ΔLEVt

Good/Poor Governance

All Firms

OLS

FE

IV

OLS

FE

IV

ΔPRFTt−1

0.0406***

0.0293***

0.0424***

0.014***

0.01***

0.01***

(0.0050)

(0.0050)

(0.0050)

(0.0010)

(0.0010)

(0.0010)

i_PRFT

−0.0820*

−0.0385*

−0.077**

−0.105***

−0.04**

−0.077**

(0.0440)

(0.0250)

(0.0400)

(0.0250)

(0.0250)

(0.0370)

ΔCOLt−1

0.164***

0.119***

0.163***

0.0249***

0.00824***

0.00891***

(0.0270)

(0.0280)

(0.0270)

(0.0020)

(0.0020)

(0.0030)

i_COL

−0.161***

−0.111***

−0.176***

−0.0440***

−0.0302**

−0.0677***

(0.0290)

(0.0300)

(0.0300)

(0.0120)

(0.0110)

(0.0130)

ΔSIZEt−1

0.0712***

0.200***

0.0792***

0.0475***

0.111***

0.0496***

(0.0240)

(0.0290)

(0.0240)

(0.0070)

(0.0090)

(0.0070)

i_SIZE

−0.0297

−0.0235

0.0046

−0.00906

−0.00071

0.0126**

(0.0210)

(0.0290)

(0.0220)

(0.0060)

(0.0040)

(0.0060)

Dummy

−0.0891

0

0.258**

−0.00592

−0.0036

−0.00434

(0.0660)

0.0000

(0.1090)

(0.0180)

(0.0150)

(0.0190)

ΔLTSt−1

−0.0907***

−0.149***

−0.0976***

−0.0302***

−0.0454***

−0.0234***

(0.0300)

(0.0330)

(0.0300)

(0.0080)

(0.0110)

(0.0080)

ΔMTBt−1

−6.761***

−2.798

−5.542**

−14.69***

−6.460***

−15.05***

(2.1650)

(2.1140)

(2.1960)

(0.7010)

(0.6490)

(0.7230)

ΔCAPEXt−1

−0.245***

0.265***

−0.221**

−0.0710**

0.0295

−0.0629**

(0.0890)

(0.0850)

(0.0900)

(0.0300)

(0.0290)

(0.0310)

ΔINTANGt−1

2.601***

1.353***

2.930***

1.891***

1.348***

1.117***

(0.2960)

(0.3060)

(0.4410)

(0.1140)

(0.1090)

(0.1300)

ΔCFt−1

−5.846***

−6.200***

−5.745***

−6.146***

−2.302***

−4.646***

(2.0360)

(1.8680)

(2.0370)

(0.6630)

(0.6170)

(0.6900)

ΔRISKt−1

−0.00283

−0.0137

0.000634

−0.0123***

−0.00511**

−0.0158***

(0.0120)

(0.0110)

(0.0120)

(0.0020)

(0.0020)

(0.0020)

ΔMEDt

0.109***

0.0843***

0.106***

0.105***

0.102***

0.0990***

(0.0080)

(0.0070)

(0.0080)

(0.0030)

(0.0020)

(0.0030)

ΔNWCt−1

−25.32***

−11.86***

−24.30***

−2.705***

−1.542***

−3.028***