Table 1-2: Estimation Results of Equation (1), from Japan to U.S.
Four asset cases
Note: ***, **, and * indicate significance at 1, 5, and 10 per cent levels, respectively. Standard errors are reported in parentheses. The table reports estimation results from equation (1), where the dependent variable is firm market value and the explanatory variables are capital stock assets. All regressions are estimated using pooled OLS (odd-numbered columns) and system GMM (even-numbered columns). Regressions include industry, year and industry-year interaction dummy variables. In the AR tests, the null hypothesis is the absence of serial correlation in the error term. In the Hansen test, the null hypothesis is the exogeneity of instruments. Instruments are chosen to maximize the efficiency of the Hansen test. For each country, observations with values of the firm value exceeding ±3 standard deviations from the mean have been removed as outliers.