Political Connections, Debt Restructuring, and Enterprise Investment: Evidence from China

Table 2

Balance hypothesis test in PSM.

Variable	Matching	Mean difference test		Standard deviation test		T-test	value
		Mean of treatment group	Mean of control group	SD	Reduction (%)
LEV	Pre	0.724	0.469	109.200	98.500	18.180	0.0001
	Post	0.724	0.720	1.700		0.180	0.859
SIZE	Pre	20.996	21.686	−54.000	96.300	−8.500	0.0001
	Post	20.996	20.971	2.000		0.210	0.831
AGE	Pre	2.323	1.942	53.000	95.600	6.920	0.0001
	Post	2.323	2.340	−2.300		−0.340	0.734
CSTR	Pre	−5.086	−5.169	4.500	87.600	0.670	0.503
	Post	−5.086	−5.096	0.600		0.070	0.948
ESH	Pre	0.007	0.059	−49.900	97.200	−5.680	0.0001
	Post	0.007	0.009	−1.400		−0.350	0.725
ROA	Pre	−0.015	0.041	−66.800	88.400	−14.190	0.0001
	Post	−0.015	−0.022	7.800		0.710	0.477
Pseudo R^2	Pre	0.164		LR( value)	417.750 (0.0001)
	Post	0.002			1.380 (0.967)

Note. The matching method used in Table 2 is the nearest neighbor matching method (k = 10).