Table 1. Sample statistics · Table 1. Sample statistics (continued) Panel B. Variable correlations (p-values are reported in parenthesis) Variable name Variable explanation linvint

Table 1. Sample statistics Financial statement items for Russian companies in 1996-1999 are from the following sources: Russian

Federal Commission for the Securities Market Database (FCSM1 – September 2000 version; FCSM2 –

April 2001 version), ALBA database, GNOZIS database. All the nominal numbers are in 1996 rubles.

Capital expenditures are fixed assets introduced during the current year + change in incomplete

construction1. Investment intensity is the ratio of capital expenditures to net property, plant and equipment

(NPPE)2. Cash flow from operations (CF) is net profit from operations – increase in inventories + decrease

in receivables + increase in payables + depreciation expense this year – tax on profit – payments to the

budget from profit + increase in debt to the government budget. Financial dependence is the fraction of

capital expenditures not financed with cash flow from operations. CF underutilization for investment is the

fraction of CF in excess of capital expenditures. Log (financial dependence) is defined only for

observations with positive financial dependence. Log (CF underutilization for investment) is defined only

for positive CF underutilization for investment. Firm size via sales is the decimal log of the previous year’s

sales. Firm size via NPPE is the decimal log of NPPE at the beginning of the year. Credit rating is a

weighted sum of various indicators of the firm’s performance; each indicator taking values between zero

and five, five being the best and zero the worst (see 3.3.2.2 for details). Average age of depreciable assets is

the ratio of accumulated depreciation at the beginning of the current year to depreciation expense for the

previous year. Government support is the sum of the amounts contributed during the current year towards

investment from the government budget and non-budgetary funds. Industry growth in the USA is a relative

change in “Index numbers of industrial production (1990=100)” (table code 51 in UNIDO Industrial

Statistics Database INDSTAT3/INDSTATR 2001). Industry growth in Russia (relative change in the index

of industrial production) and utilization of capacity (the share of capacity utilized in production) are from

the Russian State Committee on Statistics (GosKomStat) yearly publication. Moscow firms are firms

registered in Moscow. FIG members are firms belonging to financial-industrial groups from the list

compiled by Volchkova (2000). Industries in panel C are classified on the basis of the Russian OKONH

industry classification system.

1 The statistics for capital expenditures in this table are reported only for those observations for which the units of measurement variable is not missing. 2 Investment intensity can be computed even if the units of measurement variable is missing. Consequently, the set of observations with non-missing investment intensity is not a subset of observations for which the statistics for the capital expenditures variable are reported in this table.

Table 1. Sample statistics (continued) Panel A. Descriptive statistics

Variable name Variable explanation Number of

observations3

Number of observations

without duplicates

Number of firms Mean Median Standard

Deviation Minimum Maximum

capex1 Capital expenditures 8144 7832 3478 8.06e+12 2.47e+09 6.34e+14 0 5.72e+16invint Investment intensity 8429 8039 3547 20.78 0.054 735.1 0 62922linvint Log (investment intensity) 8096 7708 3469 -1.194 -1.229 0.994 -7.383 4.799 cashfl3 Cash flow [CF] 7103 6869 3085 1.51e+13 2.91e+09 1.21e+15 -1.97e+14 1.02e+17 findep Financial dependence 6944 6685 3080 -284.5 -0.385 28167 -2295443 258386lfindep1 Log (financial dependence) 3003 2913 1949 0.239 0.047 0.889 -3.757 5.412 lunderutCF Log (CF underutilization for investment) 4137 3982 2361 -0.235 -0.127 0.316 -3.155 0 lsize_s Firm size via sales: Log (sales) 7858 7548 3372 10.61 10.53 1.224 5.424 17.61lsize_p Firm size via NPPE: Log (NPPE) 8108 7796 3453 10.64 10.60 1.224 4.809 16.93 rating Credit rating 6999 6767 3007 2.827 2.778 1.205 0 5laada Log (average age of depreciable assets) 7888 7513 3371 1.264 1.286 0.608 -4.813 5.504 lgovsup1 Log (1+gov. support/sales) 5451 5438 2249 0.011 0 0.124 0 3.675growth_US Industry growth in the USA 4437 4036 1811 0.072 0.036 0.087 -0.107 0.275 growth Industry growth in Russia – current year 7783 7234 3240 0.001 -0.010 0.083 -0.270 0.300 growth_1 Industry growth in Russia - previous year 7783 7234 3240 -0.039 -0.050 0.069 -0.350 0.100 util_cap Utilization of capacity 1146 1018 456 0.440 0.380 0.237 0.080 0.900 Moscow firms 1320 1306 601 FIG members 764 606 269 year_99 1891 1891 1891 year_98 2628 2471 2471 year_97 2949 2513 2513 year_96 1368 1315 1315 FCSM1 2893 2893 1407 FCSM2 4176 4176 1745 ALBA 1187 1187 939 GNOZIS 580 580 579

