Note 1-36

36 Concretely, the demand for bank borrowings of listed companies for the four-year period starting in FY1999 were analyzed, using financial data of listed companies (on consolidated basis) can be used, applying the binary logit model which adopts the fluctuations in bank borrowing as explained variables, and the probability for the marginal changes in each explanatory variable to trigger bank borrowing or return of debt was measured. As for explanatory variables, the ordinary profit on sales and capital adequacy ratio were used, to which fluctuations in volume of sales and in corporate bonds were added as dummy indexes, to control for the characteristics of the industries.