Table 4. Composition of the dummy variables for firm characteristics

Variable	Dummy coding	No. of firms	Share (%)	Basis of classification
Region	Metropolitan city or above=0	230	28.15	Urban / non-urban classification
	Non-metropolitan area=1	587	71.85
Revenue	< KRW 500 million=0	356	43.58	“Small-scale” firm criterion of the Notification on Food and Livestock Product Safety Management Standards
	≥ KRW 500 million=1	461	56.42
Workforce	< 10 persons=0	407	49.81
	≥ 10 persons=1	410	50.19
Production volume	< 100 tons=0	366	44.80
	≥ 100 tons=1	451	55.20
Business tenure	≤ 2 years=0	517	63.28	Median of the descriptive statistics
	> 2 years=1	300	36.72

Note: Because the mean production volume of all firms is distorted by a small number of very large firms, the threshold was set at 99.4 tons, the average production volume of small-scale firms with revenue of KRW 500 million or less.