The Political Connections and Commercial Credit Financing of Privately Held Companies

Table 1

Definition and measurement of variables.

	Variable name	Computational method
Dependent variable	1. Commercial standing	(Enterprise accounts payable + notes payable)/general assets
Argument	2. Political affiliation	Number of management personnel with a political background in the enterprise
Controlled variable	3. Enterprise age
	4. Enterprise size	Log(total assets)
	5. Corporate leverage	Total indebtedness/shareholders’ equity
	6. Fixed assets	Total fixed assets/general assets
	7. Capital intensity	Capital charges/sales income
	8. Corporate performance	Net margin/Average shareholder equity balance
	9. Equity concentration	Top five shareholders share the sum of square
	10. CEO two in one	CEO is the same as the general manager; assign to 1, otherwise 0
	11. Business linkage	Log( number of company executives in other companies)
	13. Insolvency distance	Wind database algorithm for enterprise bankruptcy distance
	12. Regional GNP	Regional gross national product