Table 5. Open in new tab Estimation...

	INDEX1 below the median	INDEX1 above the median
${(I / K)}_{t - 1}$	0.332^***	0.324^***	0.330^***	0. 336^***	0.346^***	0.329^***	0.403^***	0.402^***	0.401^***	0.404^***	0.399^***	0.400^***
	(0.043)	(0.044)	(0.042)	(0.043)	(0.048)	(0.043)	(0.024)	(0.024)	(0.024)	(0.024)	(0.025)	(0.026)
${(S / K)}_{t - 1}$	0.350^***	0.349^***	0.281^***	0.298^***	0.319^***	0.353^***	0.402^***	0.404^***	0.410^***	0.382^***	0.384^***	0.367^***
	(0.092)	(0.094)	(0.102)	(0.103)	(0.096)	(0.088)	(0.048)	(0.048)	(0.049)	(0.050)	(0.050)	(0.057)
${(π / K)}_{t - 1}$	0.013	0.016	0.023	0.022	0.028	0.025	0.027^**	0.026^*	0.026^*	0.024^*	0.027^*	0.028^**
	(0.023)	(0.023)	(0.023)	(0.023)	(0.025)	(0.023)	(0.013)	(0.013)	(0.013)	(0.014)	(0.014)	(0.014)
${(F / K)}_{t - 1}$	−0.053	−0.058	−0.066	−0.085^*	−0.067	−0.073	−0.096^***	−0.094^***	−0.099^***	−0.096^***	−0.092^***	−0.081^***
	(0.045)	(0.047)	(0.049)	(0.048)	(0.045)	(0.045)	(0.022)	(0.022)	(0.022)	(0.023)	(0.023)	(0.025)
${(π_{F} / K)}_{t - 1}$	−0.035	−0.020	0.060	0.228^**	0.531^**	0.853^*	0.002	−0.003	−0.010	0.097^*	0.172^*	0.801
	(0.036)	(0.042)	(0.059)	(0.100)	(0.252)	(0.496)	(0.020)	(0.023)	(0.031)	(0.049)	(0.096)	(0.607)
${(π_{F} / K)}_{t - 1} * D_{n}$		−0.053	−0.254^*	−0.413^***	−0.689^**	−0.950^*		0.173	0.063	−0.191^*	−0.222^*	−0.866
		(0.098)	(0.133)	(0.148)	(0.295)	(0.527)		(0.272)	(0.102)	(0.102)	(0.125)	(0.653)
${(T D / T A)}_{t - 1}$	−0.052^*	−0.055^*	−0.059^**	−0.060^**	−0.066^***	−0.046	−0.055^***	−0.055^***	−0.053^***	−0.055^***	−0.053^***	−0.057^***
	(0.029)	(0.028)	(0.029)	(0.026)	(0.023)	(0.029)	(0.014)	(0.014)	(0.014)	(0.014)	(0.014)	(0.014)
Number of observations	5612	5612	5612	5612	5612	5612	22273	22273	22273	22273	22273	22273
Number of firms	664	664	664	664	664	664	3056	3056	3056	3056	3056	3056
Average number of observations	8.5	8.5	8.5	8.5	8.5	8.5	7.3	7.3	7.3	7.3	7.3	7.3
Number of instruments	31	33	33	33	33	33	31	33	33	33	33	33
p−value Hanses test	0.608	0.652	0.739	0.668	0.776	0.760	0.012	0.023	0.009	0.002	0.006	0.073
p-value A-B test (AR1)	0.000	0.000	0.000	0.000	0.000	0.000	0.000	0.000	0.000	0.000	0.000	0.000
p-value A-B test (AR2)	0.337	0.323	0.632	0.802	0.674	0.488	0.715	0.641	0.647	0.678	0.564	0.243
Time effects	yes	yes	yes	yes	yes	yes	yes	yes	yes	yes	yes	Yes
Wald test for time effects (p-value)	0.002	0.003	0.002	0.000	0.001	0.002	0.017	0.009	0.031	0.036	0.044	0.012
p-value $(π_{F} / K) + {(π_{F} / K)}_{t - 1} * D_{n}$		0.351	0.051	0.012	0.012	0.056		0.518	0.520	0.123	0.195	0.221

