Impacts of corruption on financing structure
| Variable | Formal debt | Informal debt | Owner's equity | Retained earnings |
|---|---|---|---|---|
| [1] | [2] | [3] | [4] | |
| Corruption amount (log.) | −0.968*** (0.299) | 1.070*** (0.350) | −0.022** (0.010) | −0.116*** (0.031) |
| Assets (log.) | 0 494*** (0.145) | −0.304* (0.165) | 1.039*** (0.006) | 0.097*** (0.021) |
| Revenue (log.) | 0.234*** (0.080) | −0.007 (0.089) | −0.006* (0.003) | 0.852*** (0.013) |
| Firm age | −0.004 (0.013) | −0.013 (0.015) | 0.000 (0.001) | −0.002 (0.002) |
| Networking (Yes = 1) | 1.036*** (0.395) | −1.127*** (0.427) | −0.019 (0.018) | 0.020 (0.073) |
| CLUR (Yes = 1) | 0.039 (0.209) | −0.223 (0.228) | 0.011 (0.009) | 0.047 (0.037) |
| Credit history (Yes = 1) | 3.586*** (0.217) | 1 849*** (0.237) | −0.074*** (0.009) | 0.008 (0.039) |
| Accounting book (Yes = 1) | 0.260 (0.369) | 0.099 (0.400) | 0.007 (0.016) | 0.000 (0.068) |
| Gender (Male = 1) | −0.184 (0.254) | −0.062 (0.274) | 0.004 (0.011) | 0.033 (0.047) |
| Owner's age | −0.024* (0.014) | 0.028* (0.015) | 0.000 (0.001) | 0.001 (0.003) |
| Location effects | Yes | Yes | Yes | Yes |
| Year effects | Yes | Yes | Yes | Yes |
| Variable | Formal debt | Informal debt | Owner's equity | Retained earnings |
|---|---|---|---|---|
| [1] | [2] | [3] | [4] | |
| Corruption amount (log.) | −0.968*** (0.299) | 1.070*** (0.350) | −0.022** (0.010) | −0.116*** (0.031) |
| Assets (log.) | 0 494*** (0.145) | −0.304* (0.165) | 1.039*** (0.006) | 0.097*** (0.021) |
| Revenue (log.) | 0.234*** (0.080) | −0.007 (0.089) | −0.006* (0.003) | 0.852*** (0.013) |
| Firm age | −0.004 (0.013) | −0.013 (0.015) | 0.000 (0.001) | −0.002 (0.002) |
| Networking (Yes = 1) | 1.036*** (0.395) | −1.127*** (0.427) | −0.019 (0.018) | 0.020 (0.073) |
| CLUR (Yes = 1) | 0.039 (0.209) | −0.223 (0.228) | 0.011 (0.009) | 0.047 (0.037) |
| Credit history (Yes = 1) | 3.586*** (0.217) | 1 849*** (0.237) | −0.074*** (0.009) | 0.008 (0.039) |
| Accounting book (Yes = 1) | 0.260 (0.369) | 0.099 (0.400) | 0.007 (0.016) | 0.000 (0.068) |
| Gender (Male = 1) | −0.184 (0.254) | −0.062 (0.274) | 0.004 (0.011) | 0.033 (0.047) |
| Owner's age | −0.024* (0.014) | 0.028* (0.015) | 0.000 (0.001) | 0.001 (0.003) |
| Location effects | Yes | Yes | Yes | Yes |
| Year effects | Yes | Yes | Yes | Yes |
Note(s): This table reports the main results of the impacts of corruption on financing structure based on four given specifications. 2SLS estimations are applied. Cell values represent coefficients of individual variables, followed by standard errors in parentheses. The instruments are included in the four specifications. *, ** and *** denote the levels of significance at 10%, 5% and 1%, respectively. The number of observations is 5,252
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