Table 3.

Supply chain diversification and firm inventory and profitability during the full period (N = 4460).

Dependent variable:	AIG			$\mathrm{\Delta }\mathrm{R}\mathrm{O}\mathrm{S}$
	Model 1			Model 2
	Coef.	Std. errors	p-value	Coef.	Std. errors	p-value
Supplier diversification	0.062***	0.009	0.000	0.039***	0.008	0.000
Customer diversification	−0.052***	0.007	0.000	0.004	0.007	0.518
Firm Size	−0.013*	0.007	0.068	−0.022***	0.007	0.002
Debt pressure	−0.250***	0.034	0.000	0.075**	0.033	0.022
Firm age	−0.008	0.016	0.614	0.005	0.016	0.750
R&D	0.126	0.111	0.257	0.338***	0.107	0.002
Production efficiency	−0.019***	0.005	0.000	−0.004	0.004	0.342
Marketing efficiency	0.016***	0.005	0.000	−0.001	0.005	0.829
Market share	1.021***	0.215	0.000	−0.198	0.208	0.341
Board size	0.036	0.030	0.229	0.009	0.029	0.767
Ind. directors	−0.041	0.101	0.687	−0.016	0.097	0.872
Institutional ownership (%)	0.000	0.000	0.152	−0.000	0.000	0.373
Geographical diversification	0.059	0.040	0.142	0.114***	0.038	0.003
Constant	0.346*	0.177	0.051	0.470***	0.171	0.006
Quarter FE	Yes			Yes
F statistics	18.465***		0.000	8.424***		0.000
R2	0.062			0.029
Adjusted R2	0.059			0.026

Notes: ***, ** and * indicate significance at the 1%, 5% and 10% levels, respectively.