INDEX1 below the median

INDEX1 above the median

(I)

(II)

(III)

(IV)

(V)

(VI)

(VII)

(VIII)

(IX)

(X)

(XI)

(XII)

TOT

TA10

TA25

TA50

TA75

TA90

TOT

TA10

TA25

TA50

TA75

TA90

{(I / K)}_{t - 1}

0.332^***

0.324^***

0.330^***

0. 336^***

0.346^***

0.329^***

0.403^***

0.402^***

0.401^***

0.404^***

0.399^***

0.400^***

(0.043)

(0.044)

(0.042)

(0.043)

(0.048)

(0.043)

(0.024)

(0.025)

(0.026)

{(S / K)}_{t - 1}

0.350^***

0.349^***

0.281^***

0.298^***

0.319^***

0.353^***

0.402^***

0.404^***

0.410^***

0.382^***

0.384^***

0.367^***

(0.092)

(0.094)

(0.102)

(0.103)

(0.096)

(0.088)

(0.048)

(0.049)

(0.050)

(0.057)

{(π / K)}_{t - 1}

0.013

0.016

0.023

0.022

0.028

0.025

0.027^**

0.026^*

0.024^*

0.027^*

0.028^**

(0.023)

(0.025)

(0.023)

(0.013)

(0.014)

{(F / K)}_{t - 1}

−0.053

−0.058

−0.066

−0.085^*

−0.067

−0.073

−0.096^***

−0.094^***

−0.099^***

−0.096^***

−0.092^***

−0.081^***

(0.045)

(0.047)

(0.049)

(0.048)

(0.045)

(0.022)

(0.023)

(0.025)

{(π_{F} / K)}_{t - 1}

−0.035

−0.020

0.060

0.228^**

0.531^**

0.853^*

0.002

−0.003

−0.010

0.097^*

0.172^*

0.801

(0.036)

(0.042)

(0.059)

(0.100)

(0.252)

(0.496)

(0.020)

(0.023)

(0.031)

(0.049)

(0.096)

(0.607)

{(π_{F} / K)}_{t - 1} * D_{n}

−0.053

−0.254^*

−0.413^***

−0.689^**

−0.950^*

0.173

0.063

−0.191^*

−0.222^*

−0.866

(0.098)

(0.133)

(0.148)

(0.295)

(0.527)

(0.272)

(0.102)

(0.125)

(0.653)

{(T D / T A)}_{t - 1}

−0.052^*

−0.055^*

−0.059^**

−0.060^**

−0.066^***

−0.046

−0.055^***

−0.053^***

−0.055^***

−0.053^***

−0.057^***

(0.029)

(0.028)

(0.029)

(0.026)

(0.023)

(0.029)

(0.014)

Number of observations

5612

22273

Number of firms

664

3056

Average number of observations

8.5

7.3

Number of instruments

p−value Hanses test

0.608

0.652

0.739

0.668

0.776

0.760

0.012

0.023

0.009

0.002

0.006

0.073

p-value A-B test (AR1)

0.000

p-value A-B test (AR2)

0.337

0.323

0.632

0.802

0.674

0.488

0.715

0.641

0.647

0.678

0.564

0.243

Time effects

yes

Yes

Wald test for time effects (p-value)

