Appendix: A Graph 2 Dummy to control if the focal firm is owned by another firm

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Appendix: A

Graph 2

Dummy to control if the focal

firm is owned by another firm

Firm that owns less than 25% of

the focal firm

Firm that owns more than 50% of

the focal firm Firm that owns

between 25% and 50% of the focal firm

Subsidiary

Level 1

Level 5

Level 4

Level 3

Level 2

Focal firm of the network

(Firm that is used for analysis)

Subsidiary

Size of subsidiaries

network

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1

Appendix B

Table 1. Descriptive statistics, Real estate industry Profit

margin Number of subsidiaries Age Intangible assets Debt-to-equity

Employees Cash flows Mean 11.646 3.959 32.046 4592.445 437.322 141.423 6688.897 Median 6.780 1 19 4.771 181.371 30 1873 Maximum 98.404 97 132 4824355 9632.342 32999 1012000 Minimum -96.117 0 0 -19289.7 0 1 -102838 Standard Deviation 22.845 8.646 30.201 109073.3 839.426 801.208 27340.02 Skewness 0.139 4.849 1.196 40.29881 4.872113 26.77862 21.615 Kurtosis 6.750 34.592 3.242 1670.223 34.190 945.402 670.421 Jarque-Bera 2001.942 154538.2 818.053 3.94E+08 151095.5 1.26E+08 63295838 Probability 0 0 0 0 0 0 0 Observations 3396 3396 3396 3396 3396 3396 3396 Source: The author

Table 2. Descriptive statistics, Food and beverages industry Profit

margin subsidiaries Number of Age Intangible assets Debt-to-equity Employees Cash flows

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2

Appendix C

Table 3 Test for Autocorrelation and multicolinearity

Food and Beverages Industry

Real estate industry

Autocorrelation test

Durbin-Watson 1.471 1.474 2.011 2.015

Multicolinearity test

Variance Inflation Factor (V.I.F.)

Subsidiaries 4.228 4.282 4.451 4.663 Subsidiaries2 _{4.125 4.141 4.323 4.413} Age 2.447 2.45 1.224 1.225 Size 1.002 1.003 1.016 1.02 Debt-to-equity 3.082 3.099 1.287 1.293 Intangible assets 1.036 1.04 1.03 1.036 Cash flows 1.257 1.265 1.093 1.096

Ownership dummy below 25% 1.36 1.28

Ownership dummy between 25% and 50% 1.444 1.284

Ownership dummy above 50% 1.652 1.436

Conclusion BLUE BLUE BLUE BLUE