Table 8.

Estimation results, full sample, 1995–2015, total financial liabilities to GDP median split, dependent variable (I/K)t

Financial liabilities to GDP above the medianFinancial liabilities to GDP above the median
(I)(II)(III)(IV)(V)(VI)(VII)(VIII)(IX)(X)(XI)(XII)
TOTTA10TA25TA50TA75TA90TOTTA10TA25TA50TA75TA90
(I/K)t10.397***0.400***0.389***0.386***0.393***0.393***0.346***0.350***0.347***0.360***0.354***0.348***
(0.032)(0.033)(0.031)(0.034)(0.036)(0.033)(0.036)(0.036)(0.036)(0.035)(0.037)(0.038)
(S/K)t10.415***0.429***0.365***0.356***0.372***0.406***0.362***0.365***0.388***0.355***0.358***0.346***
(0.066)(0.083)(0.074)(0.076)(0.072)(0.067)(0.072)(0.072)(0.071)(0.070)(0.071)(0.071)
(π/K)t10.0030.0020.0140.0160.0180.0050.049***0.050***0.050***0.047***0.044***0.047***
(0.019)(0.023)(0.017)(0.018)(0.019)(0.018)(0.016)(0.016)(0.016)(0.017)(0.016)(0.017)
(F/K)t1−0.040−0.051−0.040−0.038−0.038−0.044−0.100***−0.099***−0.101***−0.124***−0.091**−0.081**
(0.036)(0.037)(0.035)(0.032)(0.034)(0.035)(0.037)(0.037)(0.037)(0.038)(0.036)(0.038)
(πF/K)t10.004−0.0100.107*0.216**0.272**0.288−0.073**−0.084**−0.078**0.139*0.1790.458
(0.025)(0.045)(0.065)(0.085)(0.121)(0.197)(0.029)(0.037)(0.037)(0.077)(0.159)(0.585)
(πF/K)t1Dn0.412−0.405−0.420**−0.348**−0.3090.0380.030−0.305***−0.295−0.566
(0.776)(0.255)(0.164)(0.153)(0.209)(0.079)(0.080)(0.112)(0.184)(0.621)
(TD/TA)t1−0.084***−0.082***−0.106***−0.099***−0.091***−0.080***−0.042−0.043−0.043−0.044**−0.042**−0.041
(0.017)(0.017)(0.022)(0.020)(0.018)(0.017)(0.027)(0.027)(0.027)(0.022)(0.019)(0.028)
Number of observations18,86018,86018,86018,86018,86018,8609,0259,0259,0259,0259,0259,025
Number of firms2,6682,6682,6682,6682,6682,6681,0521,0521,0521,0521,0521,052
Average number of observations7.17.17.17.17.17.18.68.68.68.68.68.6
Number of instruments313333333333313333333333
p-value Hanses test0.4080.5070.7150.5470.2120.2590.2390.3180.2460.2030.3490.266
p-value A-B test (AR1)0.0000.0000.0000.0000.0000.0000.0000.0000.0000.0000.0000.000
p-value A-B test (AR2)0.4950.5790.4120.7510.5820.5350.9290.9610.8530.8920.9090.862
Time effectsYesYesYesYesYesYesYesYesYesYesYesYes
Wald test for time effects (p-value)0.0000.0020.0010.0000.0030.0020.0020.0010.0020.0040.0050.001
p-value(πF/K)+(πF/K)t1Dn0.5880.1350.0240.0120.4870.4450.4300.0020.1230.033
Financial liabilities to GDP above the medianFinancial liabilities to GDP above the median
(I)(II)(III)(IV)(V)(VI)(VII)(VIII)(IX)(X)(XI)(XII)
TOTTA10TA25TA50TA75TA90TOTTA10TA25TA50TA75TA90
(I/K)t10.397***0.400***0.389***0.386***0.393***0.393***0.346***0.350***0.347***0.360***0.354***0.348***
(0.032)(0.033)(0.031)(0.034)(0.036)(0.033)(0.036)(0.036)(0.036)(0.035)(0.037)(0.038)
(S/K)t10.415***0.429***0.365***0.356***0.372***0.406***0.362***0.365***0.388***0.355***0.358***0.346***
(0.066)(0.083)(0.074)(0.076)(0.072)(0.067)(0.072)(0.072)(0.071)(0.070)(0.071)(0.071)
(π/K)t10.0030.0020.0140.0160.0180.0050.049***0.050***0.050***0.047***0.044***0.047***
(0.019)(0.023)(0.017)(0.018)(0.019)(0.018)(0.016)(0.016)(0.016)(0.017)(0.016)(0.017)
(F/K)t1−0.040−0.051−0.040−0.038−0.038−0.044−0.100***−0.099***−0.101***−0.124***−0.091**−0.081**
(0.036)(0.037)(0.035)(0.032)(0.034)(0.035)(0.037)(0.037)(0.037)(0.038)(0.036)(0.038)
(πF/K)t10.004−0.0100.107*0.216**0.272**0.288−0.073**−0.084**−0.078**0.139*0.1790.458
(0.025)(0.045)(0.065)(0.085)(0.121)(0.197)(0.029)(0.037)(0.037)(0.077)(0.159)(0.585)
(πF/K)t1Dn0.412−0.405−0.420**−0.348**−0.3090.0380.030−0.305***−0.295−0.566
(0.776)(0.255)(0.164)(0.153)(0.209)(0.079)(0.080)(0.112)(0.184)(0.621)
(TD/TA)t1−0.084***−0.082***−0.106***−0.099***−0.091***−0.080***−0.042−0.043−0.043−0.044**−0.042**−0.041
(0.017)(0.017)(0.022)(0.020)(0.018)(0.017)(0.027)(0.027)(0.027)(0.022)(0.019)(0.028)
Number of observations18,86018,86018,86018,86018,86018,8609,0259,0259,0259,0259,0259,025
Number of firms2,6682,6682,6682,6682,6682,6681,0521,0521,0521,0521,0521,052
Average number of observations7.17.17.17.17.17.18.68.68.68.68.68.6
Number of instruments313333333333313333333333
p-value Hanses test0.4080.5070.7150.5470.2120.2590.2390.3180.2460.2030.3490.266
p-value A-B test (AR1)0.0000.0000.0000.0000.0000.0000.0000.0000.0000.0000.0000.000
p-value A-B test (AR2)0.4950.5790.4120.7510.5820.5350.9290.9610.8530.8920.9090.862
Time effectsYesYesYesYesYesYesYesYesYesYesYesYes
Wald test for time effects (p-value)0.0000.0020.0010.0000.0030.0020.0020.0010.0020.0040.0050.001
p-value(πF/K)+(πF/K)t1Dn0.5880.1350.0240.0120.4870.4450.4300.0020.1230.033

