Table 5 Mechanism test: cross-ownership,...

Table 5

Mechanism test: cross-ownership, financing constraints and innovation

	(1)	(2)
	${A p p l y}_{t + 1}$	${A p p l y_I}_{t + 1}$
Cross	2.011**	1.818**
Cross	(0.806)	(0.709)
CrossSA*	0.510**	0.441**
CrossSA*	(0.214)	(0.188)
SA	0.268**	0.370***
SA	(0.118)	(0.104)
Growth	−0.077***	−0.041***
Growth	(0.017)	(0.014)
IND	0.276	0.174
IND	(0.212)	(0.186)
Lev	0.010	0.001
Lev	(0.081)	(0.070)
Cash	−0.076	−0.042
Cash	(0.106)	(0.093)
PPE	−0.933***	−0.794***
PPE	(0.081)	(0.069)
ROA	3.334***	2.517***
ROA	(0.208)	(0.171)
Share	−0.018	−0.257***
Share	(0.084)	(0.073)
Separation	−0.075	0.073
Separation	(0.157)	(0.137)
SOE	−0.063**	0.032
SOE	(0.029)	(0.025)
Size	0.277***	0.295***
Size	(0.014)	(0.013)
Tobin_q	−0.024**	0.019**
Tobin_q	(0.011)	(0.009)
Age	−0.099	0.040
Age	(0.075)	(0.067)
Year FEs	Yes	Yes
Industry FEs	Yes	Yes
Constant	−4.297***	−4.870***
Constant	(0.520)	(0.448)
Observations	17,168	17,168
$R^{2}$	0.217	0.181

	(1)	(2)
	${A p p l y}_{t + 1}$	${A p p l y_I}_{t + 1}$
Cross	2.011**	1.818**
Cross	(0.806)	(0.709)
Cross*SA	0.510**	0.441**
Cross*SA	(0.214)	(0.188)
SA	0.268**	0.370***
SA	(0.118)	(0.104)
Growth	−0.077***	−0.041***
Growth	(0.017)	(0.014)
IND	0.276	0.174
IND	(0.212)	(0.186)
Lev	0.010	0.001
Lev	(0.081)	(0.070)
Cash	−0.076	−0.042
Cash	(0.106)	(0.093)
PPE	−0.933***	−0.794***
PPE	(0.081)	(0.069)
ROA	3.334***	2.517***
ROA	(0.208)	(0.171)
Share	−0.018	−0.257***
Share	(0.084)	(0.073)
Separation	−0.075	0.073
Separation	(0.157)	(0.137)
SOE	−0.063**	0.032
SOE	(0.029)	(0.025)
Size	0.277***	0.295***
Size	(0.014)	(0.013)
Tobin_q	−0.024**	0.019**
Tobin_q	(0.011)	(0.009)
Age	−0.099	0.040
Age	(0.075)	(0.067)
Year FEs	Yes	Yes
Industry FEs	Yes	Yes
Constant	−4.297***	−4.870***
Constant	(0.520)	(0.448)
Observations	17,168	17,168
$R^{2}$	0.217	0.181

Note(s): The degree of financing constraint (SA) faced by the listed firm is measured by the SA index. The numbers in parentheses are t-statistics based on standard errors that are clustered at the merger level. ***, ** and * represent signiﬁcance at the 1%, 5% and 10% levels, respectively

Source(s): Authors' own work

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