Test of parallel trend assumption
| Hypothesis | Test statistic | p-value | Decision | Interpretation |
|---|---|---|---|---|
| Ho: Linear Trends are Parallel | 1.29 | 0.2594 | Fail to reject H0 | Confirms that pre-treatment trends in corporate performance are statistically parallel, indicating no significant differences between the treatment and control groups before SSCC adoption. This validates the DID model |
| Hypothesis | Test statistic | Decision | Interpretation | |
|---|---|---|---|---|
| Ho: Linear Trends are Parallel | 1.29 | 0.2594 | Fail to reject | Confirms that pre-treatment trends in corporate performance are statistically parallel, indicating no significant differences between the treatment and control groups before SSCC adoption. This validates the DID model |
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