0.002

0.003

0.002

0.000

0.001

0.002

0.017

0.009

0.031

0.036

0.044

0.012

p-value

(π_{F} / K) + {(π_{F} / K)}_{t - 1} * D_{n}

0.351

0.051

0.012

0.056

0.518

0.520

0.123

0.195

0.221

	INDEX1 below the median	INDEX1 above the median
${(I / K)}_{t - 1}$	0.332^***	0.324^***	0.330^***	0. 336^***	0.346^***	0.329^***	0.403^***	0.402^***	0.401^***	0.404^***	0.399^***	0.400^***
	(0.043)	(0.044)	(0.042)	(0.043)	(0.048)	(0.043)	(0.024)	(0.024)	(0.024)	(0.024)	(0.025)	(0.026)
${(S / K)}_{t - 1}$	0.350^***	0.349^***	0.281^***	0.298^***	0.319^***	0.353^***	0.402^***	0.404^***	0.410^***	0.382^***	0.384^***	0.367^***
	(0.092)	(0.094)	(0.102)	(0.103)	(0.096)	(0.088)	(0.048)	(0.048)	(0.049)	(0.050)	(0.050)	(0.057)
${(π / K)}_{t - 1}$	0.013	0.016	0.023	0.022	0.028	0.025	0.027^**	0.026^*	0.026^*	0.024^*	0.027^*	0.028^**
	(0.023)	(0.023)	(0.023)	(0.023)	(0.025)	(0.023)	(0.013)	(0.013)	(0.013)	(0.014)	(0.014)	(0.014)
${(F / K)}_{t - 1}$	−0.053	−0.058	−0.066	−0.085^*	−0.067	−0.073	−0.096^***	−0.094^***	−0.099^***	−0.096^***	−0.092^***	−0.081^***
	(0.045)	(0.047)	(0.049)	(0.048)	(0.045)	(0.045)	(0.022)	(0.022)	(0.022)	(0.023)	(0.023)	(0.025)
${(π_{F} / K)}_{t - 1}$	−0.035	−0.020	0.060	0.228^**	0.531^**	0.853^*	0.002	−0.003	−0.010	0.097^*	0.172^*	0.801
	(0.036)	(0.042)	(0.059)	(0.100)	(0.252)	(0.496)	(0.020)	(0.023)	(0.031)	(0.049)	(0.096)	(0.607)
${(π_{F} / K)}_{t - 1} * D_{n}$		−0.053	−0.254^*	−0.413^***	−0.689^**	−0.950^*		0.173	0.063	−0.191^*	−0.222^*	−0.866
		(0.098)	(0.133)	(0.148)	(0.295)	(0.527)		(0.272)	(0.102)	(0.102)	(0.125)	(0.653)
${(T D / T A)}_{t - 1}$	−0.052^*	−0.055^*	−0.059^**	−0.060^**	−0.066^***	−0.046	−0.055^***	−0.055^***	−0.053^***	−0.055^***	−0.053^***	−0.057^***
	(0.029)	(0.028)	(0.029)	(0.026)	(0.023)	(0.029)	(0.014)	(0.014)	(0.014)	(0.014)	(0.014)	(0.014)
Number of observations	5612	5612	5612	5612	5612	5612	22273	22273	22273	22273	22273	22273
Number of firms	664	664	664	664	664	664	3056	3056	3056	3056	3056	3056
Average number of observations	8.5	8.5	8.5	8.5	8.5	8.5	7.3	7.3	7.3	7.3	7.3	7.3
Number of instruments	31	33	33	33	33	33	31	33	33	33	33	33
p−value Hanses test	0.608	0.652	0.739	0.668	0.776	0.760	0.012	0.023	0.009	0.002	0.006	0.073
p-value A-B test (AR1)	0.000	0.000	0.000	0.000	0.000	0.000	0.000	0.000	0.000	0.000	0.000	0.000
p-value A-B test (AR2)	0.337	0.323	0.632	0.802	0.674	0.488	0.715	0.641	0.647	0.678	0.564	0.243
Time effects	yes	yes	yes	yes	yes	yes	yes	yes	yes	yes	yes	Yes
Wald test for time effects (p-value)	0.002	0.003	0.002	0.000	0.001	0.002	0.017	0.009	0.031	0.036	0.044	0.012
p-value $(π_{F} / K) + {(π_{F} / K)}_{t - 1} * D_{n}$		0.351	0.051	0.012	0.012	0.056		0.518	0.520	0.123	0.195	0.221

INDEX1 below the median

INDEX1 above the median

(I)

(II)

(III)

(IV)

(V)

(VI)

(VII)

(VIII)

(IX)

(X)

(XI)

(XII)

TOT

TA10

TA25

TA50

TA75

TA90

TOT

TA10

TA25

TA50

TA75

TA90

{(I / K)}_{t - 1}

0.332^***

0.324^***

0.330^***

0. 336^***

0.346^***

0.329^***

0.403^***

0.402^***

0.401^***

0.404^***

0.399^***

0.400^***

(0.043)

