Table C.2.
Heterogenous effects when introducing province-time fixed effects and province clusters.
| (1) |
(2) |
|
|---|---|---|
| Province-year fixed effects | Cluster at province level | |
|
Panel A | ||
| Congestion declarative | −0.0064∗∗ (0.0029) |
|
| Congestion declarative x Medium size | −0.0290∗∗∗ (0.0072) |
−0.0287∗∗ (0.0105) |
| Congestion declarative x Large Size |
−0.0317∗∗∗ (0.0090) |
−0.0316∗∗∗ (0.0099) |
| Year and firm FE | YES | YES |
| Observations | 3,511,238 | 3,511,238 |
| R-squared |
0.3160 |
0.3156 |
|
Panel B | ||
| Congestion declarative | 0.0117 (0.0116) |
|
| Congestion declarative x Age[5–15] | −0.0155∗ (0.0076) |
−0.0178∗ (0.0093) |
| Congestion declarative x Age[16–30] | −0.0219 (0.0125) |
−0.0268 (0.0160) |
| Congestion declarative x Age>30 |
−0.0414∗∗ (0.0164) |
−0.0479∗ (0.0224) |
| Year and firm FE | YES | YES |
| Observations | 3,510,824 | 3,510,824 |
| R-squared | 0.3168 | 0.3164 |
Robust standard errors in parentheses.
∗∗∗p < 0.01, ∗∗p < 0.05, ∗p < 0.1.
Note: This table reports the estimated effect of the congestion rate in the civil jurisdiction at the declarative stage on the investment rate of firms, considering heterogenous effects by firm size and maturity. The dependent variable is the investment rate. We account for firm fixed and year fixed effects. Firm-level controls include cash flows, EBIT/assets, debt burden, Debt/assets, and sales growth. Province-level controls include number of lawyers, the number courts over the total population, population growth, credit over GDP and unemployment rate. In column 1 we include province-time level fixed effects, absorbing controls with variation at the province level. In column 2 we allow for two-way double clustering at the province-year level. All variables are lagged by one year. The considered sample covers the period 2002–2016.