Notes: Weighted regressions (w=1/total country obs.), two-step difference-GMM estimations. Specifications I and VII are based on equation (1) and specifications II–VI and VIII–XII based on equation (2). Coefficients for the year dummies are not reported. Robust corrected standard error in parenthesis.

Significant at 10%.

Significant at 5%.

Significant at 1%.

Source: Authors’ computations based on Worldscope data.

Table 8.

Estimation results, full sample, 1995–2015, total financial liabilities to GDP median split, dependent variable (I/K)t

Financial liabilities to GDP above the medianFinancial liabilities to GDP above the median
(I)(II)(III)(IV)(V)(VI)(VII)(VIII)(IX)(X)(XI)(XII)
TOTTA10TA25TA50TA75TA90TOTTA10TA25TA50TA75TA90
(I/K)t10.397***0.400***0.389***0.386***0.393***0.393***0.346***0.350***0.347***0.360***0.354***0.348***
(0.032)(0.033)(0.031)(0.034)(0.036)(0.033)(0.036)(0.036)(0.036)(0.035)(0.037)(0.038)
(S/K)t10.415***0.429***0.365***0.356***0.372***0.406***0.362***0.365***0.388***0.355***0.358***0.346***
(0.066)(0.083)(0.074)(0.076)(0.072)(0.067)(0.072)(0.072)(0.071)(0.070)(0.071)(0.071)
(π/K)t10.0030.0020.0140.0160.0180.0050.049***0.050***0.050***0.047***0.044***0.047***
(0.019)(0.023)(0.017)(0.018)(0.019)(0.018)(0.016)(0.016)(0.016)(0.017)(0.016)(0.017)
(F/K)t1−0.040−0.051−0.040−0.038−0.038−0.044−0.100***−0.099***−0.101***−0.124***−0.091**−0.081**
(0.036)(0.037)(0.035)(0.032)(0.034)(0.035)(0.037)(0.037)(0.037)(0.038)(0.036)(0.038)
(πF/K)t10.004−0.0100.107*0.216**0.272**0.288−0.073**−0.084**−0.078**0.139*0.1790.458
(0.025)(0.045)(0.065)(0.085)(0.121)(0.197)(0.029)(0.037)(0.037)(0.077)(0.159)(0.585)
(πF/K)t1Dn0.412−0.405−0.420**−0.348**−0.3090.0380.030−0.305***−0.295−0.566
(0.776)(0.255)(0.164)(0.153)(0.209)(0.079)(0.080)(0.112)(0.184)(0.621)
(TD/TA)t1−0.084***−0.082***−0.106***−0.099***−0.091***−0.080***−0.042−0.043−0.043−0.044**−0.042**−0.041
(0.017)(0.017)(0.022)(0.020)(0.018)(0.017)(0.027)(0.027)(0.027)(0.022)(0.019)(0.028)
Number of observations18,86018,86018,86018,86018,86018,8609,0259,0259,0259,0259,0259,025
Number of firms2,6682,6682,6682,6682,6682,6681,0521,0521,0521,0521,0521,052
Average number of observations7.17.17.17.17.17.18.68.68.68.68.68.6
Number of instruments313333333333313333333333
p-value Hanses test0.4080.5070.7150.5470.2120.2590.2390.3180.2460.2030.3490.266
p-value A-B test (AR1)0.0000.0000.0000.0000.0000.0000.0000.0000.0000.0000.0000.000
p-value A-B test (AR2)0.4950.5790.4120.7510.5820.5350.9290.9610.8530.8920.9090.862
Time effectsYesYesYesYesYesYesYesYesYesYesYesYes
Wald test for time effects (p-value)0.0000.0020.0010.0000.0030.0020.0020.0010.0020.0040.0050.001