(0.044)

(0.042)

(0.043)

(0.048)

(0.043)

(0.024)

(0.025)

(0.026)

{(S / K)}_{t - 1}

0.350^***

0.349^***

0.281^***

0.298^***

0.319^***

0.353^***

0.402^***

0.404^***

0.410^***

0.382^***

0.384^***

0.367^***

(0.092)

(0.094)

(0.102)

(0.103)

(0.096)

(0.088)

(0.048)

(0.049)

(0.050)

(0.057)

{(π / K)}_{t - 1}

0.013

0.016

0.023

0.022

0.028

0.025

0.027^**

0.026^*

0.024^*

0.027^*

0.028^**

(0.023)

(0.025)

(0.023)

(0.013)

(0.014)

{(F / K)}_{t - 1}

−0.053

−0.058

−0.066

−0.085^*

−0.067

−0.073

−0.096^***

−0.094^***

−0.099^***

−0.096^***

−0.092^***

−0.081^***

(0.045)

(0.047)

(0.049)

(0.048)

(0.045)

(0.022)

(0.023)

(0.025)

{(π_{F} / K)}_{t - 1}

−0.035

−0.020

0.060

0.228^**

0.531^**

0.853^*

0.002

−0.003

−0.010

0.097^*

0.172^*

0.801

(0.036)

(0.042)

(0.059)

(0.100)

(0.252)

(0.496)

(0.020)

(0.023)

(0.031)

(0.049)

(0.096)

(0.607)

{(π_{F} / K)}_{t - 1} * D_{n}

−0.053

−0.254^*

−0.413^***

−0.689^**

−0.950^*

0.173

0.063

−0.191^*

−0.222^*

−0.866

(0.098)

(0.133)

(0.148)

(0.295)

(0.527)

(0.272)

(0.102)

(0.125)

(0.653)

{(T D / T A)}_{t - 1}

−0.052^*

−0.055^*

−0.059^**

−0.060^**

−0.066^***

−0.046

−0.055^***

−0.053^***

−0.055^***

−0.053^***

−0.057^***

(0.029)

(0.028)

(0.029)

(0.026)

(0.023)

(0.029)

(0.014)

Number of observations

5612

22273

Number of firms

664

3056

Average number of observations

8.5

7.3

Number of instruments

p−value Hanses test

0.608

0.652

0.739

0.668

0.776

0.760

0.012

0.023

0.009

0.002

0.006

0.073

p-value A-B test (AR1)

0.000

p-value A-B test (AR2)

0.337

0.323

0.632

0.802

0.674

0.488

0.715

0.641

0.647

0.678

0.564

0.243

Time effects

yes

Yes

Wald test for time effects (p-value)

0.002

0.003

0.002

0.000

0.001

0.002

0.017

0.009

0.031

0.036

0.044

0.012

p-value

(π_{F} / K) + {(π_{F} / K)}_{t - 1} * D_{n}

0.351

0.051

0.012

0.056

0.518

0.520

0.123

0.195

0.221

Table 5.

Open in new tab

Estimation results, full sample, 1995–2015, INDEX1 index median split, dependent variable (I/K)_t

