Table 6. Open in new tab Estimation...

	INDEX2 below the median	INDEX2 above the median
${(I / K)}_{t - 1}$	0.336^***	0.327^***	0.334^***	0.356^***	0.350^***	0.342^***	0.424^***	0.423^***	0.437^***	0.421^***	0.387^***	0.393^***
	(0.043)	(0.042)	(0.042)	(0.041)	(0.044)	(0.043)	(0.026)	(0.026)	(0.026)	(0.027)	(0.035)	(0.043)
${(S / K)}_{t - 1}$	0.439^***	0.443^***	0.413^***	0.386^***	0.419^***	0.416^***	0.330^***	0.338^***	0.357^***	0.346^***	0.305^***	0.312^***
	(0.085)	(0.086)	(0.090)	(0.092)	(0.086)	v0.083)	(0.050)	(0.049)	(0.050)	(0.050)	(0.052)	(0.054)
${(π / K)}_{t - 1}$	−0.003	−0.000	0.001	0.007	0.001	−0.001	0.042^***	0.040^**	0.041^***	0.038^**	0.037^***	0.049^***
	(0.021)	(0.021)	(0.021)	(0.021)	(0.021)	(0.021)	(0.015)	(0.016)	(0.015)	(0.015)	(0.014)	(0.017)
${(F / K)}_{t - 1}$	−0.072	−0.077^*	−0.078^*	−0.088^**	−0.064	−0.066	−0.065^**	−0.063^**	−0.070^***	−0.065^**	−0.070^***	−0.070^**
	(0.045)	(0.046)	(0.046)	(0.044)	(0.042)	(0.041)	(0.027)	(0.027)	(0.027)	(0.027)	(0.026)	(0.032)
${(π_{F} / K)}_{t - 1}$	−0.001	0.005	0.044	0.234^***	0.250^**	0.396^*	−0.039^*	−0.048^*	−0.035	0.060	0.405^**	1.283
	(0.032)	(0.038)	(0.048)	(0.077)	(0.123)	(0.228)	(0.021)	(0.025)	(0.028)	(0.059)	(0.158)	(1.081)
${(π_{F} / K)}_{t - 1} * D_{n}$		−0.022	−0.131	−0.379^***	−0.303^**	−0.425^*		0.295	0.006	−0.202^*	−0.577^***	−1.420
		(0.107)	(0.111)	(0.120)	(0.151)	(0.247)		(0.391)	(0.091)	(0.111)	(0.198)	(1.162)
${(T D / T A)}_{t - 1}$	−0.040	−0.043	−0.044	−0.049^*	−0.049^*	−0.040	−0.068^***	−0.068^***	−0.071^***	−0.074^***	−0.060^***	−0.062^***
	(0.028)	(0.027)	(0.028)	(0.026)	(0.026)	(0.028)	(0.014)	(0.014)	(0.013)	(0.013)	(0.013)	(0.014)
Number of observations	4782	4782	4782	4782	4782	4782	23103	23103	23103	23103	23103	23103
Number of firms	621	621	621	621	621	621	3099	3099	3099	3099	3099	3099
Average number of observations	7.7	7.7	7.7	7.7	7.7	7.7	7.5	7.5	7.5	7.5	7.5	7.5
Number of instruments	31	33	33	33	33	33	31	33	33	33	33	33
p-value Hanses test	0.409	0.462	0.503	0.412	0.344	0.493	0.229	0.208	0.051	0.026	0.060	0.199
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)	0.650	0.634	0.562	0.335	0.445	0.448	0.208	0.223	0.095	0.121	0.141	0.225
Time effects	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Wald test for time effects (p-value)	0.001	0.002	0.002	0.000	0.004	0.002	0.002	0.001	0.012	0.026	0.014	0.002
p-value $(π_{F} / K) + {(π_{F} / K)}_{t - 1} * D_{n}$		0.852	0.300	0.024	0.256	0.462		0.512	0.692	0.021	0.001	0.110

INDEX2 below the median

INDEX2 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}

0.336^***

0.327^***

0.334^***

0.356^***

0.350^***

0.342^***

0.424^***

0.423^***

0.437^***

0.421^***

0.387^***

0.393^***

(0.043)

(0.042)

(0.041)

(0.044)

(0.043)

(0.026)

(0.027)

(0.035)

(0.043)

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

0.439^***

0.443^***

0.413^***

0.386^***

0.419^***

0.416^***

0.330^***

0.338^***

0.357^***

0.346^***

0.305^***

0.312^***

(0.085)

