Table 2 Effect of unrelated... | Emerald Publishing

Table 2

Effect of unrelated diversification on firm performance: regression results

Econometric model	(1)	(2)	(3)	(4)	(5)	(6)
Econometric model	Fixed effects	Fixed effects	Fixed effects	Fixed effects	Fixed effects	Random effects
Unrelated diversification		0.02***	0.14***	0.04***	0.15***	0.14***
		(0.01)	(0.02)	(0.01)	(0.02)	(0.02)
Unrelated divers. × Industry ext. fin. dep.			0.04***		0.04***	0.03**
			(0.01)		(0.01)	(0.01)
Unrelated divers. × Fin. constraints				0.84***	0.81***	0.79***
				(0.15)	(0.15)	(0.14)
Financial constraints		−1.19***	−1.44***	−1.20***	−1.44***	−1.48***
		(0.07)	(0.08)	(0.07)	(0.08)	(0.08)
Industry external financial dependence		−0.004	−0.003	−0.02*	−0.01	−0.01
Industry external financial dependence		(0.01)	(0.01)	(0.01)	(0.01)	(0.01)
Listing	−0.01	−0.01	−0.01	−0.01	−0.01	−0.00
	(0.01)	(0.01)	(0.01)	(0.01)	(0.01)	(0.00)
Ownership concentration	−0.01	−0.01	−0.01	−0.01	−0.01	−0.01
	(0.01)	(0.01)	(0.01)	(0.01)	(0.01)	(0.01)
Firm size	−0.01***	−0.02***	−0.02***	−0.02***	−0.02***	−0.01***
	(0.00)	(0.00)	(0.00)	(0.00)	(0.00)	(0.00)
Industry growth opportunity	0.61***	0.42***	0.45***	0.40***	0.43***	0.39***
	(0.16)	(0.15)	(0.15)	(0.15)	(0.15)	(0.13)
Tangibility	−0.05***	−0.04***	−0.04***	−0.04***	−0.04***	−0.04***
	(0.01)	(0.01)	(0.01)	(0.01)	(0.01)	(0.01)
Leverage	−0.08***	−0.05***	−0.05***	−0.05***	−0.05***	−0.05***
	(0.01)	(0.01)	(0.01)	(0.01)	(0.01)	(0.01)
GDP	−0.00	0.01**	0.01**	0.01**	0.01**	0.01**
	(0.00)	(0.00)	(0.00)	(0.00)	(0.00)	(0.00)
Unemployment	0.04	0.04	0.02	0.03	0.02	0.02
	(0.05)	(0.04)	(0.04)	(0.04)	(0.04)	(0.04)
Constant	0.34***	−0.01	−0.04	−0.01	−0.04	−0.12
	(0.10)	(0.10)	(0.10)	(0.10)	(0.10)	(0.09)
Observations	2,417	2,417	2,417	2,417	2,417	2,417
R-squared	0.10	0.21	0.23	0.22	0.23	0.23
Number of id	230	230	230	230	230	230
Industry Fixed Effects	NO	NO	NO	NO	NO	NO

Econometric model	(1)	(2)	(3)	(4)	(5)	(6)
Econometric model	Fixed effects	Fixed effects	Fixed effects	Fixed effects	Fixed effects	Random effects
Unrelated diversification		0.02***	0.14***	0.04***	0.15***	0.14***
		(0.01)	(0.02)	(0.01)	(0.02)	(0.02)
Unrelated divers. × Industry ext. fin. dep.			0.04***		0.04***	0.03**
			(0.01)		(0.01)	(0.01)
Unrelated divers. × Fin. constraints				0.84***	0.81***	0.79***
				(0.15)	(0.15)	(0.14)
Financial constraints		−1.19***	−1.44***	−1.20***	−1.44***	−1.48***
		(0.07)	(0.08)	(0.07)	(0.08)	(0.08)
Industry external financial dependence		−0.004	−0.003	−0.02*	−0.01	−0.01
Industry external financial dependence		(0.01)	(0.01)	(0.01)	(0.01)	(0.01)
Listing	−0.01	−0.01	−0.01	−0.01	−0.01	−0.00
	(0.01)	(0.01)	(0.01)	(0.01)	(0.01)	(0.00)
Ownership concentration	−0.01	−0.01	−0.01	−0.01	−0.01	−0.01
	(0.01)	(0.01)	(0.01)	(0.01)	(0.01)	(0.01)
Firm size	−0.01***	−0.02***	−0.02***	−0.02***	−0.02***	−0.01***
	(0.00)	(0.00)	(0.00)	(0.00)	(0.00)	(0.00)
Industry growth opportunity	0.61***	0.42***	0.45***	0.40***	0.43***	0.39***
	(0.16)	(0.15)	(0.15)	(0.15)	(0.15)	(0.13)
Tangibility	−0.05***	−0.04***	−0.04***	−0.04***	−0.04***	−0.04***
	(0.01)	(0.01)	(0.01)	(0.01)	(0.01)	(0.01)
Leverage	−0.08***	−0.05***	−0.05***	−0.05***	−0.05***	−0.05***
	(0.01)	(0.01)	(0.01)	(0.01)	(0.01)	(0.01)
GDP	−0.00	0.01**	0.01**	0.01**	0.01**	0.01**
	(0.00)	(0.00)	(0.00)	(0.00)	(0.00)	(0.00)
Unemployment	0.04	0.04	0.02	0.03	0.02	0.02
	(0.05)	(0.04)	(0.04)	(0.04)	(0.04)	(0.04)
Constant	0.34***	−0.01	−0.04	−0.01	−0.04	−0.12
	(0.10)	(0.10)	(0.10)	(0.10)	(0.10)	(0.09)
Observations	2,417	2,417	2,417	2,417	2,417	2,417
R-squared	0.10	0.21	0.23	0.22	0.23	0.23
Number of id	230	230	230	230	230	230
Industry Fixed Effects	NO	NO	NO	NO	NO	NO

Note(s): Standard errors in parentheses; the superscripts ***, ** and * denote significance at the 1%, 5% and 10% levels, respectively

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