Table 7 The effects of topic-specific political uncertainty on risk-taking activities.

From: Firm-level political uncertainty, corporate lobbying and risk-taking

 

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

 

RISK_1

RISK_1

RISK_1

RISK_1

RISK_1

RISK_1

RISK_1

RISK_1

Econ_U

0.0005*** (3.18)

       

Env_U

 

0.0001 (0.80)

      

Trade_U

  

0.0001 (1.41)

     

Inst_U

   

0.0004** (2.30)

    

Health_U

    

0.0002*** (2.69)

   

Secure_U

     

0.0003** (2.44)

  

Tax_U

      

0.0003** (2.55)

 

Tech_U

       

0.0004** (2.01)

SIZE

−0.0084*** (−16.47)

−0.0084*** (−16.46)

−0.0084*** (−16.46)

−0.0084*** (−16.47)

−0.0084*** (−16.46)

−0.0084*** (−16.46)

−0.0084*** (−16.47)

−0.0084*** (−16.46)

LEVERAGE

−0.0067 (−1.30)

−0.0066 (−1.28)

−0.0067 (−1.29)

−0.0067 (−1.29)

−0.0068 (−1.32)

−0.0066 (−1.28)

−0.0066 (−1.28)

−0.0066 (−1.27)

PPE

0.0108** (2.18)

0.0104** (2.09)

0.0104** (2.10)

0.0106** (2.14)

0.0106** (2.13)

0.0108** (2.17)

0.0106** (2.13)

0.0107** (2.15)

TOBIN’S Q

0.0145*** (13.91)

0.0144*** (13.88)

0.0144*** (13.88)

0.0144*** (13.90)

0.0144*** (13.91)

0.0144*** (13.89)

0.0144*** (13.89)

0.0144*** (13.87)

SLACK

0.0609*** (10.07)

0.0608*** (10.03)

0.0608*** (10.04)

0.0608*** (10.04)

0.0606*** (10.01)

0.0608*** (10.04)

0.0609*** (10.05)

0.0608*** (10.04)

LOSS

0.0062*** (3.79)

0.0062*** (3.78)

0.0062*** (3.79)

0.0062*** (3.77)

0.0062*** (3.77)

0.0062*** (3.77)

0.0063*** (3.82)

0.0062*** (3.77)

Z-SCORE

−0.0049*** (−16.59)

−0.0049*** (−16.55)

−0.0049*** (−16.54)

−0.0049*** (−16.57)

−0.0049*** (−16.59)

−0.0049*** (−16.56)

−0.0049*** (−16.56)

−0.0049*** (−16.56)

AGE

0.0014 (1.26)

0.0015 (1.34)

0.0015 (1.34)

0.0014 (1.32)

0.0014 (1.31)

0.0014 (1.29)

0.0014 (1.31)

0.0014 (1.31)

LnGDP

0.0884*** (11.63)

0.0878*** (11.55)

0.0878*** (11.55)

0.0880*** (11.58)

0.0880*** (11.58)

0.0882*** (11.60)

0.0879*** (11.56)

0.0879*** (11.56)

UNEMPLOY

0.0031*** (6.45)

0.0031*** (6.59)

0.0031*** (6.61)

0.0031*** (6.54)

0.0031*** (6.51)

0.0031*** (6.57)

0.0031*** (6.50)

0.0031*** (6.55)

INFLATION

0.0060*** (5.27)

0.0059*** (5.18)

0.0059*** (5.18)

0.0059*** (5.22)

0.0059*** (5.21)

0.0060*** (5.24)

0.0059*** (5.21)

0.0059*** (5.21)

Industry F.E.

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Clustered by Firm

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

N

32,695

32,695

32,695

32,695

32,695

32,695

32,695

32,695

Adj. R2

0.349

0.349

0.349

0.349

0.349

0.349

0.349

0.349

  1. Table 7 below presents the findings of the impacts of various categories of political uncertainty on corporate risk-taking. Our dependent variable in all of the regressions is RISK_1. Independent variables include topic-specific firm-level political uncertainty variables: - economy and budget (Econ_U), environment (Env_U), trade (Trade_U), institutions and political process (Ins_U), health care (Health_U), security and defense (Secure_U), tax (Tax_U), and technology and infrastructure (Tech_U). ***, **, and * show levels of significance at 1%, 5%, and 10%, respectively.
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