Table 5 Effects of strategy on...

Table 5

Effects of strategy on performance

	(1)	(2)	(3)	(4)	(5)	(6)
Variables	roa	roe	tobinsq	markettobook	assetgrowth	salesgrowth
differentiation	0.062***	0.101**	0.003**	0.005*	0.057	0.072**
	(3.831)	(2.271)	(2.531)	(1.763)	(1.443)	(2.009)
efficiency	0.034	−0.007	−0.002	−0.006	0.061	0.168**
	(1.376)	(−0.088)	(−1.575)	(−1.321)	(0.939)	(2.556)
efficiency*differentiation	−0.002***	−0.003	−0.000	0.000	−0.003	−0.003*
	(−3.159)	(−1.585)	(−0.045)	(0.014)	(−1.592)	(−1.713)
log_assets	0.409***	1.750***	0.005	−0.000	−0.062	0.017
	(3.819)	(5.434)	(0.679)	(−0.025)	(−0.260)	(0.074)
forsales	−0.526	−2.325	−0.054	0.079	−2.769	−2.475
	(−0.689)	(−1.075)	(−1.106)	(0.599)	(−1.635)	(−1.320)
diversified	0.051	−0.138	−0.027	−0.037	−0.209	−0.806
	(0.159)	(−0.134)	(−1.450)	(−0.658)	(−0.273)	(−0.966)
leverage	1.873	1.285	−0.033	−0.016	−6.252**	−2.329
	(1.091)	(0.221)	(−0.273)	(−0.051)	(−2.113)	(−0.733)
marketgrowth	−0.796	−4.756	−0.015	−0.367	−9.230	20.313***
	(−0.270)	(−0.587)	(−0.102)	(−0.801)	(−1.145)	(2.724)
concentration	8.285***	15.453	0.658***	1.667***	5.157	−3.787
	(2.684)	(1.496)	(3.488)	(2.895)	(0.675)	(−0.552)
lag_performance	0.538***	0.487***	0.810***	0.790***	0.075***	0.115***
	(14.650)	(10.012)	(26.192)	(22.139)	(4.146)	(3.819)
Constant	−9.144***	−32.455***	−0.366***	−0.652**	−1.473	−1.011
	(−5.279)	(−5.564)	(−3.185)	(−2.206)	(−0.365)	(−0.250)
Year-fixed effects	Yes	Yes	Yes	Yes	Yes	Yes
Industry-fixed effects	Yes	Yes	Yes	Yes	Yes	Yes
Observations	4,133	4,133	4,133	4,133	4,133	4,133
Adj. R-squared	0.282	0.219	0.700	0.585	0.0544	0.0801

	(1)	(2)	(3)	(4)	(5)	(6)
Variables	roa	roe	tobinsq	markettobook	assetgrowth	salesgrowth
differentiation	0.062***	0.101**	0.003**	0.005*	0.057	0.072**
	(3.831)	(2.271)	(2.531)	(1.763)	(1.443)	(2.009)
efficiency	0.034	−0.007	−0.002	−0.006	0.061	0.168**
	(1.376)	(−0.088)	(−1.575)	(−1.321)	(0.939)	(2.556)
efficiency*differentiation	−0.002***	−0.003	−0.000	0.000	−0.003	−0.003*
	(−3.159)	(−1.585)	(−0.045)	(0.014)	(−1.592)	(−1.713)
log_assets	0.409***	1.750***	0.005	−0.000	−0.062	0.017
	(3.819)	(5.434)	(0.679)	(−0.025)	(−0.260)	(0.074)
forsales	−0.526	−2.325	−0.054	0.079	−2.769	−2.475
	(−0.689)	(−1.075)	(−1.106)	(0.599)	(−1.635)	(−1.320)
diversified	0.051	−0.138	−0.027	−0.037	−0.209	−0.806
	(0.159)	(−0.134)	(−1.450)	(−0.658)	(−0.273)	(−0.966)
leverage	1.873	1.285	−0.033	−0.016	−6.252**	−2.329
	(1.091)	(0.221)	(−0.273)	(−0.051)	(−2.113)	(−0.733)
marketgrowth	−0.796	−4.756	−0.015	−0.367	−9.230	20.313***
	(−0.270)	(−0.587)	(−0.102)	(−0.801)	(−1.145)	(2.724)
concentration	8.285***	15.453	0.658***	1.667***	5.157	−3.787
	(2.684)	(1.496)	(3.488)	(2.895)	(0.675)	(−0.552)
lag_performance	0.538***	0.487***	0.810***	0.790***	0.075***	0.115***
	(14.650)	(10.012)	(26.192)	(22.139)	(4.146)	(3.819)
Constant	−9.144***	−32.455***	−0.366***	−0.652**	−1.473	−1.011
	(−5.279)	(−5.564)	(−3.185)	(−2.206)	(−0.365)	(−0.250)
Year-fixed effects	Yes	Yes	Yes	Yes	Yes	Yes
Industry-fixed effects	Yes	Yes	Yes	Yes	Yes	Yes
Observations	4,133	4,133	4,133	4,133	4,133	4,133
Adj. R-squared	0.282	0.219	0.700	0.585	0.0544	0.0801

Note(s): Table 5 presents ordinary least squares regressions of performance on competitive strategy. T-statistics are reported under each coefficient in parentheses. *, ** and *** denote significance level of 0.1, 0.05 and 0.01, respectively

Source(s): Authors' own creation

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