Table 6.
Robustness analysis.
We repeat the regression analyses reported in Table 3, Table 4, Table 5 by employing the SCARs estimated using equal-weighted market returns: SCARs (−5,+5) or SCARs (0,+30) = β0 + β1(INTEXP) + β2(SIZE) + β3(QUICK) + β4(CAPEX) + β5(LEVERAGE) + β6(ROE) + β7(IND DUMMIES) + ε, where the dependent variable, SCARs is the standardized cumulative abnormal returns within the event window (−5,+5) or (0,+30). In Panel A, INTEXP is proxied by Foreign Sales (FSales), Foreign Assets (FAssets) and number of Covid-affected economies in Top 3 geographic segments (Covid T3), respectively. In Panel B, INTEXP is 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). In Panel C, INTEXP is proxied by ABHK Multinationality Index, proportion of subsidiaries in Top 5 COVID-19 affected economies and the proportion of subsidiaries in China, respectively. The control variables included are as per Table 3, Table 4, Table 5. Robust standard errors are reported in parentheses.
| Panel A: Foreign sales & assets | ||||||
|---|---|---|---|---|---|---|
| (1) |
(2) |
(3) |
(4) |
(5) |
(6) |
|
| SCARs |
SCARs |
SCARs |
SCARs |
SCARs |
SCARs |
|
| (−5,+5) | (−5,+5) | (−5,+5) | (0,+30) | (0,+30) | (0,+30) | |
| FSales | −0.157⁎⁎ (0.073) |
0.124 (0.140) |
||||
| FAssets | −0.255⁎ (0.143) |
−0.389 (0.322) |
||||
| Covid T3 | −0.140⁎⁎⁎ (0.040) |
−0.091 (0.071) |
||||
| Control variables | Yes | Yes | Yes | Yes | Yes | Yes |
| Industry dummies | Yes | Yes | Yes | Yes | Yes | Yes |
| Obs. | 2836 | 2836 | 2756 | 2836 | 2836 | 2756 |
| Adjusted R2 | 0.012 | 0.012 | 0.015 | 0.045 | 0.046 | 0.053 |
|
| ||||||||
|---|---|---|---|---|---|---|---|---|
| Panel B: Offshoring activities | ||||||||
| (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 | −0.006⁎⁎⁎ (0.002) |
0.007⁎⁎⁎ (0.003) |
||||||
| T5 OUTPUT | −0.004⁎⁎ (0.002) |
0.003 (0.003) |
||||||
| T5 ININ | −0.011⁎⁎⁎ (0.003) |
0.006 (0.004) |
||||||
| T5 EXIN | −0.026⁎⁎⁎ (0.009) |
0.030⁎ (0.017) |
||||||
| Control variables | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Industry dummies | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Obs. | 2464 | 2464 | 2464 | 2464 | 2464 | 2464 | 2464 | 2464 |
| Adjusted R2 | 0.012 | 0.009 | 0.012 | 0.009 | 0.052 | 0.051 | 0.051 | 0.051 |
|
| ||||||
|---|---|---|---|---|---|---|
| Panel C: ABHK and foreign subsidiaries | ||||||
| (1) |
(2) |
(3) |
(4) |
(5) |
(6) |
|
| SCARs |
SCARs |
SCARs |
SCARs |
SCARs |
SCARs |
|
| (−5,+5) | (−5,+5) | (−5,+5) | (0,+30) | (0,+30) | (0,+30) | |
| ABHK | −0.024 (0.028) |
0.100⁎⁎ (0.046) |
||||
| PROP T5 | −0.700⁎⁎ (0.278) |
1.181⁎⁎ (0.549) |
||||
| CHINA | −0.729⁎⁎ (0.291) |
0.755 (0.657) |
||||
| Control variables | Yes | Yes | Yes | Yes | Yes | Yes |
| Industry dummies | Yes | Yes | Yes | Yes | Yes | Yes |
| Obs. | 498 | 498 | 498 | 498 | 498 | 498 |
| Adjusted R2 | 0.038 | 0.046 | 0.044 | 0.099 | 0.099 | 0.093 |
Please refer to the text for detailed variable definitions. ***, ** and * indicate significance at the 1%, 5% and 10% levels, respectively.