(0.086)

(0.090)

(0.092)

(0.086)

v0.083)

(0.050)

(0.049)

(0.050)

(0.052)

(0.054)

{(π / K)}_{t - 1}

−0.003

−0.000

0.001

0.007

0.001

−0.001

0.042^***

0.040^**

0.041^***

0.038^**

0.037^***

0.049^***

(0.021)

(0.015)

(0.016)

(0.015)

(0.014)

(0.017)

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

−0.072

−0.077^*

−0.078^*

−0.088^**

−0.064

−0.066

−0.065^**

−0.063^**

−0.070^***

−0.065^**

−0.070^***

−0.070^**

(0.045)

(0.046)

(0.044)

(0.042)

(0.041)

(0.027)

(0.026)

(0.032)

{(π_{F} / K)}_{t - 1}

−0.001

0.005

0.044

0.234^***

0.250^**

0.396^*

−0.039^*

−0.048^*

−0.035

0.060

0.405^**

1.283

(0.032)

(0.038)

(0.048)

(0.077)

(0.123)

(0.228)

(0.021)

(0.025)

(0.028)

(0.059)

(0.158)

(1.081)

{(π_{F} / K)}_{t - 1} * D_{n}

−0.022

−0.131

−0.379^***

−0.303^**

−0.425^*

0.295

0.006

−0.202^*

−0.577^***

−1.420

(0.107)

(0.111)

(0.120)

(0.151)

(0.247)

(0.391)

(0.091)

(0.111)

(0.198)

(1.162)

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

−0.040

−0.043

−0.044

−0.049^*

−0.040

−0.068^***

−0.071^***

−0.074^***

−0.060^***

−0.062^***

(0.028)

(0.027)

(0.028)

(0.026)

(0.028)

(0.014)

(0.013)

(0.014)

Number of observations

4782

23103

Number of firms

621

3099

Average number of observations

7.7

7.5

Number of instruments

p-value Hanses test

0.409

0.462

0.503

0.412

0.344

0.493

0.229

0.208

0.051

0.026

0.060

0.199

p-value A-B test (AR1)

0.000

p-value A-B test (AR2)

0.650

0.634

0.562

0.335

0.445

0.448

0.208

0.223

0.095

0.121

0.141

0.225

Time effects

Yes

Wald test for time effects (p-value)

