_Table 19. Robustness check considering 3-year window (2018-2020)_

||**Labor**<br>**productivity**|**Profit margin**|**Current ratio**|**Solvency ratio**|**ROA**|**ROE**|
|---|---|---|---|---|---|---|
|BOS|-0.480***|-7.859***|-0.347***|4.333***|-5.898***|-17.47***|
||(0.0517)|(0.768)|(0.109)|(0.648)|(0.211)|(0.782)|
|Labor|0.385***|-0.671***|-0.605***|-2.224***|-0.559***|-1.016***|
||(0.0178)|(0.102)|(0.022)|(0.149)|(0.0479)|(0.125)|
|Age|-0.0131***|0.0379**|0.0558***|0.732***|-0.0562***|-0.513***|
||(0.0016)|(0.0154)|(0.00330)|(0.0159)|(0.00524)|(0.0286)|
|Listing status|-0.545***|0.611|0.142|5.772***|-2.687***|-8.116***|
||(0.0574)|(0.641)|(0.0963)|(0.745)|(0.379)|(1.183)|
|Constant|5.618***|7.441***|4.701***|37.96***|9.173***|29.72***|
||(0.222)|(0.240)|(0.0725)|(0.501)|(0.194)|(0.486)|
|Observations|1,476,309|1,461,512|1,475,667|1,468,951|1,470,483|1,357,960|
|R-squared|0.687|0.126|0.072|0.146|0.085|0.052|
|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|
|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|Sector 2d|Sector 2d|Sector 2d|Sector 2d|Sector 2d|Sector 2d|

Robust standard errors in parentheses

*** p<0.01, ** p<0.05, * p<0.1

Note: The reference (excluded category) refers to Privately-owned Enterprises (POEs), so results should be interpreted as compared to private firms within the same sector-type, size, and age, and controlling by the respective fixed effects. 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 (%). 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 (yearFE), sectoral shocks (sector-FE), 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.

Second, we test whether the results hold when restricting the sample only to those firms fully owned by the state. Once more, robustness checks show that the results evidenced before are qualitatively unchanged in Table 20 restricting the sample to fully owned BOSs. As before, we find a negative and statistically significant correlation between state participation -defined here as firms with the state as the sole ownerand labor productivity, profit margins, current ratio, ROA, and ROE, whereas BOSs seem to be more leveraged than POEs.

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