Profitability of firms with different business strategies based on the matched sample
| Dependent variable: profit rate (net income divided by total sales) | ||
|---|---|---|
| Regression (1) | Regression (2) | |
| Product innovation (with reference to cost-cutting) | 0.0004 (0.002) | 0.001 (0.002) |
| Large firms | 0.046*** (0.006) | 0.018*** (0.005) |
| Young firms | −0.004 (0.003) | |
| Multi-establishment firms | 0.045*** (0.009) | |
| Multinationals | 0.022*** (0.004) | |
| Foreign-controlled | 0.014*** (0.005) | |
| Industry dummies | Yes | Yes |
| Year dummies | Yes | Yes |
| Adjusted R2 | 0.10 | 0.12 |
| Observations | 6,305 | 6,305 |
| Dependent variable: profit rate (net income divided by total sales) | ||
|---|---|---|
| Regression (1) | Regression (2) | |
| Product innovation (with reference to cost-cutting) | 0.0004 (0.002) | 0.001 (0.002) |
| Large firms | 0.046 | 0.018 |
| Young firms | −0.004 (0.003) | |
| Multi-establishment firms | 0.045 | |
| Multinationals | 0.022 | |
| Foreign-controlled | 0.014 | |
| Industry dummies | Yes | Yes |
| Year dummies | Yes | Yes |
| Adjusted | 0.10 | 0.12 |
| Observations | 6,305 | 6,305 |
Notes:
Reported standard error in parenthesis is heteroscedasticity-consistent;
“*”, “**” and “***”: Significance at 10, 5 and 1%, respectively
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