Table VI.C: Bank-Based vs. Market-Based Systems (Instrumental Variables)

|DependentVariables:<br> <br>Independent Variables:|TotalDebt/Equity<br>Bank|<br>Market|Short-TermDe<br>Bank|bt/Equity<br>Market|Long-Term Deb<br>Bank|t/Equity<br>Market|Short-TermDeb<br>Bank|tTTDebt<br>Market|Ret.Earnings/T<br>Bank|.Debt<br>Market|
|---|---|---|---|---|---|---|---|---|---|---|
|Firms'Characteristics:<br>|||||||||||
|LogofNetFixed Assets|**0.181***|**-0.039**|**0.032**|**-0.157***|0.149*|**0.118-**|**-0.056****|-0.034-*|0.432|**-0.062*-**|
||**(2.932)**|**(-0.508)**|**(0.880)**|(-2.354)|(4.344)|(4.617)|(-4.525)|**(-7.201)**|**(1.103)**|**(-5.801)**|
|Net FixedAssets/Total|**-1.625-***|**-1.762***|**-0.926****|-1.454-*|**-0.699***|**-0.308"**|**-0.019**|-0.204*|**-12.371**|0.148-|
|Assets|(-4.211)|**(-5.773)**|_(-4A19)_|**(-5.926)**|**(-2.808)**|(-2.314)|**(-0.213)**|**(-8.396)**|**(-1.528)**|**(3.166)**|
|Profits/TotalAssets|**-2.523***<br>|-20.364-<br>|-1.425*<br>|**-16.185"***<br>|**-1.098***<br>|-4.179-<br>|0.249<br>|**0.183**<br>|37.242<br>|2.245-<br>|
||(-2.274)|(-4.613)|**(-1.950)**|**(-3.880)**|**(-1.880)**|**(.6.526)**|**(0.989)**|(1.409)|**(1.262)**|**(6.081)**|
|Tradable Producers|**-0.030**<br>|**0.330**<br>|**0.096**<br>|**0.577**<br>|**-0.125**<br>|-0.247-<br>|**0.100***<br>|**0.080***<br>|**0.097**<br>|0.048-<br>|
||**(-0.101)**|**(0.837)**|**(0.722)**|**(1.569)**|**(-0.613)**|(-3.094)|**(1.716)**|(6.421)|(0.048)|(3.142)|
|**Access:**|||||||||||
|AccesstoInt'lBond|**1.273***|0.784|**0.552***|**0.261**|**0.722-**|**0.523-**|-0.423-|-0.334-<br>|-10.194<br>|0.155*<br>|
|Markets|(2.674)|**(0.917)**|**(1.739)**|**(0.326)**|(3.044)|**(2.669)**|(-4.070)|**(-6.578)**|**(-1.207)**|**(3.866)**|
|AccesstoIntlEquity<br>|0.646<br>|**0.000***<br>|**0.559**<br>|**0.000**<br>|**0.087**<br>|**0.000**<br>|**0.312**<br>|**0.000***<br>|**8.083**<br>|**0.000**<br>|
|Markets|**(0.395)**|**(1.671)**|**(0.618)**|**(1.579)**|**(0.110)**|(1.614)|(1.428)|**(1.961)**|(0.934)|**(1.386)**|
|FinancialLiberalizationa<br>|ndCrises:<br>||||||||||
|Financial Liberalization|**-0.860**|-0.542|**-0.566**|**-0.051**|-0.294|**_-0.491-_**|**0.611**|**0.023**|19.411|**0.158-**|
||(-0.892)|(-1.142)|**(-0.639)**|(-0.124)|**(-0.728)**|**(-2.790)**|(1.143)|**(1.165)**|(1.345)|(4.566)|
|MexicanCrisis**- 1995**|**0.139**|**-0.798**|**0.119**|**-0.719**|**0.019**|**-0.079**|**0.001**|**-0.029***|**6.137**|0.004|
||**(1.150)**|**(-1.277)**|**(1.298)**|(-1.212)|**(0.350)**|**(-1.583)**|**(0.023)**|(-1.844)|(1.002)|(0.222)|
|AsianCrisis**- 1997**|**0.326**|**0.873**|0.145|0.435|**0.181**|**_0.438_**|**-0.018**|**-0.028***|-4.475|**0.029**|
||(1.465)|**(1.293)**|**(1.355)**|**(0.688)**|**(1.093)**|**(3.734)**|**(-0.472)**|**(-1.828)**|**(-1.510)**|**(0.883)**|
|AsianCrisis**- 1998**|**0.353"**|0.664|**0.160**|**0.392**|0.194-|**0.272-**|**-0.051**|**-0.025**|**-3.301**|**0.016**|
||(2.110)|**(0.984)**|**(1.460)**|**(0.609)**|**(2.436)**|**(2.633)**|_(-1.484)_|**(-1.205)**|**(-1.095)**|**_(0.420)_**|
|CountryEffects:<br>ArgentIna|||||||||||
|Brazil|**0.068**|-2.445-|-0.242|-2.142"*|**0.310-**|**-0.303"**|-0249-|**-0.119***|9.034|0.046|
||**(0.226)**|**(-2.896)**|**(-1.069)**|**(-2.691)**|**(2.038)**|**(-2.600)**|**(-2.567)**|(-6.433)|**(1.367)**|**(1.161)**|
|SouthKorea||0.040||**0.000**||0.040<br>||**-0.062-**<br>||**0.411*"**<br>|
|||**(0.052)**||**(0.000)**||**(0.228)**||**(-2.698)**||**(10.556)**|
|Malaysia||**-1.789-**||**-1.637-***||-0.152||**-0.088***||-0.054<br>|
|||(-2.694)||**(-2.637)**||(-1.419)||(-4.856)||(-1.291)|
|Mexico||**-1.530***||**-0.877**||**-0.653-**||**0.062-**|||
|||(-1.941)||(-1.214)||(-3.432)||**(2.151)**|||
|**C**|**1.808**|**5.376-**|2.020|4.336"*|-0.212|**1.039"**|-0.041|**1.030-**|**-45.677**|0.034|
||(0.884)|(7.402)|**(1.105)**|**(7.139)**|(-0.240)|**(3.692)**|**(-0.036)**|**(25.755)**|(-1.340)|**_(0A08)_**|
|AdjustedR-Squared<br>|0.074|**0.030**|0.047|**0.017**|**0.096**|**0.160**|**0.196**|**0.218**|**-0.003**|**0.329**|
|FixedEffects|||||||||||
|Chi-Hausman|||||||||||
|Numberof Firms<br>|143<br>|**656**<br>|143<br>|**656**<br>|143<br>|**656**<br>|143<br>|**656**<br>|**139**<br>|**619**<br>|
|Number**of**Observations<br>Robuststandardrarrs-Whitec|543<br>orrection<br>**for**heteros|**3899**<br>kedesticity.<br>Indonesisan|543<br>d Thaeand<br>are the base c|**3899**<br>ountry,<br>forbank-base|543<br>d<br>and market based sy|**3899**<br>stems respectively.<br>T-s|543<br> <br>tailsticsare in parent|**3899**<br>hesis.|524|**3796**|

Bank-based countries: Argentin **a** nd Indonesia. Market-based countries: Breall. Malaysia, Mexico, South Korea, and Thailand. Instruments are legged expanatory varbles **on** Firms' Characteristics (eceOpti evariable Tradable Producers). lagged values of the vadable **o** acoess to intemational equfty markets, **and** an indicator **of** country' access to **bond** markets.