0.001

0.002

0.000

0.004

0.002

0.001

0.012

0.026

0.014

0.002

p-value

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

0.852

0.300

0.024

0.256

0.462

0.512

0.692

0.021

0.001

0.110

	INDEX2 below the median	INDEX2 above the median
${(I / K)}_{t - 1}$	0.336^***	0.327^***	0.334^***	0.356^***	0.350^***	0.342^***	0.424^***	0.423^***	0.437^***	0.421^***	0.387^***	0.393^***
	(0.043)	(0.042)	(0.042)	(0.041)	(0.044)	(0.043)	(0.026)	(0.026)	(0.026)	(0.027)	(0.035)	(0.043)
${(S / K)}_{t - 1}$	0.439^***	0.443^***	0.413^***	0.386^***	0.419^***	0.416^***	0.330^***	0.338^***	0.357^***	0.346^***	0.305^***	0.312^***
	(0.085)	(0.086)	(0.090)	(0.092)	(0.086)	v0.083)	(0.050)	(0.049)	(0.050)	(0.050)	(0.052)	(0.054)
${(π / K)}_{t - 1}$	−0.003	−0.000	0.001	0.007	0.001	−0.001	0.042^***	0.040^**	0.041^***	0.038^**	0.037^***	0.049^***
	(0.021)	(0.021)	(0.021)	(0.021)	(0.021)	(0.021)	(0.015)	(0.016)	(0.015)	(0.015)	(0.014)	(0.017)
${(F / K)}_{t - 1}$	−0.072	−0.077^*	−0.078^*	−0.088^**	−0.064	−0.066	−0.065^**	−0.063^**	−0.070^***	−0.065^**	−0.070^***	−0.070^**
	(0.045)	(0.046)	(0.046)	(0.044)	(0.042)	(0.041)	(0.027)	(0.027)	(0.027)	(0.027)	(0.026)	(0.032)
${(π_{F} / K)}_{t - 1}$	−0.001	0.005	0.044	0.234^***	0.250^**	0.396^*	−0.039^*	−0.048^*	−0.035	0.060	0.405^**	1.283
	(0.032)	(0.038)	(0.048)	(0.077)	(0.123)	(0.228)	(0.021)	(0.025)	(0.028)	(0.059)	(0.158)	(1.081)
${(π_{F} / K)}_{t - 1} * D_{n}$		−0.022	−0.131	−0.379^***	−0.303^**	−0.425^*		0.295	0.006	−0.202^*	−0.577^***	−1.420
		(0.107)	(0.111)	(0.120)	(0.151)	(0.247)		(0.391)	(0.091)	(0.111)	(0.198)	(1.162)
${(T D / T A)}_{t - 1}$	−0.040	−0.043	−0.044	−0.049^*	−0.049^*	−0.040	−0.068^***	−0.068^***	−0.071^***	−0.074^***	−0.060^***	−0.062^***
	(0.028)	(0.027)	(0.028)	(0.026)	(0.026)	(0.028)	(0.014)	(0.014)	(0.013)	(0.013)	(0.013)	(0.014)
Number of observations	4782	4782	4782	4782	4782	4782	23103	23103	23103	23103	23103	23103
Number of firms	621	621	621	621	621	621	3099	3099	3099	3099	3099	3099
Average number of observations	7.7	7.7	7.7	7.7	7.7	7.7	7.5	7.5	7.5	7.5	7.5	7.5
Number of instruments	31	33	33	33	33	33	31	33	33	33	33	33
p-value Hanses test	0.409	0.462	0.503	0.412	0.344	0.493	0.229	0.208	0.051	0.026	0.060	0.199
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)	0.650	0.634	0.562	0.335	0.445	0.448	0.208	0.223	0.095	0.121	0.141	0.225
Time effects	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Wald test for time effects (p-value)	0.001	0.002	0.002	0.000	0.004	0.002	0.002	0.001	0.012	0.026	0.014	0.002
p-value $(π_{F} / K) + {(π_{F} / K)}_{t - 1} * D_{n}$		0.852	0.300	0.024	0.256	0.462		0.512	0.692	0.021	0.001	0.110

INDEX2 below the median

INDEX2 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}

0.336^***

0.327^***

0.334^***

0.356^***

0.350^***

0.342^***

0.424^***

0.423^***

0.437^***

0.421^***

0.387^***

0.393^***

(0.043)

(0.042)

(0.041)

(0.044)

(0.043)

(0.026)

(0.027)

(0.035)

(0.043)

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

0.439^***

0.443^***

0.413^***

0.386^***

0.419^***

0.416^***

0.330^***

0.338^***

0.357^***

0.346^***

0.305^***

0.312^***

(0.085)

(0.086)

(0.090)

(0.092)

(0.086)

v0.083)

(0.050)

(0.049)

(0.050)

(0.052)

(0.054)

{(π / K)}_{t - 1}

−0.003

−0.000

0.001

0.007

0.001

−0.001

0.042^***

0.040^**

0.041^***

0.038^**

0.037^***

0.049^***

(0.021)

(0.015)

(0.016)

(0.015)

(0.014)

(0.017)

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

−0.072

−0.077^*

−0.078^*

−0.088^**

−0.064

−0.066

−0.065^**

−0.063^**

−0.070^***

−0.065^**

−0.070^***

−0.070^**

(0.045)

(0.046)

(0.044)

(0.042)

(0.041)

(0.027)

(0.026)

(0.032)

{(π_{F} / K)}_{t - 1}

−0.001

0.005

0.044

0.234^***

0.250^**

0.396^*

−0.039^*

−0.048^*

−0.035

0.060

0.405^**

1.283

(0.032)

(0.038)

(0.048)

(0.077)

(0.123)

(0.228)

(0.021)

(0.025)

(0.028)

(0.059)

(0.158)

(1.081)

{(π_{F} / K)}_{t - 1} * D_{n}

−0.022

−0.131

−0.379^***

−0.303^**

−0.425^*

0.295

0.006

−0.202^*

−0.577^***

−1.420

(0.107)

(0.111)

(0.120)

(0.151)

(0.247)

(0.391)

(0.091)

(0.111)

(0.198)

(1.162)

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

−0.040

−0.043

−0.044

−0.049^*

−0.040

−0.068^***

−0.071^***

−0.074^***

−0.060^***

−0.062^***

(0.028)

(0.027)

(0.028)

(0.026)

