Table 8. Robustness tests: Addressing endogeneity with IV-2SLS regressions.

	Instrument: EPU China (columns 1–4)				Instrument: Lagged banking performance (columns 5–8)
	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)
	debt1	debt1	debt2	debt2	debt1	debt1	debt2	debt2
aunc	-1.585***		-2.666***		-1.143***		-1.977***
	(0.158)		(0.269)		(0.252)		(0.428)
func		-2.135***		-3.592***		-0.086***		-0.148***
		(0.648)		(1.093)		(0.013)		(0.023)
size	0.133***	0.418***	0.210***	0.689***	0.055***	0.008*	0.110***	0.001
	(0.012)	(0.120)	(0.020)	(0.203)	(0.018)	(0.004)	(0.030)	(0.007)
sales	0.006**	0.037**	0.011**	0.063**	0.016***	0.008***	0.025***	0.013***
	(0.003)	(0.015)	(0.005)	(0.026)	(0.003)	(0.002)	(0.005)	(0.003)
ppe	0.050*	0.226**	0.016	0.311*	0.072***	0.031*	0.193***	0.122***
	(0.027)	(0.109)	(0.046)	(0.184)	(0.027)	(0.017)	(0.046)	(0.029)
roa	-0.747***	-1.757***	-1.121***	-2.821***	0.142	-0.169***	-0.392**	-0.147***
	(0.070)	(0.485)	(0.119)	(0.818)	(0.093)	(0.033)	(0.159)	(0.056)
sof	-0.021**	-0.122***	-0.039**	-0.208***	0.011	0.002	0.015	0.001
	(0.010)	(0.047)	(0.017)	(0.079)	(0.010)	(0.007)	(0.017)	(0.011)
refinance	-1.233***	-8.870***	-2.287***	-15.136***	2.012***	1.034***	3.237***	1.545***
	(0.211)	(2.904)	(0.359)	(4.899)	(0.313)	(0.087)	(0.532)	(0.148)
gdp	1.867***	10.725***	3.119***	18.021***	0.190	0.499***	0.264	0.798***
	(0.186)	(3.021)	(0.316)	(5.097)	(0.215)	(0.122)	(0.365)	(0.207)
Observations	6,958	6,958	6,958	6,958	6,958	6,958	6,958	6,958
Firms	612	612	612	612	612	612	612	612
Anderson canon. corr. LM statistic	138.52***	10.84***	138.52***	10.84***	48.695***	1234.063***	48.695***	1234.063***
Cragg-Donald Wald F statistic	141.43	10.85	141.43	10.85	49.010	1530.044	49.010	1530.044

Notes: Dependent variables (DV) are shown at the top. The instruments used are EPU China (columns 1–4) and lagged banking performance (columns 5–8).

* p<0.1;

** p<0.05;

*** p<0.01.

Standard errors are in parentheses.