For presentation purposes, the results are grouped in the Table 12 for the different outcomes of interest - labor productivity, profitability, liquidity, and return on investments.<sup>20</sup> These findings seem to confirm a gap between BOSs and POEs regardless the level of state shareholding. In other words, when the state holds 10% or more shareholding in the firm, the operational and financial results are subpar to those of private peers. Nonetheless, it also reveals private ownership can also play an important role in narrowing the gap between POEs and BOSs and improving performance. Results in Table 12 show performance differentials enlarge as state participation increases -particularly when the government holds majority or full control. On the contrary, BOS firms with mixed ownership jointly with the private sector and with minority state ownership seem to perform relatively better.

|_Table 12.Estimations by le_|_vel of state participation_||||||
|---|---|---|---|---|---|---|
|VARIABLES|(1)<br>**Labor productivity**<br>**(log)**|(2)<br>**Profit margin**|(3)<br>**Current**<br>**ratio**|(4)<br>**Solvency**<br>**ratio**|(5)<br>**ROA**|(6)<br>**ROE**|
|**BOS - 10-24.9%**|**-0.187*****|**-2.810*****|**-0.203*****|**1.460*****|**-3.190*****|**-10.66*****|
||(0.019)|(0.299)|(0.0552)|(0.356)|(0.157)|(0.677)|
|**BOS -25-49.9%**|**-0.229*****|**-3.316*****|**-0.170*****|**1.773*****|**-3.123*****|**-10.25*****|
||(0.020)|(0.304)|(0.0530)|(0.392)|(0.163)|(0.610)|
|**BOS -50%-99.9%**|**-0.390*****|**-4.068*****|**0.0547**|**3.983*****|**-4.194*****|**-12.25*****|
||(0.015)|(0.233)|(0.0699)|(0.340)|(0.141)|(0.534)|
|**BOS -100%**|**-0.432*****|**-8.578*****|**-0.614*****|**7.563*****|**-6.101*****|**-18.88*****|
||(0.025)|(0.436)|(0.0706)|(0.504)|(0.171)|(0.469)|
|Size|0.432***|-0.615***|-0.572***|-1.906***|-0.508***|-1.142***|
||(0.009)|(0.0581)|(0.0135)|(0.0884)|(0.0317)|(0.0756)|
|Age|-0.0156***|0.0171***|0.0551***|0.740***|-0.0757***|-0.596***|
||(0.001)|(0.00620)|(0.00193)|(0.00901)|(0.00380)|(0.0175)|
|Listing status|-0.643***|-0.440*|0.144***|6.675***|-2.610***|-8.133***|
||(0.028)|(0.264)|(0.0490)|(0.333)|(0.168)|(0.535)|
|Constant|4.775***|7.554***|4.800***|37.04***|9.174***|31.67***|
||(0.106)|(0.168)|(0.0482)|(0.295)|(0.125)|(0.284)|
|Observations|6,452,778|6,347,824|6,400,630|6,411,529|6,422,117|5,889,443|
|R-squared|0.718|0.105|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|Yes|Yes|Yes|Yes|Yes|Yes|

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, 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 20 Results are robust and hold for the other specifications that include progressively the control variables and fixed effects as shown in the former section.

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