Table 4 Propensity score matching (PSM) procedure
Panel A: Descriptive statistics for propensity-score-matched sample | ||||||
|  | Large_ad = 1 | Large_ad = 0 | Test of difference | |||
Variable | No. of obs. | Mean | No. of obs. | Mean | Mean | t-stat |
Debt | 1,450 | 0.445 | 1,450 | 0.449 | −0.004 | −0.57 |
Size | 1,450 | 22.096 | 1,450 | 22.084 | 0.012 | 0.27 |
Mb | 1,450 | 1.802 | 1,450 | 1.788 | 0.014 | 0.22 |
Turnover | 1,450 | 1.733 | 1,450 | 1.707 | 0.026 | 0.55 |
Big4 | 1,450 | 0.052 | 1,450 | 0.049 | 0.003 | 0.34 |
Age | 1,450 | 2.391 | 1,450 | 2.382 | 0.009 | 0.37 |
Roa | 1,450 | 0.039 | 1,450 | 0.039 | 0.000 | −0.13 |
Institution | 1,450 | 0.399 | 1,450 | 0.403 | −0.004 | −0.5 |
Top1 | 1,450 | 0.338 | 1,450 | 0.347 | −0.009 | −1.55 |
Msh | 1,450 | 0.787 | 1,450 | 0.777 | 0.010 | 0.63 |
Independent | 1,450 | 0.345 | 1,450 | 0.375 | −0.030 | −0.41 |
Panel B: The regression results using PSM procedure | ||||||
| Â | (1) | (2) | (3) | |||
 Variable | Syn | Syn | Syn | |||
Ad | −1.116b (−2.34) | −0.815a (−3.00) | −0.751a (−2.79) | |||
Debt | −0.320a (−3.50) | −0.306a (−3.98) | −0.313a (−4.27) | |||
Size | 0.018 (0.91) | −0.014 (−0.87) | −0.008 (−0.52) | |||
Mb | −0.074a (−6.31) | −0.088a (−7.85) | −0.089a (−8.01) | |||
Turnover | −0.082a (−5.37) | −0.092a (−7.38) | −0.094a (−7.81) | |||
Big4 | −0.183b (−2.39) | −0.148a (−2.92) | −0.143a (−2.87) | |||
Age | 0.067b (2.44) | 0.077a (3.51) | 0.071a (3.29) | |||
Roa | −0.119 (−0.40) | −0.290 (−1.18) | −0.268 (−1.10) | |||
Institution | −0.149c (−1.92) | −0.193a (−3.21) | −0.190a (−3.20) | |||
Top1 | −0.251b (−2.31) | −0.165c (−1.88) | −0.184b (−2.13) | |||
Msh | −0.017 (−0.52) | 0.009 (0.33) | 0.014 (0.53) | |||
Independent | 0.070 (0.28) | 0.211 (1.06) | 0.257 (1.32) | |||
_Cons | 0.258 (0.48) | 0.814b (2.22) | 0.738b (2.07) | |||
Year fixed effects | Yes | Yes | Yes | |||
Industry fixed effects | Yes | Yes | Yes | |||
No. of obs. | 2,900 | 4,708 | 5,022 | |||
Adj. R2 | 0.324 | 0.332 | 0.334 | |||