Note(s): This table presents the baseline results of the association between regulatory intensity and strategic change. The dependent variable is STRG, defined as the average of the absolute values of the annual changes in six strategic variables, including R&D intensity, advertising intensity, plant and equipment newness, selling, general and administrative expenses, inventory levels and debt-to-equity ratio. REGIN_REG is the number of active paperwork regulations. REGIN_RESP is the total number of responses received (“how much paperwork”). REGIN_TIME is the total hours spent by a firm to comply with paperwork regulations, including the time it takes to collect the information, read the instructions and file the paperwork. REGIN_DOLLAR is the total dollars spent by a firm for compliance. We obtain regulatory intensity data from https://sites.google.com/view/jkalmenovitz. Refer to Appendix A for detailed variable definitions. We winsorize all continuous variables at the upper and lower 1% of the sample distribution. ***, ** and * indicate significance at the 1%, 5% and 10% levels, respectively