Table 7 Speed of adjustment in the top...

Table 7

Speed of adjustment in the top 25 most affected versus low 25 least affected states

	Low cases	High cases	Low cases	High cases
Variable	ΔBook lev	ΔBook lev	ΔMarket lev	ΔMarket lev
Book Dev	0.071***	0.080***
Book Dev	(0.005)	(0.012)
Market Dev			0.116***	0.167***
Market Dev			(0.006)	(0.018)
Constant	−0.023***	−0.011***	−0.051***	−0.064***
Constant	(0.001)	(0.002)	(0.002)	(0.005)
Observations	9,833	1,426	9,833	1,426
R-squared	0.209	0.203	0.299	0.318
Firm FE	Yes	Yes	Yes	Yes
Qtr FE	Yes	Yes	Yes	Yes

	Low cases	High cases	Low cases	High cases
Variable	ΔBook lev	ΔBook lev	ΔMarket lev	ΔMarket lev
Book Dev	0.071***	0.080***
Book Dev	(0.005)	(0.012)
Market Dev			0.116***	0.167***
Market Dev			(0.006)	(0.018)
Constant	−0.023***	−0.011***	−0.051***	−0.064***
Constant	(0.001)	(0.002)	(0.002)	(0.005)
Observations	9,833	1,426	9,833	1,426
R-squared	0.209	0.203	0.299	0.318
Firm FE	Yes	Yes	Yes	Yes
Qtr FE	Yes	Yes	Yes	Yes

Note(s): Table 7 presents the SOA for firms headquartered in states most severely affected by the pandemic. The sample is split into two groups: the top 25 most affected (high cases) and the bottom 25 least affected states (low cases)

Pre-COVID and COVID samples range between 2018Q3-2020Q1 and 2020Q2-2021Q4, respectively

Robust standard errors are presented in parentheses. ***p < 0.01, **p < 0.05, *p < 0.1 signifies significance at 1%, 5%, and 10% respectively

Source(s): Table by authors

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