This table presents firm-level cross-sectional Fama-Macbeth (1973) regressions results examining the relationship between future cash flow volatility and regulatory operating leverage, along with a range of firm-level characteristics. Cash flow volatility is defined as the four-quarter forward-looking volatility of EBITDA (earnings before depreciation) divided by asset value. The control variables include the natural logarithm of asset value (SIZE), the logarithm of book-to-market ratio (BM), the logarithm of debt-to-equity ratio (LEV), SG&A expenses scaled by assets (OL), and operating margin after depreciation (OM). Column 4 reports the regression results of estimated values of ROL in the first stage on recessionary and nonrecessionary quarter dummy variables (based on the NBER business cycle definitions), changes in CFNAI (four-quarter forward-looking average of CFNAI minus contemporaneous CFNAI), and changes in the logarithm of industrial production index (four-quarter forward-looking average of INDP minus contemporaneous INDP). Column 5 introduces the interaction term between ROL and the logarithm of asset base as an independent variable. Newey-West (1973) adjusted t-statistics are reported in parentheses.