	INDEX1 below the median						INDEX1 above the median
	(I)	(II)	(III)	(IV)	(V)	(VI)	(VII)	(VIII)	(IX)	(X)	(XI)	(XII)
	TOT	TA10	TA25	TA50	TA75	TA90	TOT	TA10	TA25	TA50	TA75	TA90
${(I / K)}_{t - 1}$	0.332^***	0.324^***	0.330^***	0. 336^***	0.346^***	0.329^***	0.403^***	0.402^***	0.401^***	0.404^***	0.399^***	0.400^***
	(0.043)	(0.044)	(0.042)	(0.043)	(0.048)	(0.043)	(0.024)	(0.024)	(0.024)	(0.024)	(0.025)	(0.026)
${(S / K)}_{t - 1}$	0.350^***	0.349^***	0.281^***	0.298^***	0.319^***	0.353^***	0.402^***	0.404^***	0.410^***	0.382^***	0.384^***	0.367^***
	(0.092)	(0.094)	(0.102)	(0.103)	(0.096)	(0.088)	(0.048)	(0.048)	(0.049)	(0.050)	(0.050)	(0.057)
${(π / K)}_{t - 1}$	0.013	0.016	0.023	0.022	0.028	0.025	0.027^**	0.026^*	0.026^*	0.024^*	0.027^*	0.028^**
	(0.023)	(0.023)	(0.023)	(0.023)	(0.025)	(0.023)	(0.013)	(0.013)	(0.013)	(0.014)	(0.014)	(0.014)
${(F / K)}_{t - 1}$	−0.053	−0.058	−0.066	−0.085^*	−0.067	−0.073	−0.096^***	−0.094^***	−0.099^***	−0.096^***	−0.092^***	−0.081^***
	(0.045)	(0.047)	(0.049)	(0.048)	(0.045)	(0.045)	(0.022)	(0.022)	(0.022)	(0.023)	(0.023)	(0.025)
${(π_{F} / K)}_{t - 1}$	−0.035	−0.020	0.060	0.228^**	0.531^**	0.853^*	0.002	−0.003	−0.010	0.097^*	0.172^*	0.801
	(0.036)	(0.042)	(0.059)	(0.100)	(0.252)	(0.496)	(0.020)	(0.023)	(0.031)	(0.049)	(0.096)	(0.607)
${(π_{F} / K)}_{t - 1} * D_{n}$		−0.053	−0.254^*	−0.413^***	−0.689^**	−0.950^*		0.173	0.063	−0.191^*	−0.222^*	−0.866
		(0.098)	(0.133)	(0.148)	(0.295)	(0.527)		(0.272)	(0.102)	(0.102)	(0.125)	(0.653)
${(T D / T A)}_{t - 1}$	−0.052^*	−0.055^*	−0.059^**	−0.060^**	−0.066^***	−0.046	−0.055^***	−0.055^***	−0.053^***	−0.055^***	−0.053^***	−0.057^***
	(0.029)	(0.028)	(0.029)	(0.026)	(0.023)	(0.029)	(0.014)	(0.014)	(0.014)	(0.014)	(0.014)	(0.014)
Number of observations	5612	5612	5612	5612	5612	5612	22273	22273	22273	22273	22273	22273
Number of firms	664	664	664	664	664	664	3056	3056	3056	3056	3056	3056
Average number of observations	8.5	8.5	8.5	8.5	8.5	8.5	7.3	7.3	7.3	7.3	7.3	7.3
Number of instruments	31	33	33	33	33	33	31	33	33	33	33	33
p−value Hanses test	0.608	0.652	0.739	0.668	0.776	0.760	0.012	0.023	0.009	0.002	0.006	0.073
p-value A-B test (AR1)	0.000	0.000	0.000	0.000	0.000	0.000	0.000	0.000	0.000	0.000	0.000	0.000
p-value A-B test (AR2)	0.337	0.323	0.632	0.802	0.674	0.488	0.715	0.641	0.647	0.678	0.564	0.243
Time effects	yes	yes	yes	yes	yes	yes	yes	yes	yes	yes	yes	Yes
Wald test for time effects (p-value)	0.002	0.003	0.002	0.000	0.001	0.002	0.017	0.009	0.031	0.036	0.044	0.012
p-value $(π_{F} / K) + {(π_{F} / K)}_{t - 1} * D_{n}$		0.351	0.051	0.012	0.012	0.056		0.518	0.520	0.123	0.195	0.221

