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China Finance and Economic Review

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
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