Table 3.

Effects of EO on profitability

(1)(2)(3)
VariablesProfitabilityProfitabilityProfitability
EO0.037*** (0.002)0.060*** (0.002)
EO # E0−0.010*** (0.000)
Sale0.006*** (0.001)0.005*** (0.001)0.005*** (0.001)
Recoverable slack−0.200*** (0.018)−0.181*** (0.017)−0.146*** (0.017)
Available slack0.001*** (0.000)0.001*** (0.000)0.000* (0.000)
Earnings per share0.002*** (0.000)0.002*** (0.000)0.001*** (0.000)
Total assets0.027*** (0.002)0.027*** (0.002)0.027*** (0.002)
Employees−0.000 (0.001)−0.000 (0.001)−0.000 (0.001)
Years since IPO0.004 (0.003)0.003 (0.003)0.005 (0.003)
Hostility−0.260*** (0.025)−0.241*** (0.024)−0.221*** (0.024)
Dynamism−1.355*** (0.295)−1.367*** (0.295)−1.300*** (0.292)
Complexity0.055* (0.025)0.060* (0.025)0.060* (0.025)
Constant0.025** (0.010)0.018+ (0.010)0.025** (0.009)
Firm fixed effectsYesYesYes
Year fixed effectsYesYesYes
Observations111,336111,336111,336
No. of firms13,79613,79613,796
F-statistic39.00743.74046.413
R-squared0.585***0.589***0.591***
Note(s):

Standard errors in parentheses. +p <0.10, *p <0.05, **p <0.01, ***p <0.001

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