Table 1.
Effects of corruption and other institutional variables on stocks returns for BRIC countries: panel fixed effect models: dependent variable is return on stocks.
| VARIABLES | (1) |
(2) |
(3) |
(4) |
(5) |
|---|---|---|---|---|---|
| CORR Fe | CORRDA Fe | CORRLO Fe | CORRBQ Fe | CORRINS Fe | |
| CORR | −0.00296∗∗ (0.00150) |
−0.0113∗∗∗ (0.00360) |
0.00449 (0.00415) |
−0.00942∗∗∗ (0.00313) |
−0.00641 (0.00716) |
| DA | 0.00165 (0.00125) |
−0.00251 (0.00206) |
0.00150 (0.00125) |
0.00233∗ (0.00126) |
0.000783 (0.00225) |
| LO | 0.00312 (0.00205) |
0.00419∗∗ (0.00209) |
0.00817∗∗ (0.00333) |
0.00385∗ (0.00198) |
0.00978∗∗∗ (0.00353) |
| BQ | 0.00970∗∗∗ (0.00344) |
0.0113∗∗∗ (0.00349) |
0.0110∗∗∗ (0.00349) |
||
| CORRDA | 0.00221∗∗ (0.000869) |
0.000829 (0.00100) |
|||
| CORRLO | −0.00234∗ (0.00122) |
−0.00253∗ (0.00150) |
|||
| CORRBQ | 0.00318∗∗∗ (0.00118) |
0.00409∗∗∗ (0.00129) |
|||
| LEX | −0.00590 (0.00436) |
−0.00547 (0.00435) |
−0.00554 (0.00436) |
−0.00442 (0.00440) |
−0.00344 (0.00441) |
| EM | 0.206∗∗∗ (0.0200) |
0.206∗∗∗ (0.0200) |
0.205∗∗∗ (0.0200) |
0.207∗∗∗ (0.0201) |
0.208∗∗∗ (0.0200) |
| GM | −0.0717∗∗ (0.0282) (0.0205) |
−0.0719∗∗ (0.0281) (0.0205) |
−0.0711∗∗ (0.0281) (0.0230) |
−0.0734∗∗∗ (0.0282) (0.0202) |
−0.0737∗∗∗ (0.0282) (0.0249) |
| Observations | 892 | 892 | 892 | 892 | 892 |
| R-squared | 0.244 | 0.250 | 0.248 | 0.244 | 0.250 |
| Number of Countries | 4 | 4 | 4 | 4 | 4 |
Standard errors in parentheses ∗∗∗p < 0.01, ∗∗p < 0.05, ∗p < 0.1.
Note: Standard errors in parentheses; ∗∗∗p < 0.01, ∗∗p < 0.05, ∗p < 0.1 Test.
Ho: difference in coefficients not systematic chi2(4) = (b-B)’[(V_b-V_B)ˆ(-1)](b-B) = 13.18; Prob > chi2 = 0.0104.
b = consistent under Ho and Ha; obtained from xtreg; B = inconsistent under Ha, efficient under Ho; obtained from xtreg.