(0.028)

(0.014)

(0.013)

(0.014)

Number of observations

4782

23103

Number of firms

621

3099

Average number of observations

7.7

7.5

Number of instruments

p-value Hanses test

0.409

0.462

0.503

0.412

0.344

0.493

0.229

0.208

0.051

0.026

0.060

0.199

p-value A-B test (AR1)

0.000

p-value A-B test (AR2)

0.650

0.634

0.562

0.335

0.445

0.448

0.208

0.223

0.095

0.121

0.141

0.225

Time effects

Yes

Wald test for time effects (p-value)

0.001

0.002

0.000

0.004

0.002

0.001

0.012

0.026

0.014

0.002

p-value

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

0.852

0.300

0.024

0.256

0.462

0.512

0.692

0.021

0.001

0.110

Table 6.

Open in new tab

Estimation results, full sample, 1995–2015, INDEX2 index median split, dependent variable (I/K)_t

	INDEX2 below the median						INDEX2 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
${(I / K)}_{t - 1}$	0.336^***	0.327^***	0.334^***	0.356^***	0.350^***	0.342^***	0.424^***	0.423^***	0.437^***	0.421^***	0.387^***	0.393^***
	(0.043)	(0.042)	(0.042)	(0.041)	(0.044)	(0.043)	(0.026)	(0.026)	(0.026)	(0.027)	(0.035)	(0.043)
${(S / K)}_{t - 1}$	0.439^***	0.443^***	0.413^***	0.386^***	0.419^***	0.416^***	0.330^***	0.338^***	0.357^***	0.346^***	0.305^***	0.312^***
	(0.085)	(0.086)	(0.090)	(0.092)	(0.086)	v0.083)	(0.050)	(0.049)	(0.050)	(0.050)	(0.052)	(0.054)
${(π / K)}_{t - 1}$	−0.003	−0.000	0.001	0.007	0.001	−0.001	0.042^***	0.040^**	0.041^***	0.038^**	0.037^***	0.049^***
	(0.021)	(0.021)	(0.021)	(0.021)	(0.021)	(0.021)	(0.015)	(0.016)	(0.015)	(0.015)	(0.014)	(0.017)
${(F / K)}_{t - 1}$	−0.072	−0.077^*	−0.078^*	−0.088^**	−0.064	−0.066	−0.065^**	−0.063^**	−0.070^***	−0.065^**	−0.070^***	−0.070^**
	(0.045)	(0.046)	(0.046)	(0.044)	(0.042)	(0.041)	(0.027)	(0.027)	(0.027)	(0.027)	(0.026)	(0.032)
${(π_{F} / K)}_{t - 1}$	−0.001	0.005	0.044	0.234^***	0.250^**	0.396^*	−0.039^*	−0.048^*	−0.035	0.060	0.405^**	1.283
	(0.032)	(0.038)	(0.048)	(0.077)	(0.123)	(0.228)	(0.021)	(0.025)	(0.028)	(0.059)	(0.158)	(1.081)
${(π_{F} / K)}_{t - 1} * D_{n}$		−0.022	−0.131	−0.379^***	−0.303^**	−0.425^*		0.295	0.006	−0.202^*	−0.577^***	−1.420
		(0.107)	(0.111)	(0.120)	(0.151)	(0.247)		(0.391)	(0.091)	(0.111)	(0.198)	(1.162)
${(T D / T A)}_{t - 1}$	−0.040	−0.043	−0.044	−0.049^*	−0.049^*	−0.040	−0.068^***	−0.068^***	−0.071^***	−0.074^***	−0.060^***	−0.062^***
	(0.028)	(0.027)	(0.028)	(0.026)	(0.026)	(0.028)	(0.014)	(0.014)	(0.013)	(0.013)	(0.013)	(0.014)
Number of observations	4782	4782	4782	4782	4782	4782	23103	23103	23103	23103	23103	23103
Number of firms	621	621	621	621	621	621	3099	3099	3099	3099	3099	3099
Average number of observations	7.7	7.7	7.7	7.7	7.7	7.7	7.5	7.5	7.5	7.5	7.5	7.5
Number of instruments	31	33	33	33	33	33	31	33	33	33	33	33
p-value Hanses test	0.409	0.462	0.503	0.412	0.344	0.493	0.229	0.208	0.051	0.026	0.060	0.199
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)	0.650	0.634	0.562	0.335	0.445	0.448	0.208	0.223	0.095	0.121	0.141	0.225
Time effects	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Wald test for time effects (p-value)	0.001	0.002	0.002	0.000	0.004	0.002	0.002	0.001	0.012	0.026	0.014	0.002
p-value $(π_{F} / K) + {(π_{F} / K)}_{t - 1} * D_{n}$		0.852	0.300	0.024	0.256	0.462		0.512	0.692	0.021	0.001	0.110

