Table 1

Propensity score matching

(1) before matching(2) after matching
Dep. var. = TREATTREAT
Panel A: estimation of propensity scores
TFP0.0052 (0.51)−0.0037 (−0.13)
SIZE0.5404*** (54.17)−0.0026 (−0.14)
ROA−0.1021** (−2.43)0.1457* (1.78)
LEV0.1852*** (11.79)−0.0770*** (−2.64)
AGE−0.0768*** (−4.24)0.1518*** (4.34)
NP0.0912*** (6.46)0.0020 (0.07)
ΔPDIFF2−0.1586* (−1.67)0.0450 (0.20)
Ownership fixed effectsYesYes
Province fixed effectsYesYes
Industry fixed effectsYesYes
Year fixed effectsYesYes
N68,1325,230
Pseudo R20.35900.0045
p-value of Wald χ2 test0.00001.0000
Before matchingAfter matching
VariableControl group
N = 54,738		Treatment group
N = 13,394		Difference in meanControl group
N = 2,615		Treatment group
N = 2,615		Difference in mean
Panel B: checking matching performance
TFP2.71391.76830.9456***1.86671.85100.0157
SIZE9.887311.3560−1.4686***10.474310.4958−0.0215
ROA0.14810.12380.0243***0.13240.1362−0.0038
LEV0.58990.7387−0.1488***0.76900.71250.0565**
AGE2.02342.1011−0.0777***1.99492.0621−0.0672***
NP0.98181.0026−0.0208**1.03641.0377−0.0013
ΔPDIFF2−0.0012−0.00340.0022**−0.0035−0.0030−0.0005
Propensity Score0.12150.5046−0.3831***0.29580.29370.0021

Note(s): This table presents our propensity score matching. Panel A uses a probit model to estimate propensity scores, and Panel B checks the performance of our matching procedure. We do a one-by-one match without replacement. Specifically, for each treatment firm, we try to find the control firm with the closest propensity score within the same ownership type, location province, industry and year. ***, ** and * represent statistical significance at the 1, 5 and 10% levels, respectively

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