Table 11 Cross-sectional tests Panel A:...

Table 11

Cross-sectional tests

Panel A: Debt burden
Variables	LS		LN_LS
	LOW	HIGH	LOW	HIGH
	(1)	(2)	(3)	(4)
PC	0.0026	0.0103	−0.0092	0.0606
PC	(0.503)	(1.293)	(−0.197)	(1.077)
RM PC*	−0.0048	−0.0211**	−0.0294	−0.1942**
RM PC*	(−0.707)	(−2.287)	(−0.408)	(−2.569)
CONTROLS	Yes	Yes	Yes	Yes
CONSTANT	0.5036**	−0.5312	0.8744	−6.7859**
CONSTANT	(2.319)	(−1.385)	(0.414)	(−2.558)
YEAR FE	Yes	Yes	Yes	Yes
FIRM FE	Yes	Yes	Yes	Yes
N	462	462	462	462
Adj. R²	0.278	0.572	0.263	0.584
DIFF	0.0163**		0.1648***

Panel A: Debt burden
Variables	LS		LN_LS
	LOW	HIGH	LOW	HIGH
	(1)	(2)	(3)	(4)
PC	0.0026	0.0103	−0.0092	0.0606
PC	(0.503)	(1.293)	(−0.197)	(1.077)
RM* PC	−0.0048	−0.0211**	−0.0294	−0.1942**
RM* PC	(−0.707)	(−2.287)	(−0.408)	(−2.569)
CONTROLS	Yes	Yes	Yes	Yes
CONSTANT	0.5036**	−0.5312	0.8744	−6.7859**
CONSTANT	(2.319)	(−1.385)	(0.414)	(−2.558)
YEAR FE	Yes	Yes	Yes	Yes
FIRM FE	Yes	Yes	Yes	Yes
N	462	462	462	462
Adj. R²	0.278	0.572	0.263	0.584
DIFF	0.0163**		0.1648***

Panel B: Capital intensity
Variables	LS		LN_LS
	LOW	HIGH	LOW	HIGH
	(1)	(2)	(3)	(4)
PC	0.0027	0.0260***	0.0256	0.1572**
PC	(0.874)	(2.746)	(0.835)	(2.353)
RM PC*	−0.0061	−0.0393***	−0.0738	−0.3334***
RM PC*	(−1.151)	(−3.275)	(−1.153)	(−3.388)
CONTROLS	Yes	Yes	Yes	Yes
CONSTANT	−0.2650	0.1530	−2.3928	−2.8434
CONSTANT	(−0.645)	(0.474)	(−0.794)	(−1.280)
YEAR FE	Yes	Yes	Yes	Yes
FIRM FE	Yes	Yes	Yes	Yes
N	462	462	462	462
Adj. R²	0.524	0.652	0.601	0.676
DIFF	0.0332**		0.2596*

Panel B: Capital intensity
Variables	LS		LN_LS
	LOW	HIGH	LOW	HIGH
	(1)	(2)	(3)	(4)
PC	0.0027	0.0260***	0.0256	0.1572**
PC	(0.874)	(2.746)	(0.835)	(2.353)
RM* PC	−0.0061	−0.0393***	−0.0738	−0.3334***
RM* PC	(−1.151)	(−3.275)	(−1.153)	(−3.388)
CONTROLS	Yes	Yes	Yes	Yes
CONSTANT	−0.2650	0.1530	−2.3928	−2.8434
CONSTANT	(−0.645)	(0.474)	(−0.794)	(−1.280)
YEAR FE	Yes	Yes	Yes	Yes
FIRM FE	Yes	Yes	Yes	Yes
N	462	462	462	462
Adj. R²	0.524	0.652	0.601	0.676
DIFF	0.0332**		0.2596*

Panel C: Labor quality
Variables	LS		LN_LS
	LOW	HIGH	LOW	HIGH
	(1)	(2)	(3)	(4)
PC	0.0164**	0.0101	0.0954*	0.0813
PC	(2.192)	(1.317)	(1.714)	(1.391)
RM PC*	−0.0251**	−0.0104	−0.1812**	−0.1769
RM PC*	(−2.533)	(−0.976)	(−2.355)	(−1.652)
CONTROLS	Yes	Yes	Yes	Yes
CONSTANT	0.0316	−0.6593	−2.9454	−7.1760*
CONSTANT	(0.110)	(−1.483)	(−1.475)	(−1.950)
YEAR FE	Yes	Yes	Yes	Yes
FIRM FE	Yes	Yes	Yes	Yes
N	462	462	462	462
Adj. R²	0.671	0.526	0.676	0.605
DIFF	−0.0147**		−0.0043*

Panel C: Labor quality
Variables	LS		LN_LS
	LOW	HIGH	LOW	HIGH
	(1)	(2)	(3)	(4)
PC	0.0164**	0.0101	0.0954*	0.0813
PC	(2.192)	(1.317)	(1.714)	(1.391)
RM* PC	−0.0251**	−0.0104	−0.1812**	−0.1769
RM* PC	(−2.533)	(−0.976)	(−2.355)	(−1.652)
CONTROLS	Yes	Yes	Yes	Yes
CONSTANT	0.0316	−0.6593	−2.9454	−7.1760*
CONSTANT	(0.110)	(−1.483)	(−1.475)	(−1.950)
YEAR FE	Yes	Yes	Yes	Yes
FIRM FE	Yes	Yes	Yes	Yes
N	462	462	462	462
Adj. R²	0.671	0.526	0.676	0.605
DIFF	−0.0147**		−0.0043*

Note(s): This table presents the regression results of cross-sectional tests. The dependent variables are labor share (LS) and the logarithmically converted form of labor share (LN_LS). See Appendix A for variable definitions. Year and firm fixed effects are included. The t-statistics based on robust standard errors clustered by firms are presented in parentheses beneath each estimate. ***, ** and * indicate two-tailed statistical significance at the 1%, 5% and 10% levels, respectively

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