Multiple large shareholders and corporate fraud: evidence from China

Frontiers of Business Research in China

Table. 7 Mechanism test: Information asymmetry and capital occupation

Variable	Info	Fraud	Fre	Occ	Fraud	Fre
Model	Xtreg (1)	Xtlogit (2)	Xtpoisson (3)	Xtreg (4)	Xtlogit (5)	Xtpoisson (6)
Multi	−0.0619*** (− 5.75)	−0.2137** (− 2.47)	−0.1620*** (− 2.75)	−0.0011* (− 1.69)	−0.1221* (− 1.76)	−0.0845* (− 1.86)
Info		0.1578** (2.40)	0.1826*** (4.12)		2.5479*** (3.91)	1.0430*** (4.20)
Controls	Yes	Yes	Yes	Yes	Yes	Yes
Individual fixed effect	Yes	Yes	Yes	Yes	Yes	Yes
Year fixed effect	Yes	Yes	Yes	Yes	Yes	Yes
Observations	19,065	9379	9514	24,453	13,646	13,695
L-likelihood		− 3010.61	− 4477.43		− 4552.45	− 7154.79
Chi²		274.33	323.40		380.13	454.43
R²	0.319			0.026
F value	374.73			28.68

Notes. The model represented by column (2) delete 1897 groups due to these groups having the same dependent variables (i.e., all 1 or 0), and 9686 observations were dropped. The model represented by column (3) deleted 1689 groups because the dependent variables of these groups are all 0, and 9382 observations were dropped; additionally, this model deleted 169 groups (169 observations) because these groups only had one observation per group. Similarly, the model represented by column (5) deleted 1912 groups because these groups have the same dependent variables (i.e., all 1 or 0), and 10,807 observations were dropped; the model represented by column (6) deleted 1797 groups because the dependent variables of these groups were all 0, and 10,656 observations were dropped; additionally, this model deleted 102 groups (102 observations) because these groups only had one observation per group