Table A3 Size effect in the labour and...

Table A3

Size effect in the labour and capital efficiencies of firms

	Panel A: Labour efficiency						Panel B: Capital efficiency
	2006			2019			2006			2019
Model	1	2	3	1	2	3	1	2	3	1	2	3
$α$	−3.892***	−5.596***	−9.051***	−0.488	−0.519	0.182	46.791***	7.426***	8.503***	57.443***	38.752***	36.703***
W*EFF	0.075***	0.079***	0.069***	0.008***	0.008***	0.009***	0.182***	0.113***	0.116***	0.086***	0.086***	0.088***
GIL	−0.559***	−0.582***	−0.544***	−0.037	0.026	−0.035	−0.829**	−0.885***	−0.887***	−1.254***	−0.999**	−1.280***
CMAN	−0.278***	−0.206***	−0.241***	0.072	0.059	0.070	−0.781***	−0.568***	−0.538***	0.395***	0.384***	0.394***
AGL	0.393*		0.474**	−0.591**		−0.693**	1.524***		0.864**	−0.453		−0.500
QCT	1.953***		2.112***	1.940***		1.962***	−4.229***		−3.245***	3.539***		3.575***
EAI	3.161***		3.595***	0.117		0.111	−5.538***		−2.974***	3.840***		4.305***
PDOM		4.240***	4.933***		−0.987	−0.358		46.533***	44.522***		20.082***	21.349***
PFOR		3.828***	3.402**		−1.612	−1.427		35.848***	35.309***		17.487***	17.898***
GOV		4.567	3.852		2.841	2.852		51.538***	50.760***		11.434	12.094
GIL*D	0.362	0.307	0.280	−0.184	−0.180	−0.153	1.146	0.900	1.112	0.518	0.487	0.647
CMAN*D	0.005	−0.096	−0.007	−0.067	−0.022	−0.062	0.598*	0.668*	0.680**	−0.150	−0.156	−0.122
AGL*D	0.260		−0.835	0.377		0.999*	0.740		−0.478	1.531***		0.574
QCT*D	−0.534		−1.731	−3.856***		−3.872***	8.316***		6.042***	0.216		−0.064
EAI*D	−0.572		−2.245*	1.129		0.837	−0.155		−3.574*	−1.294		−1.414
PDOM*D		2.243***	4.913***		−1.145*	−2.817*		3.522***	6.763**		5.887***	3.287
PFOR*D		4.753***	8.158***		4.469**	3.310		12.502***	14.306***		8.280***	6.060*
GOV*D		2.613	6.711		7.509	6.055		7.499	9.698		15.260	12.818

	Panel A: Labour efficiency						Panel B: Capital efficiency
	2006			2019			2006			2019
Model	1	2	3	1	2	3	1	2	3	1	2	3
$α$	−3.892***	−5.596***	−9.051***	−0.488	−0.519	0.182	46.791***	7.426***	8.503***	57.443***	38.752***	36.703***
W*EFF	0.075***	0.079***	0.069***	0.008***	0.008***	0.009***	0.182***	0.113***	0.116***	0.086***	0.086***	0.088***
GIL	−0.559***	−0.582***	−0.544***	−0.037	0.026	−0.035	−0.829**	−0.885***	−0.887***	−1.254***	−0.999**	−1.280***
CMAN	−0.278***	−0.206***	−0.241***	0.072	0.059	0.070	−0.781***	−0.568***	−0.538***	0.395***	0.384***	0.394***
AGL	0.393*		0.474**	−0.591**		−0.693**	1.524***		0.864**	−0.453		−0.500
QCT	1.953***		2.112***	1.940***		1.962***	−4.229***		−3.245***	3.539***		3.575***
EAI	3.161***		3.595***	0.117		0.111	−5.538***		−2.974***	3.840***		4.305***
PDOM		4.240***	4.933***		−0.987	−0.358		46.533***	44.522***		20.082***	21.349***
PFOR		3.828***	3.402**		−1.612	−1.427		35.848***	35.309***		17.487***	17.898***
GOV		4.567	3.852		2.841	2.852		51.538***	50.760***		11.434	12.094
GIL*D	0.362	0.307	0.280	−0.184	−0.180	−0.153	1.146	0.900	1.112	0.518	0.487	0.647
CMAN*D	0.005	−0.096	−0.007	−0.067	−0.022	−0.062	0.598*	0.668*	0.680**	−0.150	−0.156	−0.122
AGL*D	0.260		−0.835	0.377		0.999*	0.740		−0.478	1.531***		0.574
QCT*D	−0.534		−1.731	−3.856***		−3.872***	8.316***		6.042***	0.216		−0.064
EAI*D	−0.572		−2.245*	1.129		0.837	−0.155		−3.574*	−1.294		−1.414
PDOM*D		2.243***	4.913***		−1.145*	−2.817*		3.522***	6.763**		5.887***	3.287
PFOR*D		4.753***	8.158***		4.469**	3.310		12.502***	14.306***		8.280***	6.060*
GOV*D		2.613	6.711		7.509	6.055		7.499	9.698		15.260	12.818

Note(s): The Table presents the results of estimating the equation ${EFF}_{i}^{j} = α_{0} + γ \sum_{i = 1}^{N} w_{j, i} {EFF}_{i} + β^{1} {CMAN}_{j} + β^{2} {QCT}_{j} + β^{3} {EAS}_{j} + β^{4} P D O M_{j} + β^{5} P F O R_{j} + β^{6} G O V_{j} + β^{7} {AGL}_{j} + β^{8} {GIL}_{j} + D_{j} (λ^{1} {CMAN}_{j} + λ^{2} {QCT}_{j} + λ^{3} {EAS}_{j} + λ^{4} P D O M_{j} + λ^{5} P F O R_{j} + λ^{6} G O V_{j} + λ^{7} {AGL}_{j} + λ^{8} {GIL}_{j}) + μ_{j} + ε_{j}$

$EFF = efficiency, QCERT = quality certification, CMAN = crime management, GIL = Log of graft indexAGL = \log of {firm}^{'} sage, a = intercept, EA S = External auditor involvement,$

$γ = the spatial autocorrelation coefficient, μ = spatial specific effects, GOV = government ownership, β = non - large firms coefficients, λ = large firms coefficients,$

$PDOM = private domestic ownership, PFOR = private foreign ownership, w_{j, i} = element of the adjacency matrix W .$

$D = f i r m s i z e d u m m y .$ It takes the value of 1 for large firms and 0 otherwise. Firms are classified into various size categories in the database

***, ** and * are 1, 5 and 10% significant levels respectively

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