alternative proxy of investment)
(1) (2) (3) (4) (5) (6)
  High growth Low growth   High growth Low growth
SOEs NSOEs
Variables DIFF GMM
INVST2t-1 0.130*** 0.137*** 0.139*** 0.0740** 0.0817*** 0.0823***
(0.0254) (0.0252) (0.0253) (0.0305) (0.0300) (0.0300)
LEVt-1 −0.00373 − 0.0148 − 0.0147 −0.0246* − 0.0336* −0.0356*
(0.0242) (0.0242) (0.0245) (0.0190) (0.0192) (0.0195)
GTHt-1 0.0140***    0.00847***   
(0.00226)    (0.00164)   
LEVt-1*HGTHt-1   0.0275***    0.0187***  
  (0.00706)    (0.00525)  
LEVt-1*LGTHt-1    −0.0242***    −0.0193***
   (0.00658)    (0.00531)
ROAt-1 −0.0634 −0.0622 − 0.0637 −0.116*** − 0.120*** −0.121***
(0.0393) (0.0414) (0.0413) (0.0366) (0.0367) (0.0367)
TGt-1 −0.690*** −0.678*** − 0.681*** −0.710*** − 0.702*** −0.705***
(0.0294) (0.0302) (0.0301) (0.0382) (0.0395) (0.0393)
CFLOWt-1 0.0560*** 0.0606*** 0.0599*** 0.0571*** 0.0650*** 0.0640***
(0.0168) (0.0173) (0.0173) (0.0165) (0.0162) (0.0162)
CASHt-1 −0.145*** −0.141*** −0.144*** −0.128*** − 0.133*** −0.136***
(0.0275) (0.0285) (0.0284) (0.0216) (0.0214) (0.0215)
BSIZEt-1 −0.000971 −0.000782 − 0.000774 −0.00132 − 0.00123 −0.00124
(0.00159) (0.00160) (0.00160) (0.00161) (0.00159) (0.00160)
CEODUAt-1 0.000985 0.00131 0.00150 −0.00358 −0.00384 −0.00404
(0.00555) (0.00544) (0.00548) (0.00390) (0.00397) (0.00395)
INDBOARDt-1 0.000962 0.00383 0.00221 −0.00770 −0.00810 −0.00699
(0.0351) (0.0358) (0.0358) (0.0371) (0.0376) (0.0376)
Constant 0.206*** 0.219*** 0.235*** 0.220*** 0.230*** 0.242***
(0.0317) (0.0314) (0.0316) (0.0299) (0.0286) (0.0285)
Year Yes Yes Yes Yes Yes Yes
Observations 3401 3401 3401 2553 2553 2553
AR (1) −9.123*** −9.353*** −9.337*** −7.933*** −8.002*** −8.052***
AR (2) 0.430 0.354 0.338 −0.916 −1.104 −1.080
Sargan (p-value) 0.52 0.324 0.405 0.751 0.687 0.777
  1. Note. This table reports findings of investment equation with an alternative proxy of investment for-high growth and low-growth firms in SOEs and NSOEs. Arrellano-Bond tests are denoted 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%