	INDEX2 below the median						INDEX2 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
${(I / K)}_{t - 1}$	0.336^***	0.327^***	0.334^***	0.356^***	0.350^***	0.342^***	0.424^***	0.423^***	0.437^***	0.421^***	0.387^***	0.393^***
	(0.043)	(0.042)	(0.042)	(0.041)	(0.044)	(0.043)	(0.026)	(0.026)	(0.026)	(0.027)	(0.035)	(0.043)
${(S / K)}_{t - 1}$	0.439^***	0.443^***	0.413^***	0.386^***	0.419^***	0.416^***	0.330^***	0.338^***	0.357^***	0.346^***	0.305^***	0.312^***
	(0.085)	(0.086)	(0.090)	(0.092)	(0.086)	v0.083)	(0.050)	(0.049)	(0.050)	(0.050)	(0.052)	(0.054)
${(π / K)}_{t - 1}$	−0.003	−0.000	0.001	0.007	0.001	−0.001	0.042^***	0.040^**	0.041^***	0.038^**	0.037^***	0.049^***
	(0.021)	(0.021)	(0.021)	(0.021)	(0.021)	(0.021)	(0.015)	(0.016)	(0.015)	(0.015)	(0.014)	(0.017)
${(F / K)}_{t - 1}$	−0.072	−0.077^*	−0.078^*	−0.088^**	−0.064	−0.066	−0.065^**	−0.063^**	−0.070^***	−0.065^**	−0.070^***	−0.070^**
	(0.045)	(0.046)	(0.046)	(0.044)	(0.042)	(0.041)	(0.027)	(0.027)	(0.027)	(0.027)	(0.026)	(0.032)
${(π_{F} / K)}_{t - 1}$	−0.001	0.005	0.044	0.234^***	0.250^**	0.396^*	−0.039^*	−0.048^*	−0.035	0.060	0.405^**	1.283
	(0.032)	(0.038)	(0.048)	(0.077)	(0.123)	(0.228)	(0.021)	(0.025)	(0.028)	(0.059)	(0.158)	(1.081)
${(π_{F} / K)}_{t - 1} * D_{n}$		−0.022	−0.131	−0.379^***	−0.303^**	−0.425^*		0.295	0.006	−0.202^*	−0.577^***	−1.420
		(0.107)	(0.111)	(0.120)	(0.151)	(0.247)		(0.391)	(0.091)	(0.111)	(0.198)	(1.162)
${(T D / T A)}_{t - 1}$	−0.040	−0.043	−0.044	−0.049^*	−0.049^*	−0.040	−0.068^***	−0.068^***	−0.071^***	−0.074^***	−0.060^***	−0.062^***
	(0.028)	(0.027)	(0.028)	(0.026)	(0.026)	(0.028)	(0.014)	(0.014)	(0.013)	(0.013)	(0.013)	(0.014)
Number of observations	4782	4782	4782	4782	4782	4782	23103	23103	23103	23103	23103	23103
Number of firms	621	621	621	621	621	621	3099	3099	3099	3099	3099	3099
Average number of observations	7.7	7.7	7.7	7.7	7.7	7.7	7.5	7.5	7.5	7.5	7.5	7.5
Number of instruments	31	33	33	33	33	33	31	33	33	33	33	33
p-value Hanses test	0.409	0.462	0.503	0.412	0.344	0.493	0.229	0.208	0.051	0.026	0.060	0.199
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)	0.650	0.634	0.562	0.335	0.445	0.448	0.208	0.223	0.095	0.121	0.141	0.225
Time effects	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Wald test for time effects (p-value)	0.001	0.002	0.002	0.000	0.004	0.002	0.002	0.001	0.012	0.026	0.014	0.002
p-value $(π_{F} / K) + {(π_{F} / K)}_{t - 1} * D_{n}$		0.852	0.300	0.024	0.256	0.462		0.512	0.692	0.021	0.001	0.110

Notes: Weighted regressions (w=1/total country obs.), two-step difference-GMM estimations. Specifications I and VII 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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