| Id |
Subject |
Object |
Predicate |
Lexical cue |
| T292 |
0-4 |
Sentence |
denotes |
6.3. |
| T293 |
5-45 |
Sentence |
denotes |
The Impact of Firm-Level Characteristics |
| T294 |
46-175 |
Sentence |
denotes |
In an additional sensitivity test, we examine the firm heterogeneity in the effect of continued increasing public health threats. |
| T295 |
176-399 |
Sentence |
denotes |
The first assumption is that firms with a lower level of local consumer demand or geographical concentration of local businesses are more likely to mitigate the business risk raised by local public health threat [60,61,62]. |
| T296 |
400-637 |
Sentence |
denotes |
The second assumption is that firms with higher levels of operating cash flow are more likely to overcome the difficulty during the COVID-19 outbreak by improving the supply chain risk management [63] and investment diversification [64]. |
| T297 |
638-873 |
Sentence |
denotes |
The third assumption is that compare to the firms with non-clean audit opinions, the firms with clean auditor opinions on their financial reports are more likely to gain investor trust by showing reliable financial information [65,66]. |
| T298 |
874-1086 |
Sentence |
denotes |
Following these arguments, we predict that firms with a higher level of foreign sales, operating cash flow, and with clean audit opinions are more likely to receive investor trust and have lower management risks. |
| T299 |
1087-1201 |
Sentence |
denotes |
As such, continued increasing provincial public health threats is less useful for firms with such characteristics. |
| T300 |
1202-1327 |
Sentence |
denotes |
To test our assumption, we substitute Conditioning_VAR in Model (3) with High_FSALE, High_OPCF, and Clean_OPIN, respectively. |
| T301 |
1328-1816 |
Sentence |
denotes |
Here, High_FSALE is an indicator variable that equals one if the firm’s foreign sales are higher than or equal to the upper quartile value and zero otherwise; High_OPCF is an indicator variable that equals one if the ratio of the firm’s operating cash flow to total assets is higher than or equal to the upper quartile value and zero otherwise; and Clean_OPIN is an indicator variable that equals one if the firm received a clean audit opinion for its financial report and zero otherwise. |
| T302 |
1817-1909 |
Sentence |
denotes |
Table 12 shows the regression results of the moderate effects of firm-level characteristics. |
| T303 |
1910-2269 |
Sentence |
denotes |
We find that the coefficients of CIPHT × High_FSALE, CIPHT × High_OPCF, and CIPHT × Clean_OPIN are all positive and significant, which is consistent with our prediction that geographical diversification, cash flow efficiency, and reporting quality could mitigate the negative effect of continued increasing provincial public health threats on market reaction. |
