Table 2.

Correlation matrix

Variables		1	2	3	4	5	6	7	8	9	10	11	12	13	14	15	16
1	GPM
2	SME	-0.071
3	BG affiliation	0.048	-0.950
4	h slack	0.015	-0.001	-0.001
5	h slack²	0.006	0.001	-0.001	0.870
6	Age	-0.040	0.181	-0.193	-0.007	-0.002
7	Tangibility	-0.044	-0.001	-0.002	0.001	0.001	0.062
8	Financial slack	0.084	-0.154	0.155	0.001	0.002	0.013	0.100
9	Financial slack²	0.119	-0.078	0.082	0.000	0.001	0.000	0.024	0.641
10	Recoverable slack	0.082	0.013	-0.015	-0.007	-0.003	0.086	0.005	-0.146	-0.095
11	Recoverable slack²	0.035	0.009	-0.006	0.016	0.005	-0.007	-0.034	-0.055	0.012	0.550
12	Potential slack	-0.011	0.001	-0.003	0.002	-0.001	-0.081	0.021	-0.211	-0.107	0.078	0.038
13	Potential slack²	-0.030	0.012	-0.009	0.004	0.000	-0.081	0.004	-0.085	-0.016	0.051	0.065	0.675
14	Mean industry GPM	0.734	-0.036	0.015	0.001	0.001	-0.091	-0.075	-0.002	0.076	0.002	0.039	-0.008	-0.020
15	Number of competitors	-0.052	-0.052	0.051	0.000	-0.003	-0.087	-0.061	-0.002	0.009	-0.007	-0.022	-0.009	0.002	-0.074
16	Mean size of competitors	0.225	0.168	-0.193	0.001	0.002	0.117	0.131	-0.009	-0.038	-0.003	-0.047	0.007	-0.013	0.311	-0.211
17	Industry competition	0.002	-0.001	-0.005	-0.002	-0.001	0.010	0.034	-0.007	-0.008	-0.016	0.020	-0.013	0.059	0.000	0.175	0.095

 N = 425,246. Correlation coefficients with an absolute value higher than 0.003 are statistically significant at the 0.05 level.