Robustness checks
| Threshold | T = 0.50 | T = 1.00 | T = 2.00 | |||
|---|---|---|---|---|---|---|
| Dep. var. = | PDIFF1 (1) | PDIFF2 (2) | PDIFF1 (3) | PDIFF2 (4) | PDIFF1 (5) | PDIFF2 (6) |
| Panel A: requiring the government subsidy amount to exceed T% of annual sales and exceed 100,000 RMB | ||||||
| TREAT × POST | −0.0097*** (−2.68) | −0.0108*** (−2.68) | −0.0133*** (−3.09) | −0.0155*** (−3.23) | −0.0169*** (−2.76) | −0.0193*** (−2.81) |
| POST | 0.0027 (0.87) | 0.0022 (0.64) | 0.0008 (0.21) | 0.0011 (0.26) | 0.0009 (0.17) | 0.0024 (0.40) |
| Firm-level controls | Yes | Yes | Yes | Yes | Yes | Yes |
| Year fixed effects | Yes | Yes | Yes | Yes | Yes | Yes |
| Firm fixed effects | Yes | Yes | Yes | Yes | Yes | Yes |
| N | 13,036 | 13,036 | 8,456 | 8,456 | 4,345 | 4,345 |
| Adjusted R2 | 0.710 | 0.691 | 0.728 | 0.711 | 0.734 | 0.717 |
| Threshold | ||||||
|---|---|---|---|---|---|---|
| Dep. var. = | PDIFF1 (1) | PDIFF2 (2) | PDIFF1 (3) | PDIFF2 (4) | PDIFF1 (5) | PDIFF2 (6) |
| −0.0097*** (−2.68) | −0.0108*** (−2.68) | −0.0133*** (−3.09) | −0.0155*** (−3.23) | −0.0169*** (−2.76) | −0.0193*** (−2.81) | |
| 0.0027 (0.87) | 0.0022 (0.64) | 0.0008 (0.21) | 0.0011 (0.26) | 0.0009 (0.17) | 0.0024 (0.40) | |
| Firm-level controls | Yes | Yes | Yes | Yes | Yes | Yes |
| Year fixed effects | Yes | Yes | Yes | Yes | Yes | Yes |
| Firm fixed effects | Yes | Yes | Yes | Yes | Yes | Yes |
| 13,036 | 13,036 | 8,456 | 8,456 | 4,345 | 4,345 | |
| Adjusted | 0.710 | 0.691 | 0.728 | 0.711 | 0.734 | 0.717 |
| Threshold | T = 300 | T = 500 | T = 1,000 | |||
|---|---|---|---|---|---|---|
| Dep. var. = | PDIFF1 (1) | PDIFF2 (2) | PDIFF1 (3) | PDIFF2 (4) | PDIFF1 (5) | PDIFF2 (6) |
| Panel B: requiring the amount of government subsidy to exceed T thousand RMB | ||||||
| TREAT × POST | −0.0084** (−2.55) | −0.0092** (−2.49) | −0.0077* (−1.80) | −0.0084* (−1.76) | −0.0122** (−2.11) | −0.0126* (−1.93) |
| POST | 0.0017 (0.61) | 0.0018 (0.57) | 0.0001 (0.02) | 0.0006 (0.14) | 0.0005 (0.10) | 0.0002 (0.03) |
| Firm-level controls | Yes | Yes | Yes | Yes | Yes | Yes |
| Year fixed effects | Yes | Yes | Yes | Yes | Yes | Yes |
| Firm fixed effects | Yes | Yes | Yes | Yes | Yes | Yes |
| N | 15,953 | 15,953 | 9,921 | 9,921 | 5,144 | 5,144 |
| Adjusted R2 | 0.712 | 0.691 | 0.714 | 0.692 | 0.724 | 0.702 |
| Threshold | ||||||
|---|---|---|---|---|---|---|
| Dep. var. = | PDIFF1 (1) | PDIFF2 (2) | PDIFF1 (3) | PDIFF2 (4) | PDIFF1 (5) | PDIFF2 (6) |
| −0.0084** (−2.55) | −0.0092** (−2.49) | −0.0077* (−1.80) | −0.0084* (−1.76) | −0.0122** (−2.11) | −0.0126* (−1.93) | |
| 0.0017 (0.61) | 0.0018 (0.57) | 0.0001 (0.02) | 0.0006 (0.14) | 0.0005 (0.10) | 0.0002 (0.03) | |
| Firm-level controls | Yes | Yes | Yes | Yes | Yes | Yes |
| Year fixed effects | Yes | Yes | Yes | Yes | Yes | Yes |
| Firm fixed effects | Yes | Yes | Yes | Yes | Yes | Yes |
| 15,953 | 15,953 | 9,921 | 9,921 | 5,144 | 5,144 | |
| Adjusted | 0.712 | 0.691 | 0.714 | 0.692 | 0.724 | 0.702 |
| Dep. var. = | PDIFF1 (1) | PDIFF2 (2) | PDIFF1 (3) | PDIFF2 (4) |
|---|---|---|---|---|
| Panel C: matching all government subsidies regardless of the amount | ||||
| SUBRATIO × POST | −0.1779** (−2.45) | −0.1970** (−2.40) | −0.1773** (−2.49) | −0.1961** (−2.43) |
| POST | 0.0003 (0.23) | −0.0000 (−0.02) | 0.0013 (0.95) | 0.0011 (0.67) |
| Firm-level controls | No | No | Yes | Yes |
| Year fixed effects | Yes | Yes | Yes | Yes |
| Firm fixed effects | Yes | Yes | Yes | Yes |
| N | 42,221 | 42,221 | 42,221 | 42,221 |
| Adjusted R2 | 0.712 | 0.694 | 0.717 | 0.699 |
| Dep. var. = | PDIFF1 (1) | PDIFF2 (2) | PDIFF1 (3) | PDIFF2 (4) |
|---|---|---|---|---|
| −0.1779** (−2.45) | −0.1970** (−2.40) | −0.1773** (−2.49) | −0.1961** (−2.43) | |
| 0.0003 (0.23) | −0.0000 (−0.02) | 0.0013 (0.95) | 0.0011 (0.67) | |
| Firm-level controls | No | No | Yes | Yes |
| Year fixed effects | Yes | Yes | Yes | Yes |
| Firm fixed effects | Yes | Yes | Yes | Yes |
| 42,221 | 42,221 | 42,221 | 42,221 | |
| Adjusted | 0.712 | 0.694 | 0.717 | 0.699 |
Note(s): This table presents various robustness checks for our main results. In Panels A and B, we use different threshold to select the government subsidy amount and redo the propensity score matching and DID analysis. In Panel C, we match all government subsidies regardless of the amount and replace the treatment dummy (TREAT) with the subsidy ratio (SUBRATIO), calculated as subsidy amount divided by annual sales. The model includes firm and year fixed effects and firm-level control variables. All continuous variables are winsorized at the 1st and 99th percentiles. 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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