Managerial Ownership and Stock Price Volatility: The Moderating Role of Corporate Transparency in China

Table 7

The endogeneity checks using Panel A and Panel B to show the results after replacing two explanatory variables, respectively. The cross term X1 becomes X3 and X4, respectively.

Panel A replaces control proportion to ageing
Variables	(1)	(2)
	Volatility	Volatility
Ageing	0.173	0.159
	(1.97)	(1.81)
Company opacity		−0.043
		(−1.47)
X3		−0.074
		(−2.74)
Controlling	0.005	0.014
	(0.13)	(0.36)
Size	−0.030	−0.023
	(−2.13)	(−1.59)
Turnover	0.488	0.498
	(5.87)	(6.00)
Leverage	−0.002	−0.003
	(−0.48)	(−0.58)
Age	−0.170	−0.166
	(−2.86)	(−2.81)
Big4	−0.003	0.015
	(−0.04)	(0.21)
PB	0.092	0.096
	(4.16)	(4.32)
ROA	−0.048	−0.052
	(−0.38)	(−0.41)
Growth rate	−0.009	−0.009
	(−2.17)	(−2.17)
Constant	−2.709	−2.904
	(−6.88)	(−7.36)
Observations	2,786	2,785
R-square	0.031	0.039
Panel B replaces company opacity to board size
Variables	(1)	(2)
	Volatility	Volatility
Control proportion	−0.019	0.512
	(−0.65)	(1.72)
Board size		−0.461
		(−2.43)
X4		−0.243
		(−1.81)
Controlling	0.014	0.020
	(0.36)	(0.53)
Size	−0.029	−0.027
	(−2.05)	(−1.91)
Turnover	0.487	0.485
	(5.85)	(5.83)
Leverage	−0.002	−0.002
	(−0.41)	(−0.43)
Age	−0.167	−0.170
	(−2.81)	(−2.87)
Big4	0.006	0.011
	(0.08)	(0.15)
PB	0.091	0.092
	(4.12)	(4.15)
ROA	−0.045	−0.040
	(−0.36)	(−0.31)
Growth rate	−0.009	−0.009
	(−2.17)	(−2.06)
Constant	−2.083	−1.081
	(−9.59)	(−2.30)
Observations	2,786	2,786
R-square	0.029	0.032

t-statistics in parentheses. , , and .