# **Table 9. Difference-in-Differences Investment Estimates**

This table shows difference-in-differences (DiD) regressions comparing the investment behavior of connected and unconnected firms in the full sample (left-side panels) and in the propensity score matched (PSM) sample (right-side panels). The table shows regression results obtained by estimating Equation (1) using four different dependent variables: capital expenditures (capex) over 2012 assets, spending on acquisitions over 2012 assets, research and development (R&D) expenditures over 2012 assets, and cash & short-term (ST) investments over 2012 assets. The treated variable equals one for connected firms and zero for unconnected firms. The table shows the DiD coefficients, which estimate, for each year, average differences for each dependent variable between connected and unconnected firms (relative to the 2012 difference). The 2012 coefficients show the differences in 2012. The regressions include year fixed effects. Standard errors are clustered at the industry (two-digit SIC) level. ∗, ∗∗, and ∗∗∗ indicate statistical significance at the 10%, 5%, and 1% levels, respectively.

|Sample:||Full S|ample|||PSM Sa|mple||
|---|---|---|---|---|---|---|---|---|
|||Acuisitions||Cash & ST||Acuisitions||Cash & ST|
|Dependent<br>Variable:|Capex over<br>2012 Assets|q<br>over 2012<br>Assets|R&D over<br>2012 Assets|Investments<br>over 2012<br>Assets|Capex over<br>2012 Assets|q<br>over 2012<br>Assets|R&D over<br>2012 Assets|Investments<br>over 2012<br>Assets|
|Y_2005 x Treated|-0.017 ***|-0.002|-0.018 *|-0.040 ***|-0.015 ***|0.004||-0.009|
||[0.01]|[0.00]|[0.01]|[0.01]|[0.01]|[0.00]||[0.01]|
|Y_2006 x Treated|-0.009 **|-0.002|-0.014|-0.038 ***|-0.009 **|0.004||-0.010|
||[0.00]|[0.00]|[0.01]|[0.01]|[0.00]|[0.00]||[0.01]|
|Y_2007 x Treated|-0.010 **|-0.003|-0.003|-0.034 ***|-0.007 *|0.006 *|0.002|-0.010|
||[0.00]|[0.00]|[0.00]|[0.01]|[0.00]|[0.00]|[0.00]|[0.01]|
|Y_2008 x Treated|-0.011 ***|-0.014|-0.007 **|-0.024 **|-0.009 ***|0.001|-0.009 *|-0.009|
||[0.00]|[0.01]|[0.00]|[0.01]|[0.00]|[0.00]|[0.00]|[0.01]|
|Y_2009 x Treated|-0.012 ***|-0.003|-0.008 **|-0.010|-0.007 **|0.001|-0.011 **|-0.002|
||[0.00]|[0.00]|[0.00]|[0.01]|[0.00]|[0.00]|[0.00]|[0.01]|
|Y_2010 x Treated|-0.010 ***|0.001|-0.005|0.003|-0.005 **|0.002|-0.011 **|0.005|
||[0.00]|[0.00]|[0.00]|[0.01]|[0.00]|[0.00]|[0.01]|[0.01]|
|Y_2011 x Treated|-0.007 ***|0.001|-0.005|-0.006|-0.004|0.002|-0.009 **|-0.003|
||[0.00]|[0.00]|[0.00]|[0.00]|[0.00]|[0.00]|[0.00]|[0.01]|
|Treated (2012 Diff.)|0.004|0.000|0.001|-0.001|0.002|-0.003 *|-0.001|-0.018|
||[0.00]|[0.00]|[0.00]|[0.01]|[0.00]|[0.00]|[0.00]|[0.01]|
|Y_2013 x Treated|0.002|0.001|0.002|0.021 ***|0.010|0.003|0.003 ***|0.034 **|
||[0.00]|[0.00]|[0.00]|[0.01]|[0.01]|[0.00]|[0.00]|[0.02]|
|Y_2014 x Treated|0.006|0.008 **|0.006 **|0.065 ***|0.017 ***|0.007 *|0.008 ***|0.101 ***|
||[0.00]|[0.00]|[0.00]|[0.01]|[0.00]|[0.00]|[0.00]|[0.02]|
|Y_2015 x Treated|0.022 ***|0.013 *|0.009 **|0.110 ***|0.049 ***|0.032 ***|0.014 ***|0.152 ***|
||[0.01]|[0.01]|[0.00]|[0.03]|[0.00]|[0.01]|[0.00]|[0.03]|
|Y_2016 x Treated|0.037 ***|0.028 ***|0.013 ***|0.158 ***|0.078 ***|0.056 ***|0.021 ***|0.276 ***|
||[0.01]|[0.01]|[0.00]|[0.05]|[0.01]|[0.01]|[0.01]|[0.06]|
|Y_2017 x Treated|0.047 ***|0.013|0.018 ***|0.159 ***|0.087 ***|0.035 ***|0.028 ***|0.332 ***|
||[0.01]|[0.01]|[0.01]|[0.05]|[0.01]|[0.01]|[0.01]|[0.09]|
|Y_2018 x Treated|0.044 ***|0.005|0.021 **|0.169 ***|0.090 ***|0.010|0.035 ***|0.325 ***|
||[0.01]|[0.01]|[0.01]|[0.04]|[0.01]|[0.01]|[0.01]|[0.06]|
|Y_2019 x Treated|0.048 ***|-0.003|0.025 ***|0.206 ***|0.080 ***|0.006|0.039 ***|0.370 ***|
||[0.01]|[0.00]|[0.01]|[0.05]|[0.01]|[0.00]|[0.01]|[0.07]|
|Y_2020 x Treated|0.044 ***|-0.002|0.028 ***|0.241 ***|0.081 ***|0.011 *|0.042 ***|0.376 ***|
||[0.01]|[0.00]|[0.01]|[0.05]|[0.01]|[0.01]|[0.01]|[0.06]|
|No. of observations|28,857|19,342|15,346|28,785|15,100|10,216|8,569|15,117|
|No. of clusters|67|67|63|66|59|59|58|58|