Table 5. Regression analysis of insurance companies’ local equity preferences and performances.
| Variables | ROA1 j,t | ROA3 j,t | BHR1 j,t | BHR3 j,t |
|---|---|---|---|---|
| (1) | (2) | (3) | (4) | |
| Local Shareholder j,t | -0.0007 | 0.0010 | -0.0037 | -0.0077 |
| (-0.25) | (0.32) | (-0.19) | (-0.44) | |
| SOE j,t | -0.0077*** | -0.0091*** | -0.0608*** | -0.0468*** |
| (-3.04) | (-3.10) | (-4.25) | (-2.84) | |
| Size j,t | 0.0062*** | 0.0050*** | -0.0192*** | -0.0372*** |
| (4.69) | (3.34) | (-2.91) | (-4.68) | |
| Leverage j,t | -0.1149*** | -0.1165*** | 0.1869*** | -0.0049 |
| (-12.35) | (-10.91) | (3.85) | (-0.09) | |
| Top1 j,t | 0.0286*** | 0.0224** | 0.0588 | 0.0038 |
| (3.33) | (2.37) | (1.41) | (0.08) | |
| ROA j,t | - | - | 0.7202*** | 0.1547 |
| - | - | (3.75) | (0.74) | |
| Growth j,t | 0.0080*** | 0.0068*** | 0.0005 | -0.0037 |
| (4.52) | (3.34) | (0.03) | (-0.19) | |
| Dividend ratio j,t | -0.0042 | -0.0053 | -0.0128 | 0.0185 |
| (-1.20) | (-1.30) | (-0.55) | (0.77) | |
| Free float j,t | 0.0128*** | 0.0196*** | -0.0718** | -0.0207 |
| (2.61) | (3.85) | (-1.98) | (-0.65) | |
| Risk taking j,t | -0.1189** | -0.0723 | -0.7483** | -0.1148 |
| (-2.37) | (-1.55) | (-2.54) | (-0.47) | |
| EM j,t | 0.0210* | 0.0170 | 0.0572 | 0.0933 |
| (1.77) | (1.39) | (0.61) | (1.25) | |
| Market index j,t | 0.0110 | 0.0096 | 0.0963* | 0.1165** |
| (1.15) | (0.83) | (1.85) | (2.30) | |
| GDP j,t | 0.0001 | 0.0019 | -0.0004 | 0.0066 |
| (0.04) | (0.60) | (-0.03) | (0.44) | |
| Per capita GDP j,t | -0.0089* | -0.0077 | -0.0742*** | -0.0648*** |
| (-1.89) | (-1.43) | (-3.01) | (-2.84) | |
| constant | -0.0045 | -0.0047 | 2.5381*** | 1.4991*** |
| (-0.11) | (-0.10) | (9.78) | (6.20) | |
| region- (city level), industry-, and year- FE | √ | √ | √ | √ |
| observations | 5,404 | 3,749 | 5,390 | 3,733 |
| Pseudo.R2/R2 | 0.2369 | 0.2664 | 0.5644 | 0.3436 |
Columns 1 and 2 are the regression results for Eq (2) when ROA1 and ROA3 proxy the operating performance, respectively; Columns 3 and 4 are the regression results for Eq (2) when BHR1 and BHR3 are used to measure the performances of stock return, respectively. From various forms of measures to proxy perf, which is described and defined in Section 3.2, in Eq (2), we display that the coefficient estimates of Local are not statistically significant. The numbers in parentheses are t -statistics and standard errors clustered at the firm and year level. * p<0.1; ** p<0.05; *** p<0.01.