Interest Rate Liberalization and Firm Leverage in China: Effects and Channels

Table 11

Interest rate liberalization and credit transaction cost.

Variables	Trcost	Trcost
	(1)	(2)
Irlib1	−0.2032
	(−2.87)
Irlib2		−0.1015
		(−2.87)
Controls	Yes	Yes
Constant	0.2055	0.1298
	(3.62)	(3.36)
Firm effects	Yes	Yes
Year effects	Yes	Yes
N	11742	11742
Adj-R^2	0.1751	0.1756

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 11. The t-statistics are in parentheses, we calculate them on the basis of standard errors that are robust to heteroscedasticity.