Determinants of local public short-term and long-term debt
| (1) | (2) | (3) | (4) | |
|---|---|---|---|---|
| Variable | short-term debt | short-term debt | long-term debt | long-term debt |
| Revenue diversification | 1.399** (0.680) | 1.356** (0.683) | 2.120*** (0.394) | 2.059*** (0.397) |
| Grant_revenue | −0.055 (0.361) | 0.012 (0.363) | 1.268*** (0.209) | 1.343*** (0.211) |
| Unemployment_rate | −1.745 (1.355) | −1.522 (1.359) | 0.448 (0.785) | 0.680 (0.790) |
| Income_pc | 1.340*** (0.307) | 1.303*** (0.315) | 0.459** (0.178) | 0.435** (0.183) |
| Population_density | 0.0004*** (0.0001) | 0.0004*** (0.0001) | 0.003*** (0.0001) | 0.0003*** (0.0001) |
| Tax_burden | −0.126** (10.849) | −0.125** (0.054) | −0.072** (0.031) | −0.076** (0.031) |
| Lever | 0.152 (0.321) | 0.838*** (0.186) | ||
| Tangibility | 0.271 (0.270) | −0.018 (0.157) | ||
| Size | 0.49 (0.039) | 0.045* (0.023) | ||
| ROA | 0.003 (1.030) | −1.599*** (0.599) | ||
| Tax_rate | −0.417 (0.254) | −0.170 (0.148) | ||
| Growth | −0.178 (0.136) | −0.021 (0.079) | ||
| Constant | −8.119*** (2.944) | −9.209*** (2.962) | −9.379*** (1.705) | −10.322*** (1.721) |
| F (p-value) | 0.0000 | 0.0000 | 0.0000 | 0.0000 |
| N (municipality × firm) | 2,019 | 2,019 | 2,019 | 2,019 |
| R2 | 0.081 | 0.086 | 0.144 | 0.143 |
Municipal companies by NACE sections
| Top-level NACE Sectors (Sections) | Number of firms | Share(%) | Cumulative percentage |
|---|---|---|---|
| “A” Agriculture, forestry, fishing | 1 | 0.06 | 0.06 |
| “E” Water supply, sewage, waste management | 917 | 50.80 | 50.86 |
| “L” Rental and management of a real estate | 286 | 15.84 | 66.70 |
| “H” Passenger, urban and suburban land transport | 157 | 8.70 | 75.40 |
| “F” Construction | 103 | 5.71 | 81.11 |
| “R” Activity of sports facilities | 96 | 5.32 | 86.43 |
| “D” Electricity, gas, steam and air conditioning supply | 232 | 12.85 | 99.28 |
| “N” Administrative and support activities | 13 | 0.72 | 100.00 |
| Total | 1,805 | 100.00 |
Definition of variables describing municipal companies
| Variable | Definition | Data source |
|---|---|---|
| Lever | Long-term debt to total assets ratio | ORBIS |
| Tangibility | Tangible assets to total assets ratio | ORBIS |
| Size | The logarithm of total assets | ORBIS |
| ROA | EBIT (earnings before interests and tax) to total assets ratio if EBIT is positive, and 0 otherwise | ORBIS |
| Tax_rate | Income tax to gross profit | ORBIS |
| Growth | The growth rate of total assets between 2017 and 2018 | ORBIS |
Definition of variables describing municipalities
| Variable | Definition | Data sources |
|---|---|---|
| Dependent variables | ||
| Short_debt | Short-term debt outstanding/population | Ministry of Finance, Local Data Bank |
| Long_debt | Long-term debt outstanding/population | Ministry of Finance, Local Data Bank |
| Independent variables | ||
| Revenue_diversification | Hirschman–Herfindahl Index
