Note(s): This table reports the robustness check of the baseline. Panel A reports the regression results of constructing a C-D production function to estimate capacity utilization. Panel B reports the regression results of using the natural logarithm of the frequency of vocabulary the firm’s digitization keywords or the frequency of the sentences that contain the keywords to measure the firm’s digitization development level. Panel C reports the regression results of using standardized digitization development variables. Panel D reports regression results of adding high-dimension fixed effects. The dependent variable is capacity utilization (CU). The key independent variables are enterprise digital development proxies, DigitalW and DigitalS. Control variables include Size, Leverage, ROA, CFO, TFP, Employee, Age, BSize, IndR, SH1, SOE and HHI. Variable definitions are presented in  Appendix 2. Continuous variables are winsorized at the 1 and 99% levels. Standard errors are all heteroscedastic, robust and clustered at the firm level. ∗, ∗∗ and ∗∗∗ indicate statistical significance at the 10, 5 and 1% levels, respectively, using a two-tailed t-test

Source(s): Authors’ own work