Panel A: Number of Strings and Cost Flexibility

Independent Variables

Group (1)

Group (2)

Group (3)

Firms with one string

Firms with two strings

Firms with at least three strings

Coef. (t-value)

Coef. (t-value)

Coef. (t-value)

Intercept

−0.007

*

−0.005

−0.012

(−1.86)

(−1.12)

(−1.18)

∆lnS

0.889

***

0.934

***

0.995

***

(98.32)

(94.88)

(73.36)

Control Variables Included

Yes

Yes

Yes

Industry Fixed Effects Included

Yes

Yes

Yes

Adj-R²

0.72

0.80

0.84

N

37,374

15,079

7104

Number of firms

2051

520

189