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

Table 3

Differences in leverage ratios between treated group and control group around the running of LPR centralized quotation and release mechanism.

Variables	Treated group		Control group		Difference		DID
	Before (1)	After (2)	Before (3)	After (4)	(5) = (2) − (1)	(6) = (4) − (3)	(7) = (5) − (6)
Lev	0.483	0.376	0.546	0.466	−0.107^∗∗∗	−0.081^∗∗∗	−0.027^∗∗
Slev	0.391	0.302	0.439	0.374	−0.089^∗∗∗	−0.065^∗∗∗	−0.023^∗∗
Llev	0.092	0.073	0.092	0.107	−0.019^∗∗∗	−0.015^∗∗∗	−0.004

Note. ^∗∗∗, ^∗∗, and ^∗ indicate statistical significance at 1 percent, 5 percent, and 10 percent, respectively.