Table 1 Sample and descriptive...

Table 1

Sample and descriptive statistics

Panel A: sample selection
Step	N
Step 1: initial sample from Compustat with valid controls	126,974
Step 2: construct hedging variables, EQ3 and EQ4	63,049
Step 3: construct EQ1	55,050
Step 4: construct EQ2	41,430

Panel A: sample selection
Step	N
Step 1: initial sample from Compustat with valid controls	126,974
Step 2: construct hedging variables, EQ3 and EQ4	63,049
Step 3: construct EQ1	55,050
Step 4: construct EQ2	41,430

Panel B: descriptive statistics
Variables	N	mean	p50	sd	min	p25	p75	max
hedge	63,049	0.17	0.10	0.20	0.00	0.04	0.22	1.00
EQ1	55,050	0.05	0.03	0.06	0.00	0.01	0.06	0.34
EQ2	41,430	0.06	0.04	0.05	0.01	0.02	0.07	0.29
EQ3	63,049	0.08	0.05	0.09	0.00	0.02	0.09	0.60
EQ4	63,049	0.06	0.03	0.09	0.00	0.01	0.07	0.56
logasset	63,049	5.87	5.78	2.01	1.55	4.42	7.26	10.69
booklev	63,049	0.21	0.17	0.21	0.00	0.01	0.33	0.99
Cash	63,049	0.21	0.11	0.24	0.00	0.03	0.31	0.94
MB	63,049	2.19	1.57	1.86	0.59	1.16	2.42	12.19
profit	63,049	0.06	0.11	0.22	−1.11	0.04	0.17	0.40
tangib	63,049	0.27	0.19	0.24	0.00	0.08	0.39	0.90
RDdummy	63,049	0.37	0.00	0.48	0.00	0.00	1.00	1.00
RDintens	63,049	0.06	0.00	0.12	0.00	0.00	0.07	0.71

Panel B: descriptive statistics
Variables	N	mean	p50	sd	min	p25	p75	max
hedge	63,049	0.17	0.10	0.20	0.00	0.04	0.22	1.00
EQ1	55,050	0.05	0.03	0.06	0.00	0.01	0.06	0.34
EQ2	41,430	0.06	0.04	0.05	0.01	0.02	0.07	0.29
EQ3	63,049	0.08	0.05	0.09	0.00	0.02	0.09	0.60
EQ4	63,049	0.06	0.03	0.09	0.00	0.01	0.07	0.56
logasset	63,049	5.87	5.78	2.01	1.55	4.42	7.26	10.69
booklev	63,049	0.21	0.17	0.21	0.00	0.01	0.33	0.99
Cash	63,049	0.21	0.11	0.24	0.00	0.03	0.31	0.94
MB	63,049	2.19	1.57	1.86	0.59	1.16	2.42	12.19
profit	63,049	0.06	0.11	0.22	−1.11	0.04	0.17	0.40
tangib	63,049	0.27	0.19	0.24	0.00	0.08	0.39	0.90
RDdummy	63,049	0.37	0.00	0.48	0.00	0.00	1.00	1.00
RDintens	63,049	0.06	0.00	0.12	0.00	0.00	0.07	0.71

Panel C: correlation coefficients
	hedge	EQ1	EQ2	EQ3	EQ4	logasset	booklev	cash	MB	profit	tangib	RDdummy	RDintens
hedge	1
EQ1	−0.122	1
EQ2	−0.173	0.393	1
EQ3	−0.097	0.613	0.335	1
EQ4	−0.109	0.689	0.377	0.880	1
logasset	0.487	−0.330	−0.449	−0.255	−0.285	1
booklev	0.224	−0.054	−0.099	−0.037	−0.071	0.272	1
cash	−0.210	0.154	0.284	0.142	0.176	−0.359	−0.401	1
MB	−0.088	0.217	0.238	0.226	0.254	−0.214	−0.139	0.417	1
profit	0.142	−0.277	−0.349	−0.190	−0.209	0.386	0.039	−0.465	−0.261	1
tangib	0.119	−0.210	−0.313	−0.133	−0.199	0.255	0.347	−0.461	−0.212	0.204	1
RDdummy	0.024	−0.098	−0.149	−0.053	−0.071	0.150	0.241	−0.321	−0.186	0.176	0.374	1
RDintens	−0.127	0.237	0.319	0.136	0.155	−0.350	−0.169	0.565	0.389	−0.674	−0.310	−0.390	1

Panel C: correlation coefficients
	hedge	EQ1	EQ2	EQ3	EQ4	logasset	booklev	cash	MB	profit	tangib	RDdummy	RDintens
hedge	1
EQ1	−0.122	1
EQ2	−0.173	0.393	1
EQ3	−0.097	0.613	0.335	1
EQ4	−0.109	0.689	0.377	0.880	1
logasset	0.487	−0.330	−0.449	−0.255	−0.285	1
booklev	0.224	−0.054	−0.099	−0.037	−0.071	0.272	1
cash	−0.210	0.154	0.284	0.142	0.176	−0.359	−0.401	1
MB	−0.088	0.217	0.238	0.226	0.254	−0.214	−0.139	0.417	1
profit	0.142	−0.277	−0.349	−0.190	−0.209	0.386	0.039	−0.465	−0.261	1
tangib	0.119	−0.210	−0.313	−0.133	−0.199	0.255	0.347	−0.461	−0.212	0.204	1
RDdummy	0.024	−0.098	−0.149	−0.053	−0.071	0.150	0.241	−0.321	−0.186	0.176	0.374	1
RDintens	−0.127	0.237	0.319	0.136	0.155	−0.350	−0.169	0.565	0.389	−0.674	−0.310	−0.390	1

Note(s): Panel A lists the sample selection process used to construct the dataset for this study. Panel B reports the descriptive statistics of the sample firms. Panel C reports the Pearson’s correlation coefficients of the main variables

Source(s): The authors

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