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- The explanatory variables are TARP RECIPIENT (a dummy equal to one if the bank was provided TARP capital support), POST TARP (a dummy equal to one in 2009-2012, the period after TARP program initiation), their interaction, as well as borrower and other bank characteristics. Borrower characteristics are borrower size, market-to-book, leverage, profitability, tangibility, cash flow volatility, cash holdings ratio and borrower S&P credit rating dummies. Other bank characteristics are bank size, capital adequacy, asset quality, management quality, earnings, liquidity, sensitivity to market risk, HHI, percent metropolitan, fee income, DW (Discount Window), and TAF (Term Auction Facility). Models also include loan type dummies, SIC- and year-fixed effects. All variables are defined in Table 1. *, **, and *** denote significance at 10%, 5%, and 1% level.
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Wu, Q., Zhang, H., Hoi, C. K. S., Hasan, I., 2013. Beauty is in the eye of the beholder: The effect of corporate tax avoidance on the cost of bank loans. Journal of Financial Economics. 35 Table 1: Definitions and Summary Statistics This table reports definitions and summary statistics of the variables for the full sample. All variables using dollar amounts are expressed in real 2012:Q4 dollars using the implicit GDP price deflator.