562 0005 0030 0035 0066 0215 0151 0235 0235 0019 0043

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Unformatted text preview: major shareholder also owns at least one financial institution. Influential families without banks indicates if the firm’s major shareholder does not own a financial institution. M-B ratio is the ratio of the market to the book values of total assets. Fixed asset ratio is the ratio of net fixed assets to total assets. S.D. (sales 91-95) is the S.D. of the percentage changes in sales over the period 1991-1995. In column (1), (2), and (3), the firm characteristics are interacted with Influential families, Influential families with banks, and Influential families without banks, respectively. The regression method is the OLS. Each specification includes a set of 21 industry dummies but the results are suppressed. Robust standard errors are shown in parentheses. ∗ , ∗∗ , ∗∗∗ indicate significance at the 10, 5 and 1 percent levels, respectively. Independent Variable (1) (2) (3) Crony * Log (asset) 0.002 (0.030) 0.016 (0.049) -0.343∗∗ (0.151) 0.253 (0.221) 0.035 (0.041) 0.016 (0.428) -0.029 (0.030) -0.257∗∗∗ (0.092) -0.133 (0.179) 0.845∗∗∗ (0.323) 0.094 (0.077) 0.003 (0.034) 0.052 (0.052) -0.363 (0.183) 0.063 (0.243) -0.012 (0.046) Crony * M-B ratio Crony * Fixed asset ratio Crony * Total liabilities /asset Crony * S.D. (sales 1991-95) Influential families Influential families with banks 0.305 (0.408) Influential families without banks 0.058∗∗∗ (0.022) -0.007 (0.028) 0.405∗∗∗ (0.135) -0.019 (0.108) -0.044 (0.030) -0.785∗∗ (0.323) M-B ratio Fixed asset ratio Total liabilities /asset S.D. (sales 1991-95) Intercept F-statistic Prob (F-statistic) R-squared 35 0.069∗∗∗ (0.017) 0.010 (0.025) 0.283∗∗ (0.116) -0.052 (0.097) -0.028 (0.019) -0.858∗∗∗ (0.257) 6.530 0.000 0.375 Log (asset) 0.077 (0.487) 0.066∗∗∗ (0.017) -0.021 (0.028) 0.386∗∗∗ (0.122) 0.014 (0.109) -0.012 (0.037) -0.890∗∗∗ (0.237) 6.45 0 0.376 6.83 0.000 0.3686 Table 9: The Interation between Crony Variable: Board Connection Regression The regression is based on a sample of 270 publicly traded firms in 1996. The dependent variable is long-term loans divided by total debt. Board connections indicates whether if there exits at least one member from the board of banks in the firm board. Bankers as executives and Bankers as non executives are dummy variables, taking the value of 1 if there exits at least one member from the board of banks acting as top executive and non executive of the firm, respectively. M-B ratio is the ratio of the market to the book values of total assets. Fixed asset ratio is the ratio of net fixed assets to total assets. S.D. (sales 91-95) is the S.D. of the percentage changes in sales over the period 1991-1995. In column (1), (2), and (3), the firm characteristics are interacted with Board connections, Bankers as executives and Bankers as non executives. The regression method is the OLS. Each specification includes a set of 21 industry dummies but the results are suppressed. Robust s...
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