Table 5.
Mediating effect of financial performance (IC and GOV).
| Model 1 | Model 2 | Model 3 | Model 4 | ||||
|---|---|---|---|---|---|---|---|
| (GOV) | (ROA) | (Tobin’s Q) | (GOV) | (GOV) | (GOV) | (GOV) | |
| HCE | 0.21 | −0.30 | −0.46 | 0.17 | 0.07 | ||
| (1.21) | (−2.05) ** | (−3.17) *** | (0.97) | (0.41) | |||
| SCE | −0.25 | 0.19 | 0.41 | −0.22 | −0.12 | ||
| (−1.40) | (1.25) | (2.77) *** | (−1.26) | (−0.70) | |||
| CEE | 0.07 | 0.44 | 0.29 | 0.13 | 0.16 | ||
| (1.25) | (8.85) *** | (6.01) *** | (2.02) ** | (2.71) *** | |||
| ROA | −0.06 | −0.13 | |||||
| (−0.98) | (−1.96) ** | ||||||
| TOBIN’S | −0.25 | −0.31 | |||||
| (−3.82) *** | (−4.47) *** | ||||||
| LEV | 0.32 | −0.17 | −0.18 | 0.26 | 0.21 | 0.30 | 0.27 |
| (6.06) *** | (−3.67) *** | (−3.99) *** | (4.96) *** | (4.27) *** | (5.54) *** | (5.06) *** | |
| SIZE | −0.40 | 0.00 | −0.05 | −0.37 | −0.41 | −0.40 | −0.42 |
| (−5.15) *** | (0.01) | (−0.80) | (−6.10) *** | (−6.91) *** | (−5.17) *** | (−5.52) *** | |
| RDI | 0.05 | 0.09 | 0.09 | 0.04 | 0.06 | 0.06 | 0.07 |
| (0.98) | (2.25) ** | (2.24) ** | (0.87) | (1.25) | (1.24) | (1.59) | |
| <Fixed effects> | |||||||
| Country | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Year | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Adjusted R² | 0.49 | 0.63 | 0.64 | 0.49 | 0.51 | 0.50 | 0.52 |
Note: values per column are the standardized coefficients while t-stat values are in parenthesis. ** indicates significance, two-tailed, at the 5% level; *** indicates significance, two-tailed, at the 1% level.