Sub-group analysis: The effect of unrelated diversification on firm performance conditioned by industry external financial dependence
| (1) | (2) | (3) | (4) | |
|---|---|---|---|---|
| Sub-groups based on 25 and 75% values as cutoffs | Sub-groups based on 33 and 66% values as cutoffs | |||
| Low industry external financial dependence | High industry external financial dependence | Low industry external financial dependence | High industry external financial dependence | |
| Unrelated diversification | 0.053 (0.049) | 0.201*** (0.037) | 0.057 (0.037) | 0.196*** (0.036) |
| Unrelated divers. × Fin. constraint | 0.464 (0.321) | 1.194*** (0.261) | 0.458* (0.241) | 1.160*** (0.259) |
| Financial constraint | −1.402*** (0.163) | −1.536*** (0.156) | −1.325*** (0.128) | −1.551*** (0.154) |
| Listing | −0.008 (0.010) | −0.009 (0.011) | −0.004 (0.008) | −0.009 (0.011) |
| Ownership concentration | 0.003 (0.012) | −0.008 (0.012) | 0.007 (0.009) | −0.008 (0.012) |
| Size | −0.030*** (0.005) | −0.007 (0.005) | −0.032*** (0.004) | −0.007 (0.005) |
| Industry growth opportunity | 1.002*** (0.324) | 0.256 (0.337) | 1.039*** (0.236) | 0.259 (0.338) |
| Tangibility | −0.066*** (0.025) | −0.055** (0.022) | −0.023 (0.017) | −0.061*** (0.022) |
| Leverage | −0.042*** (0.014) | −0.078*** (0.012) | −0.042*** (0.011) | −0.077*** (0.012) |
| GDP | 0.025*** (0.009) | −0.016* (0.008) | 0.028*** (0.007) | −0.016* (0.008) |
| Unemployment | 0.027 (0.105) | −0.072 (0.081) | 0.060 (0.072) | −0.069 (0.080) |
| Constant | −0.282 (0.214) | 0.471** (0.183) | −0.349** (0.154) | 0.455** (0.182) |
| Observations | 606 | 762 | 958 | 768 |
| R-squared | 0.234 | 0.256 | 0.247 | 0.264 |
| Number of id | 74 | 82 | 106 | 84 |
| Industry Fixed Effects | NO | NO | NO | NO |
| (1) | (2) | (3) | (4) | |
|---|---|---|---|---|
| Sub-groups based on 25 and 75% values as cutoffs | Sub-groups based on 33 and 66% values as cutoffs | |||
| Low industry external financial dependence | High industry external financial dependence | Low industry external financial dependence | High industry external financial dependence | |
| Unrelated diversification | 0.053 (0.049) | 0.201*** (0.037) | 0.057 (0.037) | 0.196*** (0.036) |
| Unrelated divers. × Fin. constraint | 0.464 (0.321) | 1.194*** (0.261) | 0.458* (0.241) | 1.160*** (0.259) |
| Financial constraint | −1.402*** (0.163) | −1.536*** (0.156) | −1.325*** (0.128) | −1.551*** (0.154) |
| Listing | −0.008 (0.010) | −0.009 (0.011) | −0.004 (0.008) | −0.009 (0.011) |
| Ownership concentration | 0.003 (0.012) | −0.008 (0.012) | 0.007 (0.009) | −0.008 (0.012) |
| Size | −0.030*** (0.005) | −0.007 (0.005) | −0.032*** (0.004) | −0.007 (0.005) |
| Industry growth opportunity | 1.002*** (0.324) | 0.256 (0.337) | 1.039*** (0.236) | 0.259 (0.338) |
| Tangibility | −0.066*** (0.025) | −0.055** (0.022) | −0.023 (0.017) | −0.061*** (0.022) |
| Leverage | −0.042*** (0.014) | −0.078*** (0.012) | −0.042*** (0.011) | −0.077*** (0.012) |
| GDP | 0.025*** (0.009) | −0.016* (0.008) | 0.028*** (0.007) | −0.016* (0.008) |
| Unemployment | 0.027 (0.105) | −0.072 (0.081) | 0.060 (0.072) | −0.069 (0.080) |
| Constant | −0.282 (0.214) | 0.471** (0.183) | −0.349** (0.154) | 0.455** (0.182) |
| Observations | 606 | 762 | 958 | 768 |
| 0.234 | 0.256 | 0.247 | 0.264 | |
| Number of id | 74 | 82 | 106 | 84 |
| Industry Fixed Effects | NO | NO | NO | NO |
Note(s): Standard errors in parentheses; the superscripts ***, ** and * denote significance at the 1%, 5% and 10% levels, respectively