3 Including duplicate observations from different sources

Table 1. Sample statistics (continued) Panel B. Variable correlations (p-values are reported in parenthesis)

Variable name Variable explanation

linvi

nt

lfind

ep1

lund

erut

CF

lsiz

e_s

lsiz

e_p

ratin

g

laad

a

lgov

sup1

grow

th_U

S

grow

th

grow

th_1

util_

cap

mos

cow

fig

linvint Log (investment intensity) 1.00

lfindep1 Log (financial dependence) -0.40 (0.00) 1.00

lunderutCF Log (CF underutilization for investment)

-0.32 (0.00) 1.00

lsize_s Firm size via sales - Log (sales) 0.10 (0.00)

-0.10 (0.00)

-0.10 (0.00) 1.00

lsize_p Firm size via NPPE - Log (NPPE) -0.18 (0.00)

-0.24 (0.00)

-0.14 (0.00)

0.75 (0.00) 1.00

rating Credit rating 0.13 (0.00)

-0.03 (0.08)

-0.02 (0.22)

-0.13 (0.00)

-0.22 (0.00) 1.00

laada Log (average age of depreciable assets)

-0.23 (0.00)

-0.02 (0.26)

0.04 (0.03)

0.04 (0.00)

0.19 (0.00)

-0.15 (0.00) 1.00

lgovsup1 Log (1+gov. support/sales) 0.11 (0.00)

-0.02 (0.36)

-0.03 (0.14)

-0.07 (0.00)

0.00 (0.96)

-0.01 (0.48)

-0.03 (0.02) 1.00

growth_US Industry growth in the USA -0.12 (0.00)

0.05 (0.06)

0.06 (0.01)

-0.04 (0.02)

0.07 (0.00)

-0.05 (0.00)

0.07 (0.00)

-0.01 (0.79) 1.00

growth Industry growth in Russia – current year

0.09 (0.00)

0.00 (0.98)

-0.00 (0.80)

-0.05 (0.00)

-0.10 (0.00)

0.03 (0.04)

-0.07 (0.00)

0.03 (0.06)

0.05 (0.00) 1.00

growth_1 Industry growth in Russia - previous year

0.11 (0.00)

0.01 (0.69)

-0.02 (0.25)

0.11 (0.00)

-0.00 (0.73)

0.00 (0.89)

-0.08 (0.00)

0.01 (0.37)

0.06 (0.00)

0.04 (0.00) 1.00

util_cap Utilization of capacity 0.19 (0.00)

-0.21 (0.00)

-0.20 (0.00)

0.37 (0.00)

0.35 (0.00)

-0.21 (0.00)

-0.06 (0.04)

0.08 (0.05)

-0.30 (0.00)

0.25 (0.00)

0.49 (0.00) 1.00

moscow Moscow firm 0.13 (0.00)

0.15 (0.00)

0.05 (0.00)

-0.09 (0.00)

-0.20 (0.00)

0.15 (0.00)

-0.17 (0.00)

0.00 (0.85)

0.04 (0.01)

0.05 (0.00)

0.04 (0.00)

-0.12 (0.00) 1.00

fig FIG member 0.05 (0.00)

0.00 (0.80)

-0.18 (0.00)

0.27 (0.00)

0.30 (0.00)

-0.12 (0.00)

0.02 (0.09)

0.01 (0.38)

-0.02 (0.31)

-0.02 (0.03)

0.08 (0.00)

0.25 (0.00)

-0.09 (0.00) 1.00

Table 1. Sample statistics (continued) Panel C. Industry composition (entire sample)

