**<u>Table 2: Characteristics of politically connected and nonconnected firms during and after the Suharto era</u>**

||||1993–9|6||||2000–0|9|||
|---|---|---|---|---|---|---|---|---|---|---|---|
|Variable|Connec|ted firms|Non-conn|ected firms||Connect|ed firms|Non-conne|cted firms|||
||||||iff|||||iff|iffiiff|
||Mean|SD|Mean|SD|D|Mean|SD|Mean|SD|D|D-n-d|
||||**Panel A**|**: Suharto**|**family firms**|**vs non-co**|**nnected f**|**irms**||||
|Market share|0.07|0.09|0.01|0.04|0.06***|0.05|0.06|0.01|0.04|0.04***|-0.02*|
|Log labor|5.84|1.13|4.22|1.18|1.62***|5.82|1.11|4.17|1.18|1.64***|0.02|
|Importer|0.56|0.50|0.18|0.39|0.37***|0.52|0.50|0.20|0.40|0.32***|-0.05|
|Exporter|0.39|0.49|0.18|0.38|0.22***|0.29|0.46|0.17|0.38|0.12**|-0.10|
|<br>Foreign ownership|12.76|25.74|3.68|16.42|9.09***|17.86|31.69|6.64|23.54|11.25***|2.15|
|<br>State ownership|5.70|21.40|2.71|15.83|2.98|14.95|33.50|15.81|36.21|-3.79*|-6.77***|
|Log firm age|2.28|0.84|2.19|0.90|0.08|2.95|0.48|2.48|0.84|0.46***|0.38***|
|Observations|3|10|77|143||74|1|218|277|||
|||**Panel B:**|**Politically**|**connected**|**firms (broa**<br>|**dly define**|**d) vs non**|**-connected**|**firms**|||
|Market share|0.08|0.14|0.01|0.04|0.07***|0.07|0.12|0.01|0.04|0.06***|-0.02**|
|Log labor|5.96|1.14|4.21|1.17|1.75***|5.92|1.18|4.16|1.17|1.74***|-0.00|
|Importer|0.59|0.49|0.18|0.39|0.41***|0.56|0.50|0.19|0.40|0.37***|-0.04|
|Exporter|0.35|0.48|0.17|0.38|0.18***|0.29|0.45|0.17|0.38|0.12***|-0.06*|
|<br>Foreign ownership|13.14|24.56|3.61|16.34|9.53***|20.30|33.12|6.55|23.43|13.79***|4.25**|
|<br>State ownership|17.36|36.79|2.56|15.39|14.79***|22.35|39.57|15.74|36.17|3.65|-11.14***|
|<br>Log firm age|2.30|0.93|2.19|0.90|0.11|2.97|0.55|2.48|0.84|0.49***|0.38***|
|Observations|8|47|76|606||20|89|216|929|||
|<br>|<br>|<br>**Panel**<br>|<br>**C: Suharto**<br>|<br>**family fir**<br>|**ms vs non-co**<br>|<br>**nnected**<br>|<br>**firms (ma**<br>|<br>**tched sam**<br>|<br>**ple)**<br>|||
|Market share|0.07|0.09|0.03|0.08|0.04***|0.05|0.06|0.03|0.08|0.01*|-0.02***|
|Log labor|5.84|1.13|5.00|1.37|0.84***|5.81|1.10|5.17|1.44|0.64**|-0.20**|
|<br>Importer|0.24|0.34|0.24|0.33|0.00|0.25|0.34|0.22|0.33|0.02|0.02|
|<br>Exporter|0.18|0.31|0.20|0.35|-0.02|0.15|0.28|0.15|0.31|-0.01|0.01|
|<br>Foreign ownership|12.76|25.74|10.91|25.18|1.85|16.92|31.18|15.75|32.42|1.10|-0.74|
|<br>State ownership|5.70|21.40|5.78|22.27|-0.07|14.87|33.63|20.45|39.13|-5.03**|-4.95**|
|Log firm age<br>|2.28<br>|0.84<br>|2.26<br>|0.89<br>|0.01<br>|2.98<br>|0.46<br>|3.03<br>|0.49<br>|-0.07<br>|-0.08<br>|
|Observations<br><br>|3<br><br>|10<br><br>|30<br><br>|15<br><br>||71<br><br>|2<br><br>|53<br><br>|24<br><br>|<br>|<br>|
|<br>_Note_: Reported differ<br>an outcome variable<br>Standard errors are c<br>Pβt ShYtPi+ θi <br>in Panel C are confine|<br>ences acc<br>reported<br>lustered<br>+ εi, wh<br>d to firm|<br>ount for y<br>in the firs<br>at the five-<br>erePβt S<br>s that were|<br>ear fixed ef<br>t column,P<br>digit indust<br>hYtPiis<br>matched on|<br>fects. They<br>Ciis a du<br>ry level. T<br>a dummy v<br>the basis o|are the coeff<br>mmy variable<br>he last colum<br>ariable taking<br>f their firm a|<br>icients_β_e<br>indicatin<br>n reports<br>the value<br>ge, foreign|<br>stimated<br>g a firm h<br>the coeff<br>1 in the pe<br>and state|<br>by running<br>aving conn<br>icients_γ_est<br>riod after S<br>ownership,|<br>the regress<br>ections to<br>imated fro<br>uharto’s re<br>indicators|ionYi= α+<br>Suharto, and<br>m the regres<br>signation and<br>for being an|βPCi+ θi+ εi, whereYiis<br> θiis a set year fixed effects.<br>sionYi= α+ βPCi+ γPCi∗<br>0 otherwise. Results presented<br>exporter and importer, industry|
|<br>and year fixed effects<br>at the 5 percent level,|<br>during t<br>and ***|<br>he 1993-1<br>- at the 1 p|996 period (<br>ercent leve|see Table<br>l.|C4.1 in the on|line appe|ndix for b|alance tests|). * indicat|es significan|ce at the 10 percent level, ** -|

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