Table 9 Differences in patent...

Table 9

Differences in patent applications and patent grants between normal capitalization and expense-all firms

	Patent applications		Patent grants
	LnPatent_a1 _i,t+1	LnPatent_a2 _{i, t+1}	LnPatent_g1_{i, t+1}	LnPatent_g2 _{i, t+1}
NMC_i,t	0.128^***	0.125^***	0.103^**	0.101^**
NMC_i,t	(2.74)	(2.70)	(2.42)	(2.40)
ROA_i,t	0.063	−0.042	−0.300	−0.421
ROA_i,t	(0.16)	(−0.11)	(−0.85)	(−1.22)
Size_i,t	0.521^***	0.517^***	0.490^***	0.482^***
Size_i,t	(17.01)	(17.03)	(17.16)	(17.15)
Lev_i,t	−0.330^**	−0.314^**	−0.345***	−0.322^**
Lev_i,t	(−2.33)	(−2.25)	(−2.60)	(−2.49)
MB_i,t	0.055	0.051	0.031	0.024
MB_i,t	(1.31)	(1.23)	(0.78)	(0.63)
Growth_i,t	−0.092	−0.103	−0.116*	−0.123*
Growth_i,t	(−1.17)	(−1.34)	(−1.69)	(−1.86)
RDint_i,t	12.888^***	12.693^***	11.665^***	11.330^***
RDint_i,t	(7.89)	(7.83)	(7.86)	(7.76)
PPE_i,t	−0.277^*	−0.271^*	−0.288^*	−0.283^*
PPE_i,t	(−1.71)	(−1.68)	(−1.91)	(−1.89)
HHI_i,t	−0.178	−0.161	−0.161	−0.168
HHI_i,t	(−0.83)	(−0.75)	(−0.80)	(−0.85)
Capitalexp_i,t	0.145	0.135	−0.001	0.030
Capitalexp_i,t	(0.33)	(0.31)	(−0.00)	(0.08)
Age_i,t	0.009^**	0.008^**	0.009^***	0.008^**
Age_i,t	(2.50)	(2.27)	(2.68)	(2.42)
Constant	−10.398^***	−10.352^***	−10.248^***	−10.069^***
Constant	(−15.84)	(−15.90)	(−16.86)	(−16.84)
Fixed Effects
Industry	YES	YES	YES	YES
Year	YES	YES	YES	YES
# of Obs.	9,156	9,156	9,156	9,156
Adj. R²	0.266	0.267	0.271	0.272

	Patent applications		Patent grants
	LnPatent_a1 _i,t+1	LnPatent_a2 _{i, t+1}	LnPatent_g1_{i, t+1}	LnPatent_g2 _{i, t+1}
NMC_i,t	0.128^***	0.125^***	0.103^**	0.101^**
NMC_i,t	(2.74)	(2.70)	(2.42)	(2.40)
ROA_i,t	0.063	−0.042	−0.300	−0.421
ROA_i,t	(0.16)	(−0.11)	(−0.85)	(−1.22)
Size_i,t	0.521^***	0.517^***	0.490^***	0.482^***
Size_i,t	(17.01)	(17.03)	(17.16)	(17.15)
Lev_i,t	−0.330^**	−0.314^**	−0.345***	−0.322^**
Lev_i,t	(−2.33)	(−2.25)	(−2.60)	(−2.49)
MB_i,t	0.055	0.051	0.031	0.024
MB_i,t	(1.31)	(1.23)	(0.78)	(0.63)
Growth_i,t	−0.092	−0.103	−0.116*	−0.123*
Growth_i,t	(−1.17)	(−1.34)	(−1.69)	(−1.86)
RDint_i,t	12.888^***	12.693^***	11.665^***	11.330^***
RDint_i,t	(7.89)	(7.83)	(7.86)	(7.76)
PPE_i,t	−0.277^*	−0.271^*	−0.288^*	−0.283^*
PPE_i,t	(−1.71)	(−1.68)	(−1.91)	(−1.89)
HHI_i,t	−0.178	−0.161	−0.161	−0.168
HHI_i,t	(−0.83)	(−0.75)	(−0.80)	(−0.85)
Capitalexp_i,t	0.145	0.135	−0.001	0.030
Capitalexp_i,t	(0.33)	(0.31)	(−0.00)	(0.08)
Age_i,t	0.009^**	0.008^**	0.009^***	0.008^**
Age_i,t	(2.50)	(2.27)	(2.68)	(2.42)
Constant	−10.398^***	−10.352^***	−10.248^***	−10.069^***
Constant	(−15.84)	(−15.90)	(−16.86)	(−16.84)
Fixed Effects
Industry	YES	YES	YES	YES
Year	YES	YES	YES	YES
# of Obs.	9,156	9,156	9,156	9,156
Adj. R²	0.266	0.267	0.271	0.272

Note(s): All variables are defined in Appendix. The robust t statistics shown in parentheses are based on the firm-clustered standard errors. ^*, ^** and ^*** represent the statistical significance level of 10%, 5% and 1%, respectively

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