Interest Rate Liberalization and Firm Leverage in China: Effects and Channels
Table 10
Leverage ratios of high asymmetric versus low asymmetric firms.
Variables
Lev
Slev
Llev
High asymmetry
Low asymmetry
High asymmetry
Low asymmetry
High asymmetry
Low asymmetry
(1)
(2)
(3)
(4)
(5)
(6)
Panel A: Irlib1
Irlib1
−0.7071
−0.2614
−0.4800
-0.3050
-0.1665
0.0499
(−5.06)
(−1.56)
(−3.74)
(-1.88)
(-2.16)
(0.55)
Controls
Yes
Yes
Yes
Yes
Yes
Yes
Constant
−6.0931
11.1110
−2.8682
10.5705
-2.5161
1.5381
(−2.28)
(2.67)
(−1.10)
(2.53)
(-1.61)
(0.65)
Firm effects
Yes
Yes
Yes
Yes
Yes
Yes
Year effects
Yes
Yes
Yes
Yes
Yes
Yes
N
5861
5714
5861
5714
5861
5714
Adj-R2
0.2019
0.1583
0.0851
0.1242
0.1548
0.1242
Diff (p-value)
0.0062
0.0407
0.0071
Panel B: Irlib2
Irlib2
−0.3532
−0.1306
−0.2398
-0.1524
-0.0832
0.0250
(−5.06)
(−1.56)
(−3.74)
(-1.88)
(-2.16)
(0.55)
Controls
Yes
Yes
Yes
Yes
Yes
Yes
Constant
−6.3564
11.0136
−3.0470
10.4569
-2.5781
1.5567
(−2.35)
(2.62)
(−1.16)
(2.48)
(-1.63)
(0.65)
Firm effects
Yes
Yes
Yes
Yes
Yes
Yes
Year effects
Yes
Yes
Yes
Yes
Yes
Yes
N
5861
5714
5861
5714
5861
5714
Adj-R2
0.2019
0.1583
0.0851
0.1242
0.1548
0.1242
Diff (p-value)
0.0048
0.0339
0.0057
Note. ,, and indicate statistical significance at 1 percent, 5 percent, and 10 percent, respectively. Two alternative measures of interest rate liberalization are used in Table 10. The t-statistics are in parentheses, we calculate them on the basis of standard errors that are robust to heteroscedasticity.
