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Table 8 Findings of Investment equation with an alternative proxy of investment

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

  Dependent Variable: INVST2 (an alternative proxy of investment)
(1) (2) (3) (4)
Variables DIFF GMM DIFF GMM SYS GMM SYS GMM
INVST2t-1 0.0596*** 0.0621*** 0.0631*** 0.0653***
(0.0165) (0.0165) (0.0160) (0.0160)
LEVt-1 −0.0157* − 0.0673*** − 0.0205* − 0.0718***
(0.0158) (0.0157) (0.0153) (0.0153)
GTH t-1 0.00965***   0.00938***  
(0.00137)   (0.00134)  
LEV t-1*GTH t-1   0.0217***   0.0217***
  (0.00286)   (0.00277)
ROA t-1 −0.0911*** −0.0921*** −0.0953*** −0.0968***
(0.0283) (0.0282) (0.0278) (0.0278)
TG t-1 −0.686*** −0.687*** − 0.663*** −0.665***
(0.0250) (0.0248) (0.0234) (0.0232)
CFLOWt-1 0.0570*** 0.0559*** 0.0546*** 0.0532***
(0.0122) (0.0121) (0.0120) (0.0119)
CASH t-1 −0.132*** − 0.131*** − 0.130*** − 0.129***
(0.0181) (0.0179) (0.0176) (0.0174)
BSIZE t-1 −0.00132 −0.00133 − 0.00166 −0.00165
(0.00115) (0.00116) (0.00112) (0.00113)
CEODUA t-1 −0.00147 −0.00133 − 0.000950 −0.000681
(0.00343) (0.00343) (0.00335) (0.00335)
INDBOARD t-1 −0.00885 − 0.0138 − 0.0115 − 0.0161
(0.0267) (0.0265) (0.0264) (0.0262)
Constant 0.228*** 0.257*** 0.227*** 0.256***
(0.0219) (0.0210) (0.0214) (0.0205)
Year Yes Yes Yes Yes
Observations 5954 5954 7684 7684
AR (1) −12.11*** −11.98*** −12.2*** −12.07***
AR (2) 0.12 0.18 −0.52 − 0.46
Sargan (p-value) 0.33 0.32 0.16 0.15
  1. Note. This table reports findings of investment equation with an alternative proxy of investment. 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%