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LEV -12.046*** -0.005***
(-5.63) (-4.44)
SIZE 11.815*** 0.005***
(221.20) (172.97)
ROA 46.255*** 0.016***
(4.58) (3.21)
ROE 2.458 0.004**
(0.60) (1.98)
CASH 1.275 -0.001
(0.17) (-0.15)
Constant -226.532*** -537.348*** -0.093*** -0.227***
(-167.03) (-362.33) (-155.36) (-308.23)

Obs. 1,886 1,886 1,886 1,886
Year FE Yes Yes Yes Yes
Pseudo R2 0.149 0.149 12.67 12.66

This table examines the effect of public administration conditional on a firm's
geographic location. The dependent variable of the regressions alternatively represents
one of two corporate technology investment measures, TEC1 and TEC2. The
independent variable is variable in year t. X is a vector of

control variables, including Size, Leverage, ROA, ROE and Cash. To account for the
impact of firm location, we introduce the variable Geography, a dummy variable that
takes the value of one for firms headquartered in the Southeast region of Vietnam and

zero otherwise. Variable definitions and data sources of these controls are presented in
Appendix A. The continuous variables are winsorized at the top and bottom 1% of the
sample distribution. Year-fixed effects are included unless otherwise stated. The
symbols ***, **, and * denote the statistical significance at 1%, 5%, and 10%,
respectively. Obs is the number of observations.
4.3.2. Effect of public administration conditional on firm size

In Vietnam, particularly among small and medium-sized enterprises (SMEs), there
is a general lack of awareness regarding their role in the Fourth Industrial Revolution’s
technology investment. SMEs, accounting for around 97% of the country’s businesses,
still struggle with technological and innovative capabilities, with a significant portion
of their machinery being imported and outdated. SMEs’ machinery difficulties present
a critical challenge for their technology investment efforts. Moreover, limited budgets
among SMEs result in slow decision-making processes, and most of them face capital

difficulties, leading them to view technology investment as a prerogative of larger
corporations.
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