Number of observations without duplicates for Variable

name Variable description Number of observations


without duplicates 1996 1997 1998 1999

Number of firms

oil Oil industry 166 149 22 50 52 25 70gas Gas industry 24 23 3 7 8 5 13electric Electricity industry 282 233 32 70 102 29 110ferrous Ferrous metals 311 235 40 79 83 33 107nonferr Non-ferrous metals 231 186 28 64 71 23 93chemical Chemical industry 489 417 73 128 136 80 194mech_eng Machinery and fabricated metal products 1566 1431 240 455 404 332 644 wood Wood industry 177 176 33 47 53 43 79paper Paper industry 88 77 18 17 20 22 32construc_mat Construction materials 345 341 63 96 102 80 144light Light industry 324 323 62 91 89 81 136food_bev Food and beverages 877 818 142 263 248 165 359agricult Agriculture 171 170 22 48 52 48 68transpor Transport 462 435 82 149 114 90 199telecom Communications 290 243 31 84 90 38 120construc Construction 784 784 123 225 236 200 309trade_ct Trade and catering 469 459 61 123 137 138 218services Other services 471 435 67 152 118 98 205finance Financial services 388 388 29 78 121 160 210utility Utilities 185 170 25 76 36 33 99sci_edu Science and education 289 288 44 74 83 87 119 other Other industries 447 409 75 137 116 81 180Total Number 8836 8190 1315 2513 2471 1891 3678 4

4 The total number of firms is less than the sum of numbers in this column, because some firms changed their OKONHs between 1996 and 1999.

Table 2. Industry rankings The table reports the median levels of investment intensity (invint) (Panel A) and financial dependence

(findep) (Panel B) for ISIC2 industries in Russia in 1996-1999 and in the USA during the 1980s. The US

numbers are from Table 1 in Rajan, Zingales (1998) (RZ). See Table 1 in this paper for the sources of the

data for Russian industries and for variable definitions. Industries are ranked by investment intensity (Panel

A) and financial dependence (Panel B) in Russia, and the ranks are reported for the sectors from RZ. The

ranks of the relevant sectors in the USA are also reported. Not all of these sectors are mutually exclusive in

Table 1 in RZ. For example, drugs (3522) is a subsector of other chemicals (352). In cases like this, the

values for the broader sectors are net of the values for the subsectors that are separately reported. We

follow this convention for the sectors from RZ. However, the subsectors that are not present in RZ, but

were introduced in this paper (e.g. manufacture of aircraft (3845)), are not excluded from broader sectors.

Table 2. Industry rankings (continued) Panel A. Industry ranking by median investment intensity ISIC2 Industry Name Observation

number Invint

Russia Rank invint

Russia Rank invint

US Invint US

3845 Manufacture of aircraft 47 0.011

3832 Manufacture of radio, television and communication equipment and apparatus 50 0.015 1 31 0.42

3211 Spinning, weaving and finishing textiles 101 0.017 2 1 0.16 324 Footwear, except rubber or plastic 17 0.018 3 14 0.25 322 Wearing apparel, except footwear 117 0.019 4 25 0.31 384 Transport equipment 147 0.021 5 26 0.31

3841 Shipbuilding and repairing 4 0.022 6 32 0.43 3828 Manufacture of weapons 36 0.023 331 Wood products, except furniture 67 0.023 7 17 0.26 385 Professional and scientific equipment 89 0.023 8 35 0.45 382 Machinery, except electrical 481 0.024 9 20 0.29 323 Leather products 22 0.025 10 5 0.21 351 Industrial chemicals 49 0.026 321 Textiles 27 0.027 11 12 0.25 381 Fabricated metal products 131 0.029 12 21 0.29

9320 Science and education 252 0.03

3511 Manufacture of basic industrial chemicals except fertilizers 73 0.031 13 22 0.3

3513 Manufacture of synthetic resins, plastic materials and man-made fibers except glass 76 0.032 14 23 0.3

332 Furniture, except metal 45 0.033 15 13 0.25 383 Machinery, electric 284 0.035 16 29 0.38

3843 Manufacture of motor vehicles 101 0.038 17 27 0.32 371 Iron and steel 187 0.04 18 2 0.18 355 Rubber products 65 0.04 19 18 0.28 361 Pottery, china, earthenware 12 0.04 20 3 0.2

3 Manufacturing 3899 0.042 352 Other chemicals 101 0.043 21 24 0.31

1 Agriculture, Hunting, Forestry and Fishing 225 0.044 369 Other non-metallic mineral products 262 0.044 22 6 0.21

3411 Manufacture of pulp, paper and paperboard 53 0.044 23 4 0.2 356 Plastic products 39 0.047 24 34 0.44 372 Non-ferrous metals 127 0.05 25 8 0.22

