Table 9 Components of strategic change...

Table 9

Components of strategic change

Variables	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)
Panel A – R&D intensity
REGIN_REG	−0.088***				−0.077***
REGIN_REG	(−6.366)				(−5.248)
REGIN_RESP		−0.071***				−0.065***
REGIN_RESP		(−6.477)				(−5.120)
REGIN_TIME			−0.072***				−0.067***
REGIN_TIME			(−7.482)				(−6.019)
REGIN_DOLLAR				−0.025***				−0.021***
REGIN_DOLLAR				(−3.458)				(−3.008)
Control variables	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Constant	0.766***	0.359***	0.412***	0.253***	0.666***	0.256*	0.329**	0.296***
Constant	(6.769)	(4.824)	(5.472)	(3.074)	(3.563)	(1.663)	(2.118)	(3.377)
Observations	78,523	78,523	78,523	64,378	61,090	61,090	61,090	60,021
Adj. R-squared	0.536	0.535	0.535	0.545	0.564	0.562	0.563	0.562
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
Panel B – Advertising intensity
REGIN_REG	−0.031***				−0.025**
REGIN_REG	(−3.107)				(−2.159)
REGIN_RESP		−0.002				−0.004
REGIN_RESP		(−0.272)				(−0.367)
REGIN_TIME			−0.010				−0.014
REGIN_TIME			(−1.290)				(−1.423)
REGIN_DOLLAR				−0.007				−0.004
REGIN_DOLLAR				(−0.921)				(−0.595)
Control variables	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Constant	0.614***	0.404***	0.434***	0.227***	0.860***	0.689***	0.732***	0.258***
Constant	(6.658)	(6.080)	(6.488)	(2.686)	(3.140)	(2.616)	(2.774)	(2.840)
Observations	78,523	78,523	78,523	64,378	61,090	61,090	61,090	60,021
Adj. R-squared	0.366	0.365	0.365	0.394	0.408	0.407	0.407	0.407
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
Panel C – PPENTCHG
REGIN_REG	−0.122***				−0.124***
REGIN_REG	(−11.250)				(−10.499)
REGIN_RESP		−0.073***				−0.094***
REGIN_RESP		(−8.174)				(−8.414)
REGIN_TIME			−0.071***				−0.083***
REGIN_TIME			(−8.271)				(−8.063)
REGIN_DOLLAR				−0.043***				−0.042***
REGIN_DOLLAR				(−6.296)				(−5.934)
Control variables	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Constant	1.484***	0.839***	0.882***	0.877***	1.275***	0.604**	0.649**	0.863***
Constant	(15.888)	(14.261)	(14.354)	(12.115)	(4.802)	(2.399)	(2.570)	(11.025)
Observations	78,168	78,168	78,168	64,084	60,847	60,847	60,847	59,788
Adj. R-squared	0.242	0.238	0.238	0.249	0.259	0.255	0.255	0.254
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
Panel D – XSGACHG
REGIN_REG	−0.089***				−0.089***
REGIN_REG	(−5.354)				(−5.354)
REGIN_RESP		−0.064***				−0.064***
REGIN_RESP		(−4.517)				(−4.517)
REGIN_TIME			−0.065***				−0.065***
REGIN_TIME			(−5.079)				(−5.079)
REGIN_DOLLAR				−0.030***				−0.030***
REGIN_DOLLAR				(−4.033)				(−4.033)
Control variables	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Constant	0.659**	0.157	0.225	0.278***	0.659**	0.157	0.225	0.278***
Constant	(2.504)	(0.681)	(0.964)	(2.828)	(2.504)	(0.681)	(0.964)	(2.828)
Observations	61,090	61,090	61,090	60,021	61,090	61,090	61,090	60,021
Adj. R-squared	0.483	0.481	0.482	0.481	0.483	0.481	0.482	0.481
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
Panel E – Inventory levels
REGIN_REG	−0.066***				−0.061***
REGIN_REG	(−5.528)				(−4.640)
REGIN_RESP		−0.054***				−0.051***
REGIN_RESP		(−5.474)				(−4.191)
REGIN_TIME			−0.052***				−0.045***
REGIN_TIME			(−5.921)				(−4.282)
REGIN_DOLLAR				−0.019***				−0.019***
REGIN_DOLLAR				(−3.077)				(−3.054)
Control variables	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Constant	0.658***	0.370***	0.398***	0.256***	0.756***	0.464***	0.486***	0.276***
Constant	(6.567)	(5.398)	(5.726)	(3.345)	(5.181)	(3.929)	(4.103)	(3.327)
Observations	78,523	78,523	78,523	64,378	61,090	61,090	61,090	60,021
Adj. R-squared	0.407	0.406	0.406	0.411	0.430	0.430	0.430	0.426
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
Panel F – Debt/equity ratio

