Table 5 The effect of the financing constraints index (FC) on investment in training per employee (TI) and in physical capital per employee (KI). IV estimates. 2015–18
From: Do investments in human and physical capital respond differently to financing constraints?
Variable | Training | Physical capital |
|---|---|---|
FC (financing constraints index) | 0.001 | − 3.311** |
(0.053) | (1.683) | |
Return on equity (t−1) | 0.006 | − 0.187 |
(0.009) | (0.245) | |
Return on equity (t−2) | 0.001 | 0.405 |
(0.010) | (0.357) | |
Real sales per capita (t−1) × 1000 | 0.132*** | 4.081*** |
(0.029) | (0.857) | |
Real sales per capita (t−2) × 1000 | 0.048 | 2.019*** |
(0.030) | (0.942) | |
Subsidiary firm | 0.020*** | − 0.905*** |
(0.007) | (0.207) | |
Foreign owned firm | 0.016*** | − 0.522*** |
(0.006) | (0.187) | |
Log real total assets | 0.004*** | 0.844*** |
(0.001) | (0.038) | |
Firm age | − 0.004 | − 0.283*** |
(0.003) | (0.081) | |
Hampered by business regulations | 0.003 | 0.644*** |
(0.004) | (0.152) | |
Hampered by labour market reg | 0.007 | 0.152 |
(0.005) | (0.107) | |
Hampered by lack of right skills | 0.032*** | 0.353*** |
(0.004) | (0.121) | |
First stage | ||
Non-performing loans ratio | 0.006*** | 0.006*** |
(0.001) | (0.001) | |
F-test | 20.84 | 22.61 |
Percent change due to a one standard | ||
deviation change in FC | 0.003 | − 0.530*** |
Hansen J using Lewbel’s method – p-value | 0.634 | 0.162 |
Sample size | 28,494 | 27,553 |