9 Community, Social and Personal Services 562 0.059

3825 Manufacture of office, computing and accounting machinery 22 0.061 26 36 0.6

4 Electricity, Gas and Water 233 0.064 390 Other manufactured products 27 0.064 27 28 0.37 362 Glass and products 37 0.07 28 19 0.28 311 Food products 669 0.075 29 16 0.26 354 Miscellaneous petroleum and coal products 18 0.075 30 9 0.23

5 Construction 726 0.082 3522 Manufacture of drugs and medicines 71 0.092 31 33 0.44 353 Petroleum refineries 75 0.095 32 7 0.22

7 Transport, Storage and Communication 658 0.097

6 Wholesale and Retail Trade and Restaurants and Hotels 669 0.099

2 Mining and Quarrying 442 0.100 341 Paper and products 11 0.151 33 11 0.24 313 Beverages 148 0.161 34 15 0.26 342 Printing and publishing 48 0.186 35 30 0.39 314 Tobacco 30 0.346 36 10 0.23

8 Financing, Insurance, Real Estate and Business Services 281 0.429

Table 2. Industry rankings (continued) Panel B. Industry ranking by median financial dependence ISIC2 Industry Name Observation

number Findep Russia

Rank findep Russia

Rank findep US Findep US

324 Footwear, except rubber or plastic 14 -6.588 1 5 -0.08 3845 Manufacture of aircraft 41 -4.661

3513 Manufacture of synthetic resins, plastic materials and man-made fibers except glass 56 -4.001 2 14 0.16

341 Paper and products 11 -3.898 3 15 0.18 351 Industrial chemicals 37 -2.148 322 Wearing apparel, except footwear 113 -1.932 4 7 0.03 321 Textiles 27 -1.707 5 26 0.4

3511 Manufacture of basic industrial chemicals except fertilizers 65 -1.672 6 21 0.25

3841 Shipbuilding and repairing 4 -1.639 7 28 0.46 384 Transport equipment 124 -1.517 8 23 0.31

3825 Manufacture of office, computing and accounting machinery 23 -1.495 9 34 1.06

382 Machinery, except electrical 417 -1.458 10 27 0.45 3211 Spinning, weaving and finishing textiles 80 -1.348 11 4 -0.09 369 Other non-metallic mineral products 236 -1.297 12 9 0.06 355 Rubber products 50 -1.215 13 18 0.23 371 Iron and steel 156 -1.201 14 11 0.09 361 Pottery, china, earthenware 11 -1.2 15 2 -0.15 381 Fabricated metal products 112 -1.091 16 20 0.24 331 Wood products, except furniture 57 -1.037 17 22 0.28

3828 Manufacture of weapons 35 -1.004 332 Furniture, except metal 40 -0.997 18 19 0.24 385 Professional and scientific equipment 86 -0.971 19 32 0.96

3 Manufacturing 3292 -0.930 3843 Manufacture of motor vehicles 80 -0.866 20 25 0.39 362 Glass and products 31 -0.827 21 30 0.53 352 Other chemicals 80 -0.8 22 17 0.22 354 Miscellaneous petroleum and coal products 14 -0.761 23 24 0.33 383 Machinery, electric 240 -0.731 24 31 0.77 314 Tobacco 27 -0.697 25 1 -0.45

4 Electricity, Gas and Water 194 -0.544 311 Food products 541 -0.518 26 12 0.14

3411 Manufacture of pulp, paper and paperboard 44 -0.42 27 13 0.15 2 Mining and Quarrying 398 -0.355 5 Construction 680 -0.320

313 Beverages 126 -0.222 28 10 0.08

6 Wholesale and Retail Trade and Restaurants and Hotels 598 -0.135

353 Petroleum refineries 62 -0.113 29 8 0.04 372 Non-ferrous metals 94 0.019 30 6 0.01

7 Transport, Storage and Communication 577 0.024 3522 Manufacture of drugs and medicines 55 0.148 31 36 1.49 9320 Science and education 217 0.159

1 Agriculture, Hunting, Forestry and Fishing 172 0.184 323 Leather products 23 0.209 32 3 -0.14

3832 Manufacture of radio, television and communication equipment and apparatus 38 0.229 33 33 1.04

9 Community, Social and Personal Services 490 0.462 342 Printing and publishing 46 0.468 34 16 0.2 356 Plastic products 36 0.559 35 35 1.14

8 Financing, Insurance, Real Estate and Business Services 272 0.863

390 Other manufactured products 21 1.042 36 29 0.47

Table 3. Ranking mismatch between Russian and US industries The table reports ranking mismatch in terms of investment intensity (invint) and financial dependence

(findep) between Russian and US ISIC2 industries from Table 2. The mismatch variable for a given

industry is the difference between the industry rank in Russia and its rank in the USA.

