Table 8 Financial constraint effect
Variables | CAPEX | R&D | AQC | Investment | Equity issuance | Debt issuance | Total issuance | Dividend | Repurchase | Total payout | ΔCash |
|---|---|---|---|---|---|---|---|---|---|---|---|
Panel A: The SA index | |||||||||||
LOG (OV) | 0.002 (0.001) | 0.001 (0.003) | 0.001 (0.002) | 0.004 (0.003) | 0.015** (0.008) | 0.004 (0.003) | 0.018** (0.008) | − 0.001 (0.003) | − 0.001 (0.011) | − 0.001 (0.005) | − 0.004 (0.003) |
IAD*LOG (OV) | 0.002* (0.001) | 0.001 (0.001) | 0.005** (0.002) | 0.007** (0.003) | 0.015*** (0.006) | 0.003 (0.004) | 0.021** (0.010) | − 0.003* (0.002) | − 0.001 (0.001) | − 0.003** (0.001) | − 0.015** (0.007) |
Other controls | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
Within R2 | 0.077 | 0.284 | 0.026 | 0.122 | 0.249 | 0.076 | 0.224 | 0.039 | 0.061 | 0.068 | 0.033 |
N | 8798 | 8798 | 8798 | 8798 | 8798 | 8798 | 8798 | 8798 | 8798 | 8798 | 8584 |
Panel B: The KZ index | |||||||||||
LOG (OV) | 0.002 (0.001) | 0.001 (0.001) | 0.000 (0.002) | 0.004 (0.004) | 0.016*** (0.004) | 0.002 (0.001) | 0.017*** (0.005) | 0.001 (0.001) | 0.001 (0.001) | 0.002 (0.001) | − 0.004 (0.004) |
IAD*LOG (OV) | 0.001 (0.001) | 0.005*** (0.001) | 0.002** (0.008) | 0.007* (0.004) | 0.012** (0.005) | 0.003* (0.002) | 0.017** (0.009) | − 0.002*** (0.000) | − 0.002* (0.001) | − 0.004*** (0.001) | − 0.019*** (0.004) |
Other controls | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
Within R2 | 0.107 | 0.131 | 0.066 | 0.040 | 0.104 | 0.089 | 0.093 | 0.058 | 0.072 | 0.083 | 0.055 |
N | 7703 | 7703 | 7703 | 7703 | 7703 | 7703 | 7703 | 7703 | 7703 | 7703 | 7538 |
Panel C: The WW index | |||||||||||
LOG (OV) | 0.000 (0.004) | 0.001 (0.001) | 0.001 (0.002) | 0.003 (0.003) | 0.006 (0.005) | 0.003 (0.004) | 0.008 (0.006) | − 0.001 (0.001) | 0.000 (0.002) | − 0.001 (0.001) | − 0.014* (0.008) |
IAD*LOG (OV) | 0.003*** (0.001) | 0.002** (0.001) | 0.006*** (0.002) | 0.005*** (0.002) | 0.016*** (0.006) | 0.003* (0.002) | 0.019*** (0.007) | − 0.003*** (0.001) | − 0.001 (0.001) | − 0.004*** (0.001) | − 0.025*** (0.005) |
Other controls | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
Within R2 | 0.109 | 0.172 | 0.064 | 0.044 | 0.132 | 0.084 | 0.099 | 0.054 | 0.064 | 0.077 | 0.029 |
N | 7267 | 7267 | 7267 | 7267 | 7267 | 7267 | 7267 | 7267 | 7267 | 7267 | 7178 |
Panel D: The cashflow-investment gap | |||||||||||
LOG (OV) | 0.001 (0.001) | 0.001 (0.002) | 0.002 (0.001) | 0.003 (0.003) | 0.004 (0.007) | 0.001 (0.002) | 0.005 (0.007) | 0.000 (0.026) | 0.003 (0.003) | 0.004 (0.006) | − 0.007 (0.015) |
IAD*LOG (OV) | 0.003*** (0.001) | 0.004*** (0.002) | 0.005*** (0.002) | 0.011*** (0.002) | 0.035*** (0.008) | 0.022*** (0.004) | 0.582*** (0.092) | − 0.007** (0.003) | − 0.007*** (0.001) | − 0.008** (0.001) | − 0.011*** (0.004) |
Other controls | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
Within R2 | 0.092 | 0.213 | 0.080 | 0.091 | 0.207 | 0.110 | 0.188 | 0.064 | 0.079 | 0.093 | 0.018 |
N | 8705 | 8705 | 8705 | 8705 | 8705 | 8705 | 8705 | 8705 | 8705 | 8705 | 8474 |