Skip to main content

Table 4 Findings of the Investment equation

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

  Dependent Variable: Investment
(1) (2) (3) (4)
Variables DIFF GMM SYS GMM
INVSTt-1 0.0200** 0.0206** 0.0164** 0.0164**
(0.0151) (0.0153) (0.0144) (0.0146)
LEV t-1 −0.214* − 0.701*** − 0.235* −0.727***
(0.142) (0.146) (0.139) (0.142)
GTH t-1 0.103***   0.103***  
(0.0126)   (0.0125)  
LEVt-1*GTH t-1   0.204***   0.208***
  (0.0271)   (0.0268)
ROA t-1 −0.957*** − 0.968*** − 0.957*** − 0.973***
(0.214) (0.213) (0.211) (0.209)
TG t-1 −4.207*** −4.232*** −4.158*** −4.182***
(0.165) (0.166) (0.162) (0.161)
CFLOW t-1 0.373*** 0.386*** 0.385*** 0.397***
(0.122) (0.120) (0.119) (0.117)
CASH t-1 −0.803*** −0.806*** − 0.804*** − 0.805***
(0.163) (0.164) (0.161) (0.162)
BSIZE t-1 −0.00476 −0.00598 − 0.00700 −0.00806
(0.0107) (0.0108) (0.0105) (0.0105)
CEODUA t-1 0.0185 0.0172 0.0172 0.0156
(0.0324) (0.0328) (0.0318) (0.0322)
INDBOARD t-1 −0.0393 −0.0717 −0.0604 −0.0900
(0.209) (0.207) (0.206) (0.204)
Constant 1.478*** 1.773*** 1.508*** 1.798***
(0.182) (0.182) (0.177) (0.177)
Year Yes Yes Yes Yes
Observations 7684 7684 7684 7684
AR (1) −12.79*** − 12.83*** − 12.82*** − 12.86***
AR (2) 0.51 0.55 0.43 0.45
Sargan (p-value) 0.43 0.43 0.61 0.63
  1. Note. This table reports findings of investment equation. 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%