Table 3.

Impact of HR slack on profitability and moderating role of BG affiliation

GPM is the dependent variable	Model 1			Model 2			Model 3
	Coef.		St. Error	Coef.		St. Error	Coef.		St. Error
BG affiliation	-0.005	***	0.001	-0.005	***	0.001	-0.003	***	0.000
SME	-0.002	***	0.001	-0.002	***	0.001	-0.001	*	0.000
Lagged HR slack	-0.010		0.009	-0.009		0.009	0.029		0.020
Lagged HR slack²	0.000		0.000	0.000		0.000	-0.008	***	0.002
BG affiliation * Lagged HR slack							-0.035		0.022
BG affiliation * Lagged HR slack²							0.008	***	0.002
SME * Lagged HR slack				0.041		0.026
SME * Lagged HR slack²				-0.007	**	0.003
Lagged GPM	0.883	***	0.002	0.882	***	0.002	0.883	***	0.002
Lagged Age	0.001	***	0.000	0.001	***	0.000	0.001	***	0.000
Lagged Tangibility	0.002	***	0.000	0.002	***	0.000	0.002	***	0.000
Lagged Financial slack	0.005	***	0.001	0.005	***	0.001	0.005	***	0.001
Lagged Financial slack²	0.007	**	0.003	0.007	**	0.003	0.007	**	0.003
Lagged Recoverable slack	-0.013	***	0.001	-0.013	***	0.001	-0.013	***	0.001
Lagged Recoverable slack²	-0.005	*	0.003	-0.005	**	0.003	-0.005	**	0.003
Lagged Potential slack	0.010	***	0.001	0.010	***	0.001	0.010	***	0.001
Lagged Potential slack²	0.009	**	0.004	0.009	**	0.004	0.009	**	0.004
Lagged Mean industry GPM	0.115	***	0.002	0.115	***	0.002	0.115	***	0.002
Lagged Number of competitors	0.000		0.000	0.000		0.000	0.000		0.000
Lagged Mean size of competitors	0.000		0.000	0.000		0.000	0.000		0.000
Lagged Industry complexity	0.001		0.001	0.001		0.001	0.001		0.001
Constant	-0.001		0.002	-0.001		0.002	-0.003		0.002
Industry, year, and regional fixed effects	YES			YES			YES
Number of observations	425,246			425,246			425,246
R²	0.091			0.901			0.901
F statistics	5893.57		***	5806.10		***	5797.05		***

Standard errors are robust and clustered at the firm-level. ***, **, and * denote statistical significance at the 0.01, 0.05, and 0.1 levels respectively.