increases. Conditionally, estimates increase from 0.21% to 1.61% within AdjDIND the small quintile and from -1.23% to 0.07% within the high quintile. There is ME ME also a pronounced negative association between and size. AdjDIND AdjDIND estimates decrease monotonically from 0.91% to -0.73% as size increases. Conditionally, estimates decrease from 0.21% to -1.23% within the AdjDIND quintile and from 1.61% to 0.07% within the high-BE/ME quintile. <Insert Figure 3 here> Although the evidence from Table 2 is suggestive, it does not constitute formal evidence. Thus, we assess the statistical significance of the previous results in Table 3. We form quintiles based on either or size, and compare the two extreme BE/ME quintiles. High stocks have (AdjDIND) levels that are typically BE/ME AdjDITH 0.45% (1.74%) lower (higher) than those of low stocks. This difference is BE/ME statistically significant at the 1% level. Therefore, there is strong evidence that high stocks have smaller (greater) (AdjDIND) levels than do low BE/ME AdjDITH BE/ME stocks. Additionally, when we compare the two extreme size quintiles, we find that small stocks have higher levels than do large stocks. However, there is no AdjDIND evidence that small stocks have lower levels than do large stocks. Although AdjDITH the difference is -0.07%, it is not significantly different from zero. AdjDITH Therefore, there is strong evidence that small stocks have greater levels than AdjDIND do large stocks, but there is no clear association between size and AdjDITH. <Insert Table 3 about here> Furthermore, we show direct evidence of links between size, BE/ME, AdjDITH, and using regression analysis. Specifically, for a robustness check, we use AdjDIND annual cross-sectional regressions of or size on and The BE/ME AdjDITH AdjDIND.
increases. Conditionally, AdjDIND estimates increase from 0.21% to 1.61% within the small ME quintile and from -1.23% to 0.07% within the high ME quintile. There is also a pronounced negative association between AdjDIND and size. AdjDIND estimates decrease monotonically from 0.91% to -0.73% as size increases. Conditionally, AdjDIND estimates decrease from 0.21% to -1.23% within the quintile and from 1.61% to 0.07% within the high-BE/ME quintile. <Insert Figure 3 here> Although the evidence from Table 2 is suggestive, it does not constitute formal evidence. Thus, we assess the statistical significance of the previous results in Table 3. We form quintiles based on either BE/ME or size, and compare the two extreme quintiles. High BE/ME stocks have AdjDITH (AdjDIND) levels that are typically 0.45% (1.74%) lower (higher) than those of low BE/ME stocks. This difference is statistically significant at the 1% level. Therefore, there is strong evidence that high BE/ME stocks have smaller (greater) AdjDITH (AdjDIND) levels than do low BE/ME stocks. Additionally, when we compare the two extreme size quintiles, we find that small stocks have higher AdjDIND levels than do large stocks. However, there is no evidence that small stocks have lower AdjDITH levels than do large stocks. Although the AdjDITH difference is -0.07%, it is not significantly different from zero. Therefore, there is strong evidence that small stocks have greater AdjDIND levels than do large stocks, but there is no clear association between size and AdjDITH. <Insert Table 3 about here> Furthermore, we show direct evidence of links between BE/ME, size, AdjDITH, and AdjDIND using regression analysis. Specifically, for a robustness check, we use annual cross-sectional regressions of BE/ME or size on AdjDITH and AdjDIND. The