# **Appendix Table IX.B: Bank-Based vs. Market-Based Systems (Within- Financial Development)**

|**DependentVariables: **|**TotalDebt/Equit**|**y**|**Short-TermD **|**ebt/Equity**|**Long-TermDe**|**bt/Equity**|**Short-TermDe**|**btiT.Debt**|**Ret.Earnings/**|**T.Debt**|
|---|---|---|---|---|---|---|---|---|---|---|
|**Independent Variables**|**Bank**|**Market**|**Bank**|**Market**|**Bank**|**Market**|**Bank**|**Market**|**Bank**|**Market**|
|**Firms'Characteristics:**<br>|||||||||||
|Log**of**NetFixedAssets|**-0.173'**<br>|-0.049<br>|**-0.156***<br>|**-0.059**|**-0.017**|**0.010**|**-0.025**|-0.021"|-0.205|-0.020*-|
||**(-1.735)**|(-1.020)|**(-1.882)**|(-1.489)|(-0.438)|(0.497)|**(-1.311)**|**(-6.501)**|**(-0.653)**|(-2.604)|
|NetFixedAssets/Total|**0.630"**|-0.428|0.292|**-0.260**|**0.337"**|**-0.168**|**-0.086**|**-0.100"***|**-0.328**|0.120*|
|Assets|(2.457)|**(-0.987)**|**(1.599)**|**(-0.707)**|**(2.286)**|**(-1.150)**|_(-1.494)_|**(-3.273)**|(-0.220)|**(1.695)**|
|Profits/Total Assets|**-2.593*-**<br>|-8.904"<br>|-1.503"*<br>|**-7.376"**<br>|-1.090"<br>|-1.528"<br>|**0.091**|**0.207'**|-8.499|3.134'|
||**(-4.885)**|**_(-2.400)_**|**(-5.055)**|(-2.099)|**(-3.172)**|(4.469)|**(0.710)**|(4.691)|**(-0.539)**|**(16.925)**|
|Tradable Producers|||||||||||
|Access:|||||||||||
|AccesstoInt'lBond<br>|**0.088**<br>|0.122<br>|-0.024<br>|-0.122<br>|**0.112"**<br>|0.244*-<br>|**-0.053"**<br>|-0.104"*<br>|1.140<br>|**-0.023"**<br>|
|Markets|**(1.218)**|(0.904)|**(-0.528)**|**(-1.185)**|**(2.032)**|(4.295)|**(-2.106)**|**(-6.923)**|**(1.132)**|(-2.474)|
|Accesstolnt'lEquity<br>|**0.035**<br>|**0.000**<br>|**0.036**<br>|**0.000**<br>|**-0.001**<br>|**0.000**<br>|**-0.032**<br>|**0.000**<br>|-0.112<br>|**0.000**<br>|
|Markets|**(0.208)**|**(0.913)**|(0.467)|**(1.071)**|**(-0.007)**|**(0.662)**|**(-0.709)**|**(0.110)**|**(-0.031)**|**(-0.993)**|
|FinancialLiberalization|andCrises:||||||||||
|Financial Liberalization|**0.023**<br>|**-0.772**<br>|**0.090**<br>|**-0.602**|**-0.067**|**-0.170**|-0.014|**0.067"***|4.455|**_0.055_**|
||**(0.079)**|_(-1.451)_|**(0.377)**|(-1.294)|(-0.485)|**(-0.956)**|(-0.182)|(3.481)|**(0.707)**|**(1.179)**|
|Financial Development|**0.238***<br>|0.081<br>|**0.113**|0.061|**0.125**|0.020|0.004|**-0.013"**|**-5.236**|**0.011'**|
||**(1.705)**|(0.574)|(1.220)|(0.457)|**_(1.428)_**|(1.241)|**(0.098)**|(-4.168)|(-0.844)|(1.922)|
|Mexican Crisis**- 1995**|**0.106**<br>|**-0.173**|**0.082**|-0.194|0.024|0.022|**-0.003**|-0.022"|7.984|**-0.003**|
||(1.193)|**(-0.803)**|**(1.215)**|**(-0.966)**|(0.547)|**(0.699)**|**(-0.135)**|**(-2.610)**|**(1.193)**|**(-0.171)**|
|Asian Crisis**- 1997**|**0.269**<br>|**1.236**<br>|**0.119'**<br>|**0.650**<br>|**0.150**<br>|**0.586*"**<br>|**-0.033**|**-0.013**|**0.929**|_0.041_|
||**(1.556)**|(1.543)|(1.843)|**(0.866)**|**(1.016)**|**(5.106)**|(-1.044)|**(-1.296)**|(0.403)|**(1.387)**|
|Adjusted R-Squared<br>|0.451|0.160|**0.572**|**0.137**|**0.233**|0.431|**0.571**|**0.605**|**0.079**|0.476|
|Fixed Effects|||||||||||
|Chi-Hausman|**18.628"**|**0.365**|**7.846"**|**0.611**|**18.158"**|**68.031"'**|**2.8347**|**19.77"'**|3.443*|**1.7139**|
|_Number_ofFirms<br>|140<br>|**638**<br>|_140_<br>|**638**<br>|140<br>|**638**<br>|140<br>|**638**|**139**|**605**|
|NumberofObservations|**766**|5164|**766**|5164|**766**|5164|**766**|5164|**726**|4962|
|Robust standard errors-Whitec|orrectionforhetero|skedesticity.T-stati|sticsarein parenthes|is.|||||||

The variable "flnancial development* is the interaction **of** domestic financial development and financial liberalization.

> Bank-based countries: Argentina and Indonesia. Market-based countries: Brazil, Malaysia, Mexico, South Korea, and Thailand. Indicate **10,5,1,** percent level of significance, respectively