_Table 20_ **_. Robustness checks: estimates fully owned BOSs only_**

|VARIABLES|(1)<br>**Log (labor**<br>**productivity)**|(2)<br>**Profit margin**|(3)<br>**Current ratio**|(4)<br>**Solvency ratio**|(5)<br>**ROA**|(6)<br>**ROE**|
|---|---|---|---|---|---|---|
|BOS-fully owned (only)|-0.434***|-8.581***|-0.627***|7.600***|-6.082***|-18.81***|
||(0.0257)|(0.442)|(0.0707)|(0.503)|(0.176)|(0.479)|
|Size|0.433***|-0.638***|-0.572***|-1.909***|-0.523***|-1.165***|
||(0.00869)|(0.0589)|(0.0137)|(0.0896)|(0.0323)|(0.0769)|
|Age|-0.0156***|0.0168***|0.0557***|0.744***|-0.0767***|-0.601***|
||(0.000748)|(0.00619)|(0.00193)|(0.00900)|(0.00383)|(0.0176)|
|Listing status|-0.639***|-1.006***|0.109**|6.842***|-3.242***|-9.967***|
||(0.0316)|(0.252)|(0.0536)|(0.338)|(0.152)|(0.559)|
|Constant|4.759***|7.617***|4.793***|37.01***|9.242***|31.82***|
||(0.106)|(0.169)|(0.0486)|(0.298)|(0.127)|(0.286)|
|Observations|6,376,996|6,275,906|6,325,638|6,336,963|6,346,550|5,821,167|
|R-squared|0.719|0.104|0.067|0.137|0.069|0.044|
|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.

# **_6.6 Do BOSs react differently to POEs when facing economic shocks? An assessment of the early COVID-19 shock_**

Although there might exist differences in both operational and financial performance, BOSs can play roles in the economy by contributing to smooth economic shocks, providing counter-cyclical investment, and maintaining and protecting employment (Bai, Li, Tao, & Wang, 2000; Telegdy, 2016). The period of our panel allows us to explore whether this is the case in a short-term response to the COVID-19 shock for the year 2020. We analyze the response of POEs vis-à-vis BOSs for investment and employment to the COVID19 shock, and whether there is some divergence in the adjustment paths to an unexpected shock. The specification of this estimation follows the model in (2) presented in section 5.

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