The power of financial support in accelerating digital transformation and corporate innovation in China: evidence from banking and capital markets

Financial Innovation

Table 15 Endogenous test

Variables	(36) First stage	(37) Second stage	(38) First stage	(39) Second stage	(40) First stage	(41) Second stage
Variables	DIG	PG	DIG	PG	DIG	PG
IVDT	1.1736***	0.5226***	1.4850***	0.7627***	1.5036***	0.4130***
IVDT	(24.8842)	(9.4397)	(14.4863)	(7.8545)	(21.1899)	(6.1251)
FD_b			− 0.0551**	− 0.1832***
FD_b			(− 2.3268)	(− 6.1176)
IVDT × FD_b			− 0.4867***	0.2851**
IVDT × FD_b			(− 3.7785)	(2.2111)
FD_c					− 0.0364***	− 0.0187***
FD_c					(− 6.5732)	(− 3.2353)
IVDT × FD_c					0.0298	0.1125***
					(1.5023)	(5.6672)
	(− 6.6979)	(17.0751)	(− 6.6383)	(17.3188)	(− 6.6041)	(17.1355)
Constant	0.6610***	0.2424***	0.7241***	0.2814***	0.6601***	0.3205***
Control	Yes	Yes	Yes	Yes	Yes	Yes
F Value	130.55***	54.13***	112.98***	45.57***	116.04***	47.49***
LM statistic		602.357***		228.251***		415.766***
Cragg-Donald Wald F statistic		619.224		115.262		211.806
Observations	21,649	21,649	21,649	21,649	21,649	21,649
R-squared	0.068	0.023	0.068	− 0.098	0.070	− 0.026

***p < 0.01, **p < 0.05, *p < 0.1. The regression results of the controls are not listed separately to save space