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Table 6 Findings of Investment equation in SOEs and NSOEs

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

  Dependent Variable: Investment
(1) (2) (3) (4)
SOEs NSOEs
Variables DIFF GMM
INVSTt-1 0.0230** 0.0226** 0.0224** 0.0199**
(0.0175) (0.0178) (0.0204) (0.0205)
LEV t-1 −0.150* −0.504*** − 0.335* − 0.858***
(0.193) (0.186) (0.177) (0.191)
GTH t-1 0.159***   0.0928***  
(0.0194)   (0.0169)  
LEV t-1* GTH t-1   0.322***   0.200***
  (0.0362)   (0.0332)
ROA t-1 −0.483** −0.519** −1.293*** −1.266***
(0.244) (0.234) (0.324) (0.328)
TG t-1 −3.675*** −3.649*** −4.766*** −4.760***
(0.184) (0.180) (0.280) (0.276)
CFLOW t-1 0.303* 0.315** 0.423*** 0.424***
(0.162) (0.160) (0.163) (0.160)
CASH t-1 −0.746*** −0.707*** −0.921*** − 0.923***
(0.239) (0.238) (0.199) (0.198)
BSIZE t-1 0.00773 0.00675 −0.0161 − 0.0159
(0.0113) (0.0112) (0.0184) (0.0188)
CEODUA t-1 0.0358 0.0226 −0.0261 − 0.0204
(0.0339) (0.0338) (0.0470) (0.0478)
INDBOARD t-1 −0.408 − 0.445* 0.203 0.203
(0.268) (0.264) (0.292) (0.292)
Constant 1.063*** 1.439*** 1.630*** 1.887***
(0.226) (0.217) (0.268) (0.268)
Year Yes Yes Yes Yes
Observations 4239 4239 3445 3445
AR (1) −9.18*** −9.15*** −8.73*** −8.72***
AR (2) 1.35 1.45 −0.20 −0.21
Sargan (p-value) 0.23 0.30 0.35 0.51
  1. Note. This table reports findings of investment equation 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%