Table 4.

Effects of EO on profitability (split samples by sales at p0-p25, p25-p75, and p75-p100)

(1) Small firms(2) Medium firms(3) Large firms
VariablesProfitabilityProfitabilityProfitability
EO−0.024*** (0.007)0.162*** (0.022)3.356*** (0.199)
EO # EO0.063*** (0.013)−0.051 (0.039)−3.905*** (0.359)
Sales−0.018 (0.045)0.119*** (0.020)0.004*** (0.001)
Recoverable slack−0.014*** (0.002)−0.034* (0.014)−1.640*** (0.255)
Available slack0.000+ (0.000)0.001*** (0.000)0.013*** (0.003)
Debt-to-equity−0.000** (0.000)−0.001*** (0.000)−0.003 (0.002)
Earnings per share0.000*** (0.000)0.001*** (0.000)0.009*** (0.002)
Total assets−0.112*** (0.016)−0.011* (0.005)0.025*** (0.002)
Employees−0.003 (0.002)−0.004** (0.001)−0.000 (0.000)
Years since IPO0.002* (0.001)0.008*** (0.002)0.008 (0.008)
Hostility−0.006** (0.002)−0.032*** (0.008)−0.428*** (0.078)
Dynamism−0.001 (0.017)0.045 (0.101)−3.680*** (0.912)
Complexity0.005** (0.002)0.042*** (0.009)0.112 (0.086)
Constant0.000 (0.001)−0.056*** (0.005)−0.242*** (0.055)
Firm fixed effectYesYesYes
Year fixed effectYesYesYes
Observations23,91159,70227,723
N_g4,408.0007,335.0002,053.000
F16.05746.16949.554
r2_o0.2000.1210.584
P0.0000.0000.000
Note(s):

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

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