Table 5

Impacts of corruption on financing structure

VariableFormal debtInformal debtOwner's equityRetained 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 effectsYesYesYesYes
Year effectsYesYesYesYes

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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