Table 5: System of simultaneous equations estimates: type of large shareholders (investment managers versus strategic entities).


IMSEIMSEIMSE
   ( 1 ) MBE ( 2 ) HERF ( 3 ) LEV

LEV1.111***1.629***0.174***0.243***    
  (0.343)(0.360)(0.043)(0.084)    
MBE    −0.154***−0.146***−2.2920.215
    (0.041)(0.046)(2.428)(0.264)
HERF        3.8912.165***
        (5.710)(0.215)
SIZE−0.656***−1.403***−0.103***−0.210***0.0010.739***
(0.194)(0.247)(0.026)(0.056)(0.681)(0.079)
OPORT−0.0610.146***−0.000−0.005***−0.0580.007
(0.020)(0.032)(0.000)(0.001)(0.046)(0.009)
RISK0.079−0.318***0.0120.003**0.407−0.009*
(0.088)(0.082)(0.013)(0.001)(0.420)(0.005)
ROA23.827***26.898***3.685**3.975***41.075−11.398***
(1.624)(3.445)(0.945)(1.256)(47.507)(3.452)
C1−0.034−0.023**        
(0.026)(0.011)         
C12−0.000−2 𝐸 −04*         
(0.000)(1 𝐸 −04)         
INS0.0000.000        
(0.003)(0.011)         
INS2−0.0000.000        
(0.000)(0.000)         
Country effectYesYesYesYesYesYes
Industry effectYesYesYesYesYesYes
Year effectYesYesYesYesYesYes
Observations157512061575120615751206
Average treatment effect−0.2442***
(0.0054)
0.4042**
(0.2285)
−0.6499***
(0.0355)
Hausman-Wu test75.55***21.33***21.98**32.74***10.29***31.72***
R20.40720.34430.26980.27930.27570.3077

Estimated coefficients and (standard deviation) of the systems of simultaneous equations. Regressions are run according to the nature of the largest shareholder: investment manager (IM) or strategic entity (IE). The endogeneous variables are financial leverage (LEV), MBE (ratio of equity market to book value) and HERF (Herfindahl index of ownership concentration). The exogeneous variables are return on assets (ROA), the size of the firm (SIZE), the growth opportunities (OPORT), the risk of the assets (RISK), and the percentage of shares held by the largest shareholder (C1) and the percentage of shares held by the managers (INS). ***, **, * stand for significant at 99%, 95%, and 90% confidence levels. The Chow test allow testing the null hypothesis that both estimations are from the same simple. All the estimations include time-dummy variables.