Figure 2
The image contains four density plots arranged in a 2x2 grid. Each plot shows the distribution of estimated coefficients from placebo tests. The x-axis represents the estimator values, and the y-axis represents the density. The vertical line in each plot indicates the corresponding coefficient estimates reported in Columns (3) and (6) in Table 4. Panels A and B show the cumulative distribution density of the estimated coefficients on RM*PC when the dependent variable is LS, with simulation times of 300 and 500, respectively. Panels C and D show the cumulative distribution density of the estimated coefficients of RM*PC when the dependent variable is LN_LS, also with simulation times of 300 and 500, respectively. All values are approximated.Placebo tests. Note: This figure presents the distribution of the estimated coefficients of the placebo tests. We randomly assign RM and IPO firm status to observations without replacement, repeating the procedure 300 and 500 times. Panels A and B show the cumulative distribution density of the estimated coefficients on RM*PC when the dependent variable is LS. Panels C and D show the cumulative distribution density of the estimated coefficients of RM*PC when the dependent variable is LN_LS. The vertical line indicates the corresponding coefficient estimates reported in Columns (3) and (6) in Table 4