Table 6 Comparing efficient and inefficient firms—Y = ROE, X = CS5, Mediator = EFF_SBM

Step1: Total effect of X on Y (Path c)

CS5

0.0051

0.4836

0.0194

2.4240**

Step2: X to mediator (path a) and mediator to Y (path b)

CS5

− 0.0038

− 0.1032

0.0115

2.2587***

Firm efficiency

0.0576

7.8086***

0.2966

7.1946***

Step3: Direct effect of X on Y (path c’)

CS5

0.0053

0.5151

0.0160

2.0321**

Partial effect of control variables on Y

BIND

0.0027

1.8267*

0.0026

1.8849*

FSIZE

− 0.0081

− 6.1685***

0.0008

0.6538

FLEV

− 0.0641

− 7.3713***

− 0.0549

− 7.4969***

Adjusted R²

0.1130

0.0876

F-statistic

36.1243***

27.2351***