Table 7 Alternative explanation

Ad_i,t × Earnings_i,t + 1

26.911^a (2.81)

28.748^a (3.08)

22.910^a (2.83)

19.164^b (2.37)

Earnings_i,t-1

−1.550^a (−8.40)

−1.202^a (−6.66)

−1.385^a (−8.78)

−0.958^a (−5.92)

Earnings_i,t

1.252^a (5.90)

1.457^a (6.87)

0.951^a (5.05)

1.193^a (5.85)

Earnings_i,t + 1

0.872^a (4.97)

1.022^a (5.82)

0.843^a (5.33)

0.788^a (4.80)

R_i,t + 1

−0.130^a (−7.98)

−0.129^a (−8.08)

−0.130^a (−8.03)

−0.125^a (−7.26)

Ad_i,t

−0.215 (−0.78)

−0.362 (−1.37)

−0.276 (−1.10)

−0.373 (−1.46)

Ad_i,t × Earnings_i,t-1

−16.988^b (−2.12)

−16.037^b (−2.02)

−14.822^b (−2.02)

−13.887^c (−1.86)

Ad_i,t × Earnings_i,t

−4.856 (−0.48)

−3.339 (−0.33)

−3.382 (−0.37)

3.144 (0.33)

Ad_i,t × R_i,t + 1

0.165 (0.28)

0.170 (0.29)

0.113 (0.19)

−0.338 (−0.56)

Size

−0.046^a (−5.82)

−0.041^a (−5.86)

Debt

0.210^a (5.48)

0.196^a (5.11)

Bm

−0.027^a (−3.84)

−0.028^a (−4.13)

Growth

0.004 (0.43)

0.005 (0.48)

Coverage

−0.008 (−1.37)

−0.015^b (−2.57)

_Cons

0.081 (1.00)

0.948^a (5.39)

0.105 (1.36)

0.824^a (5.54)

Year fixed effects

Yes

Yes

Yes

Yes

Industry fixed effects

Yes

Yes

Yes

Yes

No. of obs.

5,094

5,094

5,094

5,094

Adj. R²

0.114

0.130

0.115

0.071