|||**The ef**<br>**Pa**|**fect of finan**<br>**el A**|**Table**<br>**cial constraints**<br>Fixed-effects m|**5**<br>**on the trend of**<br>odel by firm|**Excess Savin**|**gs**|**Panel B**||||
|---|---|---|---|---|---|---|---|---|---|---|---|
|**Independent Variables**|**Dep**|<br>**endent Variab**|<br>**le: Excess Sa**|**vings**||**De**|**pendent Vari**|<br>**able: Gross C**|**apital Forma**|**tion**||
|Trend|0.00936***|0.00607***|0.00414***|0.0118***|-0.0137***|-0.00822***|-0.00312***|-0.0120***|-0.00163***|-0.00182***|-0.00223***|
||(0.00119)|(0.000670)|(0.000959)|(0.00142)|(0.000751)|(0.000429)|(0.000249)|(0.00212)|(0.000232)|(0.000348)|(0.000271)|
|Dummy Recession|0.00645***|0.00641***|0.00622***|0.00468***|-0.0109***|-0.0109***|-0.00870***|-0.00676***|-0.0117***|-0.0138***|-0.0116***|
||(0.00152)|(0.00152)|(0.00167)|(0.00160)|(0.00120)|(0.00120)|(0.00129)|(0.00127)|(0.00111)|(0.00119)|(0.00115)|
|L.leverage|-0.0551***|-0.0562***|-0.0964***|-0.0500***|0.0615***|0.0625***|0.0531***|0.0624***|0.0544***|0.0591***|0.0587***|
||(0.00979)|(0.00979)|(0.0179)|(0.0100)|(0.00712)|(0.00715)|(0.00769)|(0.00739)|(0.00661)|(0.00711)|(0.00685)|
|L.clta|-0.0365***|-0.0386***|-0.0382***|-0.0489***|0.136***|0.133***|0.136***|0.135***|0.0961***|0.129***|0.113***|
||(0.0115)|(0.0114)|(0.0123)|(0.0118)|(0.00958)|(0.00962)|(0.00998)|(0.00999)|(0.00874)|(0.00955)|(0.00915)|
|L.liquidity_demand|-0.343***|-0.343***|-0.330***|-0.345***|0.319***|0.319***|0.316***|0.318***|0.308***|0.305***|0.301***|
||(0.0128)|(0.0128)|(0.0117)|(0.0129)|(0.00870)|(0.00872)|(0.00889)|(0.0101)|(0.00824)|(0.00865)|(0.00847)|
|L.assets_nonop|_-0.236***_|_-0.230***_|_-0.214***_|_-0.235***_|_0.165***_|_0.168***_|_0.159***_|_0.188***_|_0.169***_|_0.149***_|_0.156***_|
||(0.0142)|(0.0141)|(0.0126)|(0.0120)|(0.00871)|(0.00871)|(0.00909)|(0.00916)|(0.00838)|(0.00848)|(0.00842)|
|total_debt_variation|-0.471***|-0.469***|-0.474***|-0.433***|0.392***|0.394***|0.391***|0.369***|0.408***|0.393***|0.397***|
||(0.0108)|(0.0108)|(0.0134)|(0.0113)|(0.00932)|(0.00932)|(0.00970)|(0.0104)|(0.00873)|(0.00929)|(0.00900)|
|current_debt_variation|-0.126***|-0.127***|-0.130***|-0.132***|0.229***|0.228***|0.231***|0.225***|0.201***|0.227***|0.216***|
||(0.0119)|(0.0119)|(0.0127)|(0.0123)|(0.0117)|(0.0117)|(0.0121)|(0.0117)|(0.0106)|(0.0117)|(0.0112)|
|logAT|0.0295***||||-0.000320|||||||
||(0.00236)||||(0.00178)|||||||
|logAT_t|-0.000477***||||0.000735***|||||||
||(6.79e-05)||||(4.38e-05)|||||||
|logAT2||0.000972***||||-0.000127**||||||
|||_(7.60e-05)_||||_(5.83e-05)_||||||
|logAT2_t||-1.61e-05***<br>||||2.38e-05***<br>||||||
|||(2.08e-06)||||(1.37e-06)||||||
|KZ_index|||0.0228***||||-0.00287***|||||
||||(0.00866)||||(0.00111)|||||
|KZ_index_t|||-0.000972||||0.000324***|||||
||||(0.000685)||||(9.82e-05)|||||
|WW_index||||-0.373***||||0.492***||||
|||||(0.0316)||||(0.0440)||||
|WW_index_t||||0.0152***||||-0.0160***||||
|||||(0.00214)||||(0.00327)||||
|roa|||||||||_0.327***_|||
||||||||||(0.0204)|||
|roa_t|||||||||-0.00214|||
||||||||||(0.00181)|||
|pays_div||||||||||0.0104***||
|||||||||||(0.00369)||
|paysdivt||||||||||-985e-05||
|__||||||||||.<br>(0.000338)||
|earns_loses|||||||||||0.0409***|
||||||||||||(000267)|
|earnslosest|||||||||||.<br>0.000311|
|__|||||||||||(0.000251)|
|Constant|-0.335***|-0.122***|0.0808***|-0.117***|-0.0839***|-0.0592***|-0.0700***|0.200***|-0.0987***|-0.0907***|-0.109***|
||_(0.0343)_|_(0.0175)_|_(0.0116)_|_(0.0205)_|_(0.0263)_|_(0.0140)_|_(0.00606)_|_(0.0287)_|_(0.00545)_|_(0.00648)_|_(0.00578)_|
|Number of observations|60,589|60,589|56,915|57,769|61,422|61,422|56,920|58,465|61,422|61,422|61,422|
|R-squared|0.294|0.293|0.387|0.367|0.478|0.478|0.480|0.502|0.535|0.473|0.498|
|Number of firms|8,393|8,393|8,112|8,212|8,467|8,467|8,112|8,268|8,467|8,467|8,467|

Each column of Table 5, reports the regression results corresponding to one meassure of financial constraints. In Panel A the dependent variable is Excess Savings, in Panel B the dependent variable is Gross Capital Formation. Each column reports the coefficient estimates for the trend, our control variables, the measure of financial constraints and the interaction term between this measure and the trend. Our control variables are a dummy variable indicating an aggregate contraction of private investment in the country where the firm is based during year t (Dummy Recession), total and current debt variation between the periods t and t-1, and the lagged values of the ratio of Total Liabilities/Total Assets (leverage), the Current Liabilities/Total Assets ratio (clta), the Cash & Short Term Investment/Total Assets ratio (liquidity_demand), and the Non-Operating Assets/Total Assets ratio (assets_nonop). The measures of financial contraints used are the natural logarithm of Total Assets (logAT), the natural logarithm of Total Assets squared (logAT2), the Kaplan and Zingales index (KZ_index), the Whited and Wu index (WW_index), the Return on Assets ratio (roa), a dummy variable equal to one when the firm pays cash dividends, and a dummy variable equal to one when the firm reports positive net income. Standard deviation robust to clustering by firm are reported between brackets. *, **, ***, indicate significance at the 10, 5 y 1% level respectively.