Discrete Dynamics in Nature and Society

Research Article

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

Table 8

Robustness analyses using alternative leverage measures.


Panel A: alternative leverage measures regression results

Variables	Loan	Loan	Sloan	Lloan	Sloan	Lloan
Variables	(1)	(2)	(3)	(4)	(5)	(6)
Irlib1	−0.6378		−0.4568	−0.1745
Irlib1	(−9.65)		(−8.22)	(-4.52)
Irlib2		−0.3186			−0.2282	−0.0872
Irlib2		(−9.65)			(−8.22)	(−4.52)
Controls	Yes	Yes	Yes	Yes	Yes	Yes
Constant	−1.8359	−2.0735	−1.3385	−0.3722	−1.5086	−0.4372
Constant	(−1.39)	(−1.55)	(−1.21)	(−0.44)	(−1.35)	(−0.51)
Firm effects	Yes	Yes	Yes	Yes	Yes	Yes
Year effects	Yes	Yes	Yes	Yes	Yes	Yes
N	16234	16234	16234	16234	16234	16234
Adj-R²	0.1325	0.1325	0.0992	0.1111	0.0992	0.1111

Panel B: difference analysis results
	Coefficient		p-value		Conclusion
Irlib1	β _{Irlib1⟶Slev}vs. β_{Irlib1⟶Llev} = −0.4568vs.0.1745		p ≤ 0.001		β_{Irlib1⟶Slev} < β_{Irlib1⟶Llev}
Irlib2	β _{Irlib2⟶Slev}vs. β_{Irlib2⟶Llev} = −0.2282vs. 0.0872		p ≤ 0.001		β_{Irlib1⟶Slev} < β_{Irlib1⟶Llev}

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