APPENDIX A. 1:

Abstract

A1-1 Manipulation of Consolidated Revenue In my research setting, selection bias would be a problem if firms were able to manipulate the consolidated revenue to fall below the €750M threshold. To address this concern, I implement a manipulation test of consolidated revenue at the €750M cut-off. Figure A1-1 and panel A of table A1 report the results of the manipulation test, and there is no visual or statistical evidence of systematic manipulation of consolidated revenue at the cut-off point.1