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Table 8 Specification tests for different establishment performance indicator functions with WTA as a regressor

From: Working time accounts and firm performance in Germany

  BP HAUS EXO OIR WI
log(PRODUCTIVITY) 6691*** 1068*** 71.47*** 0.04 171.34
log(WAGES per EMPLOYEE) 6481*** 697*** 372.84*** 0.29 248.12
log(INVESTMENTS) 5397*** 280*** 423.09*** 0.10 294.00
log(OPERATING SURPLUS) 15,83*** 2008*** 247.48*** 33.80*** 923.37
PROFITS 1775*** 148*** 13.89*** 0.68 180.72
  1. Notes: We test H_0 for no time-invariant firm effects (Breusch-Pagan test - BP), no correlation between firm effects and regressors (random vs. fixed (Hausman test – HAUS)), exogeneity (Durbin-Wu-Hausman test - EXO), no overidentifying restrictions (OIR) und weak instruments (Stock-Yogo test - WI). Test statistics are presented in the table, where BP, HAUS, EXO and OIR are χ 2 distributed. WI displays minimum eigenvalue statistics. All test statistics in column WI indicate that the eigenvalue is larger than the critical value at p < 0.05, that H_0 (weak instruments) has to be rejected; ***p < 0.01