ΔLEV_t

1 - 5 (Good Governance Firms)

14 - 18 (Poor Governance Firms)

OLS

FE

IV

OLS

FE

IV

ΔPRFT_t−1

0.0341***

0.0291***

0.0301***

−0.076***

−0.01**

−0.03***

(0.0050)

(0.0050)

(0.0070)

(0.0310)

(0.0044)

(0.0080)

ΔCOL_t−1

0.132***

0.132***

0.102***

−0.011***

−0.003***

−0.011***

(0.0310)

(0.0290)

(0.0340)

(0.0040)

(0.0005)

(0.0050)

ΔSIZE_t−1

0.0531*

0.180***

0.0624**

−0.078***

−0.035***

−0.072***

(0.0280)

(0.0330)

(0.0300)

(0.0170)

(0.0370)

(0.0170)

ΔLTS_t−1

−0.110***

−0.111***

−0.114***

−0.266***

−0.284***

−0.307***

(0.0360)

(0.0380)

(0.0380)

(0.0730)

(0.0790)

(0.0720)

ΔMTB_t−1

−5.661**

−1.547

−3.987

−16.06*

−16.81**

−19.63**

(2.4400)

(2.2750)

(2.6330)

(8.4600)

(7.8820)

(8.3940)

ΔCAPEX_t−1

−0.159

0.318***

0.133

0.039

0.163

0.009

(0.1030)

(0.0980)

(0.1100)

(0.1830)

(0.1780)

(0.1810)

ΔINTANG_t−1

2.389***

0.775**

2.517***

2.066***

3.426***

2.105***

(0.3420)

(0.3460)

(0.5880)

(0.7830)

(0.7600)

(0.7780)

ΔCF_t−1

−4.226*

−5.821***

−2.312

−12.46

4.519

−4.317

(2.3220)

(1.9950)

(2.4950)

(9.1540)

(9.0140)

(9.1950)

ΔRISK_t−1

0.015

−0.004

0.016

−0.0557**

−0.0323

−0.0607**

(0.0140)

(0.0130)

(0.0140)

(0.0280)

(0.0270)

(0.0270)

ΔMED_t

0.126***

0.0905***

0.126***

0.0824***

0.0737***

0.0802***

(0.0110)

(0.0090)

(0.0120)

(0.0100)

(0.0090)

(0.0100)

ΔNWC_t−1

−26.30***

−8.458***

−23.92***

−16.28**

−14.93**

−11.25*

(3.2180)

(3.0360)

(3.5030)

(6.7660)

(6.5950)

(6.8040)

G-Index

.

.

−0.006

.

.

−0.0279***

.

.

(0.0090)

.

.

(0.0100)

Constant

1.063

0.00626

0.818

−0.154

−0.169

0.014

Industry Dummy

Included

Included

Included

Included

Included

Included

Fixed Effects

.

Yes

.

.

Yes

.

R²

0.661

0.231

0.623

0.717

0.289

0.729

N

1402

1402

1402

653

653

653