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

Table 9

Robustness analyses using alternative interest rate liberalization measures.

Variables	Lev	Slev	Llev
	(1)	(2)	(3)
Libdum	−0.0585	−0.0472	−0.0094
	(−5.44)	(−4.61)	(−1.66)
Controls	Yes	Yes	Yes
Constant	2.1129	4.0281	−1.4379
	(1.58)	(3.06)	(−1.75)
Firm effects	Yes	Yes	Yes
Year effects	Yes	Yes	Yes
N	17956	17956	17956
Adj-R^2	0.1474	0.0996	0.1338
Diff (p-value)		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 9. The t-statistics are in parentheses, we calculate them on the basis of standard errors that are robust to heteroscedasticity.