Table 4.
Additional analysis: Offshoring network.
This table reports the results of the cross-sectional regression: SCARs (−5,+5) = β0 + β1(INTEXP) + β2(SIZE) + β3(QUICK) + β4(CAPEX) + β5(LEVERAGE) + β6(ROE) + β7(IND DUMMIES) + ε, where the dependent variable in Columns (1) to (4) is, SCARs is the standardized cumulative abnormal returns within the event window (−5,+5), INTEXP is international exposure as proxied by the four Hoberg and Moon (2017) offshore activities variables tailored to the Top 5 Covid-affected economies (T5 OUTPUT, T5 INPUT, T5 ININ and T5 EXIN). SIZE is the log of market capitalization, QUICK is cash and short-term investments and receivables divided by total assets, CAPEX is total capital expenditure divided by total assets, LEVERAGE is total debt divided by total assets and ROE is return on equity as a proxy of firm's profitability. We also for control for industry dummies. We then rerun the same regression replacing SCARs (−5,+5) with SCARs (0,+30) in Columns (5) to (8). Robust standard errors are reported in parentheses.
| (1) |
(2) |
(3) |
(4) |
(5) |
(6) |
(7) |
(8) |
|
|---|---|---|---|---|---|---|---|---|
| SCARs |
SCARs |
SCARs |
SCARs |
SCARs |
SCARs |
SCARs |
SCARs |
|
| (−5,+5) | (−5,+5) | (−5,+5) | (−5,+5) | (0,+30) | (0,+30) | (0,+30) | (0,+30) | |
| T5 INPUT | −0.007⁎⁎⁎ (0.002) |
0.006⁎⁎⁎ (0.002) |
||||||
| T5 OUTPUT | −0.004⁎⁎⁎ (0.002) |
0.004 (0.003) |
||||||
| T5 ININ | −0.011⁎⁎⁎ (0.003) |
0.005 (0.004) |
||||||
| T5 EXIN | −0.025⁎⁎⁎ (0.009) |
0.032⁎⁎ (0.016) |
||||||
| Size | −0.028⁎⁎ (0.012) |
−0.028⁎⁎ (0.012) |
−0.028⁎⁎ (0.012) |
−0.029⁎⁎ (0.012) |
0.051⁎⁎⁎ (0.018) |
0.050⁎⁎⁎ (0.018) |
0.051⁎⁎⁎ (0.018) |
0.052⁎⁎⁎ (0.018) |
| Quick | 0.000 (0.008) |
0.001 (0.008) |
0.000 (0.008) |
0.001 (0.008) |
0.060⁎⁎⁎ (0.011) |
0.059⁎⁎⁎ (0.011) |
0.059⁎⁎⁎ (0.011) |
0.059⁎⁎⁎ (0.011) |
| Capex | −0.004 (0.004) |
−0.004 (0.004) |
−0.003 (0.004) |
−0.004 (0.004) |
−0.016⁎⁎ (0.007) |
−0.016⁎⁎ (0.007) |
−0.016⁎⁎ (0.007) |
−0.016⁎⁎ (0.007) |
| Leverage | 0.002 (0.001) |
0.002 (0.001) |
0.002 (0.001) |
0.002 (0.001) |
−0.008⁎⁎⁎ (0.002) |
−0.008⁎⁎⁎ (0.002) |
−0.008⁎⁎⁎ (0.002) |
−0.008⁎⁎⁎ (0.002) |
| ROE | −0.000 (0.001) |
−0.000 (0.001) |
−0.000 (0.001) |
−0.000 (0.001) |
−0.002⁎⁎⁎ (0.001) |
−0.002⁎⁎⁎ (0.001) |
−0.002⁎⁎⁎ (0.001) |
−0.002⁎⁎⁎ (0.001) |
| Constant | 0.440⁎ (0.230) |
0.429⁎ (0.231) |
0.438⁎ (0.230) |
0.449⁎ (0.231) |
−1.704⁎⁎⁎ (0.355) |
−1.694⁎⁎⁎ (0.355) |
−1.699⁎⁎⁎ (0.355) |
−1.719⁎⁎⁎ (0.354) |
| Industry dummies | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Obs. | 2464 | 2464 | 2464 | 2464 | 2464 | 2464 | 2464 | 2464 |
| Adjusted R2 | 0.018 | 0.015 | 0.019 | 0.015 | 0.048 | 0.047 | 0.047 | 0.048 |
Please refer to the text for detailed variable definitions. ***, ** and * indicate significance at the 1%, 5% and 10% levels, respectively.