| Ministry of Finance |
| Grant_revenue | The logarithm of grant revenue scaled by population | Ministry of Finance, Local Data Bank |
| Unemployment_rate | Unemployment/population in the productive age | Local Data Bank |
| Income_pc | The logarithm of total revenues scaled by population | Ministry of Finance, Local Data Bank |
| Population_density | Number of inhabitants per square miles | Local Data Bank |
| Tax_burden | Local taxes as a share in total revenues | Ministry of Finance |
Municipal companies by number of shareholders (municipalities)
| Number of shareholders | Number of firms | Number of shareholders (municipalities) | Number of observations (municipality × firm) |
|---|---|---|---|
| 1 | 1,701 | 1 | 1,701 |
| 2 | 57 | 2 | 114 |
| 3 | 25 | 3 | 75 |
| 4 | 9 | 4 | 36 |
| 5 | 5 | 5 | 25 |
| 6 | 1 | 6 | 6 |
| 7 | 2 | 7 | 14 |
| 8 | 1 | 8 | 8 |
| 9 | 2 | 9 | 18 |
| 10 | 1 | 10 | 10 |
| 12 | 1 | 12 | 12 |
| Total | 1,805 | 2,019 |
Descriptive statistics of short- and long-term debt of municipalities in Poland
| Variable | N* | Mean | Median | Q1 | Q3 | SD | Min | Max |
|---|---|---|---|---|---|---|---|---|
| Short_debt | 2,019 | 6.32 | 7.09 | 6.39 | 7.76 | 2.46 | 0 | 9.72 |
| Long_debt | 2,019 | 8.79 | 9.03 | 8.49 | 9.55 | 1.48 | 0 | 11.30 |
Descriptive statistics
| Variable | N | Mean | SD | Min | Max |
|---|---|---|---|---|---|
| Municipality-level | |||||
| Revenue_diversification | 2,019 | 0.773 | 0.120 | 0.312 | 1.067 |
| Grant_revenue (ln) | 2,019 | 9.018 | 0.224 | 8.301 | 10.144 |
| Unemployment_rate | 2,019 | 0.089 | 0.045 | 0.018 | 0.265 |
| Income_pc (ln) | 2,019 | 10.243 | 0.245 | 9.775 | 12.032 |
| Population_density | 2,019 | 750.805 | 829.326 | 11 | 3,993 |
| Tax_burden | 2,019 | 0.527 | 1.018 | 0.030 | 12.255 |
| Firm level | |||||
| Lever | 2,019 | 0.155 | 0.165 | 0 | 1 |
| Tangibility | 2,019 | 0.718 | 0.252 | 0 | 1 |
| Size | 2,019 | 16.766 | 1.853 | 8.517 | 22.845 |
| ROA | 2,019 | 0.023 | 0.054 | 0 | 0.980 |
| Tax_rate | 2,019 | 0.173 | 0.212 | 0 | 1 |
| Growth | 2,019 | 0.105 | 0.391 | −0.883 | 3 |
Determinants of local public short-term debt by industries of municipal companies – subsidiaries of municipalities
| Variable | Sector E | Sector L | Sector H | Sector F | Sector R | Sector D |
|---|---|---|---|---|---|---|
| Revenue diversification | −0.091 (0.939) | 1.689 (2.236) | 2.313 (2.875) | −3.118 (3.049) | −4.498 (3.747) | 7.071*** (2.183) |
| Grant_revenue | −0.726 (0.522) | 1.939* (1.030) | −0.819 (1.010) | −1.197 (1.437) | −1.968 (1.307) | 2.303* (1.328) |
| Unemployment_rate | −1.899 (1.890) | −6.724* (3.512) | 6.450 (4.117) | −3.027 (5.766) | 7.072 (6.518) | −0.149 (4.074) |
| Income_pc | 1.599*** (0.477) | 0.301 (0.889) | 3.120*** (0.827) | 2.160* (1.284) | 2.138** (0.967) | 0.024 (1.308) |
| Population_density | 0.0004*** (0.0001) | 0.0003** (0.0001) | 0.0003* (0.0001) | 0.0003 (0.0002) | 0.0002 (0.0002) | 0.0001 (0.0002) |
