The data includes 187 rms that have at least one

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Unformatted text preview: uential Families This table presents mean and median values for a set of firm characteristics, as measured in 1996. The data includes 96 and 174 firms that are connected and not connected to the country’s most influential families, respectively. S-T loans is short term borrowing from banks and finance companies. L-T loans is long term borrowing from banks and finance companies. S-T portion of L-T debt is long term debt that is due in this period. Total debt is the summation of ST bank loans, L-T bank loans, S-T portion of L-T debt and debentures. EBIT/total assets and EBIT/sales are the ratio of earnings before interest and taxes to total assets and sales, 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) is the S.D. of the percentage changes in sales over the period 1991-1995. Sale growth is the average annual growth in sales over the period 1992-96. Age is the number of years since incorporation. Total assets and sales are in million Baht. Mean and median differences are tested using the t -test and the Wilcoxon signed rank test, respectively. ∗ , ∗∗ , ∗∗∗ indicate statistically significant difference when compared with connected firms at the 10, 5 and 1 percent levels, respectively. Mean Connect Not connect Median Connect Not connect Financing Structure Total liabilities/total assets total debt/total assets S-T loan/total assets S-T portion of L-T loans/total assets Debentures/ Total assets Long-term loans / Total assets Trade credit/total assets 0.566 0.398 0.175 0.043 0.023 0.157 0.083 0.539 0.411 0.247∗∗∗ 0.035 0.023 0.107∗∗∗ 0.066∗ 0.596 0.425 0.142 0.028 0.000 0.122 0.063 0.561 0.437 0.222∗∗∗ 0.021 0.000 0.069∗∗ 0.048∗ Debt maturity structure S-T loan/total debt S-T portion of L-T loans/total debt Debentures/total debt L-T loans / Total debt 0.496 0.099 0.032 0.341 0.619∗∗∗ 0.079 0.029 0.243∗∗∗ 0.452 0.076 0.000 0.294 0.670∗∗∗ 0.052 0.000 0.161∗∗ Firm characteristics Total assets Sales EBIT/assets EBIT/sale M-B ratio Fixed asset ratio Cash/asset Liquid asset ratio Sale growth S.D (sale 1991-1995) Age 13,605.2 6,222.1 0.048 0.062 1.183 0.409 0.015 0.428 0.340 0.486 24.250 3,574.01∗∗∗ 2,047∗∗∗ 0.040 0.035 1.171 0.425 0.028∗∗ 0.462 0.248∗ 0.334∗ 19.236∗∗ 4,886.8 2,617.8 0.042 0.069 0.962 0.369 0.007 0.418 0.136 0.155 18.500 1,902.9∗∗∗ 1,265.8∗∗∗ 0.045 0.065 0.985 0.402 0.014∗∗∗ 0.476 0.181 0.182 16.500∗∗ 31 Table 5: Financial and Firm Characteristics: Board Connections This table presents mean and median values for a set of firm characteristics, as measured in 1996. The data includes 187 firms that have at least one board member has a seat on the board of a bank, and 83 firms that have no such connection. S-T loans is short term borrowing from banks and finance companies. L-T loans is long term borrowing from banks and finance companies. S-T portion o...
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This document was uploaded on 02/28/2014 for the course ECONOMICS fn314 at Harvard.

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