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Table 4 The effect of the financing constraints index (FC) on investment in training per employee (TI) and in physical capital per employee (KI). OLS estimates. 2015–18

From: Do investments in human and physical capital respond differently to financing constraints?

Variable

Training

Physical capital

FC (financing constraints index)

− 0.003*

− 0.532***

 

(0.002)

(0.056)

Return on equity (t−1)

0.006

− 0.187

 

(0.009)

(0.217)

Return on equity (t−2)

0.005

0.098

 

(0.007)

(0.179)

Real sales per capita (t−1) × 1000

0.132***

3.870***

 

(0.027)

(0.811)

Real sales per capita (t−2) × 1000

0.044

1.733***

 

(0.029)

(0.864)

Subsidiary firm

0.019***

− 0.711***

 

(0.005)

(0.159)

Foreign owned firm

0.016***

− 0.393***

 

(0.006)

(0.160)

Log total real assets

0.003***

0.551***

 

(0.001)

(0.130)

Firm age

− 0.004*

− 0.225***

 

(0.002)

(0.069)

Hampered by business regulations

0.002

0.551***

 

(0.004)

(0.130)

Hampered by labour market reg

0.007

0.020

 

(0.004)

(0.125)

Hampered by lack of right skills

0.032***

0.311***

 

(0.004)

(0.112)

Percent change due to one standard

  

deviation change in FC

− 0.013*

− 0.083***

Sample size

28,494

27,553

  1. All regressions include country by year and sector fixed effects and indicator variables for missing values. Standard errors (in parentheses) are clustered by firm. *, **, ***for statistical significance at the 10, 5 and 1 level of confidence. Percent change: estimated percent change in training per employee induced by a one standard deviation increase in FC