Robustness to alternative measures of variables Sample Clauses

Robustness to alternative measures of variables. Table 5 reports the results of robustness checks using alternative measurements of the main variables in Eq. (4). The control variables are not reported as they did not change. In Panel A, we first use industry-adjusted cash-to-net assets (Column 1), cash-to-sales (Column 2), and cash-to-assets (Column 3) as alternative proxy measures for cash holdings. Our findings consistently illustrate that the effect of distance on the cash held by firms with high excess control rights is positive and statistically significant, thus supporting hypothesis H2. The coefficient of β1 is also positive and statistically significant, which supports hypothesis H1. Second, we test whether our results hinge on the geographic location metrics by using alternative dummy terms for distance, Distance100 (Column 4) and Distance300 (Column 5), which take the value 1 if the firm is, respectively, 100 and 300 km distant from the Paris region. Empirical analysis shows that the coefficient β2 of the interaction term continues to exhibit a significant positive coefficient, consistent with the notion that firms that are distant from the Paris region hold larger cash when
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