Performance of conglomerate segments and single-segment firms in the periods before and after the Chinese WTO accession
| (1) | (2) | (3) | (4) | |
|---|---|---|---|---|
| Sales growth | Cashflows | Sales growth | Cashflows | |
| Conglomerate | 0.236** (2.181) | 0.056*** (2.643) | 0.033 (0.868) | −0.015** (−2.027) |
| Post2001 | 0.003 (0.028) | −0.043* (−1.877) | 0.134* (1.764) | −0.057*** (−2.962) |
| Post2001 × NTRgap × Conglomerate | 0.489** (2.477) | 0.315*** (7.096) | 0.393*** (2.775) | 0.570*** (15.664) |
| Post2001 × NTRgap | −0.960*** (−4.599) | −0.415*** (−6.630) | −0.829*** (−5.234) | −0.506*** (−11.531) |
| NTRgap | −1.646 (−1.325) | −0.251 (−1.244) | −4.063*** (−3.135) | 0.086 (0.741) |
| IndustryQ | 0.225*** (4.177) | −0.022** (−2.025) | 0.175*** (3.883) | −0.051*** (−3.848) |
| Investment | 0.526 (1.419) | −0.024 (−0.264) | 1.224*** (4.514) | −0.240*** (−3.302) |
| Size | −0.547*** (−12.396) | 0.087*** (7.104) | −0.100*** (−12.098) | 0.097*** (28.311) |
| Cashflows | −0.031 (−0.374) | – | −0.320*** (−6.204) | – |
| Salesgrowth | – | 0.001 (0.384) | – | −0.009*** (−3.986) |
| Constant | 2.941*** (6.374) | −0.289*** (−3.533) | 0.543*** (2.632) | −0.285*** (−8.460) |
| Segment fixed effect | Yes | Yes | No | No |
| Year fixed effect | Yes | Yes | Yes | Yes |
| Industry fixed effect | No | No | Yes | Yes |
| N | 27,797 | 24,178 | 27,797 | 24,178 |
| R-squared | 0.053 | 0.037 | 0.081 | 0.182 |
| (1) | (2) | (3) | (4) | |
|---|---|---|---|---|
| Sales growth | Cashflows | Sales growth | Cashflows | |
| Conglomerate | 0.236** (2.181) | 0.056 | 0.033 (0.868) | −0.015** (−2.027) |
| Post2001 | 0.003 (0.028) | −0.043* (−1.877) | 0.134* (1.764) | −0.057 |
| Post2001 × NTRgap × Conglomerate | 0.489** (2.477) | 0.315 | 0.393 | 0.570 |
| Post2001 × NTRgap | −0.960 | −0.415 | −0.829 | −0.506 |
| NTRgap | −1.646 (−1.325) | −0.251 (−1.244) | −4.063 | 0.086 (0.741) |
| IndustryQ | 0.225 | −0.022** (−2.025) | 0.175 | −0.051 |
| Investment | 0.526 (1.419) | −0.024 (−0.264) | 1.224 | −0.240 |
| Size | −0.547 | 0.087 | −0.100 | 0.097 |
| Cashflows | −0.031 (−0.374) | – | −0.320 | – |
| Salesgrowth | – | 0.001 (0.384) | – | −0.009 |
| Constant | 2.941 | −0.289 | 0.543 | −0.285 |
| Segment fixed effect | Yes | Yes | No | No |
| Year fixed effect | Yes | Yes | Yes | Yes |
| Industry fixed effect | No | No | Yes | Yes |
| 27,797 | 24,178 | 27,797 | 24,178 | |
| 0.053 | 0.037 | 0.081 | 0.182 |
Notes:
This table presents the regression results of whether segment sales growth and cash flows are different depending on conglomeration in industries facing intense Chinese import competition (Conglomerate × Post2001 × NTRgap). The sample includes segments of US firms obtained from Compustat Industrial Segments data base. The definition of the variables is described in the Appendix. T-statistics based on robust standard errors are reported in parentheses.
*;
**; and
*** denote statistical significance at the 10, 5 and 1% levels, respectively
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