Jones (1991) model

Kothari et al. (2005) performance-matched model

Equation (1)

Equation (2)

Equation (3)

Equation (1)

Equation (2)

Equation (3)

VC

−0.010

−0.011

(T statistic)

(−1.22)

(−1.37)

SINGLE

−0.021**

−0.022**

(T statistic)

(−2.34)

(−2.50)

UNION

0.001

−0.001

−0.001

−0.002

(T statistic)

(0.02)

(−0.05)

(−0.12)

(−0.16)

AUDIT

0.001

0.001

0.002

0.001

0.001

−0.002

(T statistic)

(0.11)

(0.06)

(0.22)

(0.01)

(−0.04)

(−0.19)

UW

0.003

0.002

0.001

0.004

0.004

0.001

(T statistic)

(0.40)

(0.31)

(0.16)

(0.56)

(0.47)

(0.12)

SIZE

−0.010

−0.009

−0.006

−0.013

−0.012

−0.009

(T statistic)

(−1.06)

(−1.00)

(−0.54)

(−1.33)

(−1.27)

(−0.76)

GROWTH

0.035*

0.035**

0.043**

0.045**

0.046***

0.048**

(T statistic)

(1.89)

(1.97)

(2.05)

(2.58)

(2.63)

(2.16)

LEV

0.007

0.006

0.021

−0.016

−0.017

−0.007

(T statistic)

(0.19)

(0.17)

(0.49)

(−0.43)

(−0.45)

(−0.17)

CASH

−0.008

−0.001

0.019

−0.100

−0.092

−0.081

(T statistic)

(−0.12)

(−0.01)

(0.23)

(−1.50)

(−1.40)

(−1.02)

Constant

0.311*

0.302*

0.281

0.366**

0.358**

0.352

(T statistic)

(1.73)

(1.69)

(1.31)

(2.02)

(1.99)

(1.61)

Number of Observations

405

405

323

405

405

323

R2

0.096

0.103

0.125

0.125

0.131

0.140

Adjusted R-squared

0.051

0.056

0.070

0.082

0.086

0.086