Table 8.
Index of Investment Credit Constraints: Heckman probit results
| Dependent variable | The firm has a | The firm is long- |
|---|---|---|
| positive investment | term credit | |
| credit demandt | constrainedt | |
| (1) | (2) | |
| Capital ratiot− 1 | 0.030 | − 1.108*** |
| (0.058) | (0.179) | |
| Cash ratiot− 1 | − 0.964*** | − 1.068*** |
| (0.074) | (0.259) | |
| Ln(total assets)t− 1 | 0.035*** | − 0.001 |
| (log) | (0.006) | (0.015) |
| Cash flow ratiot− 1 | 3.263*** | − 1.209*** |
| (0.144) | (0.443) | |
| Aget− 1 | 0.070*** | − 0.091*** |
| (0.014) | (0.033) | |
| Investment ratet− 1 | 0.195*** | |
| (0.049) | ||
| Sector fixed effects | Yes | Yes |
| Year fixed effects | Yes | Yes |
| Observations | 23,419 | 9801 |
| Number of firms | 7028 | 4220 |
This table presents a probit estimation of the firm likelihood to be investment credit constrained using an Heckman two-step methodology to account for selection bias related to non-random positive credit demand. Column (1) and column (2) correspond to the first and the second stages, respectively. All regressions were estimated with a constant and include sector and year fixed-effects. See Section 5 for more details. All the definitions of the variables are summarized in Table 3. *, ** and *** indicate significance levels at 10%, 5% and 1% respectively