# **Appendix Table 5. Difference-in-Differences Estimates: Dependent Variables in Nominal Values**

This table shows difference-in-differences (DiD) regressions comparing the equity issuance and investment behavior of connected and unconnected in the full sample of domestic listed firms. The table shows regression results obtained by estimating Equation (1) using six different dependent variables: the amount of equity raised, capital expenditures (capex), cash and short-term investments, spending on acquisitions, market capitalization, and spending on research & development. The treated variable equals one for connected firms and zero for unconnected firms. The table shows the DiD coefficients, which estimate, for each year, the 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. The units are in billions of 2011 U.S. dollars (USD).

|Dependent<br>Variable:|Equity|Capex|Acquisitions|Cash and ST.<br>Investments|Market<br>Capitalization|Research &<br>Development|
|---|---|---|---|---|---|---|
|Y_2005 x Treated|-0.008 **|-0.033 ***|-0.007 ***|-0.126 ***|-0.615 ***||
||[0.00]|[0.01]|[0.00]|[0.02]|[0.09]||
|Y_2006 x Treated|-0.005 **|-0.027 ***|-0.005 **|-0.119 ***|-0.496 ***||
||[0.00]|[0.01]|[0.00]|[0.02]|[0.08]||
|Y_2007 x Treated|-0.003|-0.020 ***|0.003|-0.091 ***|0.043|-0.001|
||[0.00]|[0.01]|[0.00]|[0.02]|[0.09]|[0.00]|
|Y_2008 x Treated|-0.004|-0.015 ***|0.000|-0.087 ***|-0.398 ***|-0.004 **|
||[0.00]|[0.00]|[0.00]|[0.02]|[0.07]|[0.00]|
|Y_2009 x Treated|-0.002|-0.017 ***|-0.001|-0.055 ***|0.117 *|-0.004 *|
||[0.00]|[0.00]|[0.00]|[0.01]|[0.07]|[0.00]|
|Y_2010 x Treated|0.003|-0.014 ***|0.002|-0.022 **|0.220 ***|-0.001|
||[0.00]|[0.00]|[0.00]|[0.01]|[0.05]|[0.00]|
|Y_2011 x Treated|0.000|-0.005 **|-0.033|-0.010|-0.052|0.000|
||[0.00]|[0.00]|[0.03]|[0.01]|[0.03]|[0.00]|
|Treated (2012 Diff.)|0.007 **|0.037 ***|0.005 ***|0.134 ***|0.624 ***|0.007 ***|
||[0.00]|[0.01]|[0.00]|[0.02]|[0.08]|[0.00]|
|Y_2013 x Treated|0.005|0.002|0.000|0.008 **|0.140 **|0.002 ***|
||[0.00]|[0.00]|[0.00]|[0.00]|[0.05]|[0.00]|
|Y_2014 x Treated|0.011 *|0.007 *|0.001|0.035 ***|0.560 ***|0.004 ***|
||[0.01]|[0.00]|[0.00]|[0.01]|[0.11]|[0.00]|
|Y_2015 x Treated|0.029 ***|0.010 **|0.007 ***|0.091 ***|1.097 ***|0.005 ***|
||[0.01]|[0.01]|[0.00]|[0.03]|[0.14]|[0.00]|
|Y_2016 x Treated|0.040 ***|0.012|0.004|0.117 ***|0.692 ***|0.007 ***|
||[0.01]|[0.01]|[0.00]|[0.03]|[0.10]|[0.00]|
|Y_2017 x Treated|0.017 ***|0.020 **|0.007 ***|0.137 ***|0.822 ***|0.010 ***|
||[0.01]|[0.01]|[0.00]|[0.03]|[0.08]|[0.00]|
|Y_2018 x Treated|0.007 *|0.026 ***|0.006 **|0.162 ***|0.407 ***|0.012 ***|
||[0.00]|[0.01]|[0.00]|[0.04]|[0.06]|[0.00]|
|Y_2019 x Treated|0.001|0.023 ***|0.000|0.181 ***|0.701 ***|0.013 ***|
||[0.00]|[0.01]|[0.00]|[0.04]|[0.09]|[0.00]|
|Y_2020 x Treated|0.001|0.027 ***|0.000|0.230 ***|1.128 ***|0.015 ***|
||[0.00]|[0.01]|[0.00]|[0.04]|[0.17]|[0.00]|
|No. of observations|31,952|28,862|19,287|28,797|27,138|15,331|
|No. of clusters|66|67|67|66|67|63|