	INDEX1 below the median						INDEX1 above the median
	(I)	(II)	(III)	(IV)	(V)	(VI)	(VII)	(VIII)	(IX)	(X)	(XI)	(XII)
	TOT	TA10	TA25	TA50	TA75	TA90	TOT	TA10	TA25	TA50	TA75	TA90
${(I / K)}_{t - 1}$	0.332^***	0.324^***	0.330^***	0. 336^***	0.346^***	0.329^***	0.403^***	0.402^***	0.401^***	0.404^***	0.399^***	0.400^***
	(0.043)	(0.044)	(0.042)	(0.043)	(0.048)	(0.043)	(0.024)	(0.024)	(0.024)	(0.024)	(0.025)	(0.026)
${(S / K)}_{t - 1}$	0.350^***	0.349^***	0.281^***	0.298^***	0.319^***	0.353^***	0.402^***	0.404^***	0.410^***	0.382^***	0.384^***	0.367^***
	(0.092)	(0.094)	(0.102)	(0.103)	(0.096)	(0.088)	(0.048)	(0.048)	(0.049)	(0.050)	(0.050)	(0.057)
${(π / K)}_{t - 1}$	0.013	0.016	0.023	0.022	0.028	0.025	0.027^**	0.026^*	0.026^*	0.024^*	0.027^*	0.028^**
	(0.023)	(0.023)	(0.023)	(0.023)	(0.025)	(0.023)	(0.013)	(0.013)	(0.013)	(0.014)	(0.014)	(0.014)
${(F / K)}_{t - 1}$	−0.053	−0.058	−0.066	−0.085^*	−0.067	−0.073	−0.096^***	−0.094^***	−0.099^***	−0.096^***	−0.092^***	−0.081^***
	(0.045)	(0.047)	(0.049)	(0.048)	(0.045)	(0.045)	(0.022)	(0.022)	(0.022)	(0.023)	(0.023)	(0.025)
${(π_{F} / K)}_{t - 1}$	−0.035	−0.020	0.060	0.228^**	0.531^**	0.853^*	0.002	−0.003	−0.010	0.097^*	0.172^*	0.801
	(0.036)	(0.042)	(0.059)	(0.100)	(0.252)	(0.496)	(0.020)	(0.023)	(0.031)	(0.049)	(0.096)	(0.607)
${(π_{F} / K)}_{t - 1} * D_{n}$		−0.053	−0.254^*	−0.413^***	−0.689^**	−0.950^*		0.173	0.063	−0.191^*	−0.222^*	−0.866
		(0.098)	(0.133)	(0.148)	(0.295)	(0.527)		(0.272)	(0.102)	(0.102)	(0.125)	(0.653)
${(T D / T A)}_{t - 1}$	−0.052^*	−0.055^*	−0.059^**	−0.060^**	−0.066^***	−0.046	−0.055^***	−0.055^***	−0.053^***	−0.055^***	−0.053^***	−0.057^***
	(0.029)	(0.028)	(0.029)	(0.026)	(0.023)	(0.029)	(0.014)	(0.014)	(0.014)	(0.014)	(0.014)	(0.014)
Number of observations	5612	5612	5612	5612	5612	5612	22273	22273	22273	22273	22273	22273
Number of firms	664	664	664	664	664	664	3056	3056	3056	3056	3056	3056
Average number of observations	8.5	8.5	8.5	8.5	8.5	8.5	7.3	7.3	7.3	7.3	7.3	7.3
Number of instruments	31	33	33	33	33	33	31	33	33	33	33	33
p−value Hanses test	0.608	0.652	0.739	0.668	0.776	0.760	0.012	0.023	0.009	0.002	0.006	0.073
p-value A-B test (AR1)	0.000	0.000	0.000	0.000	0.000	0.000	0.000	0.000	0.000	0.000	0.000	0.000
p-value A-B test (AR2)	0.337	0.323	0.632	0.802	0.674	0.488	0.715	0.641	0.647	0.678	0.564	0.243
Time effects	yes	yes	yes	yes	yes	yes	yes	yes	yes	yes	yes	Yes
Wald test for time effects (p-value)	0.002	0.003	0.002	0.000	0.001	0.002	0.017	0.009	0.031	0.036	0.044	0.012
p-value $(π_{F} / K) + {(π_{F} / K)}_{t - 1} * D_{n}$		0.351	0.051	0.012	0.012	0.056		0.518	0.520	0.123	0.195	0.221

Notes: Weighted regressions (w=1/total country obs.), two-step difference-GMM estimations. Specifications I and VII are based on equation (1) and specifications II–VI and VIII–XII based on equation (2). Coefficients for the year dummies are not reported. Robust corrected standard error in parenthesis.

Significant at 10%.

Significant ant 5%.

Significant at 1%.

Source: Authors’ computations based on Worldscope data.

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