The Political Connections and Commercial Credit Financing of Privately Held Companies

Table 3

Results of regression of political connectivity and commercial credit.

	Model (1)	Model (1-2)	Model (1-3)	Model (1-4)
Constant term	−0.025	−0.008	−0.046	−0.030
	(0.167)	(0.167)	(0.437)	(0.437)
Enterprise age	0.136	0.126	0.092	0.091
	(0.033)	(0.033)	(0.041)	(0.041)
Enterprise size	−0.043	−0.042	−0.044	−0.042
	(0.012)	(0.012)	(0.013)	(0.013)
Corporate leverage	0.102	0.099	0.103	0.106
	(0.023)	(0.023)	(0.024)	(0.024)
Fixed assets	−0.007	−0.005	−0.025	−0.022
	(0.025)	(0.025)	(0.025)	(0.025)
Capital intensity	0.091	0.091	0.099	0.098
	(0.014)	(0.014)	(0.014)	(0.014)
Corporate performance	−0.103	−0.104	−0.100	−0.102
	(0.025)	(0.025)	(0.025)	(0.025)
Equity concentration	−0.092	−0.086	−0.083	−0.081
	(0.043)	(0.043)	(0.044)	(0.044)
CEO two in one	−0.011	−0.011	−0.010	−0.011
	(0.005)	(0.005)	(0.005)	(0.005)
Business linkages	0.015	0.020	0.014	0.018
	(0.010)	(0.010)	(0.010)	(0.010)
Insolvency distance	−0.001	−0.003	0.000	0.001
	(0.004)	(0.004)	(0.005)	(0.005)
Regional GNP	0.049	0.050	0.080	0.070
	(0.049)	(0.049)	(0.090)	(0.090)
Political affiliation		−0.005		−0.006
		(0.002)		(0.002)
Ind	No	No	Yes	Yes
Year	No	No	Yes	Yes
Observed value	3937	3937	3937	3937
R^2	0.204	0.206	0.216	0.219
F	32.730	30.678	16.932	16.610

Note. , , and represent significant levels of 10%, 5%, and 1%, respectively (double-tailed test).