Table 5 Open in new tab Market...

	IND = LCY		IND = TRVOL
SIZE	0.229***	0.030	0.247***	0.032
(12.67)		(20.30)
SIZE*IND	−0.002***	−0.0003	0.0001***	0.00002
(−4.96)		(4.82)
GROWTH	0.064	0.008	0.062*	0.008
(1.16)		(1.72)
GROWTH*IND	0.0003	0.00004	−0.00007	−0.000006
(0.16)		(−0.28)
YEARS	0.006	0.001	−0.007**	−0.001
(1.05)		(−2.01)
YEARS*IND	0.0002	0.00001	0.0001	0.00002
(1.01)		(1.60)
LEVER	1.056***	0.138	1.364***	0.178
(5.19)		(8.35)
LEVER*IND	0.040***	0.005	0.006***	0.001
(4.36)		(2.76)
PROF	0.792***	0.104	0.584***	0.076
(4.21)		(4.30)
PROF*IND	−0.010	−0.001	−0.002**	−0.0001
(−1.54)		(−2.49)
LIQUID	0.004	0.001	1.027***	0.134
(0.01)		(3.67)
LIQUID*IND	0.021	0.003	−0.003*	−0.0004
(1.55)		(−1.92)
COLL	1.148***	0.150	0.105	0.014
(3.47)		(0.42)
COLL*IND	−0.018	−0.002	0.006***	0.001
(−1.57)		(2.63)
LIQUID²	−0.406**	−0.053	−0.733***	−0.096
(−2.29)		(−4.67)
LEV² *IND	−0.040***	−0.005	−0.006**	−0.001
(−3.87)		(−2.07)
LIQUID²	−0.143	−0.019	−1.092***	−0.143
(−0.37)		(−3.71)
LIQUID² *IND	−0.024*	−0.003	0.003	0.0003
(−1.67)		(1.50)
IND	0.043***	0.006	−0.003***	−0.0003
(4.28)		(−3.42)
Observations	28,887		25,047
Number of firms	4,090		3,977
Pseudo- R²	0.19		0.20

IND = LCY

IND = TRVOL

Coeff.

M.E.

Coeff.

M.E

SIZE

0.229***

0.030

0.247***

0.032

(12.67)

(20.30)

SIZE*IND

−0.002***

−0.0003

0.0001***

0.00002

(−4.96)

(4.82)

GROWTH

0.064

0.008

0.062*

0.008

(1.16)

(1.72)

GROWTH*IND

0.0003

0.00004

−0.00007

−0.000006

(0.16)

(−0.28)

YEARS

0.006

0.001

−0.007**

−0.001

(1.05)

(−2.01)

YEARS*IND

0.0002

0.00001

0.0001

0.00002

(1.01)

(1.60)

LEVER

1.056***

0.138

1.364***

0.178

(5.19)

(8.35)

LEVER*IND

0.040***

0.005

0.006***

0.001

(4.36)

(2.76)

PROF

0.792***

0.104

0.584***

0.076

(4.21)

(4.30)

PROF*IND

−0.010

−0.001

−0.002**

−0.0001

(−1.54)

(−2.49)

LIQUID

0.004

0.001

1.027***

0.134

(0.01)

(3.67)

LIQUID*IND

0.021

0.003

−0.003*

−0.0004

(1.55)

(−1.92)

COLL

1.148***

0.150

0.105

0.014

(3.47)

(0.42)

COLL*IND

−0.018

−0.002

0.006***

0.001

(−1.57)

(2.63)

LIQUID²

−0.406**

−0.053

−0.733***

−0.096

(−2.29)

(−4.67)

LEV² *IND

−0.040***

−0.005

−0.006**

−0.001

(−3.87)

(−2.07)

LIQUID²

−0.143

−0.019

−1.092***

−0.143

(−0.37)

(−3.71)

LIQUID² *IND

−0.024*

−0.003

0.003

0.0003

(−1.67)

(1.50)

IND

0.043***

0.006

−0.003***

−0.0003

(4.28)

(−3.42)

Observations

28,887

25,047

Number of firms

4,090

3,977

Pseudo- R²

0.19

0.20

	IND = LCY		IND = TRVOL
SIZE	0.229***	0.030	0.247***	0.032
(12.67)		(20.30)
SIZE*IND	−0.002***	−0.0003	0.0001***	0.00002
(−4.96)		(4.82)
GROWTH	0.064	0.008	0.062*	0.008
(1.16)		(1.72)
GROWTH*IND	0.0003	0.00004	−0.00007	−0.000006
(0.16)		(−0.28)
YEARS	0.006	0.001	−0.007**	−0.001
(1.05)		(−2.01)
YEARS*IND	0.0002	0.00001	0.0001	0.00002
(1.01)		(1.60)
LEVER	1.056***	0.138	1.364***	0.178
(5.19)		(8.35)
LEVER*IND	0.040***	0.005	0.006***	0.001
(4.36)		(2.76)
PROF	0.792***	0.104	0.584***	0.076
(4.21)		(4.30)
PROF*IND	−0.010	−0.001	−0.002**	−0.0001
(−1.54)		(−2.49)
LIQUID	0.004	0.001	1.027***	0.134
(0.01)		(3.67)
LIQUID*IND	0.021	0.003	−0.003*	−0.0004
(1.55)		(−1.92)
COLL	1.148***	0.150	0.105	0.014
(3.47)		(0.42)
COLL*IND	−0.018	−0.002	0.006***	0.001
(−1.57)		(2.63)
LIQUID²	−0.406**	−0.053	−0.733***	−0.096
(−2.29)		(−4.67)
LEV² *IND	−0.040***	−0.005	−0.006**	−0.001
(−3.87)		(−2.07)
LIQUID²	−0.143	−0.019	−1.092***	−0.143
(−0.37)		(−3.71)
LIQUID² *IND	−0.024*	−0.003	0.003	0.0003
(−1.67)		(1.50)
IND	0.043***	0.006	−0.003***	−0.0003
(4.28)		(−3.42)
Observations	28,887		25,047
Number of firms	4,090		3,977
Pseudo- R²	0.19		0.20

