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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%