Table 4.

IV Two-Stage Least Squares Instrumental Variables Regression Results Accounting for Selection.^a

All Cases
Dependent Variable: Performancei,t + 1	Model 1	Model 2	Model 3 (IV)
Performancei,t	0.321***	0.252***	0.211**
Recoded diversificationi,t			14.821
Recoded firm brand breadthi,t			−117.904
Recoded brand intensityi,t			−265.729
Ln assetsi,t		14.752	13.830
Ln costsi,t		−131.219***	−128.220***
${\text{Ln costs}}_{i,t}^2$		6.471***	6.387***
Dummy missing costs		−594.463***	−565.150***
Si,t	2.781	−12.319	−24.550
N	264	263	263
R 2	.100	.144	.186
Cragg-Donald Wald F			25.039
Sargan-Hansen test (p value)			0.9598

^aThe estimation uses prestige rank, patents, and recoded age as instruments for recoded brand breadth. We report the estimated coefficients and their significance.

*p < .05. **p < .01. ***p < .001.