Table 5 The impact of CSCO presence on...

Table 5

The impact of CSCO presence on firm performance during COVID-19, moderated by industry negative supply shock (columns 1–2), negative demand shock (3–4), positive supply shock (5–6), negative supply and demand shock (7–8), and negative supply shock and positive demand shock (9–10)

	Neg. supply shock		Neg. demand shock		Pos. demand shock		Neg-Neg shock		Neg-Pos shock
Variable	sg1	roa	sg1	roa	sg1	roa	sg1	roa	sg1	roa
	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)	(9)	(10)
Panel A: CSCO effect
csco	−0.090**	−0.012	−0.071	−0.013	−0.218***	−0.054*	−0.057*	−0.006	−0.072**	−0.010
csco	(−1.97)	(−0.70)	(−1.27)	(−0.87)	(−3.16)	(−1.89)	(−1.66)	(−0.48)	(−2.29)	(−1.05)
shock	−0.134**	−0.017	−0.249***	−0.041***	−0.069	0.001	−0.134***	−0.022**	−0.105**	−0.007
shock	(−2.47)	(−1.14)	(−3.88)	(−2.65)	(−1.09)	(−0.04)	(−3.33)	(−2.15)	(−1.98)	(−0.48)
csco × shock	0.220**	0.049	0.151	0.044	0.368***	0.102*	0.150**	0.038	0.276***	0.067***
csco × shock	(−2.38)	(−1.50)	(−1.29)	(−1.64)	(−2.99)	(−1.85)	(2.02)	(1.53)	(3.39)	(2.79)
firm size	−0.002	0.000	−0.003	0.000	−0.002	0.000	−0.003	0.000	−0.002	0.000
firm size	(−0.24)	(−0.09)	(−0.36)	(−0.02)	(−0.20)	(−0.09)	(−0.29)	(0.06)	(−0.22)	(0.10)
leverage	0.301***	0.031	0.294***	0.03	0.301***	0.029	−0.029	0.012	−0.011	0.016
leverage	(−3.50)	(−1.29)	(−3.41)	(−1.28)	(−3.47)	(−1.25)	(−0.45)	(0.63)	(−0.17)	(0.84)
sales trend	0.330*	0.737***	0.306*	0.733***	0.338**	0.741***	0.296***	0.030	0.302***	0.030
sales trend	(−1.94)	(−8.94)	(−1.83)	(−9.03)	(−2.12)	(−9.77)	(3.46)	(1.28)	(3.49)	(1.27)
profitability	−0.021	0.014	−0.031	0.011	−0.007	0.015	0.325*	0.736***	0.332**	0.738***
profitability	(−0.32)	(−0.73)	(−0.49)	(−0.59)	(−0.12)	(−0.81)	(1.92)	(8.97)	(1.97)	(9.08)
intercept	−0.015	0.019	0.058	0.034	−0.042	0.011	−0.012	0.022	−0.049	0.013
intercept	(−0.16)	(−0.83)	(−0.61)	(−1.37)	(−0.42)	(−0.46)	(−0.14)	(0.99)	(−0.55)	(0.59)
Panel B: CSCO marginal effects in a high-shock industry
csco	0.130**	0.037**	0.080	0.032*	0.149***	0.048*	0.093*	0.031*	0.203***	0.057***
csco	(2.29)	(1.96)	(1.15)	(1.86)	(2.47)	(1.71)	(1.75)	(1.95)	(3.24)	(2.47)
Controls	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Observations	417	417	417	417	417	417	417	417	417	417
Adjusted R²	0.08	0.15	0.10	0.16	0.07	0.16	0.09	0.16	0.07	0.15
F-statistic	3.61***	2.79***	4.40***	3.23***	4.99***	2.01*	3.89***	3.24***	4.74***	2.79***

	Neg. supply shock		Neg. demand shock		Pos. demand shock		Neg-Neg shock		Neg-Pos shock
Variable	sg1	roa	sg1	roa	sg1	roa	sg1	roa	sg1	roa
	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)	(9)	(10)
Panel A: CSCO effect
csco	−0.090**	−0.012	−0.071	−0.013	−0.218***	−0.054*	−0.057*	−0.006	−0.072**	−0.010
csco	(−1.97)	(−0.70)	(−1.27)	(−0.87)	(−3.16)	(−1.89)	(−1.66)	(−0.48)	(−2.29)	(−1.05)
shock	−0.134**	−0.017	−0.249***	−0.041***	−0.069	0.001	−0.134***	−0.022**	−0.105**	−0.007
shock	(−2.47)	(−1.14)	(−3.88)	(−2.65)	(−1.09)	(−0.04)	(−3.33)	(−2.15)	(−1.98)	(−0.48)
csco × shock	0.220**	0.049	0.151	0.044	0.368***	0.102*	0.150**	0.038	0.276***	0.067***
csco × shock	(−2.38)	(−1.50)	(−1.29)	(−1.64)	(−2.99)	(−1.85)	(2.02)	(1.53)	(3.39)	(2.79)
firm size	−0.002	0.000	−0.003	0.000	−0.002	0.000	−0.003	0.000	−0.002	0.000
firm size	(−0.24)	(−0.09)	(−0.36)	(−0.02)	(−0.20)	(−0.09)	(−0.29)	(0.06)	(−0.22)	(0.10)
leverage	0.301***	0.031	0.294***	0.03	0.301***	0.029	−0.029	0.012	−0.011	0.016
leverage	(−3.50)	(−1.29)	(−3.41)	(−1.28)	(−3.47)	(−1.25)	(−0.45)	(0.63)	(−0.17)	(0.84)
sales trend	0.330*	0.737***	0.306*	0.733***	0.338**	0.741***	0.296***	0.030	0.302***	0.030
sales trend	(−1.94)	(−8.94)	(−1.83)	(−9.03)	(−2.12)	(−9.77)	(3.46)	(1.28)	(3.49)	(1.27)
profitability	−0.021	0.014	−0.031	0.011	−0.007	0.015	0.325*	0.736***	0.332**	0.738***
profitability	(−0.32)	(−0.73)	(−0.49)	(−0.59)	(−0.12)	(−0.81)	(1.92)	(8.97)	(1.97)	(9.08)
intercept	−0.015	0.019	0.058	0.034	−0.042	0.011	−0.012	0.022	−0.049	0.013
intercept	(−0.16)	(−0.83)	(−0.61)	(−1.37)	(−0.42)	(−0.46)	(−0.14)	(0.99)	(−0.55)	(0.59)
Panel B: CSCO marginal effects in a high-shock industry
csco	0.130**	0.037**	0.080	0.032*	0.149***	0.048*	0.093*	0.031*	0.203***	0.057***
csco	(2.29)	(1.96)	(1.15)	(1.86)	(2.47)	(1.71)	(1.75)	(1.95)	(3.24)	(2.47)
Controls	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Observations	417	417	417	417	417	417	417	417	417	417
Adjusted R²	0.08	0.15	0.10	0.16	0.07	0.16	0.09	0.16	0.07	0.15
F-statistic	3.61***	2.79***	4.40***	3.23***	4.99***	2.01*	3.89***	3.24***	4.74***	2.79***

Note(s): Panel A: All models are OLS regressions based on Equation (1) and t-statistics in parentheses are based on standard errors clustered by firm. Panel B: reported are the marginal effects of fixing sentiment-adjusted shock to one, adjusted for other covariates in Equation (1). The t-statistics in parentheses are based on clustered standard errors. See the Appendix Table A1 for variable definitions. Notation: *p < 0.10, **p < 0.05, ***p < 0.01 (two-tailed)

Source(s): Created by authors

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