Interest Rate Liberalization and Firm Leverage in China: Effects and Channels
Table 12
Impact of interest rate liberalization on firms’ leverage ratios between SOEs and non-SOEs.
Variables
Lev
Slev
Llev
SOEs
Non-SOEs
SOEs
Non-SOEs
SOEs
Non-SOEs
(1)
(2)
(3)
(4)
(5)
(6)
Panel A: Irlib1
Irlib1
−0.2509
−0.6037
−0.2389
−0.5798
−0.0185
−0.0407
(−3.30)
(−7.30)
(−3.20)
(−7.36)
(−0.42)
(−1.11)
Controls
Yes
Yes
Yes
Yes
Yes
Yes
Constant
0.1311
−0.0929
1.3675
1.3032
−0.8597
−1.1125
(0.09)
(−0.07)
(1.01)
(1.01)
(−1.10)
(−1.91)
Firm effects
Yes
Yes
Yes
Yes
Yes
Yes
Year effects
Yes
Yes
Yes
Yes
Yes
Yes
N
8182
9774
8182
9774
8182
9774
Adj-R2
0.1676
0.1613
0.0977
0.1050
0.1485
0.1387
Diff (p-value)
p ≤ 0.001
p ≤ 0.001
0.6625
Panel B: Irlib2
Irlib2
−0.1608
−0.5065
−0.1705
−0.4824
0.0034
−0.0397
(−3.17)
(−9.89)
(−3.45)
(−9.89)
(0.12)
(−1.71)
Controls
Yes
Yes
Yes
Yes
Yes
Yes
Constant
0.3562
2.7743
1.9645
3.9747
−1.1793
−0.8087
(0.24)
(2.02)
(1.37)
(3.06)
(−1.43)
(−1.35)
Firm effects
Yes
Yes
Yes
Yes
Yes
Yes
Year effects
Yes
Yes
Yes
Yes
Yes
Yes
N
8182
9774
8182
9774
8182
9774
Adj-R2
0.1676
0.1613
0.0977
0.1050
0.1485
0.1387
Diff (p-value)
p ≤ 0.001
p ≤ 0.001
0.1891
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 12. The t-statistics are in parentheses, we calculate them on the basis of standard errors that are robust to heteroscedasticity.
