Table 6.

Instrumental variable analyses

Variable(1) IPO(2) CoD(3) IPO(4) CoD
IPO likelihood 0.3308*** (16.6949)   0.2702*** (13.8955)   
IPO   −0.0084** (−2.2679)   −0.0109** (−2.4439) 
Leverage     −0.1737 (−1.1896) −0.0036*** (−3.0372) 
Size     0.2729*** (15.6596) −0.0013 (−0.9391) 
Age     0.1302*** (4.8409) 0.0022 (1.3034) 
Current ratio     0.0350*** (4.8166) 0.0011*** (3.4580) 
ROA     −0.7548*** (−4.1372) −0.0064 (−0.7846) 
Fixed assets     −0.0349 (−0.5468) 0.0170*** (4.1534) 
SOE     −0.0360 (−0.3974) −0.0003 (−0.1232) 
Constant −0.5797*** (−22.4653) 0.0209*** (11.8279) −5.8291*** (−16.3347) 0.0377 (1.3449) 
Year FE Yes Yes Yes Yes 
Firm FE Yes Yes Yes Yes 
N 5770 5770 5770 5770 
Adjusted R2 0.5341 0.0835 0.6695 0.1028 
Variable(1) IPO(2) CoD(3) IPO(4) CoD
IPO likelihood 0.3308*** (16.6949)   0.2702*** (13.8955)   
IPO   −0.0084** (−2.2679)   −0.0109** (−2.4439) 
Leverage     −0.1737 (−1.1896) −0.0036*** (−3.0372) 
Size     0.2729*** (15.6596) −0.0013 (−0.9391) 
Age     0.1302*** (4.8409) 0.0022 (1.3034) 
Current ratio     0.0350*** (4.8166) 0.0011*** (3.4580) 
ROA     −0.7548*** (−4.1372) −0.0064 (−0.7846) 
Fixed assets     −0.0349 (−0.5468) 0.0170*** (4.1534) 
SOE     −0.0360 (−0.3974) −0.0003 (−0.1232) 
Constant −0.5797*** (−22.4653) 0.0209*** (11.8279) −5.8291*** (−16.3347) 0.0377 (1.3449) 
Year FE Yes Yes Yes Yes 
Firm FE Yes Yes Yes Yes 
N 5770 5770 5770 5770 
Adjusted R2 0.5341 0.0835 0.6695 0.1028 

Note(s): This table reports the regression results of instrumental variable (IV) analyses, with IPO Likelihood as the IV. IPO Likelihood represents the likelihood that a firm receives an approval for its IPO application. The variable definitions are provided in  AppendixTable A1. Continuous variables are winsorized at the 1st and 99th percentiles. Standard errors are clustered at the firm level, and associated t-statistics are reported in parentheses. *** and ** represent significance at the 1 and 5% levels, respectively

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