Cross-sectional analysis
| Panel A: Industry competition | ||||
|---|---|---|---|---|
| NCSKEWt+1 | ||||
| Fluid | HHI | |||
| (1) | (2) | (3) | (4) | |
| High | Low | Low | High | |
| IDDRt | 0.096** | 0.023 | 0.097** | 0.026 |
| (0.041) | (0.031) | (0.039) | (0.036) | |
| Controls | Y | Y | Y | Y |
| Firm FE | Y | Y | Y | Y |
| Region*Year FE | Y | Y | Y | Y |
| Difference test | 3.14* | 3.32* | ||
| (p-value) | (0.082) | (0.074) | ||
| N | 20,940 | 21,081 | 31,718 | 32,539 |
| Adj_R2 | 0.052 | 0.063 | 0.061 | 0.058 |
| Panel A: Industry competition | ||||
|---|---|---|---|---|
| Fluid | HHI | |||
| (1) | (2) | (3) | (4) | |
| High | Low | Low | High | |
| 0.096** | 0.023 | 0.097** | 0.026 | |
| (0.041) | (0.031) | (0.039) | (0.036) | |
| Controls | Y | Y | Y | Y |
| Firm FE | Y | Y | Y | Y |
| Region*Year FE | Y | Y | Y | Y |
| Difference test | 3.14* | 3.32* | ||
| ( | (0.082) | (0.074) | ||
| 20,940 | 21,081 | 31,718 | 32,539 | |
| 0.052 | 0.063 | 0.061 | 0.058 | |
| Panel B: Reliance on key talents | ||||
|---|---|---|---|---|
| NCSKEWt+1 | ||||
| R & D intensity | SG & A intensity | |||
| (1) | (2) | (3) | (4) | |
| High | Low | High | Low | |
| IDDRt | 0.097** | 0.041 | 0.124*** | 0.016 |
| (0.039) | (0.027) | (0.034) | (0.030) | |
| Controls | Y | Y | Y | Y |
| Firm FE | Y | Y | Y | Y |
| Region*Year FE | Y | Y | Y | Y |
| Difference test | 4.22** | 10.03*** | ||
| (p-value) | (0.045) | (0.003) | ||
| N | 32,820 | 31,725 | 32,921 | 31,623 |
| Adj_R2 | 0.063 | 0.052 | 0.059 | 0.057 |
| Panel B: Reliance on key talents | ||||
|---|---|---|---|---|
| R & D intensity | SG & A intensity | |||
| (1) | (2) | (3) | (4) | |
| High | Low | High | Low | |
| 0.097** | 0.041 | 0.124*** | 0.016 | |
| (0.039) | (0.027) | (0.034) | (0.030) | |
| Controls | Y | Y | Y | Y |
| Firm FE | Y | Y | Y | Y |
| Region*Year FE | Y | Y | Y | Y |
| Difference test | 4.22** | 10.03*** | ||
| ( | (0.045) | (0.003) | ||
| 32,820 | 31,725 | 32,921 | 31,623 | |
| 0.063 | 0.052 | 0.059 | 0.057 | |
Note(s): SG & A: selling, general and administrative. This table examines the cross-sectional differences of rejection of the Inevitable Disclosure Doctrine (IDD) on stock price crash risk. All variables are as defined in Table A1 in Appendix. The sample period covers 1990 through 2017. All columns control for firm-fixed effects and region-times-year-fixed effects. Robust standard errors are clustered at the state-of-headquarter level. Robust standard errors are reported in parentheses. Coefficients marked with *, **, and *** are significant at 10%, 5%, and 1%, respectively
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