Table 3

Main results


Dep. var. = 
(1)(2)(3)(4)
PDIFF1PDIFF2PDIFF1PDIFF2
TREAT × POST−0.0090*** (−2.76)−0.0100*** (−2.74)−0.0082*** (−2.58)−0.0091** (−2.57)
POST0.0006 (0.23)0.0007 (0.24)0.0018 (0.67)0.0020 (0.65)
TFP  0.0003 (0.21)0.0006 (0.37)
SIZE  −0.0063*** (−3.09)−0.0061*** (−2.66)
ROA  −0.0063 (−1.07)−0.0050 (−0.77)
LEV  0.0041 (0.80)0.0033 (0.57)
AGE  −0.0038 (−0.89)−0.0036 (−0.77)
NP  −0.0239*** (−10.06)−0.0269*** (−10.12)
Year fixed effectsYesYesYesYes
Firm fixed effectsYesYesYesYes
N17,21817,21817,21817,218
Adjusted R20.7090.6890.7130.693

Note(s): This table presents our main results by estimating the baseline DID model on the matched sample. The dependent variables are one of our measures of product differentiation. The dummy variable TREAT takes a value of 1 for treatment firms and 0 for control firms. The dummy variable POST equals 1 in the postsubsidy period (from year t to t+2) and 0 otherwise. All continuous variables are winsorized at the 1st and 99th percentiles. The model includes firm and year fixed effects. Presented in the parentheses below each coefficient is the t-value based on standard errors clustered by firm. Constant terms are estimated but omitted for presentation. ***, ** and * represent statistical significance at the 1, 5 and 10% levels, respectively

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