Table 7.
Heterogenous effects: Size and maturity.
| (1) |
(2) |
|
|---|---|---|
| Congestion declarative stage | Congestion execution stage | |
|
Panel A | ||
| Congestion | −0.0064∗∗ (0.0029) |
−0.0010∗ (0.0004) |
| Congestion x Medium size | −0.0287∗∗∗ (0.0073) |
−0.0013 (0.0020) |
| Congestion x Large Size |
−0.0316∗∗∗ (0.0087) |
−0.0019 (0.0021) |
| Year and firm FE | YES | YES |
| Observations | 3,511,238 | 3,511,238 |
| R-squared |
0.3156 |
0.3156 |
|
Panel B | ||
| Congestion | 0.0117 (0.0074) |
−0.0025∗ (0.0013) |
| Congestion x Age[5–15] | −0.0178∗∗ (0.0071) |
0.0011 (0.0011) |
| Congestion x Age[16–30] | −0.0268∗∗ (0.0115) |
0.0023 (0.0016) |
| Congestion x Age>30 |
−0.0479∗∗∗ (0.0149) |
0.0028 (0.0024) |
| Year and firm FE | YES | YES |
| Observations | 3,510,824 | 3,510,824 |
| R-squared | 0.3164 | 0.3164 |
Robust standard errors in parentheses.
∗∗∗p < 0.01, ∗∗p < 0.05, ∗p < 0.1.
Note: Table 7 reports the estimated effect of the congestion rate in the civil jurisdiction on the investment rate of firms, considering potential heterogenous effects across firm size, in panel A, and firm maturity, in panel B (see the equation presented in section 5). The dependent variable is the investment rate. We account for firm fixed effects by means of the within transformation. We also account for year fixed effects. Standard errors are two-way clustered at both the firm and year level. In all regressions the firm-level controls are cash flows, EBIT/assets, debt burden, Debt/assets, and sales growth. Furthermore, we include province level controls: number of lawyers, the number of courts over the total population, population growth, credit over GDP and unemployment rate. Columns 1 refers to the effect of congestion in the civil jurisdiction at the declarative stage. Columns 2 replicates the analysis for the case of congestion in the civil jurisdiction at the execution stage. All variables are lagged by one year. The considered sample covers the period 2002–2016.