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Table 5 Findings of Investment equation in high growth and low growth firms

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

  Dependent Variable: Investment
(1) (2) (3) (4) (5) (6)
  High Growth Low Growth   High Growth Low Growth
Variables DIFF GMM SYS GMM
INVSTt-1 0.0200** 0.0235*** 0.0233*** 0.0164** 0.0199** 0.0196**
(0.0151) (0.0149) (0.0150) (0.0144) (0.0143) (0.0144)
LEV t-1 −0.214 − 0.296** − 0.286** − 0.235* − 0.318** − 0.309**
(0.142) (0.141) (0.143) (0.139) (0.138) (0.140)
GTH t-1 0.103***    0.103***   
(0.0126)    (0.0125)   
LEV t-1* HGTH t-1   0.291***    0.301***  
  (0.0408)    (0.0402)  
LEV t-1* LGTH t-1    −0.293***    −0.299***
   (0.0395)    (0.0390)
ROA t-1 −0.0911*** −0.0904*** − 0.0924*** −0.0953*** − 0.0938*** − 0.0959***
(0.0283) (0.0291) (0.0290) (0.0278) (0.0286) (0.0286)
TG t-1 −4.207*** −4.144*** −4.154*** −4.158*** − 4.089*** − 4.101***
(0.165) (0.170) (0.169) (0.162) (0.166) (0.165)
CFLOW t-1 0.373*** 0.478*** 0.460*** 0.385*** 0.489*** 0.472***
(0.122) (0.122) (0.122) (0.119) (0.120) (0.120)
CASH t-1 −0.803*** − 0.840*** − 0.858*** − 0.804*** − 0.844*** − 0.864***
(0.163) (0.165) (0.165) (0.161) (0.163) (0.163)
BSIZE t-1 −0.00476 −0.00206 − 0.00222 −0.00700 − 0.00438 −0.00441
(0.0107) (0.0105) (0.0105) (0.0105) (0.0103) (0.0103)
CEODUA t-1 0.0185 0.00369 0.00536 0.0172 0.00189 0.00358
(0.0324) (0.0330) (0.0330) (0.0318) (0.0324) (0.0324)
INDBOARD t-1 −0.0393 −0.0500 −0.0231 − 0.0604 − 0.0728 −0.0445
(0.209) (0.208) (0.208) (0.206) (0.205) (0.206)
Constant 1.478*** 1.582*** 1.736*** 1.508*** 1.610*** 1.767***
(0.182) (0.179) (0.180) (0.177) (0.174) (0.175)
Year Yes Yes Yes Yes Yes Yes
Observations 7684 7684 7684 7684 7684 7684
AR (1) −12.79*** −12.97*** −13.00*** −12.82*** −13.04*** −13.06***
AR (2) 0.51 0.52 0.47 0.43 0.43 0.38
Sargan (p-value) 0.43 0.13 0.27 0.61 0.20 0.41
  1. Note. This table reports findings of investment equation for high growth & low growth firms. 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%