Economic Policy Uncertainty, Managerial Ability, and the Peer Effect of Corporate Investment
Table 4
Economic policy uncertainty, managerial ability, and peer effect of firm investment.
Managers’ ability is strong (>median)
Managers’ ability is weak (≤median)
Variables
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
INV1
INV1
INV2
INV2
INV1
INV1
INV2
INV2
0.249
0.330
0.284
0.417
(4.77)
(3.79)
(5.00)
(4.91)
0.012
0.066
(0.53)
(2.77)
0.232
0.339
0.278
0.388
(4.59)
(4.09)
(5.07)
(4.83)
0.020
0.062
(0.90)
(2.77)
EPU
−0.001
−0.002
−0.003
−0.003
(−1.45)
(−1.87)
(−2.60)
(−2.73)
Tangible
−0.115
−0.114
−0.114
−0.112
−0.148
−0.147
−0.153
−0.151
(−6.78)
(−6.67)
(−6.99)
(−6.86)
(−12.16)
(−12.09)
(−12.69)
(−12.54)
Growth
−0.002
−0.001
−0.002
−0.001
0.004
0.004
0.004
0.003
(−0.78)
(−0.53)
(−0.95)
(−0.64)
(2.15)
(2.02)
(1.96)
(1.87)
Lev
−0.006
−0.005
−0.002
−0.001
−0.016
−0.017
−0.013
−0.015
(−0.50)
(−0.45)
(−0.20)
(−0.13)
(−1.65)
(−1.81)
(−1.43)
(−1.56)
Size
−0.016
−0.018
−0.019
−0.021
−0.031
−0.030
−0.032
−0.031
(−4.84)
(−5.06)
(−5.79)
(−6.00)
(−13.14)
(−12.08)
(−13.62)
(−12.65)
Ocf
0.024
0.020
0.022
0.017
0.014
0.016
0.019
0.020
(2.03)
(1.68)
(1.88)
(1.46)
(1.20)
(1.30)
(1.64)
(1.68)
Cash
0.021
0.022
0.020
0.021
−0.000
−0.001
0.002
0.001
(2.08)
(2.18)
(2.06)
(2.20)
(−0.05)
(−0.10)
(0.21)
(0.19)
Tobin Q
0.004
0.004
0.004
0.004
0.001
0.001
0.001
0.001
(4.06)
(4.31)
(4.41)
(4.69)
(0.98)
(0.98)
(1.68)
(1.69)
Roa
0.083
0.086
0.069
0.073
0.122
0.120
0.100
0.100
(5.08)
(5.26)
(4.39)
(4.61)
(8.74)
(8.53)
(7.46)
(7.33)
First
0.061
0.065
0.054
0.058
0.002
0.001
0.002
0.002
(2.49)
(2.60)
(2.29)
(2.44)
(0.13)
(0.07)
(0.13)
(0.13)
Duality
0.007
0.007
0.006
0.006
0.001
0.001
0.001
0.001
(2.26)
(2.30)
(2.05)
(2.08)
(0.51)
(0.50)
(0.38)
(0.40)
Constant
0.391
0.421
0.443
0.478
0.758
0.725
0.779
0.753
(4.82)
(5.02)
(5.75)
(5.94)
(13.74)
(12.65)
(14.25)
(13.22)
Industry
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Year
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
N
7,617
7,617
7,951
7,951
8,324
8,324
8,572
8,572
R-squared
0.115
0.117
0.115
0.117
0.211
0.213
0.206
0.207
Note. The values in the table are regression coefficients of variables, and the values in parentheses are T values of regression coefficients. ∗, ∗∗, and ∗∗∗mean significant at the significance level of 10%, 5%, and 1%, respectively.