ISIC2 Industry Name invint rank mismatch

findep rank mismatch

3832 Manufacture of radio, television and communication equipment and apparatus -30 0

385 Professional and scientific equipment -27 -13

3841 Shipbuilding and repairing -26 -21

384 Transport equipment -21 -15

322 Wearing apparel, except footwear -21 -3

383 Machinery, electric -13 -7

324 Footwear, except rubber or plastic -11 -4

382 Machinery, except electrical -11 -17

3825 Manufacture of office, computing and accounting machinery -10 -25

331 Wood products, except furniture -10 -5

3843 Manufacture of motor vehicles -10 -5

356 Plastic products -10 0

3511 Manufacture of basic industrial chemicals except fertilizers -9 -15

3513 Manufacture of synthetic resins, plastic materials and man-made fibers except glass -9 -12

381 Fabricated metal products -9 -4

352 Other chemicals -3 5

3522 Manufacture of drugs and medicines -2 -5

390 Other manufactured products -1 7

321 Textiles -1 -21

355 Rubber products 1 -5

3211 Spinning, weaving and finishing textiles 1 7

332 Furniture, except metal 2 -1

342 Printing and publishing 5 18

323 Leather products 5 29

362 Glass and products 9 -9

311 Food products 13 14

369 Other non-metallic mineral products 16 3

371 Iron and steel 16 3

361 Pottery, china, earthenware 17 13

372 Non-ferrous metals 17 24

313 Beverages 19 18

3411 Manufacture of pulp, paper and paperboard 19 14

354 Miscellaneous petroleum and coal products 21 -1

341 Paper and products 22 -12

353 Petroleum refineries 25 21

314 Tobacco 26 24

Table 4. Basic Regressions

The table reports regression results for three dependent variables (decimal log of investment intensity,

decimal log of financial dependence, and decimal log of cash flow underutilization for capital expenditures)

and the minimum set of explanatory variables. The detailed variable descriptions are in Table 1. The t-

statistics (in parentheses) are robust to conditional heteroskedasticity and temporal correlation caused by

random firm effects. See Table 8 for the industry composition of regressions.

Table 4. Basic Regressions (continued) Dependent variable linvint lfindep1 lunderutCF

Dependent variable description Log (investment intensity)

Log (Financial dependence)

Log (CF underutilization for

investment) Number of observations 5910 2358 3376 Number of firms 2698 1561 2002 R-squared 0.156 0.117 0.097 Adjusted R-squared 0.152 0.106 0.089

Variable name Variable description Coefficient estimates and t-statistics

lsize_s Firm size via sales 0.111 ***5 (7.35)

lsize_p Firm size via NPPE -0.124 *** (-6.32)

-0.027 *** (-5.25)

laada Log (Average age of depreciable assets)

-0.244 *** (-7.69)

0.070 ** (1.96)

0.022 ** (2.04)

rating Credit rating 0.062 *** (5.17)

-0.058 *** (-3.61)

-0.013 *** (-2.71)

fig FIG membership dummy 0.040 (0.79)

-0.151 *** (-2.40)

-0.073 ** (-2.17)

moscow Moscow dummy 0.180 *** (3.56)

0.146 *** (2.65)

-0.002 (-0.12)

year_97 Year 1997 dummy -0.020 (-0.59)

-0.054 (-1.19)

0.067 *** (2.90)

year_98 Year 1998 dummy 0.164 *** (4.27)

-0.003 (-0.06)

0.068 *** (2.89)

year_99 Year 1999 dummy 0.350 *** (8.66)

-0.098 * (-1.82)

0.024 (0.98)

oil Oil industry 0.291 *** (2.93)

-0.104 (-1.08)

-0.111 * (-1.90)

gas Gas industry -0.172 (-1.36)

0.415 (1.39)

-0.206 (-0.87)

electric Electricity industry -0.157 * (-1.93)

-0.199 (-1.58)

-0.038 (-0.79)

ferrous Ferrous metals -0.211 *** (-2.72)

