This table gives descriptive statistics for the relationship of G with several financial and accounting measures in September 1990. The first column gives the correlations for each of these variables with the Governance Index, G. The second and third columns give means for these same variables within the Democracy Portfolio (G < 5) and the Dictatorship Portfolio (G s: 14) in 1990. The final column gives the difference of the two means with its standard error in parentheses. The calculation of G is described in Section II, and definitions of each variable are given in Appendix 2. Significance at the 5 percent and 1 percent levels is indicated by * and **, respectively.