REGIN_REG	0.019**				0.020***
REGIN_REG	(2.467)				(2.588)
REGIN_RESP		0.014				0.017
REGIN_RESP		(1.490)				(1.500)
REGIN_TIME			0.020**				0.024**
REGIN_TIME			(2.366)				(2.500)
REGIN_DOLLAR				0.007				0.006
REGIN_DOLLAR				(0.953)				(0.755)
Control variables	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Constant	−0.053	0.036	0.003	0.172**	−0.443	−0.340	−0.388	0.194**
Constant	(−0.685)	(0.542)	(0.044)	(2.071)	(−1.163)	(−0.899)	(−1.025)	(2.136)
Observations	78,523	78,523	78,523	64,378	61,090	61,090	61,090	60,021
Adj. R-squared	0.265	0.265	0.265	0.290	0.293	0.293	0.293	0.291
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)
Panel A – R&D intensity
REGIN_REG	−0.088***				−0.077***
REGIN_REG	(−6.366)				(−5.248)
REGIN_RESP		−0.071***				−0.065***
REGIN_RESP		(−6.477)				(−5.120)
REGIN_TIME			−0.072***				−0.067***
REGIN_TIME			(−7.482)				(−6.019)
REGIN_DOLLAR				−0.025***				−0.021***
REGIN_DOLLAR				(−3.458)				(−3.008)
Control variables	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Constant	0.766***	0.359***	0.412***	0.253***	0.666***	0.256*	0.329**	0.296***
Constant	(6.769)	(4.824)	(5.472)	(3.074)	(3.563)	(1.663)	(2.118)	(3.377)
Observations	78,523	78,523	78,523	64,378	61,090	61,090	61,090	60,021
Adj. R-squared	0.536	0.535	0.535	0.545	0.564	0.562	0.563	0.562
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
Panel B – Advertising intensity
REGIN_REG	−0.031***				−0.025**
REGIN_REG	(−3.107)				(−2.159)
REGIN_RESP		−0.002				−0.004
REGIN_RESP		(−0.272)				(−0.367)
REGIN_TIME			−0.010				−0.014
REGIN_TIME			(−1.290)				(−1.423)
REGIN_DOLLAR				−0.007				−0.004
REGIN_DOLLAR				(−0.921)				(−0.595)
Control variables	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Constant	0.614***	0.404***	0.434***	0.227***	0.860***	0.689***	0.732***	0.258***
Constant	(6.658)	(6.080)	(6.488)	(2.686)	(3.140)	(2.616)	(2.774)	(2.840)
Observations	78,523	78,523	78,523	64,378	61,090	61,090	61,090	60,021
Adj. R-squared	0.366	0.365	0.365	0.394	0.408	0.407	0.407	0.407
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
Panel C – PPENTCHG
REGIN_REG	−0.122***				−0.124***
REGIN_REG	(−11.250)				(−10.499)
REGIN_RESP		−0.073***				−0.094***
REGIN_RESP		(−8.174)				(−8.414)
REGIN_TIME			−0.071***				−0.083***
REGIN_TIME			(−8.271)				(−8.063)
REGIN_DOLLAR				−0.043***				−0.042***
REGIN_DOLLAR				(−6.296)				(−5.934)
Control variables	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Constant	1.484***	0.839***	0.882***	0.877***	1.275***	0.604**	0.649**	0.863***
Constant	(15.888)	(14.261)	(14.354)	(12.115)	(4.802)	(2.399)	(2.570)	(11.025)
Observations	78,168	78,168	78,168	64,084	60,847	60,847	60,847	59,788
Adj. R-squared	0.242	0.238	0.238	0.249	0.259	0.255	0.255	0.254
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
Panel D – XSGACHG
REGIN_REG	−0.089***				−0.089***
REGIN_REG	(−5.354)				(−5.354)
REGIN_RESP		−0.064***				−0.064***
REGIN_RESP		(−4.517)				(−4.517)
REGIN_TIME			−0.065***				−0.065***
REGIN_TIME			(−5.079)				(−5.079)
REGIN_DOLLAR				−0.030***				−0.030***
REGIN_DOLLAR				(−4.033)				(−4.033)
Control variables	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Constant	0.659**	0.157	0.225	0.278***	0.659**	0.157	0.225	0.278***
Constant	(2.504)	(0.681)	(0.964)	(2.828)	(2.504)	(0.681)	(0.964)	(2.828)
Observations	61,090	61,090	61,090	60,021	61,090	61,090	61,090	60,021
Adj. R-squared	0.483	0.481	0.482	0.481	0.483	0.481	0.482	0.481
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
Panel E – Inventory levels
REGIN_REG	−0.066***				−0.061***
REGIN_REG	(−5.528)				(−4.640)
REGIN_RESP		−0.054***				−0.051***
REGIN_RESP		(−5.474)				(−4.191)
REGIN_TIME			−0.052***				−0.045***
REGIN_TIME			(−5.921)				(−4.282)
REGIN_DOLLAR				−0.019***				−0.019***
REGIN_DOLLAR				(−3.077)				(−3.054)
Control variables	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Constant	0.658***	0.370***	0.398***	0.256***	0.756***	0.464***	0.486***	0.276***
Constant	(6.567)	(5.398)	(5.726)	(3.345)	(5.181)	(3.929)	(4.103)	(3.327)
Observations	78,523	78,523	78,523	64,378	61,090	61,090	61,090	60,021
Adj. R-squared	0.407	0.406	0.406	0.411	0.430	0.430	0.430	0.426
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
Panel F – Debt/equity ratio

REGIN_REG	0.019**				0.020***
REGIN_REG	(2.467)				(2.588)
REGIN_RESP		0.014				0.017
REGIN_RESP		(1.490)				(1.500)
REGIN_TIME			0.020**				0.024**
REGIN_TIME			(2.366)				(2.500)
REGIN_DOLLAR				0.007				0.006
REGIN_DOLLAR				(0.953)				(0.755)
Control variables	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Constant	−0.053	0.036	0.003	0.172**	−0.443	−0.340	−0.388	0.194**
Constant	(−0.685)	(0.542)	(0.044)	(2.071)	(−1.163)	(−0.899)	(−1.025)	(2.136)
Observations	78,523	78,523	78,523	64,378	61,090	61,090	61,090	60,021
Adj. R-squared	0.265	0.265	0.265	0.290	0.293	0.293	0.293	0.291
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 the components of strategic change. Panels A, B, C, D, E and F present results for R&D intensity, advertising intensity, plant and equipment newness, selling, general and administrative expenses, inventory level and debt-to-equity ratio, respectively. We measure the component strategic changes as the absolute value of the annual percentage change of the corresponding variable. 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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