Table 3. OLS and Robust Regression Results

Model # (1) (2) (2a) (3) (4) (5)
Variables

Base

Model

w/o outliers

(Sales diversif.)

w/o outliers

(Asset diversif.)

(2)+ Interactions

Model

(2)+ Robust

Regression

(2)+ w/

industry dummies
Diversification (a) -0.032 ***  (0.0094) -0.018 ***
(0.0063)		 -0.002
(0.0075)		 -0.021
(0.0133)		 -0.021 ***
(0.0054)		 -0.001
(0.0071)
R & D Expenditure (b) -0.270 ***
(0.0497)		 -0.0542
(0.0347)		 -0.069 *
(0.0380)		 -0.049
(0.0978)		 0.048
(0.0297)		 -0.380 ***
(0.0526)
Capital Expenditure (c) 0.3645 ***
(0.0599)		 0.350 ***
(0.0042)		 0.339 ***
(0.0429)		 0.302 ***
(0.0971)		 0.290 ***
(0.0342)		 0.3727 ***
(0.0408)
(a) * (b) -0.033
(0.1475)
(a) * (c) 0.791
(0.1506)
(b) * (c) 0.211
(1.0152)
Constant 0.060 ***
(0.0063)		 0.0521 ***
(0.0042)		 0.0479 ***
(0.0047)		 0.0543***
(0.0075)		 0.054 ***
(0.0036)		 0.20**
(0.0093)
F-stat 30.28 30.79 23.03 15.44 30.00 14.14
R-squared 0.05 0.05 0.05 0.05 0.30
Adj. R-squared 0.04 0.05 0.04 0.04
0.28
Number of Obs. 1730 1685 1436 1685 1685 1685

Significance levels are 10% (*), 5% (**), 1% (***).

Numbers in parentheses are standard errors. Industry dummy coefficients are not shown.

Dependent variable: ROA