The impact of corporate governance measures on firm performance: the influences of managerial overconfidence

Guluma, Tolossa Fufa

doi:10.1186/s43093-021-00093-6

Future Business Journal

Table 4 Regression results of influencing role of managerial overconfidence in the relationship of corporate governance mechanisms and firm performance (TQ)

From: The impact of corporate governance measures on firm performance: the influences of managerial overconfidence

Variables	Firm performance (TQ)
Variables	(1)	(2)	(3)	(4)	(5)	(6)	(7)
L.TQ	0.658***	0.658***	0.658***	0.659***	0.653***	0.661***	0.659***
L.TQ	(0.0274)	(0.0275)	(0.0275)	(0.0277)	(0.0270)	(0.0275)	(0.0276)
BIND	0.612	0.604	0.361	0.582	0.787	0.636	0.653
BIND	(1.425)	(1.425)	(2.528)	(1.425)	(1.415)	(1.422)	(1.425)
DUAL	0.0416	0.0401	0.0394	0.0598	0.0191	0.0440	0.0397
DUAL	(0.125)	(0.125)	(0.125)	(0.219)	(0.125)	(0.125)	(0.125)
OWCON	0.0160***	0.0165***	0.0162***	0.0164***	0.0260***	0.0168***	0.0166***
OWCON	(0.00403)	(0.00405)	(0.00405)	(0.00406)	(0.00626)	(0.00409)	(0.00402)
DF	− 0.712**	− 0.709**	− 0.711**	− 0.708**	− 0.747**	− 1.062**	− 0.705**
DF	(0.325)	(0.326)	(0.327)	(0.326)	(0.325)	(0.492)	(0.326)
PMC	2.777***	2.775***	2.776***	2.789***	2.745***	2.778***	2.848***
PMC	(0.578)	(0.579)	(0.577)	(0.579)	(0.573)	(0.578)	(0.640)
MOC		− 0.00451	− 0.0150	0.0147	0.289	− 0.303**	− 0.00155
MOC		(0.0253)	(0.795)	(0.0619)	(0.252)	(0.139)	(0.0282)
FSIZE	− 0.169***	− 0.169***	− 0.169***	− 0.170***	− 0.174***	− 0.175***	− 0.169***
FSIZE	(0.0358)	(0.0358)	(0.0359)	(0.0357)	(0.0352)	(0.0355)	(0.0358)
FAGE	0.169**	0.168**	0.164**	0.165**	0.199***	0.174**	0.166**
FAGE	(0.0680)	(0.0673)	(0.0638)	(0.0669)	(0.0619)	(0.0682)	(0.0676)
SGWTH	0.0482	0.0474	0.0459	0.0468	0.0411	0.0509	0.0482
SGWTH	(0.0630)	(0.0631)	(0.0636)	(0.0635)	(0.0632)	(0.0632)	(0.0631)
Moc*BIND			− 4.624*
Moc*BIND			(2.396)
Moc*DUAL				− 0.0672
Moc*DUAL				(0.182)
Moc*OWCON					− 0.0156***
Moc*OWCON					(0.00500)
Moc*DF						0.735**
Moc*DF						(0.332)
Moc*PMC							− 0.0828
Moc*PMC							(0.363)
Constant	0	3.109***	0	3.134***	0	0	0
Constant	(0)	(0.955)	(0)	(0.961)	(0)	(0)	(0)
Industry and year dummies	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Observations	11,634	11,634	11,634	11,634	11,634	11,634	11,634
Number of firms	2,492	2,492	2,492	2,492	2,492	2,492	2,492
AR(1) test (p-value)	0.000	0.000	0.000	0.000	0.000	0.000	0.000
AR(2) test (p-value)	0.334	0.338	0.348	0.271	0.305	0.301	0.323
Hansen test of over identification	0.132	0.146	0.144	0.101	0.144	0.1658	0.126
Difference test of exogenous	0.151	0.181	0.190	0.123	0.188	0.185	0.192

^*, **&*** represent the statistical significance at 1%, 5%, and 10% level, respectively
Notes This table reports the GMM regression results to capture the relationship of CG and firm performance, and interaction effect of MOC and CG on performance. Variables included in the model is described in Table 3, except dependent variable measured by Tobin’s Q (TQ)

Back to article page