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Table 4 Determinants of the use of corona loans

From: COVID-19 financial support to small businesses in Switzerland: evaluation and outlook

Independent variables: (1) (2) (3) (4) (5) (6)
Closed de jure 0.15*** 0.15*** 0.18*** 0.17*** 0.17*** 0.15***
(0.04) (0.04) (0.04) (0.04) (0.04) (0.04)
Closed de facto 0.07** 0.08** 0.09*** 0.09** 0.09*** 0.08**
(0.04) (0.04) (0.03) (0.03) (0.03) (0.03)
Expected share of April turnover lost 0.06 0.07** 0.05 0.05 0.06 0.05
(0.04) (0.03) (0.03) (0.03) (0.04) (0.03)
Physical closeness important: workers 0.13*** 0.11*** 0.07** 0.07** 0.06* 0.06**
(0.03) (0.03) (0.03) (0.03) (0.03) (0.03)
Physical closeness important: clients − 0.02 0.01 − 0.02 − 0.00 − 0.02 − 0.01
(0.03) (0.03) (0.03) (0.03) (0.03) (0.03)
Employment: 2–9 FTE    0.09*** 0.06** 0.08*** 0.07**
   (0.03) (0.03) (0.03) (0.03)
Employment: > 10 FTE    0.13*** 0.12*** 0.13*** 0.12***
   (0.04) (0.04) (0.04) (0.04)
Debt ratio 2019: [0.01–0.25]    0.22*** 0.22*** 0.22*** 0.22***
   (0.05) (0.05) (0.05) (0.05)
Debt ratio 2019: [0.26–1]    0.25*** 0.26*** 0.24*** 0.27***
   (0.06) (0.06) (0.06) (0.06)
Profit to sales ratio 2019: [0–0.25]    0.05 0.05 0.05 0.04
   (0.07) (0.07) (0.07) (0.07)
Profit to sales ratio 2019: > 0.25    0.01 0.01 0.00 0.00
   (0.07) (0.07) (0.08) (0.08)
Owner private wealth 2019: [50k–500k CHF]    − 0.07** − 0.06* − 0.05 − 0.04
   (0.03) (0.03) (0.03) (0.03)
Owner private wealth 2019: > 500k CHF    − 0.08** − 0.07* − 0.05 − 0.04
   (0.04) (0.04) (0.04) (0.04)
Labour cost share 2019: < 0.33    − 0.04 − 0.04 − 0.04 − 0.04
   (0.03) (0.03) (0.03) (0.03)
Labour cost share 2019: [0.33–0.66]    0.07* 0.07* 0.06 0.06
   (0.04) (0.04) (0.04) (0.04)
German-speaking Switzerland      0.02 0.03
     (0.03) (0.03)
Italian-speaking Switzerland      0.19*** 0.19***
     (0.06) (0.06)
45 ≤ age ≤ 65      − 0.00 0.00
     (0.04) (0.04)
Age > 65      − 0.06 − 0.06
     (0.05) (0.05)
Education: vocational qualifications      0.03 − 0.01
     (0.12) (0.11)
Education: academic qualifications      0.00 − 0.01
     (0.12) (0.11)
Female      − 0.05* − 0.01
     (0.03) (0.03)
Swiss national      − 0.07** − 0.06*
     (0.04) (0.04)
Observations 806 806 806 806 806 806
Adjusted R2 0.07 0.12 0.19 0.22 0.21 0.24
Industry FE No Yes No Yes No Yes
  1. All dependent and independent variables are binary (0/1), except for “Expected share of April turnover lost”. The dependent variable equals 1 for businesses that describe corona loans as “highly important” or “of intermediate importance”, and it equals 0 if or businesses that describe corona loans as “not used” (businesses describing corona loans as “weakly important” are omitted). Parameters are estimated by means of a linear probability model (OLS), with robust standard errors (in parentheses, ***p < 0.01, **p < 0.05, *p < 0.1)