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Table 1 Descriptive statistics

From: How do Chinese firms adjust their financial leverage: an empirical investigation using multiple GMM models

Variables Overall firms SOEs NSOEs
Obs Mean Std. dev. Obs Mean Std. dev. Obs Mean Std. dev.
LEV 9728 0.573245 0.241387 4677 0.714205 0.134716 5061 0.64035 0.102187
PROF 9728 0.026066 0.258414 4677 0.020109 0.351002 5061 0.031582 0.12034
SIZE 9728 21.44831 1.259129 4677 21.44514 1.284653 5061 21.45124 1.235146
NWC 9728 0.16854 0.187912 4677 0.167508 0.181677 5061 0.169496 0.193519
OC5% 9262 1.18352 1.20283 4474 1.211944 1.250436 4788 1.156961 1.156075
NDTS 9342 0.026311 0.019057 4515 0.026319 0.019601 4827 0.026303 0.018536
BSIZE 8912 11.93817 4.56154 4286 12.06463 4.600621 4626 11.82101 4.522372
MTB 9195 1.955092 0.983543 4392 1.970821 0.989267 4803 1.940708 0.978161
TR 9712 0.19621 1.151021 4670 0.189865 0.703934 5042 0.202086 1.446778
INDLEV 9729 0.58723 0.86453 4677 0.58769 0.864977 5062 0.58818 0.86428
INDLIQ 9729 0.279566 0.116911 4677 0.278149 0.116506 5062 0.280877 0.117282
INDHHI 9697 6.616584 0.677652 4661 6.621999 0.68801 5036 6.611572 0.667951
GDP 9729 10.02401 1.737035 4677 10.0241 1.73844 5062 10.02393 1.735906
INFL 9729 2.301725 2.138121 4677 2.302562 2.139277 5062 2.30095 2.137261
LR 9729 5.84974 0.591671 4677 5.849925 0.592364 5062 5.849568 0.591087
  1. LEV is the leverage measured through the ratio of debt to asset. PROF is the profitability measured through the ratio of return on equity. SIZE is the firm’s size measured through natural log of a firm’s asset. NWC is the networking capital used as a proxy for a firm’s liquidity. NWC is measured by subtracting accounts payable from the sum of accounts receivables and inventory. The value is then scaled by total assets. OC5% is ownership concentration. NDTS is the non-debt tax shield measured through the proportion of sum of amortization and depreciation to total assets. BSIZE is the board size measured through number of directors on a firm’s board of directors. MTB is the market to book ratio used as a proxy for growth oppurtunities.TR is the tax to earnings ratio used a proxy for corporate tax rate, and it is measured as proportion of taxes to earnings before taxes. INDLEV is the median industry leverage as median of total debt to total asset ratios of involved companies in an industry. INDLIQ is the industry liquidity. INDHHI is Herfindahl–Hirschman Index (HHI) as the sum of the squares of a firm’s sales to an industry’s total sales. GDP is the real annual gross domestic product. INFL is the inflation rate in China. LR is the lending rate in China