Table 3. Effect of independent variables...

Table 3.

Effect of independent variables on ROA (t + 1) separated by past performance achievements

Independent variables	DV: Log of ROA₍_t_{+ 1)}
	Low previous market share₍_t₎ and low previous ROA₍_t₎				Low previous market share₍_t₎ and high previous ROA₍_t₎				High previous market share₍_t₎ and low previous ROA₍_t₎				High previous market share₍_t₎ and high previous ROA₍_t₎
	B	SE	B	SE	B	SE	B	SE	B	SE	B	SE	B	SE	B	SE
Intercept	0.37	2.57	−0.09	2.56	4.15	0.86***	4.26	0.83***	7.90	0.66***	7.83	1.01***	4.87	1.49***	5.30	0.47***
Log of assets₍_t₎	−0.37	0.18**	−0.48	0.21**	−0.50	0.13***	−0.52	0.13***	−0.75	0.17***	−0.75	0.17***	−0.47	0.09***	−0.49	0.09***
Country (USA = 0; UK = 1)	5.70	13.80	8.02	13.79	−0.04	0.11	0.07	0.12	5.16	1.05***	5.21	0.18***	3.63	0.58***	3.48	0.59***
Log of competitors in the industry₍_t₎	−1.66	0.42***	−2.09	0.60***	−0.06	0.20	0.41	0.24*	2.87	1.21**	2.92	0.38***	0.98	1.32	0.98	0.10***
Log of GDP growth₍_t₎	0.56	1.44	0.80	1.44	0.01	0.02	0.00	0.02	−0.02	0.03	−0.03	0.03	−0.01	0.01*	−0.01	0.01
Log of marketing investment₍_t₎	0.48	0.12***	0.52	0.13***	0.11	0.06*	0.00	0.09	0.23	0.10**	0.26	0.14*	0.05	0.06	−0.05	0.08
Log of R&D investment₍_t₎	−0.46	0.14***	−0.56	0.14***	0.09	0.05*	0.05	0.06	0.07	0.08	0.10	0.11	0.09	0.08	0.01	0.08
Log of marketing investment₍_t₎* log of R&D investment₍_t₎			0.05	0.02***			0.08	0.02***			−0.01	0.02			0.02	0.01**
Sample	177		177		245		245		729		729		1,322		1,322
QICC	235.93		237.49		250.57		251.38		828.10		829.85		763.88		765.18
QICC (reference - intercept)	5,423.71		5,423.71		6,242.37		6,242.37		9,679.77		9,679.77		10,939.00		10,939.00
R²	71.9%		72.2%		68.3%		69.2%		50.8%		50.8%		56.6%		56.8%

Independent variables	DV: Log of ROA₍_t_{+ 1)}
	Low previous market share₍_t₎ and low previous ROA₍_t₎				Low previous market share₍_t₎ and high previous ROA₍_t₎				High previous market share₍_t₎ and low previous ROA₍_t₎				High previous market share₍_t₎ and high previous ROA₍_t₎
	B	SE	B	SE	B	SE	B	SE	B	SE	B	SE	B	SE	B	SE
Intercept	0.37	2.57	−0.09	2.56	4.15	0.86***	4.26	0.83***	7.90	0.66***	7.83	1.01***	4.87	1.49***	5.30	0.47***
Log of assets₍_t₎	−0.37	0.18**	−0.48	0.21**	−0.50	0.13***	−0.52	0.13***	−0.75	0.17***	−0.75	0.17***	−0.47	0.09***	−0.49	0.09***
Country (USA = 0; UK = 1)	5.70	13.80	8.02	13.79	−0.04	0.11	0.07	0.12	5.16	1.05***	5.21	0.18***	3.63	0.58***	3.48	0.59***
Log of competitors in the industry₍_t₎	−1.66	0.42***	−2.09	0.60***	−0.06	0.20	0.41	0.24*	2.87	1.21**	2.92	0.38***	0.98	1.32	0.98	0.10***
Log of GDP growth₍_t₎	0.56	1.44	0.80	1.44	0.01	0.02	0.00	0.02	−0.02	0.03	−0.03	0.03	−0.01	0.01*	−0.01	0.01
Log of marketing investment₍_t₎	0.48	0.12***	0.52	0.13***	0.11	0.06*	0.00	0.09	0.23	0.10**	0.26	0.14*	0.05	0.06	−0.05	0.08
Log of R&D investment₍_t₎	−0.46	0.14***	−0.56	0.14***	0.09	0.05*	0.05	0.06	0.07	0.08	0.10	0.11	0.09	0.08	0.01	0.08
Log of marketing investment₍_t₎* log of R&D investment₍_t₎			0.05	0.02***			0.08	0.02***			−0.01	0.02			0.02	0.01**
Sample	177		177		245		245		729		729		1,322		1,322
QICC	235.93		237.49		250.57		251.38		828.10		829.85		763.88		765.18
QICC (reference - intercept)	5,423.71		5,423.71		6,242.37		6,242.37		9,679.77		9,679.77		10,939.00		10,939.00
R²	71.9%		72.2%		68.3%		69.2%		50.8%		50.8%		56.6%		56.8%

Note(s):

The control variables (sectors of the economy, time in years and firms) are not shown. DV means dependent variable, B means estimate and SE means standard error; *p ≤ 0.10; **p ≤ 0.05; ***p ≤ 0.01

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