Panel B: Strings and Asymmetric Cost Behavior

Independent Variables

(1)

(2)

(3)

(4)

String firms

Non-string firms

String years of firms that experience sales decreases during string periods

Non-string years of string firms

Coef. (t-value)

Coef. (t-value)

Coef. (t-value)

Coef. (t-value)

Intercept

−0.003

0.031

***

−0.002

−0.002

(−1.34)

(3.62)

(−0.48)

(−0.45)

ΔS

0.957

***

0.659

***

1.004

***

0.896

***

(184.91)

(57.98)

(164.13)

(91.08)

ΔS*Dec

−0.039

−0.093

***

0.240

***

0.007

(−1.11)

(−3.05)

(4.43)

(0.19)

ΔS*Dec*Break

−0.197

***

−0.743

***

−0.410

***

−0.233

***

(−7.31)

(−9.18)

(−5.83)

(−7.16)

ΔS*Break

0.188

***

0.763

***

0.177

***

0.238

***

(16.88)

(14.70)

(4.71)

(15.92)

Break

0.037

***

0.014

*

0.044

***

0.036

***

(22.72)

(1.88)

(10.09)

(17.73)

Dec

0.002

−0.025

***

−0.003

−0.002

(1.16)

(−6.17)

(−1.12)

(−0.97)

ΔS*Dec*Employee Intensity

0.641

−3.730

***

−2.458

*

0.129

(0.65)

(−2.86)

(−1.84)

(0.11)

ΔS*Dec*Asset Intensity

−0.049

***

−0.011

***

−0.066

**

−0.045

**

(−2.79)

(−2.95)

(−2.08)

(−2.49)

ΔS*Dec*Successive Decrease

−0.054

***

0.027

−0.064

−0.036

*

(−2.71)

(0.84)

(−1.13)

(−1.70)

ΔS*Dec*Stock Performance

0.098

***

−0.013

−0.048

0.069

***

(5.11)

(−0.76)

(−1.18)

(3.39)

Employee Intensity

0.107

***

0.075

0.020

0.110

**

(3.91)

(0.39)

(0.37)

(2.19)

Asset Intensity

−0.001

0.008

***

−0.003

0.000

(−0.65)

(6.66)

(−1.07)

(−0.16)

Successive Decrease

−0.014

***

−0.042

***

0.000

−0.013

***

(−10.30)

(−10.76)

(−0.08)

(−8.23)

Stock Performance

−0.020

***

−0.020

***

−0.008

***

−0.027

***

(−18.50)

(−9.69)

(−4.44)

(−16.36)

Industry Fixed Effect Included

Yes

Yes

Yes

Yes

Adj-R²

0.82

0.32

0.94

0.73

N

59,557

97,768

6048

37,368

Number of firms

2760

11,934

774

2760