Table 13 Effect of equity agreements:...

Table 13

Effect of equity agreements: test of SUTVA assumption (spillover effects)

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	0.370***	0.548***	0.592***	0.565***	0.589***
Post*Bank_Equity	(0.130)	(0.153)	(0.176)	(0.171)	(0.171)
Post*Age	−0.090**	−0.095*	−0.132**	−0.145**	−0.150***
Post*Age	(0.043)	(0.054)	(0.060)	(0.060)	(0.058)
Spillover_Equity_Agr	0.086	0.100	0.026	0.009	0.035
Spillover_Equity_Agr	(0.059)	(0.069)	(0.057)	(0.061)	(0.057)
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	0.099	0.102	0.092	0.091
F-stat	3.815**	8.742***	10.908***	10.959***	11.717***
Panel B – Dependent variable: G_Trends_Growth
Post*Bank_Equity	0.113***	0.223**	0.314**	0.359**	0.450**
Post*Bank_Equity	(0.037)	(0.087)	(0.131)	(0.161)	(0.220)
Post*Age	−0.018*	−0.025	−0.043	−0.057*	−0.073
Post*Age	(0.011)	(0.019)	(0.026)	(0.034)	(0.045)
Spillover_Equity_Agr	0.014	0.032	−0.058	−0.075	−0.007
Spillover_Equity_Agr	(0.020)	(0.023)	(0.052)	(0.063)	(0.029)
Firm fixed effects	Yes	Yes	Yes	Yes	Yes
Year fixed effects	Yes	Yes	Yes	Yes	Yes
N° observations	257	326	378	416	442
R2	0.057	0.063	0.048	0.037	0.021
F-stat	3.438**	5.327***	4.799***	4.183***	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	0.370***	0.548***	0.592***	0.565***	0.589***
Post*Bank_Equity	(0.130)	(0.153)	(0.176)	(0.171)	(0.171)
Post*Age	−0.090**	−0.095*	−0.132**	−0.145**	−0.150***
Post*Age	(0.043)	(0.054)	(0.060)	(0.060)	(0.058)
Spillover_Equity_Agr	0.086	0.100	0.026	0.009	0.035
Spillover_Equity_Agr	(0.059)	(0.069)	(0.057)	(0.061)	(0.057)
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	0.099	0.102	0.092	0.091
F-stat	3.815**	8.742***	10.908***	10.959***	11.717***
Panel B – Dependent variable: G_Trends_Growth
Post*Bank_Equity	0.113***	0.223**	0.314**	0.359**	0.450**
Post*Bank_Equity	(0.037)	(0.087)	(0.131)	(0.161)	(0.220)
Post*Age	−0.018*	−0.025	−0.043	−0.057*	−0.073
Post*Age	(0.011)	(0.019)	(0.026)	(0.034)	(0.045)
Spillover_Equity_Agr	0.014	0.032	−0.058	−0.075	−0.007
Spillover_Equity_Agr	(0.020)	(0.023)	(0.052)	(0.063)	(0.029)
Firm fixed effects	Yes	Yes	Yes	Yes	Yes
Year fixed effects	Yes	Yes	Yes	Yes	Yes
N° observations	257	326	378	416	442
R2	0.057	0.063	0.048	0.037	0.021
F-stat	3.438**	5.327***	4.799***	4.183***	2.449*

Note(s): Test of spillover effects of equity agreement (SUTVA assumption) through the additional control variable Spillover_Equity_Agr, a binary variable which, for a specific FinTech observed in a specific year, is equal to 1 when other FinTechs operating in the same market segment are involved in an equity agreement in the same year. The coefficient of the interaction Post*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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