Table 4.

Endogeneity tests.

	PSM	First stage of Heckman	Second stage of Heckman
	(1)	(2)	(3)
chairarmy	1.864**		1.907**
	(0.836)		(0.874)
imr			−6.841***
			(1.609)
return_ass	−1.672	0.423	−3.527
	(2.331)	(0.381)	(2.284)
total_lev	0.001	0.002	−0.006
	(0.004)	(0.002)	(0.005)
govcon	0.083	0.201**	−0.677
	(0.487)	(0.089)	(0.514)
indep_director	0.321	−0.230***	1.254***
	(0.327)	(0.048)	(0.412)
owner_first	−0.031	−0.001	−0.020
	(0.036)	(0.003)	(0.036)
owner_three	0.117	−0.005	0.124*
	(0.073)	(0.011)	(0.072)
owner_five	−0.086	0.009	−0.118
	(0.094)	(0.016)	(0.093)
owner_ten	0.020	−0.005	0.046
	(0.045)	(0.008)	(0.044)
sharehold_chair	−0.002	−0.001	0.001
	(0.019)	(0.002)	(0.019)
overseaback_chair	−0.533	−0.204***	0.356
	(0.427)	(0.065)	(0.503)
overseaexp_chair	0.165	0.247***	−0.915**
	(0.355)	(0.057)	(0.461)
overseaedu_chair	0.262	0.132**	−0.324
	(0.351)	(0.055)	(0.392)
femalenum_chair	−0.150	0.057***	−0.365**
	(0.157)	(0.020)	(0.160)
salary_chair	0.000***	0.000***	−0.000
	(0.000)	(0.000)	(0.000)
number_chair	−0.032	−0.004	−0.014
	(0.033)	(0.010)	(0.033)
Constant	16.493***	0.347**	20.087***
	(1.712)	(0.166)	(1.739)
Year FE	Yes	No	Yes
Observation	3626	3670	3626
R-square	0.831		0.833
F-value	66.520***		67.518***

Standard Errors are in the parentheses* p < 0.1, **p < 0.05, ***p < 0.01.