| Tax_burden | −0.035 (0.078) | −0.0217** (0.107) | −0.302 (0.233) | −0.385 (0.367) | −0.806*** (0.193) | 0.154 (0.170) |
| Tangibility | 0.135 (0.485) | −0.132 (0.479) | 1.703** (0.839) | 0.661 (0.749) | −0.750 (0.974) | 0.337 (0.963) |
| Size | 0.041 (0.067) | 0.079 (0.088) | −0.243** (0.109) | −0.125 (0.158) | 0.381** (0.174) | 0.304** (0.119) |
| ROA | −0.091 (1.783) | −6.740 (4.087) | 0.654 (3.725) | 5.826 (7.646) | −0.972 (1.575) | −1.327 (5.978) |
| Tax_rate | 0.172 (0.386) | −0.953* (0.563) | 0.036 (0.556) | −0.807 (1.062) | 2.428 (1.737) | −2.522*** (0.788) |
| Growth | 0.021 (0.235) | 0.038 (0.413) | −0.531* (0.269) | −0.383 (0.378) | −0.411 (0.326) | 0.501 (0.508) |
| Constant | −4.453 (4.393) | −15.985** (7.538) | −17.822** (7.952) | −0.465 (11.324) | 0.191 (10.786) | −25.301*** (8.932) |
| F (p-value) | 0.0000 | 0.0000 | 0.0000 | 0.3115 | 0.0001 | 0.0000 |
| N | 1,051 | 311 | 189 | 113 | 99 | 242 |
| R2 | 0.059 | 0.125 | 0.228 | 0.114 | 0.340 | 0.176 |
Determinants of local public long-term debt by industries of municipal companies – subsidiaries of municipalities
| Variable | Sector E | Sector L | Sector H | Sector F | Sector R | Sector D |
|---|---|---|---|---|---|---|
| Revenue diversification | 2.053*** (0.581) | −0.143 (0.956) | 5.135*** (1.693) | −0.860 (1.399) | −1.101 (3.108) | 1.413 (0.964) |
| Grant_revenue | 1.566*** (0.323) | 0.143 (0.440) | 1.349** (0.595) | 0.508 (0.659) | 2.876*** (1.084) | 0.260 (0.587) |
| Unemployment_rate | 1.412 (1.170) | 2.011 (1.502) | −4.027* (2.424) | −2.060 (2.645) | −7.779 (5.405) | 3.986** (1.799) |
| Income_pc | −0.060 (0.296) | 1.927*** (0.380) | 0.526 (0.487) | 1.862*** (0.589) | −0.345 (0.802) | 1.511*** (0.577) |
| Population_density | 0.0003*** (0.0001) | 0.0001** (0.0001) | 0.0002*** (0.0001) | 0.0001 (0.0001) | 0.0006** (0.0002) | 0.0002* (0.0001) |
| Tax_burden | −0.104** (0.048) | −0.023 (0.046) | −0.078 (0.137) | 0.045 (0.168) | 0.060 (0.160) | 0.020 (0.075) |
| Tangibility | −0.323 (0.300) | 0.284 (0.205) | −0.112 (0.494) | −0.084 (0.344) | 0.775 (0.808) | 0.324 (0.425) |
| Size | 0.112*** (0.041) | 0.008 (0.038) | −0.022 (0.634) | 0.028 (0.073) | −0.027 (0.145) | 0.036 (0.053) |
| ROA | −0.784 (1.103) | −0.240 (1.748) | −7.085*** (2.193) | −2.940 (3.508) | −1.222 (1.306) | 2.178 (2.640) |
| Tax_rate | −0.415* (0.239) | 0.054 (0.241) | 0.186 (0.328) | 0.078 (0.487) | −0.377 (1.440) | 0.310 (0.348) |
| Growth | 0.250* (0.145) | −0.138 (0.177) | 0.026 (0.158) | −0.737*** (0.173) | −0.309 (0.270) | 0.497** (0.224) |
| Constant | −8.329*** (2.719) | −12.520*** (3.224) | −12.240** (4.682) | −14.055*** (5.195) | −12.380 (8.944) | −11.589*** (3.944) |
| F (p-value) | 0.0000 | 0.0000 | 0.0000 | 0.0000 | 0.0020 | 0.0000 |
| N | 1,051 | 311 | 189 | 113 | 99 | 242 |
| R2 | 0.091 | 0.255 | 0.338 | 0.358 | 0.275 | 0.201 |