A firm is classified as a high OCF (low OCF) firm if its pre-crisis period average OCF is higher (lower) than the sample median
Despite the similarity of some subgroups with the sample median
, the median returns of the remaining subgroups differed more substantially (especially for trips placing a different number of sets or landing in a different region).
The RMSE of the sample median
is 10 percent lower than that of the sample mean (the variance is 20 percent lower).
To test our power-innovation hypothesis, we split the sample into two subsamples each year based on whether the firm's Patents is above (Model 2) or below (Model 3) the sample median
of firms with nonmissing Patents for that year.
The sample median
[mathematical expression not reproducible] is a robust alternative to the sample mean [[bar.
it] = 1 if growth rate (GROWTH) for firm i in year t is above the sample median
, and 0 if otherwise.
bi] is computed by using the biweight function, [psi](*), but with the sample median
used for location and MAD/0.
High-profitability firms are those whose profitability ratio is above the sample median
, and low-profitability firms are those whose profitability ratio is below the sample median
5000 operating income before accretion expense * Alpha level provides the statistical significance of a one sample median
test comparing the values for the firms in the low-leverage group to the median for the high-leverage group.
12 1) RISKit = 1 if the systematic risk of common stock for firm i in year t is above sample median
, and 0 otherwise GROWit= 1 if growth (ratio of market value to book value of equity) for firm i in year t is above sample median
, and 0 otherwise.