Table 3

Informal payments and financing structure

Firms without informal paymentsFirms with informal paymentst-stat. between
[2] and [1]
MeanSDMeanSD
[1][2][3]
Panel A: Informal payments and financing structure
Formal debt (log.)2.704(0.084)4.181(0.143)9 470***
Informal debt (log.)2.821(0.079)5.200(0.137)16.173***
Owner's equity (log.)13.274(0.030)14.471(0.035)24.687***
Retained earnings (log.)11.384(0.028)12.313(0.045)18 477***
Observations3.452[65.72] 1.800[34.27]  
Panel B: Purpose of making informal payments
To get connected to public services434 [24.11] 
To get licenses and permits102 [5.67]
To deal with taxes and tax collection425 [23.61]
To gain government contracts or public procurement203 [11.28]
To deal with customs, imports and/or exports54 [3.00]
Others582 [32.33]
Total1,800 [100.00]

Note(s): This table reports statistics of informal payments and financing structure in Panel A and purposes of making informal payments in Panel B. In Panel A, mean values are reported in columns [1] and [2], followed by standard deviations in parentheses. The t-statistics are reported in column [3] by using t-test to test the null hypotheses H0: difference of mean is not greater than 0. *** denotes the level of significance at 1%. In Panel B, cell values represent the number of observations, followed by percentages in brackets

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