Controlling for Confounding Factors in Firm-Level Analysis: Incorporating Regional and Industry Fixed Effects

In order to mitigate potential confounding factors, this study attempts to appropriately select control variables. However, it is important to acknowledge that there may still be other factors at play, such as industry characteristics and regional policies, which could impact the outcomes. To account for this, we incorporate regional and industry fixed effects in the subsequent regression analysis, as presented in column (2).