Table 12. Tests for the investment reduction channel.

	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)
	capex1	capex1	debt1	debt1	capex2	capex2	debt1	debt1
capex1			0.084 ***	0.089 ***
			(0.017)	(0.017)
capex2							0.198 ***	0.190 ***
							(0.018)	(0.018)
aunc	-0.016 **		-0.163***		-0.025 ***		-0.158***
	(0.007)		(0.012)		(0.007)		(0.011)
func		-0.009 ***		-0.053***		-0.012 ***		-0.051***
		(0.003)		(0.004)		(0.003)		(0.003)
lagged DV	0.070***	0.072***	-0.062***	-0.056***	-0.181***	-0.184***	-0.074***	-0.065***
	(0.006)	(0.006)	(0.018)	(0.018)	(0.011)	(0.011)	(0.017)	(0.017)
Macro controls	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Firm controls	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Observations	6,504	6,504	6,504	6,504	6,969	6,969	6,969	6,969
Firms	619	619	619	619	623	623	623	623
Instruments	108	108	112	112	118	118	121	121
AR(1) test	0.000	0.000	0.000	0.000	0.000	0.000	0.000	0.000
AR(2) test	0.197	0.154	0.462	0.192	0.763	0.200	0.610	0.204
Hansen test	0.493	0.557	0.162	0.109	0.168	0.194	0.251	0.285

Notes: Dependent variables (DV) are shown at the top.

** p<0.05;

*** p<0.01.

Standard errors are in parentheses.