Table 11 Effect of equity agreements:...

Table 11

Effect of equity agreements: test of parallel trend assumption (PTA)

Time intervals	−4 to 0	−4 to 1	−4 to 2	−4 to 3	−4 to 4
Panel A – Dependent variable: G_Trends
Post*Bank_Equity	0.621**	0.822**	0.845***	0.836***	0.843***
Post*Bank_Equity	(0.313)	(0.323)	(0.319)	(0.324)	(0.324)
Pre*Bank_Equity	0.296	0.312	0.278	0.295	0.279
Pre*Bank_Equity	(0.264)	(0.273)	(0.274)	(0.279)	(0.279)
Post*Age	−0.084**	−0.090*	−0.132**	−0.146**	−0.150***
Post*Age	(0.042)	(0.054)	(0.060)	(0.059)	(0.058)
Firm fixed effects	Yes	Yes	Yes	Yes	Yes
Year fixed effects	Yes	Yes	Yes	Yes	Yes
N° observations	257	326	378	416	442
R2	0.063	0.097	0.105	0.095	0.093
F-stat	3.860**	8.530***	11.240***	11.354***	11.967***
Panel B – Dependent variable: G_Trends_Growth
Post*Bank_Equity	0.226**	0.356***	0.422***	0.442***	0.479**
Post*Bank_Equity	(0.089)	(0.135)	(0.153)	(0.164)	(0.180)
Pre*Bank_Equity	0.126	0.149	0.109	0.081	0.030
Pre*Bank_Equity	(0.086)	(0.098)	(0.100)	(0.112)	(0.136)
Post*Age	−0.017*	−0.023	−0.046*	−0.060*	−0.073
Post*Age	(0.010)	(0.019)	(0.028)	(0.035)	(0.045)
Firm fixed effects	Yes	Yes	Yes	Yes	Yes
Year fixed effects	Yes	Yes	Yes	Yes	Yes
N° observations	257	326	378	416	442
R2	0.074	0.065	0.044	0.033	0.021
F-stat	4.551***	5.523***	4.454***	3.737**	2.449*

Time intervals	−4 to 0	−4 to 1	−4 to 2	−4 to 3	−4 to 4
Panel A – Dependent variable: G_Trends
Post*Bank_Equity	0.621**	0.822**	0.845***	0.836***	0.843***
Post*Bank_Equity	(0.313)	(0.323)	(0.319)	(0.324)	(0.324)
Pre*Bank_Equity	0.296	0.312	0.278	0.295	0.279
Pre*Bank_Equity	(0.264)	(0.273)	(0.274)	(0.279)	(0.279)
Post*Age	−0.084**	−0.090*	−0.132**	−0.146**	−0.150***
Post*Age	(0.042)	(0.054)	(0.060)	(0.059)	(0.058)
Firm fixed effects	Yes	Yes	Yes	Yes	Yes
Year fixed effects	Yes	Yes	Yes	Yes	Yes
N° observations	257	326	378	416	442
R2	0.063	0.097	0.105	0.095	0.093
F-stat	3.860**	8.530***	11.240***	11.354***	11.967***
Panel B – Dependent variable: G_Trends_Growth
Post*Bank_Equity	0.226**	0.356***	0.422***	0.442***	0.479**
Post*Bank_Equity	(0.089)	(0.135)	(0.153)	(0.164)	(0.180)
Pre*Bank_Equity	0.126	0.149	0.109	0.081	0.030
Pre*Bank_Equity	(0.086)	(0.098)	(0.100)	(0.112)	(0.136)
Post*Age	−0.017*	−0.023	−0.046*	−0.060*	−0.073
Post*Age	(0.010)	(0.019)	(0.028)	(0.035)	(0.045)
Firm fixed effects	Yes	Yes	Yes	Yes	Yes
Year fixed effects	Yes	Yes	Yes	Yes	Yes
N° observations	257	326	378	416	442
R2	0.074	0.065	0.044	0.033	0.021
F-stat	4.551***	5.523***	4.454***	3.737**	2.449*

Note(s): Test of PTA through the additional interaction term Pre*Bank_Equity. The coefficient of the interaction Pre*Bank_Equity (β₃) measures the effect of equity agreements with banks on the website traffic of treated FinTech firms compared to control units and can only be estimated when considering also post-treatment periods. All the specifications include firm fixed effects, time fixed effects and the interaction Post*Age. The columns show the results of separate panel regressions for each time interval, with the dummy Post equal to 1 in the years when we want to evaluate the effect of strategic alliances with banks and 0 in pre-treatment period (−4 to −1). Standard errors are clustered at firm level. Significance levels: *, **, *** for 10%, 5% and 1%, respectively

Source(s): Table was created by the authors

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