RDP 2023-10: Adoption of Emerging Digital General-purpose Technologies: Determinants and Effects Appendix C: Robustness Checks for Adoption Determinants

Kim Nguyen and Jonathan Hambur

December 2023

Table C1: Determinants of Adoption – Firm Balance Sheet Metrics
Probit regression of adoption on firm characteristics
Assets (log) Return on assets Positive cash flow Cash ratio Labour share of expenses Age
0.142***
(0.017)		 0.240
(0.003)		 0.301***
(0.107)		 0.246
(0.257)		 0.257*
(0.001)		 −0.174
(0.232)

Notes: Firms in the IT sector are excluded, as are firms that have adopted previously. There are approximately 3,650 observations. Includes controls for industry*time effects. *, **, *** indicate significance at the 10, 5 and 1 per cent level, respectively. Standard errors are shown in parentheses and are clustered at the firm level. Return on assets is measured as EBITDA/assets*100 and cash ratio is measured as cash/assets*100.

Sources: Authors' calculations; Morningstar; Refinitiv.
Table C2: Determinants of Adoption – Firm Balance Sheet Metrics
Linear regression of adoption on firm size decile indicators
Lag 2 Assets (log) Standard errors
2nd decile 0.004 0.009
3rd decile −0.001 0.008
4th decile 0.012 0.009
5th decile 0.016* 0.009
6th decile 0.019* 0.009
7th decile 0.018* 0.009
8th decile 0.010 0.009
9th decile 0.055*** 0.011
10th decile 0.081*** 0.010

Notes: Firms in the IT sector are excluded, as are firms that have adopted previously. There are 5,283 observations. *, **, *** indicate significance at the 10, 5 and 1 per cent level, respectively. Standard errors are clustered at the firm level. Deciles defined by industry and year.

Sources: Authors' calculations; Morningstar; Refinitiv.