Economic Policy Uncertainty, Managerial Ability, and the Peer Effect of Corporate Investment

Table 8

Regression results using instrumental variables.

	Existence test				Managers’ ability is strong				Managers’ ability is weak
Variables	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)	(9)	(10)	(11)	(12)
	INV1	INV1	INV2	INV2	INV1	INV1	INV2	INV2	INV1	INV1	INV2	INV2
	0.164	0.418			0.170	0.225			0.101	0.257
	(5.05)	(7.04)			(3.45)	(3.08)			(2.49)	(3.70)
		0.044				0.015				0.064
		(2.84)				(0.78)				(3.08)
			0.159	0.394			0.172	0.240			0.093	0.233
							(3.78)
			(5.09)	(7.01)				(3.56)			(2.32)	(3.47)
				0.041				0.021				0.056
				(2.79)				(1.20)				(2.91)
EPU		−0.002		−0.002		−0.002		0.002		−0.003		−0.003
		(−3.06)		(−3.17)		(−1.94)		(2.37)		(−2.87)		(−2.88)
Tangible	−0.130	−0.128	−0.132	−0.130	−0.117	−0.115	−0.114	−0.112	−0.147	−0.146	−0.155	−0.154
	(−12.92)	(−13.07)	(−13.77)	(−13.70)	(−6.68)	(−6.55)	(−6.92)	(−6.79)	(−12.07)	(−12.11)	(−12.94)	(−12.90)
Growth	0.002	0.001	0.002	0.001	−0.001	−0.000	−0.001	−0.000	0.006	0.005	0.004	0.004
	(1.54)	(0.82)	(1.37)	(0.68)	(−0.53)	(−0.21)	(−0.49)	(−0.16)	(2.99)	(2.87)	(2.40)	(2.35)
Lev	−0.014	−0.014	−0.009	−0.010	−0.006	−0.005	−0.002	−0.001	−0.018	−0.019	−0.012	−0.013
	(−1.91)	(−1.86)	(−1.23)	(−1.39)	(−0.45)	(−0.40)	(−0.17)	(−0.09)	(−1.87)	(−1.99)	(−1.26)	(−1.37)
Size	−0.022	−0.021	−0.024	−0.023	−0.018	−0.020	−0.020	−0.022	−0.033	−0.032	−0.033	−0.033
	(−10.19)	(−9.40)	(−11.46)	(−10.66)	(−4.95)	(−5.16)	(−5.85)	(−6.03)	(−13.77)	(−12.57)	(−14.10)	(−13.09)
Ocf	0.021	0.027	0.021	0.024	0.019	0.014	0.018	0.013	0.007	0.008	0.014	0.013
	(2.45)	(3.10)	(2.59)	(2.92)	(1.56)	(1.17)	(1.53)	(1.08)	(0.62)	(0.66)	(1.18)	(1.11)
Cash	0.018	0.016	0.020	0.017	0.021	0.022	0.023	0.024	0.004	0.004	0.006	0.006
	(2.86)	(2.57)	(3.34)	(2.79)	(2.00)	(2.12)	(2.36)	(2.54)	(0.52)	(0.54)	(0.76)	(0.80)
Tobin Q	0.002	0.002	0.003	0.003	0.004	0.004	0.004	0.004	0.000	0.000	0.001	0.001
	(4.01)	(4.51)	(4.92)	(5.16)	(3.91)	(4.23)	(4.48)	(4.85)	(0.61)	(0.67)	(1.53)	(1.69)
Roa	0.108	0.105	0.089	0.087	0.087	0.090	0.073	0.077	0.125	0.124	0.104	0.105
	(9.84)	(9.83)	(8.65)	(8.52)	(5.29)	(5.47)	(4.61)	(4.81)	(8.43)	(8.31)	(7.66)	(7.59)
First	0.039	0.035	0.032	0.033	0.064	0.068	0.054	0.058	0.009	0.008	0.004	0.005
	(2.82)	(2.49)	(2.46)	(2.45)	(2.56)	(2.67)	(2.30)	(2.42)	(0.57)	(0.50)	(0.27)	(0.29)
Duality	0.004	0.004	0.004	0.004	0.007	0.007	0.006	0.006	0.001	0.001	0.001	0.001
	(2.24)	(2.25)	(2.33)	(2.30)	(2.36)	(2.39)	(2.04)	(2.07)	(0.41)	(0.40)	(0.43)	(0.44)
Constant	0.542	0.498	0.574	0.542	0.423	0.455	0.465	0.498	0.803	0.774	0.819	0.798
	(10.56)	(9.75)	(11.83)	(10.99)	(4.95)	(5.12)	(5.84)	(5.98)	(14.51)	(13.32)	(14.87)	(13.81)
Industry	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Year	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
N	15,541	15,941	16,522	16,523	7,397	7,397	7,950	7,950	8,144	8,144	8,572	8,572
R-squared	0.153	0.158	0.151	0.156	0.111	0.113	0.112	0.114	0.210	0.212	0.203	0.204

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.