Variable Obs Mean Std. dev.

Min Max
RD 14,957 .0071 .0128 0 .1490

IR 14,957 7.445 1.610 4.63 10.91

Size 14,957 2.732 .8332 .1038 5.987

ROA 14,957 .0572 .0876 -.9184 .9589

LEV 14,957 .2462 .1934 0 .9892

CAPX 14,957 .3089 .1637 0 .9186

…………………………………………

Size
RD IR ROA LEV CAPX

RD 1.00

IR
-0.022*** 1.00

Size -0.045*** -0.054*** 1.00

ROA
0.076*** -0.016** 0.121*** 1.00

LEV -0.149*** 0.104*** -0.116*** -0.482*** 1.00

CAPX -0.125*** 0.008 -0.076*** -0.202*** 0.390*** 1.00

…………………………………………………………………………..
 Model1 Model2 Model3
0.7178***
0.7287
(0.043)
(0.043)
RD (16.81)
(16.74)
0.00003 0.0001
IR
(0.00001) (0.00003)
(2.71) (3.29)
-0.0002421 -0.00076
Size (0.000264) (0.00045)
(-0.92) (-1.68)
-0.001813 -0.0010
ROA
(0.0009) (0.0010)
(-1.91) (-0.97)
-0.00300 -0.0031
LEV (0.0009) (0.0009)
(-3.33) (-3.40)
0.0048 0.0049
CAPX (0.0010) (0.0010)
(4.74) (4.58)

Year
No Yes
Dummy

Industry
Dummy Yes Yes

No of Obs 13300 13300

AR(2) P-
0.63 0.63
Value

Hansen P-
0.123 0.337
Value
 Recession GDP
LIR RD3
2008
0.7287***
0.8057 0.7084 0.7204
(0.043)
(0.298) (0.0470) (0.0459)
RD (16.74)
(26.96) (15.05) (15.66)
0.0008 0.0171 0.00013 0.00008
IR
(0.0002) (0.0052) (0.00004) (0.00003)
(3.29) (3.27) (3.43) (2.85)
-0.000767 -0.3478 -0.0010 -0.0008
Size (0.00045) (0.0748) (0.0005) (0.0004)
(-1.68) (-4.65) (-1.87) (-1.70)
-0.0010 -0.5093 -0.0009 -0.0009
ROA
(0.0010) (0.1611) (0.0014) (0.0011)
(-0.97) (3.16) (-0.64) (-0.87)
-0.0031 -0.3327 -0.0042 -0.0030
LEV (0.0009) (.1683) (.0011) (.0009)
(-3.40) (1.98) (-3.59) (-3.33)
0.0049 0.0502 0.0041 0.0048
CAPX (0.0010) (0.1699) (0.0013) (0.0011)
(4.58) (0.30) (3.03) (4.15)
-0.00004
GDP (9.34e-06)
(-5.24)

Year
Yes Yes Yes Yes
Dummy

Industry
Dummy Yes Yes Yes Yes

No of Obs 13300 6830 9763 12687

AR(2) P-
0.63 0.46 0.22 056
Value

Hansen P-
0.337 0.08 0.30 0.24
Value

……………………………………………………………………………
 ROA+1
0.4009***
(0.0396)
ROAt-1
(10.11)

0.5638***
(0.3676)
RD (-1.53)

-0.0013
IR
(0.00076)
(-1.82)
0.0960
(0.0422)
IR*RD
(2.28)
-0.0035
Size (0.0065)
(-0.54)
-0.1370
LEV (0.021
(-6.38
0.0464
CAPX (0.0177)
(-2.61)

Year
Yes
Dummy

Industry
Dummy Yes

No of Obs 11931

AR(2) P-
0.11
Value

Hansen P-
0.018
Value
 Model1 Model2 Model3
0.7243***
0.7366
(0.0443)
(0.042)
RD (16.34)
(17.34)
0.0001 0.0001
IR
(0.00003) (0.00003)
(3.67) (4.27)
0.0001
IR*WC (0.00006)
(1.62)
-0.00007
IR*LOAN (0.00007)
(-0.99)
-0.0006 -0.0007
Size (0.0004) (0.0003)
(-1.58) (-1.79)
-0.0013 -0.0013
ROA
(0.0010) (0.0009)
(-1.32) (-1.42)
-0.0031 -0.0033
LEV (0.0008) (0.0007)
(-3.57) (-4.41)
0.0046 0.0043
CAPX (0.0010) (0.0010)
(4.56) (4.23)

Year
Yes Yes
Dummy

Industry
Dummy Yes Yes

No of Obs 13300 13300

AR(2) P-
0.62 0.62
Value

Hansen P-
0.22 0.490
Value

………………………………………………………………………………………………..
Model1 Model2 Model3
 0.7504***
0.7366
(0.0413)
(0.042)
RD (18.13)
(17.34)
0.0001 0.0001
IR
(0.00003) (0.00003)
(4.18) (4.27)
0.00008
IR*SD1 (0.00005)
(1.57)
7.26E-06 -0.00007
IR*SD2 (0.00003) (0.00007)
(0.18) (-0.99)

IR*CB1

IR*CB2

-0.00014 -0.0007
Size (0.0002) (0.0003)
(-0.64) (-1.79)
-0.0013 -0.0013
ROA
(0.0010) (0.0009)
(-1.32) (-1.42)
-0.0032 -0.0033
LEV (0.0008) (0.0007)
(-3.94) (-4.41)
0.0046 0.0043
CAPX (0.0010) (0.0010)
(3.99) (4.23)

Year
Yes Yes
Dummy

Industry
Dummy Yes Yes

No of Obs 13300 13300

AR(2) P-
0.62 0.62
Value

Hansen P-
0.43 0.490
Value
…..