Table 5.
Impact of HR slack on profitability and moderating role of BG affiliation after the CEM procedure
| GPM is the dependent variable | Model 1 | Model 2 | ||||
|---|---|---|---|---|---|---|
| Coef. | St. Error | Coef. | St. Error | |||
| BG affiliation | -0.005 | *** | 0.001 | -0.005 | *** | 0.001 |
| SME | -0.002 | *** | 0.001 | -0.002 | *** | 0.001 |
| Lagged HR slack | -0.004 | 0.009 | 0.027 | 0.027 | ||
| Lagged HR slack² | 0.000 | 0.000 | -0.008 | *** | 0.003 | |
| BG affiliation * Lagged HR slack | -0.026 | 0.028 | ||||
| BG affiliation * Lagged HR slack² | 0.008 | *** | 0.003 | |||
| SME * Lagged HR slack | 0.040 | 0.039 | ||||
| SME * Lagged HR slack² | -0.007 | * | 0.004 | |||
| Lagged GPM | 0.883 | *** | 0.002 | 0.883 | *** | 0.002 |
| Lagged Age | 0.001 | *** | 0.000 | 0.001 | *** | 0.000 |
| Lagged Tangibility | 0.002 | *** | 0.000 | 0.002 | *** | 0.000 |
| Lagged Financial slack | 0.003 | *** | 0.001 | 0.003 | *** | 0.001 |
| Lagged Financial slack² | 0.006 | 0.004 | 0.006 | 0.004 | ||
| Lagged Recoverable slack | -0.013 | *** | 0.002 | -0.013 | *** | 0.002 |
| Lagged Recoverable slack² | -0.003 | 0.003 | -0.003 | 0.003 | ||
| Lagged Potential slack | 0.010 | *** | 0.001 | 0.010 | *** | 0.001 |
| Lagged Potential slack² | 0.008 | 0.005 | 0.008 | 0.005 | ||
| Lagged Mean industry GPM | 0.116 | *** | 0.003 | 0.116 | *** | 0.003 |
| Lagged Number of competitors | 0.000 | 0.000 | 0.000 | 0.000 | ||
| Lagged Mean size of competitors | 0.000 | 0.000 | 0.000 | 0.000 | ||
| Lagged Industry complexity | 0.001 | 0.002 | 0.001 | 0.002 | ||
| Constant | -0.001 | 0.003 | -0.001 | 0.003 | ||
| Industry, year, and regional fixed effects | YES | YES | ||||
| Number of observations | 288,621 | 288,621 | ||||
| R² | 0.904 | 0.904 | ||||
| F statistics | 4292.71 | *** | 4301.00 | *** | ||
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.