(Continued)

|VARIABLES|(13)<br>**ROA**|(14)<br>**ROA**|(15)<br>**ROA**|(16)<br>**ROE**|(17)<br>**ROE**|(18)<br>**ROE**|
|---|---|---|---|---|---|---|
|**BOS**|**-5.04*****|||**-15.61*****|||
||(0.135)|||(0.394)|||
|BOS*Competitive sectors||**-5.297*****<br>(0.157)|||**-16.32*****<br>(0.500)||
|BOS*Non-Competitive s.||**-4.328*****|||**-13.63*****||
|||(0.358)|||(0.924)||
|BOS*Competitive sector|||**-5.295*****|||**-16.32*****|
||||(0.156)|||(0.499)|
|BOS*Natural monopoly|||**-3.518*****|||**-12.98*****|
||||(0.323)|||(0.790)|
|BOS*P. Contestable sector|||**-4.889*****|||**-14.09*****|
||||(0.504)|||(1.399)|
|Size|-0.526***|-0.529***|-0.529***|-1.120***|-1.128***|-1.127***|
||(0.032)|(0.032)|(0.032)|(0.075)|(0.075)|(0.075)|
|Age|-0.073***|-0.073***|-0.073***|-0.602***|-0.602***|-0.602***|
||(0.003)|(0.003)|(0.003)|(0.017)|(0.017)|(0.017)|
|Listing status|-2.413***|-2.511***|-2.518***|-7.43***|-7.470***|-7.476***|
||(0.176)|(0.200)|(0.199)|(0.552)|(0.549)|(0.549)|
|Constant|9.20***|9.211***|9.208***|31.67***|31.70***|31.69***|
||(0.125)|(0.125)|(0.125)|(0.284)|(0.284)|(0.284)|
|Observations|6,422,117|6,428,788|6,428,788|5,896,364|5,896,364|5,896,364|
|R-squared|0.055|0.056|0.056|0.034|0.035|0.035|
|Country FE|Yes|Yes|Yes|Yes|Yes|Yes|
|Sector FE|Yes|Yes|Yes|Yes|Yes|Yes|
|Year FE|Yes|Yes|Yes|Yes|Yes|Yes|
|Country-year FE|Yes|Yes|Yes|Yes|Yes|Yes|
|<br>Sector-Year FE|Yes|Yes|Yes|Yes|Yes|Yes|
|Country-Sector FE|Yes|Yes|Yes|Yes|Yes|Yes|
|Country-Sector-Year FE|Yes|Yes|Yes|Yes|Yes|Yes|
|Clustered errors|Yes|Yes|Yes|Yes|Yes|Yes|

Robust standard errors in parentheses *** p<0.01, ** p<0.05, * p<0.1 Note: Labor productivity is measured as the total revenues per worker in logarithm. Profit margin is the ratio between profits before tax over total revenues*100 (%). Current ratio is estimated as current assets over current liabilities (due within a year). Solvency ratio is measured as the shareholders’ funds over total assets. Return on Equity (ROE) is computed as the ratio between net income and shareholders’ fund *100 (%). Return on Assets is computed as the ratio between net income and total assets *100 (%). The reference (excluded category) refers to Privately-owned Enterprises (POEs), so results should be interpreted as compared to private firms within the same sector, size, and age, and controlling by the respective fixed effects. Size is measured as the log of total assets when assessing the labor productivity as outcome, otherwise is measured by the log of total workers in year t-1. Age is the lagged number of years in the market in t-1. Listed status is a dichotomous variable that takes value 1 if the company is listed in the stock market, 0 otherwise. Fixed effects are included to absorb for potential shocks such as temporary shocks (year-FE), sectoral shocks (sector-FE at 2-digits), time-varying sectoral shocks (sector-year FE), country specific shocks (country-FE), country time varying events (country-year FE), and country and sector specific and time varying shocks (country-sector-year, FE). Clustered standard errors are used to control for potential autocorrelation at the industry-level. In this case, the sectoral fixed effects are considered at the 2-digits level to capture sectoral heterogeneities that are at a higher level than the sector taxonomy used at 4-digits level. For instance, this allows to capture differences within the electricity sector while acknowledging the different type of markets (e.g., production as competitive vs. transmission as natural monopoly 25