-0.005 (-0.04)

-0.036 (-0.96)

nonferr Non-ferrous metals -0.179 * (-1.93)

0.111 (1.03)

0.046 (1.07)

chemical Chemical industry -0.197 ** (-2.49)

0.020 (0.16)

0.026 (0.85)

mech_eng Machinery and fabricated metal products

-0.407 *** (-5.85)

0.263 *** (3.13)

0.082 *** (3.41)

wood Wood industry -0.173 (-1.53)

-0.076 (-0.52)

-0.048 (-0.99)

paper Paper industry -0.115 (-1.10)

-0.017 (-0.08)

-0.006 (-0.10)

construc_mat Construction materials -0.131 (-1.45)

-0.105 (-1.11)

0.042 (1.38)

light Light industry -0.419 *** (-4.70)

0.376 *** (2.79)

0.100 *** (3.54)

food_bev Food and beverages 0.030 (0.41)

-0.047 (-0.57)

0.013 (0.46)

agricult Agriculture -0.377 *** (-3.52)

0.092 (0.75)

-0.119 * (-1.76)

transpor Transport -0.068 (-0.82)

0.056 (0.58)

-0.057 (-1.33)

telecom Communications 0.275 *** (3.33)

-0.395 *** (-3.73)

-0.312 *** (-4.77)

construc Construction -0.001 (-0.01)

0.109 (1.26)

0.035 (1.32)

trade_ct Trade and catering 0.141 (1.41)

0.166 (1.64)

0.042 (1.20)

services Other services 0.078 (0.93)

0.038 (0.44)

-0.024 (-0.61)

finance financial services 0.350 *** (2.77)

0.557 *** (4.12)

0.132 *** (4.11)

utility Utilities 0.095 (0.77)

0.211 * (1.83)

0.017 (0.30)

sci_edu Science and Education -0.280 *** (-2.66)

0.212 ** (2.06)

0.084 *** (2.67)

_cons Constant term -2.317 *** (-11.98)

1.566 *** (6.49)

0.001 (0.02)

5 *** denotes significance at 1% level, ** - at 5% level, and * - at 10% level.

Table 5. Investment Intensity Regressions The dependent variable is the decimal log of investment intensity in Russia. The detailed variable descriptions are in Table 1. All regressions (except for Model 5.AA) include industry and industry-year interaction dummies (coefficient estimates are not reported). The t-statistics (in parentheses) are robust to conditional heteroskedasticity and temporal correlation caused by random firm effects. See Table 8 for the industry composition of regressions.

Model 5.A Model 5.AA6 Model 5.B Model 5.C Model

5.D7 Model 5.DD8 Model 5.E

Number of observations 5910 5910 4799 4258 2236 2022 489

Number of firms 2698 2698 2035 1813 938 881 197

R-squared 0.167 0.112 0.180 0.179 0.168 0.161 0.167

Adjusted R-squared 0.154 0.111 0.164 0.162 0.149 0.130 0.093


lsize_s Firm size via sales 0.112 *** (7.36)

0.109 *** (7.58)

0.117 *** (7.09)

0.116 *** (6.59)

0.134 *** (4.82)

0.102 *** (4.33)

0.075 (1.30)


-0.246 *** (-7.61)

-0.351 *** (-11.14)

-0.250 *** (-6.95)

-0.233 *** (-6.14)

-0.148 *** (-3.24)

-0.332 *** (-5.17)

-0.095 (-0.86)

rating Credit rating 0.060 *** (5.02)

0.084 *** (7.01)

0.075 *** (5.35)

0.079 *** (5.26)

0.092 *** (4.73)

0.055 ** (2.29)

0.115 ** (2.55)

lgovsup1 Government support 1.017 *** (5.26)

0.912 *** (4.76)

1.211 *** (8.80)

0.458 * (1.90)

2.893 *** (3.10)

growth_1 Industry growth in Russia – previous year 1.453 **

(2.56) 1.404 ** (2.42) -2.912

(-1.42)

growth_us Industry growth in the USA 0.571

(1.27) -7.417 * (-1.69)

util_cap Utilization of capacity 1.608 (1.65)

Fig FIG membership dummy

0.044 (0.85)

0.171 *** (4.63)

0.058 (0.88)

0.034 (0.44)

0.094 (0.69)

-0.025 (-0.27)

-0.198 (-1.32)


0.209 *** (4.14)