p-value(πF/K)+(πF/K)t1Dn0.5880.1350.0240.0120.4870.4450.4300.0020.1230.033
Financial liabilities to GDP above the medianFinancial liabilities to GDP above the median
(I)(II)(III)(IV)(V)(VI)(VII)(VIII)(IX)(X)(XI)(XII)
TOTTA10TA25TA50TA75TA90TOTTA10TA25TA50TA75TA90
(I/K)t10.397***0.400***0.389***0.386***0.393***0.393***0.346***0.350***0.347***0.360***0.354***0.348***
(0.032)(0.033)(0.031)(0.034)(0.036)(0.033)(0.036)(0.036)(0.036)(0.035)(0.037)(0.038)
(S/K)t10.415***0.429***0.365***0.356***0.372***0.406***0.362***0.365***0.388***0.355***0.358***0.346***
(0.066)(0.083)(0.074)(0.076)(0.072)(0.067)(0.072)(0.072)(0.071)(0.070)(0.071)(0.071)
(π/K)t10.0030.0020.0140.0160.0180.0050.049***0.050***0.050***0.047***0.044***0.047***
(0.019)(0.023)(0.017)(0.018)(0.019)(0.018)(0.016)(0.016)(0.016)(0.017)(0.016)(0.017)
(F/K)t1−0.040−0.051−0.040−0.038−0.038−0.044−0.100***−0.099***−0.101***−0.124***−0.091**−0.081**
(0.036)(0.037)(0.035)(0.032)(0.034)(0.035)(0.037)(0.037)(0.037)(0.038)(0.036)(0.038)
(πF/K)t10.004−0.0100.107*0.216**0.272**0.288−0.073**−0.084**−0.078**0.139*0.1790.458
(0.025)(0.045)(0.065)(0.085)(0.121)(0.197)(0.029)(0.037)(0.037)(0.077)(0.159)(0.585)
(πF/K)t1Dn0.412−0.405−0.420**−0.348**−0.3090.0380.030−0.305***−0.295−0.566
(0.776)(0.255)(0.164)(0.153)(0.209)(0.079)(0.080)(0.112)(0.184)(0.621)
(TD/TA)t1−0.084***−0.082***−0.106***−0.099***−0.091***−0.080***−0.042−0.043−0.043−0.044**−0.042**−0.041
(0.017)(0.017)(0.022)(0.020)(0.018)(0.017)(0.027)(0.027)(0.027)(0.022)(0.019)(0.028)
Number of observations18,86018,86018,86018,86018,86018,8609,0259,0259,0259,0259,0259,025
Number of firms2,6682,6682,6682,6682,6682,6681,0521,0521,0521,0521,0521,052
Average number of observations7.17.17.17.17.17.18.68.68.68.68.68.6
Number of instruments313333333333313333333333
p-value Hanses test0.4080.5070.7150.5470.2120.2590.2390.3180.2460.2030.3490.266
p-value A-B test (AR1)0.0000.0000.0000.0000.0000.0000.0000.0000.0000.0000.0000.000
p-value A-B test (AR2)0.4950.5790.4120.7510.5820.5350.9290.9610.8530.8920.9090.862
Time effectsYesYesYesYesYesYesYesYesYesYesYesYes
Wald test for time effects (p-value)0.0000.0020.0010.0000.0030.0020.0020.0010.0020.0040.0050.001
p-value(πF/K)+(πF/K)t1Dn0.5880.1350.0240.0120.4870.4450.4300.0020.1230.033

Notes: Weighted regressions (w=1/total country obs.), two-step difference-GMM estimations. Specifications I and VII are based on equation (1) and specifications II–VI and VIII–XII based on equation (2). Coefficients for the year dummies are not reported. Robust corrected standard error in parenthesis.

Significant at 10%.

Significant at 5%.

Significant at 1%.

Source: Authors’ computations based on Worldscope data.

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