Table 3.

Robustness estimation results with ROE

VariablesModel 1Model 2Model 3Model 4Model 5
Turnover−0.0034* (0.0019)−0.0337*** (0.0089)−0.0035* (0.0019)−0.0049* (0.0029)−0.0368*** (0.0090)
Power sources: Size0.1042***0.1037***0.1042***0.1043***0.1037***
Government ownership(0.0015) –0.0057(0.0016) –0.0057(0.0015) –0.0071(0.0015) –0.0058(0.0016) –0.0069
FDI community(0.0045) –0.0105***(0.0045) –0.0108***(0.0047) –0.0105***(0.0045) –0.0106***(0.0047) –0.0109***
Interactions terms:(0.0032)(0.0032)(0.0032)(0.0032)(0.0032)
Turnover_Size 0.0028*** (0.0009)  0.0029*** (0.0008)
Turnover_government ownership  0.0065 (0.0075) 0.0057 (0.0075)
Turnover_FDI community   0.0022 (0.0024)0.0031 (0.0024)
Control variables:     
Firm age−0.0046** (0.0019)−0.0046** (0.0019)−0.0046** (0.0019)−0.0046** (0.0019)−0.0046** (0.0019)
Capital intensity−0.0006 (0.0021)−0.0007 (0.0021)−0.0006 (0.0021)−0.0006 (0.0021)−0.0007 (0.0021)
Leverage−0.0049*** (0.0004)−0.0048*** (0.0004)−0.0049*** (0.0004)−0.0049*** (0.0004)−0.0048*** (0.0004)
Local market orientation−0.0014 (0.0019)−0.0013 (0.0019)−0.0014 (0.0019)−0.0014 (0.0019)−0.0013 (0.0019)
Nationality−0.0036 (0.0023)−0.0036 (0.0023)−0.0036 (0.0023)−0.0036 (0.0023)−0.0036 (0.0023)
HHI0.2119* (0.1136)0.2126* (0.1137)0.2120* (0.1136)0.2113* (0.1136)0.2119* (0.1137)
Market development0.0614*** (0.0146)0.0624*** (0.0145)0.0614*** (0.0146)0.0592*** (0.0141)0.0594*** (0.0141)
Wage−0.0027*** (0.0002)−0.0027*** (0.0002)−0.0027*** (0.0002)−0.0027*** (0.0002)−0.0027*** (0.0002)
Governor tenure0.0007* (0.0004)0.0007* (0.0004)0.0007* (0.0004)0.0007* (0.0004)0.0007* (0.0004)
Governor origin0.0035** (0.0017)0.0036** (0.0016)0.0035** (0.0017)0.0036** (0.0017)0.0036** (0.0017)
Year fixed effectYesYesYesYesYes
Firm fixed effectYesYesYesYesYes
Constant−0.9040*** (0.0200)−0.8988*** (0.0200)−0.9040*** (0.0200)−0.9024*** (0.0201)−0.8965*** (0.0201)
R20.49390.49400.49390.49390.4940
F494.3198463.4541461.5192464.5279412.3915
n59,1492591,492591,492591,492591,492

Notes:

*p < 0.10; **p < 0.05; ***p < 0.01; standard errors clustered at industry in parentheses

Source: Authors’ own work

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