# <u>Annex table A.8</u> – Management score and firm performance, cross-section: control for selection bias <u>(inverse selection probability weights)</u>

||(1)|(2)|(3)|(4)|(5)|(6)|(7)|(8)|(9)|(10)|(11)|(12)|(13)|(14)|
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
||Lo|g (Output/E|mployme|nt)|LogTFP|index rec|overed fro|mprod.|Log (V|alue Adde|d/Employ|ment)|LogEmpt. Gr|owth(2012-17)|
|Management score: total (Z-score)|0.322<sup>***</sup>||0.024||0.045<sup>**</sup>||0.027||0.110<sup>***</sup>||0.003||0.075<sup>***</sup>||
||(0.055)||(0.019)||(0.019)||(0.021)||(0.025)||(0.025)||(0.025)||
|Management score: Data-driven||0.283<sup>***</sup>||0.012||0.018||0.011||0.029||-0.032||0.086<sup>***</sup>|
|performance monitoring (Z-score)||(0.048)||(0.014)||(0.019)||(0.019)||(0.026)||(0.025)||(0.022)|
|Management score: Incentives and||0.123<sup>**</sup>||0.017||0.035<sup>*</sup>||0.021||0.095<sup>***</sup>||0.029||0.010|
|targets (Z-score)||(0.058)||(0.019)||(0.020)||(0.020)||(0.024)||(0.024)||(0.022)|
|Input variables|No|No|Yes|Yes|No|No|Yes|Yes|No|No|Yes|Yes|Yes|Yes|
|Control for firm's global linkages|No|No|Yes|Yes|No|No|Yes|Yes|No|No|Yes|Yes|Yes|Yes|
|Sector dummies|No|No|Yes|Yes|No|No|Yes|Yes|No|No|Yes|Yes|Yes|Yes|
|District dummies|No|No|Yes|Yes|No|No|Yes|Yes|No|No|Yes|Yes|Yes|Yes|
|Observations|904|904|776|776|776|776|776|776|742|742|742|742|398|398|
|_R_ <sup>2</sup>|0.048|0.058|0.886|0.886|0.012|0.012|0.183|0.183|0.021|0.021|0.27|0.272|0.659|0.665|

Notes: This table replicates the results in Table 4 but uses sampling weights estimated as the inverse probability of firm selection into the sample using the specification in column (2) of table A.2 <u>Annex table A.9</u> – Management score and firm performance, cross-section: control for selection bias

# <u>(maximum entropy weights)</u>

||(1)|(2)|(3)|(4)|(5)|(6)|(7)|(8)|(9)|(10)|(11)|(12)|(13)|(14)|
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
||Log|(Output/|Employme|nt)|LogTFP|index rec|overed fro|mprod.|Log (V|alue Adde|d/Employ|ment)|LogEmpt. Gr|owth(2012-17)|
|Manaement score: total (Z-score)|0.254<sup>***</sup>||0.033||0.056<sup>**</sup>||0.043||0.121<sup>***</sup>||0.010||0.085<sup>***</sup>||
|g|(0.074)||(0.025)||(0.025)||(0.027)||(0.027)||(0.024)||(0.030)||
|Management score: Data-driven||0.38<sup>***</sup>||0.015||0.019||0.017||0.032||-0.042||0.109<sup>***</sup>|
|performance monitoring (Z-score)||(0.080)||(0.018)||(0.020)||(0.022)||(0.035)||(0.032)||(0.022)|
|Management score: Incentives and||0.089||0.024||0.046<sup>*</sup>||0.033||0.103<sup>***</sup>||0.042||0.008|
|targets (Z-score)||(0.070)||(0.023)||(0.025)||(0.025)||(0.030)||(0.028)||(0.027)|
|Input variables|No|No|Yes|Yes|No|No|Yes|Yes|No|No|Yes|Yes|Yes|Yes|
|Control for firm's global linkages|No|No|Yes|Yes|No|No|Yes|Yes|No|No|Yes|Yes|Yes|Yes|
|Sector dummies|No|No|Yes|Yes|No|No|Yes|Yes|No|No|Yes|Yes|Yes|Yes|
|District dummies|No|No|Yes|Yes|No|No|Yes|Yes|No|No|Yes|Yes|Yes|Yes|
|Observations|902|902|774|774|774|774|774|774|740|740|740|740|397|397|
|_R_ <sup>2</sup>|0.027|0.033|0.884|0.884|0.017|0.017|0.162|0.162|0.026|0.026|0.291|0.294|0.708|0.716|

Notes: This table replicates the results in Table 4 but uses sampling weights estimated through the maximum entropy approach (Wittenberg, 2010) so average firm characteristics of the survey in terms of exporting status, size and sector match those of the sampling frame.

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