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Table 7 Findings of Investment equation in SOEs and NSOEs for 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
SOEs NSOEs
Variables DIFF GMM
INVSTt-1 0.0230** 0.0334** 0.0290** 0.0224** 0.0304** 0.0285**
(0.0175) (0.0178) (0.0178) (0.0204) (0.0203) (0.0203)
LEVt-1 0.150 −0.114 − 0.0838 − 0.335* −0.385** − 0.381**
(0.193) (0.192) (0.193) (0.177) (0.178) (0.180)
GTHt-1 0.159***    0.0928***   
(0.0194)    (0.0169)   
LEV t-1*HGTH t-1   0.312***    0.231***  
  (0.0592)    (0.0534)  
LEV t-1*LGTH t-1    −0.253***    −0.251***
   (0.0566)    (0.0546)
ROA t-1 −0.483** −0.290 − 0.471* −1.293*** −1.213*** −1.257***
(0.244) (0.269) (0.262) (0.324) (0.327) (0.326)
TG t-1 −3.675*** −3.622*** −3.620*** −4.766*** −4.657*** −4.658***
(0.184) (0.192) (0.188) (0.280) (0.290) (0.289)
CFLOW t-1 0.303* 0.388** 0.326* 0.423*** 0.590*** 0.563***
(0.162) (0.169) (0.167) (0.163) (0.157) (0.158)
CASH t-1 −0.746*** −0.695*** − 0.811*** − 0.921*** − 0.931*** − 0.946***
(0.239) (0.248) (0.247) (0.199) (0.201) (0.200)
BSIZE t-1 0.00773 0.00973 7.57e-05 −0.0161 − 0.0100 − 0.00951
(0.0113) (0.0113) (0.0113) (0.0184) (0.0180) (0.0179)
CEODUA t-1 0.0358 0.0414 0.0281 −0.0261 − 0.0385 − 0.0347
(0.0339) (0.0351) (0.0352) (0.0470) (0.0483) (0.0481)
INDBOARD t-1 −0.408 − 0.393 − 0.453* 0.203 0.211 0.266
(0.268) (0.266) (0.265) (0.292) (0.292) (0.294)
Constant 1.063*** 1.329*** 1.667*** 1.630*** 1.675*** 1.777***
(0.226) (0.220) (0.229) (0.268) (0.262) (0.259)
Year Yes Yes Yes Yes Yes Yes
Observations 4239 4239 4239 3445 3445 3445
AR (1) −9.18*** −9.42*** −9.46*** −8.73*** −8.88*** −8.89***
AR (2) 1.35 1.47 1.37 −0.20 0.10 −0.17
Sargan (p-value) 0.23 0.42 0.59 0.35 0.186 0.29
  1. Note. This table reports the findings of Investment equation in SOEs and NSOEs for high growth & low growth firms. 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%