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)
MB ratio
Fixed asset ratio
Total liabilities /asset
S.D. (sales 199195)
Intercept Fstatistic
Prob (Fstatistic)
Adjusted Rsquared 33 Table 7: Board Connection Regression
The regression is based on a sample of 270 publicly traded ﬁrms in 1996. The dependent variable
is longterm 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. MB
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 9295) is the S.D. of the percentage changes in
sales over the period 19911995. 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)
MB ratio
Fixed asset ratio
Total liabilities /asset
S.D. (sales 199195)
Intercept Fstatistic
Prob (Fstatistic)
Adjusted Rsquared (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 longterm 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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 Fall '13
 Debt

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