# **Table 5. Difference-in-Differences Equity Issuance Estimates: Connected Firms of Different Sizes versus Unconnected Firms**

This table shows difference-in-differences (DiD) regressions comparing equity issuances by connected firms of different sizes with unconnected firms in the propensity score matched (PSM) sample. Connected firms are divided into four groups according to their size: firms with assets below the 25th percentile, firms with assets between the 25th and 50th percentiles, firms with assets between the 50th and 75th percentiles, and firms with assets above the 75th percentile of the firm size distribution of connected firms. Firm size is measured as the average total assets in 2010-12. For each comparison, the table shows the regression results obtained by estimating Equation (1) using two different dependent variables: The amount of equity raised over 2012 assets and the cumulative amount of equity raised 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, the average differences in equity raised across groups of firms (relative to the 2012 difference). The 2012 coefficients show the differences across groups 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.

||Connected wi<br>ver<br>Uncon|<br>th Size > P75<br>sus<br>nected|Connecte<br>between P<br>ver<br>Uncon|<br>d with Size<br>50 and P75<br>sus<br>nected|Connected wit<br>P25 an<br>ver<br>Uncon|<br>h Size between<br>d P50<br>sus<br>nected|Connected wi<br>ver<br>Uncon|<br>th Size < P25<br>sus<br>nected|
|---|---|---|---|---|---|---|---|---|
|Dependent<br>Variable:|Equity over<br>2012 Assets|Cum. Equity<br>over 2012<br>Assets|Equity over<br>2012 Assets|Cum. Equity<br>over 2012<br>Assets|Equity over<br>2012 Assets|Cum. Equity<br>over 2012<br>Assets|Equity over<br>2012 Assets|Cum. Equity<br>over 2012<br>Assets|
|Y_2005 x Treated|0.002|-0.020 ***|-0.003|-0.021 ***|-0.006|-0.013|0.009 ***|0.022 ***|
||[0.00]|[0.01]|[0.01]|[0.01]|[0.00]|[0.01]|[0.00]|[0.01]|
|Y_2006 x Treated|0.003|-0.020 ***|-0.003|-0.021 ***|-0.007|-0.013|0.008 ***|0.022 ***|
||[0.00]|[0.01]|[0.01]|[0.01]|[0.00]|[0.01]|[0.00]|[0.01]|
|Y_2007 x Treated|0.009 **|-0.014 **|-0.003|-0.021 ***|-0.008|-0.015|0.007 ***|0.021 ***|
||[0.00]|[0.01]|[0.01]|[0.01]|[0.00]|[0.01]|[0.00]|[0.01]|
|Y_2008 x Treated|0.005|-0.011 *|-0.001|-0.019 **|-0.008 *|-0.016 *|0.010 **|0.022 ***|
||[0.00]|[0.01]|[0.01]|[0.01]|[0.00]|[0.01]|[0.00]|[0.01]|
|Y_2009 x Treated|0.001|-0.013 **|0.000|-0.016 ***|-0.008|-0.018 **|0.004 *|0.017 ***|
||[0.00]|[0.01]|[0.01]|[0.01]|[0.01]|[0.01]|[0.00]|[0.01]|
|Y_2010 x Treated|0.012 **|-0.003|0.001|-0.012 *|-0.002|-0.013|0.002|0.011 **|
||[0.01]|[0.01]|[0.01]|[0.01]|[0.01]|[0.01]|[0.00]|[0.01]|
|Y_2011 x Treated|0.008|0.002|0.006|-0.003|0.001|-0.006|0.006|0.009 ***|
||[0.01]|[0.00]|[0.01]|[0.01]|[0.00]|[0.00]|[0.01]|[0.00]|
|Treated (2012 Diff.)|-0.001|0.027 ***|0.003|0.023 **|0.003|0.001|-0.010 **|-0.047 ***|
||[0.00]|[0.01]|[0.00]|[0.01]|[0.00]|[0.02]|[0.00]|[0.02]|
|Y_2013 x Treated|-0.001|0.001|0.004|0.011|0.008|0.019|0.074|0.048|
||[0.01]|[0.01]|[0.02]|[0.01]|[0.01]|[0.01]|[0.07]|[0.05]|
|Y_2014 x Treated|0.000|-0.001|0.019|0.033 *|0.083 **|0.106 ***|0.022|0.061|
||[0.02]|[0.01]|[0.02]|[0.02]|[0.04]|[0.04]|[0.02]|[0.04]|
|Y_2015 x Treated|-0.005|-0.002|0.036 *|0.079 ***|0.068 *|0.252 ***|0.217 ***|0.253 ***|
||[0.01]|[0.02]|[0.02]|[0.02]|[0.04]|[0.06]|[0.04]|[0.04]|
|Y_2016 x Treated|0.035|0.036|0.056 *|0.144 ***|0.195 ***|0.457 ***|0.399 ***|0.706 ***|
||[0.04]|[0.05]|[0.03]|[0.03]|[0.04]|[0.06]|[0.13]|[0.16]|
|Y_2017 x Treated|-0.014 *|0.022|0.033|0.183 ***|0.094 *|0.559 ***|0.204 ***|0.877 ***|
||[0.01]|[0.05]|[0.03]|[0.03]|[0.05]|[0.06]|[0.05]|[0.19]|
|Y_2018 x Treated|0.006|0.026|0.026|0.211 ***|0.087 *|0.652 ***|0.125 *|0.942 ***|
||[0.01]|[0.05]|[0.02]|[0.03]|[0.05]|[0.08]|[0.07]|[0.19]|
|Y_2019 x Treated|0.004|0.028|0.007|0.221 ***|0.009|0.667 ***|0.105 ***|1.039 ***|
||[0.01]|[0.05]|[0.01]|[0.03]|[0.02]|[0.08]|[0.03]|[0.18]|
|Y_2020 x Treated|0.006|0.032|-0.001|0.222 ***|0.035|0.708 ***|0.026 **|1.056 ***|
||[0.01]|[0.05]|[0.00]|[0.03]|[0.02]|[0.09]|[0.01]|[0.18]|
|No. of observations|10,624|10,624|10,608|10,608|10,592|10,592|10,560|10,560|
|No. of clusters|55|55|53|53|55|55|56|56|