Interest Rate Liberalization and Firm Leverage in China: Effects and Channels
Table 5
Robustness analyses using difference-in-differences regression.
Variables
Panel A: DID
Panel B: PSM + DID
Lev
Slev
Llev
Lev
Slev
Llev
(1)
(2)
(3)
(4)
(5)
(6)
LPR
0.0066
0.0025
0.0027
0.0032
−0.0007
0.0019
(1.10)
(0.43)
(0.92)
(0.38)
(−0.08)
(0.44)
Post
−0.0673
−0.0648
−0.0039
−0.0721
−0.0731
−0.0012
(−23.78)
(−23.82)
(−2.81)
(−7.47)
(−7.94)
(−0.24)
LPR × post
−0.0395
−0.0339
−0.0038
−0.0345
−0.0257
−0.0063
(−4.55)
(−4.12)
(−0.93)
(−2.72)
(−2.15)
(−1.04)
Controls
Yes
Yes
Yes
Yes
Yes
Yes
Constant
−0.3062
0.2386
−0.5301
−0.2307
−0.1668
−0.0394
(−0.95)
(0.78)
(−3.38)
(−0.28)
(−0.21)
(−0.10)
Firm effects
Yes
Yes
Yes
Yes
Yes
Yes
Year effects
Yes
Yes
Yes
Yes
Yes
Yes
N
17956
17956
17956
3015
3015
3015
Adj-R2
0.3665
0.2597
0.3915
0.3756
0.2641
0.3935
Diff (p-value)
p ≤ 0.001
p ≤ 0.001
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 5. The t-statistics are in parentheses, we calculate them on the basis of standard errors that are robust to heteroscedasticity.
