Table 3 Robustness check: two-step...

Table 3

Robustness check: two-step approach

Variables	BLEV _t+1 (1)	MLEV _t+1 (2)
Dist	0.4198***	0.4181***
Dist	(8.2016)	(10.1673)
LIQDist*	0.0005***	0.0009***
LIQDist*	(2.8741)	(12.897)
SIZEDIST*	−0.0174***	−0.0194***
SIZEDIST*	(−4.5114)	(−5.7574)
TANGDIST*	−0.0544*	−0.0749***
TANGDIST*	(−1.9463)	(−2.6512)
MTBDIST*	0.0059**	0.0008
MTBDIST*	(1.9725)	(0.1930)
PROFDIST*	0.1466**	−0.1156**
PROFDIST*	(2.3782)	(−2.1450)
DEPDIST*	−0.1978	0.3542
DEPDIST*	(−0.9407)	(1.4117)
RDDIST*	−0.1771	−0.4759***
RDDIST*	(−1.4627)	(−4.6397)
RDDUMDIST*	−0.0070	−0.0238
RDDUMDIST*	(−0.4121)	(−1.5764)
INDMEDDIST*	−0.1196**	0.1341**
INDMEDDIST*	(−2.5058)	(2.2862)
Constant	−0.3225***	0.1307***
Constant	(−9.8335)	(5.9600)
Year FE	Yes	Yes
Observations	15,202	15,202
R-square	0.1480	0.1173

Variables	BLEV _t+1 (1)	MLEV _t+1 (2)
Dist	0.4198***	0.4181***
Dist	(8.2016)	(10.1673)
LIQ*Dist	0.0005***	0.0009***
LIQ*Dist	(2.8741)	(12.897)
SIZE*DIST	−0.0174***	−0.0194***
SIZE*DIST	(−4.5114)	(−5.7574)
TANG*DIST	−0.0544*	−0.0749***
TANG*DIST	(−1.9463)	(−2.6512)
MTB*DIST	0.0059**	0.0008
MTB*DIST	(1.9725)	(0.1930)
PROF*DIST	0.1466**	−0.1156**
PROF*DIST	(2.3782)	(−2.1450)
DEP*DIST	−0.1978	0.3542
DEP*DIST	(−0.9407)	(1.4117)
RD*DIST	−0.1771	−0.4759***
RD*DIST	(−1.4627)	(−4.6397)
RDDUM*DIST	−0.0070	−0.0238
RDDUM*DIST	(−0.4121)	(−1.5764)
INDMED*DIST	−0.1196**	0.1341**
INDMED*DIST	(−2.5058)	(2.2862)
Constant	−0.3225***	0.1307***
Constant	(−9.8335)	(5.9600)
Year FE	Yes	Yes
Observations	15,202	15,202
R-square	0.1480	0.1173

Note(s): This table reports the regression results for the effect of liquidity on the leverage speed of adjustment using two-step approach. ***, **, * indicate significance at the 1, 5, and 10% levels, respectively. Standard errors are bootstrapped. t-statistics are reported in parenthesis. The variable definitions are in Appendix

Source(s): The table is created by authors

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