Independent Variables | |||||||||
---|---|---|---|---|---|---|---|---|---|
Dependent Variable: External_Financing | Cash_Flow | Growth | Size | Cash | Inven_tory | PPE | Debt/ Equity | Hansen’s J-stat (p-value) | AR(2) |
Panel A: KZ Index | |||||||||
Constrained firms (CF) | −0.0109*** (0.003) | − 0.0025*** (0.001) | 0.0142*** (0.003) | 0.0110*** (0.004) | −0.0106*** (0.002) | − 0.0069*** (0.003) | −0.0038*** (0.001) | 0.106 | 0.102 |
Unconstrained firms (UCF) | −0.0120*** (0.004) | 0.0147*** (0.003) | 0.0234*** (0.006) | −0.1514*** (0.021) | −0.0236*** (0.001) | − 0.0057*** (0.001) | −0.0006*** (0.000) | 0.288 | 0.182 |
Panel B:Debt to Asset Ratio | |||||||||
Constrained firms (CF) | −0.0023*** (0.0002) | 0.0014** (0.0001) | −0.0349*** (0.003) | 0.0144*** (0.007) | 0.0867*** (0.024) | −0.0606** (0.001) | −0.0028*** (0.00001) | 0.242 | 0.526 |
Unconstrained firms (UCF) | −0.0227*** (0.003) | 0.0166*** (0.001) | 0.0497*** (0.019) | −0.0163*** (0.001) | −0.0375*** (0.001) | − 0.0302*** (0.002) | −0.0012*** (0.00001) | 0.893 | 0.106 |
Panel C: Interest Coverage Ratio | |||||||||
Constrained firms (CF) | −0.0165*** (0.001) | 0.0020 (0.143) | 0.0831*** (0.004) | 0.0114*** (0.001) | −0.0297*** (0.008) | −0.0384*** (0.002) | − 0.0063*** (0.001) | 0.120 | 0.842 |
Unconstrained firms (UCF) | −0.2505*** (0.024) | 0.0031 (0.123) | 0.0423*** (0.005) | 0.0543*** (0.013) | −0.0207*** (0.003) | −0.0524*** (0.007) | 0.0018*** (0.0005) | 0.183 | 0.524 |