Table 10 Governance indicators and RM4, RM5, RM6: system GMM estimation results

L. RM_i

0.302***

0.313***

0.334***

0.328***

− 0.00945

0.242***

0.234***

0.236***

0.206***

0.238***

0.265***

0.228***

(0.037)

(0.026)

(0.075)

(0.070)

(0.0117)

(0.023)

(0.022)

(0.016)

(0.036)

(0.035)

(0.062)

(0.037)

BRDSIZE

0.285***

0.158**

0.274***

0.271***

− 0.00172

0.001

0.004**

(0.030)

(0.073)

(0.085)

(0.063)

(0.00107)

(0.001)

(0.002)

BRDIND

0.005***

0.003

− 0.025

(0.002)

(0.012)

(0.027)

CEO duality

− 0.023

− 0.001

− 0.027**

(0.028)

(0.005)

(0.013)

BRDMEET

0.004

0.005***

(0.016)

(0.001)

ROA

0.006***

− 0.671

− 0.326**

− 0.335**

− 0.283**

− 1.086***

− 1.561***

− 1.584***

− 1.158***

(0.001)

(0.434)

(0.150)

(0.145)

(0.140)

(0.188)

(0.391)

(0.349)

(0.407)

ROE

− 1.045***

− 2.086***

− 1.669***

− 1.290***

0.0507

− 0.148**

− 0.133**

− 0.185**

0.136

0.177

0.357**

0.125

(0.195)

(0.416)

(0.419)

(0.411)

(0.163)

(0.069)

(0.066)

(0.070)

(0.102)

(0.186)

(0.166)

(0.190)

Liq

0.076

0.359*

0.239

0.219

− 0.00253

− 0.012***

− 0.011***

− 0.010***

− 0.014***

− 0.012**

− 0.009

− 0.008

(0.094)

(0.191)

(0.205)

(0.182)

(0.00528)

(0.003)

(0.003)

(0.004)

(0.004)

(0.006)

(0.006)

(0.006)

Lev

− 0.005

− 0.009

− 0.009

− 0.003

0.0383

− 0.071*

− 0.052

− 0.056

− 0.372***

− 0.306***

− 0.259***

− 0.178*

(0.004)

(0.006)

(0.007)

(0.006)

(0.0315)

(0.038)

(0.039)

(0.036)

(0.056)

(0.098)

(0.080)

(0.098)

Gear

− 0.240***

− 0.218**

− 0.200*

− 0.156*

0.0732***

0.022*

0.017

0.020

0.127***

0.123***

0.103***

0.087***

(0.046)

(0.100)

(0.105)

(0.089)

(0.0116)

(0.013)

(0.013)

(0.012)

(0.019)

(0.032)

(0.029)

(0.031)

Size

0.087***

0.075***

0.085***

0.068***

− 0.141***

− 0.032**

− 0.036***

− 0.028**

− 0.088***

− 0.066**

− 0.054**

− 0.082***

(0.014)

(0.028)

(0.031)

(0.025)

(0.0178)

(0.013)

(0.013)

(0.013)

(0.015)

(0.029)

(0.023)

(0.029)

Asstan

− 0.089***

− 0.062**

− 0.077***

− 0.080***

0.324***

− 0.053***

− 0.044**

− 0.037**

0.097***

0.062

0.086*

0.125**

(0.013)

(0.026)

(0.025)

(0.026)

(0.0561)

(0.018)

(0.020)

(0.015)

(0.030)

(0.055)

(0.046)

(0.058)

OC

0.080**

0.022

0.050

0.125**

0.205***

0.029**

0.032**

0.022*

0.141***

0.099***

0.104***

0.139***

(0.032)

(0.061)

(0.064)

(0.058)

(0.0329)

(0.012)

(0.013)

(0.012)

(0.014)

(0.029)

(0.029)

(0.031)

Emflex

0.137***

0.135***

0.129***

0.140***

0.00752

0.024

0.032

0.042**

0.102***

0.158***

0.145***

0.159***

(0.012)

(0.027)

(0.028)

(0.026)

(0.0542)

(0.022)

(0.023)

(0.020)

(0.026)

(0.055)

(0.042)

(0.048)

Constant

0.119***

0.097*

0.085

0.134***

− 0.235

− 0.001

0.000

0.003

− 0.245**

− 0.137

− 0.234**

− 0.385***

(0.026)

(0.054)

(0.061)

(0.048)

(0.176)

(0.040)

(0.045)

(0.038)

(0.107)

(0.146)

(0.117)

(0.139)

Observations

702

702

702

702

702

702

702

702

702

702

702

702

Number of firms

78

78

78

78

78

78

78

78

78

78

78

78

Number of instruments

72

45

42

45

46

46

46

46

72

46

54

46

AR2 test (p-value)

0.311

0.426

0.282

0.392

0.468

0.458

0.458

0.455

0.877

0.977

0.967

0.876

Hansen test (p-value)

0.532

0.358

0.603

0.413

0.403

0.587

0.375

0.736

0.541

0.216

0.628

0.374