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Table 3 Financial constraint types

From: Financial frictions and the cash flow – external financing sensitivity: evidence from a panel of Pakistani firms

Financial Constraints Criteria

Constrained firms (CF) (Firm-Year Obs.)

Unconstrained firms (UCF) (Firm-Year Obs.)

No of Obs.

KZ Indexi, t         

2890

2062

4809

Debt to Asset Ratio i, t

2956

1996

4809

Interest Coverage Ratio i, t

3920

970

4809

  1. Note: KZ Index stands for Kaplan and Zingales index