| | SL | SL(L1) | TS | BR | NDTS | AgC | GROW | CP | PP | LIQ | tang | CV | SIZE | INDSL | INMP | INF | ER | EG | CF | VIF |
|---|
SL | 1 | | | | | | | | | | | | | | | | | | | 1.73 |
SL(L1) | 0.68 | 1 | | | | | | | | | | | | | | | | | | 1.24 |
TS | 0.02 | 0.02 | 1 | | | | | | | | | | | | | | | | | 1 |
BR | −0.01 | 0.01 | 0.00 | 1 | | | | | | | | | | | | | | | | 1.01 |
NDTS | 0.04 | 0.04 | 0.02 | 0.00 | 1 | | | | | | | | | | | | | | | 1.73 |
AgC | −0.03 | −0.03 | −0.02 | −0.02 | −0.08 | 1 | | | | | | | | | | | | | | 1.1 |
GROW | −0.04 | 0.00 | 0.00 | 0.08 | −0.10 | −0.04 | 1 | | | | | | | | | | | | | 1.05 |
CP | −0.25 | −0.19 | −0.02 | 0.00 | 0.04 | 0.07 | 0.08 | 1 | | | | | | | | | | | | 1.2 |
PP | 0.00 | 0.01 | −0.01 | 0.00 | −0.01 | 0.01 | 0.01 | 0.03 | 1 | | | | | | | | | | | 1 |
LIQ | −0.31 | −0.25 | −0.01 | −0.02 | −0.28 | 0.18 | 0.03 | 0.14 | 0.01 | 1 | | | | | | | | | | 1.53 |
tang | 0.10 | 0.07 | 0.04 | 0.00 | 0.60 | −0.12 | −0.05 | −0.17 | 0.00 | −0.33 | 1 | | | | | | | | | 1.93 |
CV | −0.04 | −0.02 | 0.00 | 0.01 | 0.45 | −0.10 | −0.05 | 0.11 | −0.01 | −0.43 | 0.46 | 1 | | | | | | | | 1.62 |
SIZE | −0.19 | −0.20 | −0.02 | 0.01 | 0.03 | −0.21 | 0.10 | 0.04 | 0.00 | −0.20 | −0.04 | 0.05 | 1 | | | | | | | 1.38 |
INDSL | 0.31 | 0.25 | 0.03 | 0.00 | 0.04 | −0.02 | 0.00 | −0.06 | 0.00 | −0.07 | 0.11 | −0.01 | −0.23 | 1 | | | | | | 1.29 |
INMP | −0.02 | −0.02 | 0.00 | 0.00 | −0.02 | −0.01 | 0.00 | 0.01 | 0.00 | 0.01 | −0.01 | −0.02 | 0.00 | −0.05 | 1 | | | | | 1 |
INF | 0.03 | −0.01 | −0.02 | 0.02 | −0.02 | 0.00 | 0.01 | 0.07 | 0.01 | 0.01 | −0.03 | 0.00 | 0.01 | 0.02 | 0.00 | 1 | | | | 1.45 |
ER | 0.14 | 0.11 | 0.04 | −0.02 | 0.13 | −0.05 | 0.04 | 0.00 | 0.01 | −0.05 | 0.20 | 0.06 | −0.34 | 0.40 | −0.03 | −0.09 | 1 | | | 7.51 |
EG | 0.11 | 0.09 | 0.04 | 0.00 | 0.09 | −0.05 | 0.08 | 0.08 | 0.02 | −0.07 | 0.15 | 0.04 | −0.22 | 0.32 | −0.02 | 0.18 | 0.69 | 1 | | 2.35 |
CF | −0.14 | −0.10 | −0.04 | 0.02 | −0.11 | 0.04 | −0.04 | −0.02 | −0.01 | 0.05 | −0.18 | −0.05 | 0.32 | −0.40 | 0.03 | −0.15 | −0.90 | −0.74 | 1 | 7.64 |
- SL is short-term leverage ratio between short-term loan and total assets. LL is long-term leverage ratio between long-term leverage and assets. TL represents total leverage which is a ratio of total liabilities and total assets. TS represents tax shield calculated by dividing tax payments on net profit. ZS is Z score. BR is business risk measured through operating expense divided by total sales. NDTS is non-debt tax shield calculated through the ratio of depreciation to total assets. Ag C represents agency costs. CP is current profit growth, calculated through annual growth rate of net profit. PP is retained earnings ratio as a proxy for past profit. LIQ is firm liquidity measured through the ratio of current assets and current liabilities. TANG is tangibility measured through the ratio of fixed assets to total assets. CV is collateral value, and it is the ratio of gross fixed assets at cost to total book value of assets. SIZE is the natural logarithm of firm’s total assets. AGE is natural log of firm’s age from the date of its listing. INDSL is industry short term leverage measured from firm level short-term leverage. INDLL is industry long term leverage measured from firm level long-term leverage ratio. INDTL is industry total leverage measured from firm level total leverage. INMP is industry annual mean profit calculated from firm level net profit. INF is inflation rate. ER is exchange rate between RMB and US dollar. EG is economic growth measured through annual gross domestic product rate. CF is capital formation ratio to total GDP
