for the product of anti-director rights and judicial efficiency, the regression coefficient is significant in all three of the usual specifications. The adjusted R-squared is consistently 0.22-0.23. Using the product of anti-director rights and corruption or the product of anti-director rights and rule of law gives similar results. Using import coverage rather than reserves does not make the governance variable insignificant in any specification, and in one case (the product of corruption and anti-director rights), the effect is to make the governance variable significant at the 5% level.
The LLSV (1998) index of creditor rights shows that several countries with relatively hight creditor rights experience a great deal of depreciation, such as Indonesia, Malaysia,Thailand,and Korea (Table 3). Table 5 shows that there is no significant relation between creditor rights and the exchange rate depreciation; the R-squared is only 0.003. The product of creditor rights and the efficiency of the judiciary or the corruption index does not give a significant result. There also does not appear to be any kind of relation between exchange rate depreciation and accounting standards (table 5).