M b ratio is the ratio of the market to the book

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Unformatted text preview: ies 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) Connected with influential families 0.0780∗∗ (0.035) Influential families with banks (2) (3) 0.038 (0.050) 0.058∗∗∗ (0.015) -0.005 (0.023) 0.281∗∗ (0.112) 0.023 (0.097) -0.021 (0.020) -0.763∗∗∗ (0.210) 0.065∗∗∗ (0.015) -0.003 (0.024) 0.284∗∗∗ (0.111) 0.005 (0.096) -0.018 (0.019) -0.837∗∗∗ (0.211) 0.068∗ (0.039) 0.063∗∗∗ (0.014) -0.006 (0.023) 0.289∗∗∗ (0.111) 0.011 (0.096) -0.022 (0.021) -0.820∗∗∗ (0.205) 7.050 0.000 0.356 6.580 0.000 0.345 7.120 0.000 0.352 Influential families without banks Log (asset) M-B ratio Fixed asset ratio Total liabilities /asset S.D. (sales 1991-95) Intercept F-statistic Prob (F-statistic) Adjusted R-squared 33 Table 7: 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 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 92-95) is the S.D. of the percentage changes in sales over the period 1991-1995. 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) Board connections (2) 0.049 (0.030) 0.069∗ (0.036) Bankers as executives 0.061∗∗∗ (0.015) -0.004 (0.024) 0.295∗∗∗ (0.110) 0.012 (0.096) -0.020 (0.020) -0.812∗∗∗ (0.208) 0.056∗∗∗ (0.015) -0.002 (0.024) 0.302∗∗∗ (0.108) 0.018 (0.097) -0.024 (0.021) -0.734∗∗∗ (0.214) 0.060∗∗ (0.030) 0.059∗∗∗ (0.015) -0.004 (0.024) 0.295∗∗∗ (0.110) 0.025 (0.095) -0.017 (0.020) -0.795∗∗∗ (0.210) 7.280 0.000 0.349 7.140 0.000 0.354 0.3636 0.000 6.510 Bankers as non executives Log (asset) M-B ratio Fixed asset ratio Total liabilities /asset S.D. (sales 1991-95) Intercept F-statistic Prob (F-statistic) Adjusted R-squared (3) 34 Table 8: The Interaction between Crony Variable: Influential Familiy 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. Influential families indicates if the firm belongs to one of the 60 largest business groups. Influential families with banks indicates if the firm’s...
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