Table 3 Industry-adjusted strategic...

Table 3

Industry-adjusted strategic change

Variables	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)
REGIN_REG	−0.120***				−0.107***
REGIN_REG	(−10.666)				(−8.832)
REGIN_RESP		−0.076***				−0.082***
REGIN_RESP		(−7.912)				(−7.032)
REGIN_TIME			−0.077***				−0.077***
REGIN_TIME			(−8.754)				(−7.418)
REGIN_DOLLAR				−0.033***				−0.031***
REGIN_DOLLAR				(−4.879)				(−4.485)
SIZE	−0.002	0.002	0.004	0.008	−0.011	−0.005	−0.005	−0.003
SIZE	(−0.134)	(0.167)	(0.249)	(0.485)	(−0.631)	(−0.297)	(−0.276)	(−0.196)
AGE	−0.099***	−0.110***	−0.110***	−0.135***	−0.124***	−0.138***	−0.136***	−0.144***
AGE	(−5.749)	(−6.355)	(−6.374)	(−6.153)	(−5.374)	(−6.004)	(−5.911)	(−6.128)
ROA	−0.306***	−0.311***	−0.312***	−0.312***	−0.294***	−0.298***	−0.299***	−0.303***
ROA	(−21.682)	(−21.670)	(−21.761)	(−19.585)	(−17.871)	(−17.895)	(−17.994)	(−17.972)
RETURN	0.032***	0.033***	0.033***	0.028***	0.025***	0.026***	0.026***	0.026***
RETURN	(6.884)	(7.057)	(7.022)	(5.298)	(4.861)	(4.873)	(4.887)	(4.843)
INDCONC	0.006**	0.007***	0.008***	0.010***	0.009***	0.011***	0.011***	0.010***
INDCONC	(2.071)	(2.595)	(2.710)	(3.217)	(3.022)	(3.596)	(3.551)	(3.417)
CEOTURN					0.001	0.000	0.001	−0.000
CEOTURN					(0.275)	(0.098)	(0.127)	(−0.089)
CEODUALITY					0.004	0.003	0.004	0.004
CEODUALITY					(0.521)	(0.425)	(0.455)	(0.461)
BOARDSIZE					0.030***	0.032***	0.030***	0.032***
BOARDSIZE					(3.140)	(3.297)	(3.155)	(3.361)
Constant	0.730***	0.389***	0.420***	0.337***	0.624***	0.301***	0.335***	0.356***
Constant	(14.232)	(11.521)	(12.231)	(8.023)	(5.019)	(2.618)	(2.890)	(7.795)
Observations	78,523	78,523	78,523	64,378	61,090	61,090	61,090	60,021
Adj. R-squared	0.515	0.511	0.512	0.526	0.543	0.540	0.541	0.538
Year fixed effect	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Firm fixed effect	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Clustered std err by firm	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes

Variables	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)
REGIN_REG	−0.120***				−0.107***
REGIN_REG	(−10.666)				(−8.832)
REGIN_RESP		−0.076***				−0.082***
REGIN_RESP		(−7.912)				(−7.032)
REGIN_TIME			−0.077***				−0.077***
REGIN_TIME			(−8.754)				(−7.418)
REGIN_DOLLAR				−0.033***				−0.031***
REGIN_DOLLAR				(−4.879)				(−4.485)
SIZE	−0.002	0.002	0.004	0.008	−0.011	−0.005	−0.005	−0.003
SIZE	(−0.134)	(0.167)	(0.249)	(0.485)	(−0.631)	(−0.297)	(−0.276)	(−0.196)
AGE	−0.099***	−0.110***	−0.110***	−0.135***	−0.124***	−0.138***	−0.136***	−0.144***
AGE	(−5.749)	(−6.355)	(−6.374)	(−6.153)	(−5.374)	(−6.004)	(−5.911)	(−6.128)
ROA	−0.306***	−0.311***	−0.312***	−0.312***	−0.294***	−0.298***	−0.299***	−0.303***
ROA	(−21.682)	(−21.670)	(−21.761)	(−19.585)	(−17.871)	(−17.895)	(−17.994)	(−17.972)
RETURN	0.032***	0.033***	0.033***	0.028***	0.025***	0.026***	0.026***	0.026***
RETURN	(6.884)	(7.057)	(7.022)	(5.298)	(4.861)	(4.873)	(4.887)	(4.843)
INDCONC	0.006**	0.007***	0.008***	0.010***	0.009***	0.011***	0.011***	0.010***
INDCONC	(2.071)	(2.595)	(2.710)	(3.217)	(3.022)	(3.596)	(3.551)	(3.417)
CEOTURN					0.001	0.000	0.001	−0.000
CEOTURN					(0.275)	(0.098)	(0.127)	(−0.089)
CEODUALITY					0.004	0.003	0.004	0.004
CEODUALITY					(0.521)	(0.425)	(0.455)	(0.461)
BOARDSIZE					0.030***	0.032***	0.030***	0.032***
BOARDSIZE					(3.140)	(3.297)	(3.155)	(3.361)
Constant	0.730***	0.389***	0.420***	0.337***	0.624***	0.301***	0.335***	0.356***
Constant	(14.232)	(11.521)	(12.231)	(8.023)	(5.019)	(2.618)	(2.890)	(7.795)
Observations	78,523	78,523	78,523	64,378	61,090	61,090	61,090	60,021
Adj. R-squared	0.515	0.511	0.512	0.526	0.543	0.540	0.541	0.538
Year fixed effect	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Firm fixed effect	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Clustered std err by firm	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes

Note(s): This table presents the results of tests on the association between regulatory intensity and Industry-adjusted STRG. We construct Industry-adjusted STRG in the same way as STRG by using industry median adjusted values of strategic variables (R&D intensity, advertising intensity, plant and equipment newness, selling, general, and administrative expenses, inventory levels, and debt-to-equity ratio). Refer to Appendix A for detailed variable definitions. We winsorize all continuous variablesat the upper and lower 1% of the sample distribution. ***, ** and * indicate significance at the 1%, 5% and 10% levels, respectively.

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