0.187 *** (3.46)

0.176 *** (3.14)

0.059 (0.70)

0.239 *** (3.20)

0.064 (0.34)

year_97 Year 1997 dummy -0.129 (-0.74)

-0.034 (-0.97)

-0.106 (-0.56)

0.138 (1.39)

-0.210 (-1.17)

0.084 (0.82)

-0.197 (-0.26)

year_98 Year 1998 dummy 0.047 (0.27)

0.153 *** (3.93)

0.059 (0.32)

0.107 (1.11)

0.482 * (1.95)

0.003 (0.03)

0.573 (0.78)

year_99 Year 1999 dummy 0.260 (1.62)

0.336 *** (8.15)

0.270 (1.59)

0.340 *** (3.73)

0.107 (0.28)

0.223 ** (2.49)

-0.208 (-0.59)

6 In Model 5.AA all the industry and industry-year dummies were dropped. 7 Because industry growth in the USA was available only for manufacturing (in ISIC2 sense) firms, the sample in Model 5.D consisted only of manufacturing (in ISIC2 sense) firms. 8 In Model 5.DD the sample consisted only of non-manufacturing (in ISIC2 sense) firms (excluding transport and communications).

Table 6. Financial dependence regressions – financially dependent firms The dependent variable is the decimal log of financial dependence in Russia. The detailed variable descriptions are in Table 1. All regressions include industry and industry-year interaction dummies (coefficient estimates are not reported). The t-statistics (in parentheses) are robust to conditional heteroskedasticity and temporal correlation caused by random firm effects. See Table 8 for the industry composition of regressions.

Model 6.A Model 6.B Model 6.C Model 6.D Model 6.E

Number of observations 2358 2050 1788 823 168

Number of firms 1561 1320 1157 556 118

R-squared 0.134 0.130 0.120 0.109 0.399

Adjusted R-squared 0.099 0.089 0.075 0.051 0.222



-0.122 *** (-5.73)

-0.121 *** (-5.27)

-0.143 *** (-3.55)

-0.010 (-0.12)


0.074 ** (2.02)

0.089 ** (2.16)

0.078 * (1.73)

0.052 (0.77)

0.158 (1.07)

rating Credit rating -0.057 *** (-3.44)

-0.071 *** (-3.84)

-0.065 *** (-3.26)

-0.106 *** (-3.54)

-0.153 ** (-2.42)

lgovsup1 Government support -0.114 (-1.56)

-0.135 * (-1.72)

-0.095 (-1.19)

-0.028 (-0.04)

growth_1 Industry growth in Russia – previous year

-0.423 (-0.49)

-0.191 (-0.22)

-2.468 (-0.96)

growth_us Industry growth in the USA

-1.132 (-1.63)

12.065 * (1.78)

util_cap Utilization of capacity

0.008 (0.00)

fig FIG membership dummy -0.133 ** (-2.06)

-0.183 *** (-2.80)

-0.175 ** (-2.38)

-0.115 (-1.11)

-0.661 (-1.03)


0.150 ** (2.54)

0.156 ** (2.44)

0.266 ** (2.36)

-0.138 (-0.64)

year_97 Year 1997 dummy -0.152 (-0.95)

-0.139 (-0.78)

0.021 (0.07)

-0.013 (-0.04)

-0.789 (-0.90)

year_98 Year 1998 dummy -0.005 (-0.03)

0.043 (0.26)

0.425 ** (2.05)

-0.685 *** (-3.32)

-0.726 (-0.93)

year_99 Year 1999 dummy -0.035 (-0.17)

-0.016 (-0.08)

-0.261 (-0.53)

0.530 *** (3.70)

-0.334 (-0.51)

Table 7. Cash flow underutilization regressions – financially independent firms The dependent variable is the decimal log of cash flow underutilization for capital expenditures in Russia. The detailed variable descriptions are in Table 1. All regressions include industry and industry-year interaction dummies (coefficient estimates are not reported). The t-statistics (in parentheses) are robust to conditional heteroskedasticity and temporal correlation caused by random firm effects. See Table 8 for the industry composition of regressions.