Table 5

Open in new tab

Market indicators

	IND = LCY		IND = TRVOL
	Coeff.	M.E.	Coeff.	M.E
	1	2	3	4
SIZE	0.229***	0.030	0.247***	0.032
SIZE	(12.67)		(20.30)
SIZE*IND	−0.002***	−0.0003	0.0001***	0.00002
SIZE*IND	(−4.96)		(4.82)
GROWTH	0.064	0.008	0.062*	0.008
GROWTH	(1.16)		(1.72)
GROWTH*IND	0.0003	0.00004	−0.00007	−0.000006
GROWTH*IND	(0.16)		(−0.28)
YEARS	0.006	0.001	−0.007**	−0.001
YEARS	(1.05)		(−2.01)
YEARS*IND	0.0002	0.00001	0.0001	0.00002
YEARS*IND	(1.01)		(1.60)
LEVER	1.056***	0.138	1.364***	0.178
LEVER	(5.19)		(8.35)
LEVER*IND	0.040***	0.005	0.006***	0.001
LEVER*IND	(4.36)		(2.76)
PROF	0.792***	0.104	0.584***	0.076
PROF	(4.21)		(4.30)
PROF*IND	−0.010	−0.001	−0.002**	−0.0001
PROF*IND	(−1.54)		(−2.49)
LIQUID	0.004	0.001	1.027***	0.134
LIQUID	(0.01)		(3.67)
LIQUID*IND	0.021	0.003	−0.003*	−0.0004
LIQUID*IND	(1.55)		(−1.92)
COLL	1.148***	0.150	0.105	0.014
COLL	(3.47)		(0.42)
COLL*IND	−0.018	−0.002	0.006***	0.001
COLL*IND	(−1.57)		(2.63)
LIQUID²	−0.406**	−0.053	−0.733***	−0.096
LIQUID²	(−2.29)		(−4.67)
LEV² *IND	−0.040***	−0.005	−0.006**	−0.001
LEV² *IND	(−3.87)		(−2.07)
LIQUID²	−0.143	−0.019	−1.092***	−0.143
LIQUID²	(−0.37)		(−3.71)
LIQUID² *IND	−0.024*	−0.003	0.003	0.0003
LIQUID² *IND	(−1.67)		(1.50)
IND	0.043***	0.006	−0.003***	−0.0003
IND	(4.28)		(−3.42)
Observations	28,887		25,047
Number of firms	4,090		3,977
Pseudo- R²	0.19		0.20

	IND = LCY		IND = TRVOL
	Coeff.	M.E.	Coeff.	M.E
	1	2	3	4
SIZE	0.229***	0.030	0.247***	0.032
SIZE	(12.67)		(20.30)
SIZE*IND	−0.002***	−0.0003	0.0001***	0.00002
SIZE*IND	(−4.96)		(4.82)
GROWTH	0.064	0.008	0.062*	0.008
GROWTH	(1.16)		(1.72)
GROWTH*IND	0.0003	0.00004	−0.00007	−0.000006
GROWTH*IND	(0.16)		(−0.28)
YEARS	0.006	0.001	−0.007**	−0.001
YEARS	(1.05)		(−2.01)
YEARS*IND	0.0002	0.00001	0.0001	0.00002
YEARS*IND	(1.01)		(1.60)
LEVER	1.056***	0.138	1.364***	0.178
LEVER	(5.19)		(8.35)
LEVER*IND	0.040***	0.005	0.006***	0.001
LEVER*IND	(4.36)		(2.76)
PROF	0.792***	0.104	0.584***	0.076
PROF	(4.21)		(4.30)
PROF*IND	−0.010	−0.001	−0.002**	−0.0001
PROF*IND	(−1.54)		(−2.49)
LIQUID	0.004	0.001	1.027***	0.134
LIQUID	(0.01)		(3.67)
LIQUID*IND	0.021	0.003	−0.003*	−0.0004
LIQUID*IND	(1.55)		(−1.92)
COLL	1.148***	0.150	0.105	0.014
COLL	(3.47)		(0.42)
COLL*IND	−0.018	−0.002	0.006***	0.001
COLL*IND	(−1.57)		(2.63)
LIQUID²	−0.406**	−0.053	−0.733***	−0.096
LIQUID²	(−2.29)		(−4.67)
LEV² *IND	−0.040***	−0.005	−0.006**	−0.001
LEV² *IND	(−3.87)		(−2.07)
LIQUID²	−0.143	−0.019	−1.092***	−0.143
LIQUID²	(−0.37)		(−3.71)
LIQUID² *IND	−0.024*	−0.003	0.003	0.0003
LIQUID² *IND	(−1.67)		(1.50)
IND	0.043***	0.006	−0.003***	−0.0003
IND	(4.28)		(−3.42)
Observations	28,887		25,047
Number of firms	4,090		3,977
Pseudo- R²	0.19		0.20

Notes : The estimates were obtained using a probit model. Columns 2 and 4 report the marginal effects evaluated at covariate means. The dependent variable is a dummy equal to one if the firm is a bond issuer, and zero otherwise. Robust z-statistics in parentheses. All firm-specific variables are lagged one period. In columns 1 and 2 IND is a variable measuring the size of local currency bond obligations as a percentage of nominal GDP. In columns 3 and 4 IND denotes the extent of trading in the secondary market relative to the amount of bonds outstanding. Time dummies, industry dummies and country dummies are included in the models.

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