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Text on a blue background reads: 'Match the financing to the life of the asset.'
Table 1. Data and Sample Construction: Analysis Sample and Descriptive Statistics Notes: Panel A reports the construction of the baseline analysis sample, and Panel B presents descriptive statistics for the baseline 5% low-leverage risk set. A firm-year enters the risk set when book financial leverage is below 5% in year t. AP/TA is accounts payable divided by total assets. The transition indicator equals one when financial leverage reaches or exceeds 5% in year t+1. Continuous accounting variables are winsorized at the 1st and 99th percentiles where applicable.