Model 7.A Model 7.B Model 7.C Model 7.D Model 7.E

Number of observations 3376 2845 2564 1447 322

Number of firms 2002 1628 1463 800 173

R-squared 0.130 0.109 0.106 0.084 0.249

Adjusted R-squared 0.106 0.080 0.076 0.052 0.145



-0.022 *** (-3.92)

-0.024 *** (-4.12)

-0.023 *** (-3.12)

-0.032 * (-1.66)


0.021 ** (2.04)

0.027 ** (2.38)

0.021 * (1.79)

0.004 (0.28)

0.058 (1.48)

rating Credit rating -0.012 ** (-2.55)

-0.015 *** (-2.90)

-0.019 *** (-3.38)

-0.019 *** (-3.05)

-0.025 * (-1.74)

lgovsup1 Government support -0.177 *** (-2.70)

-0.185 *** (-2.84)

-0.187 *** (-2.70)

-32.093 (-1.50)

growth_1 Industry growth in Russia – previous year -0.003

(-0.01) 0.014 (0.07)

2.981 *** (2.91)

growth_us Industry growth in the USA -0.103 (-0.88)

1.132 (0.93)

util_cap Utilization of capacity -0.6178 * (-1.83)

fig FIG membership dummy -0.068 ** (-1.97)

-0.044 (-0.99)

-0.042 (-0.90)

-0.051 (-0.68)

-0.095 (-0.54)

moscow Moscow dummy -0.006 (-0.33)

-0.007 (-0.38)

-0.015 (-0.78)

0.001 (0.04)

0.037 (0.52)

year_97 Year 1997 dummy 0.043 (0.51)

0.030 (0.35)

0.136 (1.14)

0.732 ** (2.32)

0.285 (1.16)

year_98 Year 1998 dummy 0.058 (0.64)

0.047 (0.51)

0.095 (0.65)

0.465 (0.92)

-1.875 *** (-10.90)

year_99 Year 1999 dummy -0.018 (-0.21)

-0.017 (-0.19)

0.084 (0.62)

0.905 ** (2.50)

-1.627 *** (-16.10)

Table 8. Industry composition of regressions The table reports observation numbers for each industry in major regressions. Industries are classified on the basis of the Russian OKONH industry classification system.


Variable name Variable description Basic

linvint

Basic

lfindep1

Basic lunderut

CF

Model

5.B

Model

5.C

Model

5.D

Model

5.DD

Model

6.B

Model

6.C

Model

6D

Mode

l 7.B

Model

7.C

Model

7.D

oil Oil industry 117 56 55 55 55 19 36 26 26 4 26 26 13gas Gas industry 15 9 5 12 12 10 2 9 9 7 3 3 3electric Electricity industry 187 44 120 66 66 0 66 20 20 0 46 46 0ferrous Ferrous metals 176 50 120 115 115 95 20 32 32 25 80 80 68nonferr Non-ferrous metals 117 51 55 60 60 46 14 28 28 20 31 31 25chemical Chemical industry 312 92 192 201 201 196 5 69 69 68 131 131 127mech_eng Machinery and fabricated metal products 1089 382 663 895 895 847 48 345 345 315 569 569 549 wood Wood industry 128 40 83 104 104 64 40 38 38 24 70 70 43paper Paper industry 60 19 38 45 45 45 0 15 15 15 29 29 29construc_mat Construction materials 276 86 181 249 249 220 29 82 82 74 172 172 152light Light industry 243 86 163 222 215 213 2 81 77 75 155 152 151food_bev Food and beverages 544 211 310 481 481 481 0 196 196 196 287 287 287agricult Agriculture 130 72 37 107 107 0 107 71 71 0 36 36 0transpor Transport 311 153 145 258 0 0 0 130 0 0 131 0 0telecom Communications 170 85 89 114 0 0 0 51 0 0 59 0 0construc Construction 596 258 347 538 538 0 538 232 232 0 321 321 0trade_ct Trade and catering 288 142 163 271 271 0 271 132 132 0 150 150 0services Other services 318 159 154 265 265 0 265 138 138 0 132 132 0finance Financial services 187 101 111 183 183 0 183 96 96 0 108 108 0utility Utilities 118 68 46 99 99 0 99 57 57 0 41 41 0sci_edu Science and education 208 97 108 184 184 0 184 91 91 0 101 101 0 other Other industries 320 124 191 275 113 0 113 111 34 0 167 79 0Total number 5910 2385 3376 4799 4258 2236 2022 2050 1788 823 2845 2564 1447

Documents

Table 1. Sample statistics · Table 1. Sample statistics (continued) Panel B. Variable correlations (p-values are reported in parenthesis) Variable name Variable explanation linvint