Table 4 Alternative measures of...

Table 4

Alternative measures of regulatory intensity

Variables	(1)	(2)	(3)	(4)
REGIN_COMP3	−0.106***		−0.101***
REGIN_COMP3	(−9.756)		(−8.208)
REGIN_COMP4		−0.100***		−0.096***
REGIN_COMP4		(−8.580)		(−7.892)
SIZE	−0.003	0.005	−0.009	−0.007
SIZE	(−0.222)	(0.290)	(−0.509)	(−0.380)
AGE	−0.114***	−0.143***	−0.150***	−0.154***
AGE	(−6.607)	(−6.530)	(−6.463)	(−6.519)
ROA	−0.324***	−0.322***	−0.312***	−0.315***
ROA	(−22.561)	(−20.289)	(−18.707)	(−18.676)
RETURN	0.026***	0.020***	0.018***	0.018***
RETURN	(5.546)	(3.853)	(3.483)	(3.411)
INDCONC	0.008***	0.011***	0.011***	0.011***
INDCONC	(2.680)	(3.637)	(3.657)	(3.624)
CEOTURN			0.003	0.002
CEOTURN			(0.623)	(0.525)
CEODUALITY			−0.001	−0.002
CEODUALITY			(−0.171)	(−0.191)
BOARDSIZE			0.031***	0.032***
BOARDSIZE			(3.207)	(3.313)
Constant	0.162***	0.211***	0.074	0.234***
Constant	(5.439)	(5.187)	(0.642)	(5.235)
Observations	78,523	64,378	61,090	60,021
Adj. R-squared	0.521	0.536	0.548	0.548
Year fixed effect	Yes	Yes	Yes	Yes
Firm fixed effect	Yes	Yes	Yes	Yes
Clustered std err by firm	Yes	Yes	Yes	Yes

Variables	(1)	(2)	(3)	(4)
REGIN_COMP3	−0.106***		−0.101***
REGIN_COMP3	(−9.756)		(−8.208)
REGIN_COMP4		−0.100***		−0.096***
REGIN_COMP4		(−8.580)		(−7.892)
SIZE	−0.003	0.005	−0.009	−0.007
SIZE	(−0.222)	(0.290)	(−0.509)	(−0.380)
AGE	−0.114***	−0.143***	−0.150***	−0.154***
AGE	(−6.607)	(−6.530)	(−6.463)	(−6.519)
ROA	−0.324***	−0.322***	−0.312***	−0.315***
ROA	(−22.561)	(−20.289)	(−18.707)	(−18.676)
RETURN	0.026***	0.020***	0.018***	0.018***
RETURN	(5.546)	(3.853)	(3.483)	(3.411)
INDCONC	0.008***	0.011***	0.011***	0.011***
INDCONC	(2.680)	(3.637)	(3.657)	(3.624)
CEOTURN			0.003	0.002
CEOTURN			(0.623)	(0.525)
CEODUALITY			−0.001	−0.002
CEODUALITY			(−0.171)	(−0.191)
BOARDSIZE			0.031***	0.032***
BOARDSIZE			(3.207)	(3.313)
Constant	0.162***	0.211***	0.074	0.234***
Constant	(5.439)	(5.187)	(0.642)	(5.235)
Observations	78,523	64,378	61,090	60,021
Adj. R-squared	0.521	0.536	0.548	0.548
Year fixed effect	Yes	Yes	Yes	Yes
Firm fixed effect	Yes	Yes	Yes	Yes
Clustered std err by firm	Yes	Yes	Yes	Yes

Note(s): This table presents the results of tests on the association between regulatory intensity and strategic change using composite measures for regulatory intensity. REGIN_COMP3 is the composite proxy generated from Principal Components Analysis (PCA) using REGIN_REG, REGIN_RESP, and REGIN_TIME with an eigenvalue above one. REGIN_COMP4 is the composite proxy generated from Principal Components Analysis (PCA) using all four regulatory intensity measures with an eigenvalue above one. 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.

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