Panel A: Sorted by DEV

High

Low

FIOC

−0.051

−0.012

[−4.26]***

[−1.05]

Controls

Yes

Yes

Industry-Fixed effect

Yes

Yes

Year-Fixed effect

Yes

Yes

N

9578

9741

Adjusted R²

7.36%

8.66%

Difference in FIOC coefficient

−0.039

p-value of the F-test

(<0.01)***

Panel B: Sorted by ECR

High

Low

FIOC

−0.061

−0.012

[−4.78]***

[−1.07]

Controls

Yes

Yes

Industry-Fixed effect

Yes

Yes

Year-Fixed effect

Yes

Yes

N

8599

10,720

Adjusted R²

7.39%

8.24%

Difference in FIOC coefficient

−0.049

p-value of the F-test

(<0.01)***