# **Table C5.4: Impact of Political Turnover on Competition – Robustness Checks**

||D|ependent var|iable: Z (com|petition inde|x)||
|---|---|---|---|---|---|---|
||(1)<br>Baseline|(2)<br>OLS|(3)<br>More<br>stringent<br>outlier<br>cleaning|(4)<br>Extra<br>financial<br>crisis<br>controls|(5)<br>3-digit<br>industry*year<br>FE|(6)<br>Exclude top 3<br>and bottom 3<br>industries with<br>largest changes<br>in market share<br>of connected|
|||||||firms|
|PC family*1993|1.452|-0.479|1.267|1.055|0.020|1.724|
||(1.650)|(2.653)|(1.586)|(1.788)|(1.515)|(1.530)|
|PC family*1994|1.633|-0.298|2.112|1.447|1.316|0.625|
||(1.735)|(2.248)|(1.824)|(1.675)|(1.797)|(1.411)|
|PC family*1995|-1.949|-3.880|-1.564|-2.251|-1.658|-3.657|
||(1.636)|(2.497)|(1.531)|(1.706)|(1.682)|(2.468)|
|PC family*1996||-3.223<br>(2.964)|||||
|PC family*2000|4.013**|2.083|4.504***|3.520**|4.206**|3.818**|
||(1.599)|(1.900)|(1.637)|(1.486)|(1.789)|(1.602)|
|PC family*2001|3.493**|1.563|4.607***|3.288*|3.841**|3.126|
||(1.601)|(2.070)|(1.314)|(1.675)|(1.657)|(1.934)|
|PC family*2002|2.439|0.508|3.418*|2.074|3.315|1.385|
||(2.165)|(2.427)|(1.846)|(2.280)|(2.032)|(2.721)|
|PC family*2003|2.662|0.732|3.648**|2.442|2.979|1.818|
||(1.987)|(2.689)|(1.666)|(2.099)|(1.885)|(2.595)|
|PC family*2004|1.898|-0.032|2.463|1.638|1.968|2.239|
||(2.970)|(3.486)|(2.771)|(3.165)|(3.050)|(3.410)|
|PC family*2005|0.814|-1.116|0.890|0.813|0.887|0.568|
||(3.022)|(3.424)|(2.921)|(3.065)|(2.785)|(3.621)|
|PC family*2006|1.152|-0.779|2.835|0.499|2.224|0.429|
||(2.868)|(2.969)|(2.224)|(3.056)|(2.516)|(3.116)|
|PC family*2007|3.151*|1.220|2.812*|2.706|2.217|1.774|
||(1.823)|(2.421)|(1.452)|(1.868)|(1.933)|(1.927)|
|PC family*2008|<br>3.857*|<br>1.927|<br>4.859**|<br>3.504|<br>4.388**|<br>3.381*|
||(2.121)|(2.239)|(1.890)|(2.178)|(1.925)|(1.973)|
|PC family*2009|<br>4.263*|<br>2.333|<br>5.294***|<br>3.798*|<br>4.182**|<br>2.816|
||(2.201)|(2.190)|(2.035)|(2.230)|(2.113)|(2.364)|
|Observations|2,800|2,800|2,759|2,800|2,800|2,716|
|Industries|200|200|200|200|200|194|
|R-squared|0.302|0.310|0.330|0.306|0.430|0.307|

_Note_ : Table reports results of estimation of specification (3). Appendix A defines all the variables. The sample period spans 1993–96 and 2000–03. Industry controls include aggregate imports, exports, the cumulative market shares of state-owned and foreign-owned firms, entry regulation, dependence on external finance, and asset tangibility. PC family measures the aggregate Suharto-era market share of Suharto family firms (the average of their aggregate market share in 1996 and 1997). Specifications include industry fixed effects, except for column 2. All specifications include year fixed effects and Suharto era (averaged over 1993-1996) industry controls interacted with year fixed effects. Column 1 reports a baseline specification; column 2 presents OLS specification without firm fixed effects; in column 3 outliers, defined as observation for whom the studentized residuals exceed 3 in absolute value, are excluded; in column 4 crisis output loss variable interacted with post Suharto dummy is included; in column 5, 3-digit industry fixed effects interacted with year fixed effects are included (and year effects are dropped since they cannot be separately identified); in column 6 top three and bottom three industries with largest changes in market share of connected firms are excluded. * indicates significance at the 10 percent level, ** - at the 5 percent level, and *** - at the 1 percent level.

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