Table 8 Robustness check: 2SLS,...

Table 8

Robustness check: 2SLS, staggered DiD, alternative measurement of risk

	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)	(9)
	2SLS			Staggered DiD			Alternative measurement of CFP
Variables	LLP/Asset_it+1	LLP/Equity_it+1	LLP/Loans_it+1	LLP/Asset_it+1	LLP/Equity_it+1	LLP/Loans_it+1	Zscore_it+1	NPL/Loans_it+1	NPL/Asset_it+1
CFP	−0.020***	−0.167***	−0.033***	−0.007***	−0.065***	−0.012***	0.775***	−1.172***	−0.683***
CFP	(−3.716)	(−3.833)	(−3.813)	(−6.292)	(−5.411)	(−6.654)	(8.923)	(−7.706)	(−6.980)
PostParis				−0.004***	−0.041***	−0.006***
PostParis				(−8.746)	(−8.041)	(−8.334)
CFP*PostParis				0.010***	0.077***	0.017***
CFP*PostParis				(8.486)	(5.966)	(8.424)
Size	−0.001*	−0.020***	−0.002*	−0.002***	−0.030***	−0.004***	0.389***	−0.375***	−0.205***
Size	(−1.674)	(−3.352)	(−1.905)	(−9.258)	(−10.568)	(−9.408)	(10.654)	(−5.874)	(−4.985)
Leverage	−0.001***	−0.001	−0.001***	−0.000***	0.002***	−0.001***	−0.015*	−0.035**	−0.026***
Leverage	(−4.116)	(−0.717)	(−3.834)	(−6.979)	(2.676)	(−5.561)	(−1.722)	(−2.299)	(−2.632)
Diversified	0.013***	0.170***	0.023***	0.014***	0.175***	0.025***	−0.886***	3.364***	2.124***
Diversified	(5.984)	(6.961)	(6.006)	(12.184)	(13.472)	(12.609)	(−5.241)	(11.365)	(11.154)
Growth_Revenue	0.001	0.022**	0.003*	0.003***	0.031***	0.005***	−0.239***	0.638***	0.377***
Growth_Revenue	(1.154)	(2.184)	(1.815)	(5.096)	(5.538)	(6.134)	(−3.255)	(4.975)	(4.563)
Efficiency	−0.002**	−0.020**	−0.004***	−0.003***	−0.024***	−0.005***	0.337***	−0.825***	−0.420***
Efficiency	(−2.540)	(−2.269)	(−2.731)	(−5.615)	(−4.131)	(−5.725)	(4.508)	(−6.298)	(−4.988)
GDP_Growth	−0.067***	−0.547***	−0.123***	−0.005	−0.084*	−0.023***	5.706***	−4.229***	−1.648**
GDP_Growth	(−3.912)	(−3.965)	(−4.439)	(−1.147)	(−1.680)	(−3.043)	(9.356)	(−3.962)	(−2.399)
HHI	−0.013	0.005	−0.008	−0.039***	−0.168*	−0.051***	2.754**	−7.963***	−6.758***
HHI	(−0.771)	(0.042)	(−0.308)	(−4.863)	(−1.877)	(−3.786)	(2.362)	(−3.902)	(−5.146)
Constant				0.032***	0.274***	0.051***	0.762**	4.439***	2.590***
Constant				(12.905)	(9.965)	(12.198)	(2.125)	(7.071)	(6.410)
Bank FE	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Year FE	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Obs	2,521	2,521	2,521	2,534	2,534	2,534	2,534	2,534	2,534
Adj R²	0.105	0.119	0.070	0.228	0.253	0.237	0.191	0.187	0.162

	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)	(9)
	2SLS			Staggered DiD			Alternative measurement of CFP
Variables	LLP/Asset_it+1	LLP/Equity_it+1	LLP/Loans_it+1	LLP/Asset_it+1	LLP/Equity_it+1	LLP/Loans_it+1	Zscore_it+1	NPL/Loans_it+1	NPL/Asset_it+1
CFP	−0.020***	−0.167***	−0.033***	−0.007***	−0.065***	−0.012***	0.775***	−1.172***	−0.683***
CFP	(−3.716)	(−3.833)	(−3.813)	(−6.292)	(−5.411)	(−6.654)	(8.923)	(−7.706)	(−6.980)
PostParis				−0.004***	−0.041***	−0.006***
PostParis				(−8.746)	(−8.041)	(−8.334)
CFP*PostParis				0.010***	0.077***	0.017***
CFP*PostParis				(8.486)	(5.966)	(8.424)
Size	−0.001*	−0.020***	−0.002*	−0.002***	−0.030***	−0.004***	0.389***	−0.375***	−0.205***
Size	(−1.674)	(−3.352)	(−1.905)	(−9.258)	(−10.568)	(−9.408)	(10.654)	(−5.874)	(−4.985)
Leverage	−0.001***	−0.001	−0.001***	−0.000***	0.002***	−0.001***	−0.015*	−0.035**	−0.026***
Leverage	(−4.116)	(−0.717)	(−3.834)	(−6.979)	(2.676)	(−5.561)	(−1.722)	(−2.299)	(−2.632)
Diversified	0.013***	0.170***	0.023***	0.014***	0.175***	0.025***	−0.886***	3.364***	2.124***
Diversified	(5.984)	(6.961)	(6.006)	(12.184)	(13.472)	(12.609)	(−5.241)	(11.365)	(11.154)
Growth_Revenue	0.001	0.022**	0.003*	0.003***	0.031***	0.005***	−0.239***	0.638***	0.377***
Growth_Revenue	(1.154)	(2.184)	(1.815)	(5.096)	(5.538)	(6.134)	(−3.255)	(4.975)	(4.563)
Efficiency	−0.002**	−0.020**	−0.004***	−0.003***	−0.024***	−0.005***	0.337***	−0.825***	−0.420***
Efficiency	(−2.540)	(−2.269)	(−2.731)	(−5.615)	(−4.131)	(−5.725)	(4.508)	(−6.298)	(−4.988)
GDP_Growth	−0.067***	−0.547***	−0.123***	−0.005	−0.084*	−0.023***	5.706***	−4.229***	−1.648**
GDP_Growth	(−3.912)	(−3.965)	(−4.439)	(−1.147)	(−1.680)	(−3.043)	(9.356)	(−3.962)	(−2.399)
HHI	−0.013	0.005	−0.008	−0.039***	−0.168*	−0.051***	2.754**	−7.963***	−6.758***
HHI	(−0.771)	(0.042)	(−0.308)	(−4.863)	(−1.877)	(−3.786)	(2.362)	(−3.902)	(−5.146)
Constant				0.032***	0.274***	0.051***	0.762**	4.439***	2.590***
Constant				(12.905)	(9.965)	(12.198)	(2.125)	(7.071)	(6.410)
Bank FE	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Year FE	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Obs	2,521	2,521	2,521	2,534	2,534	2,534	2,534	2,534	2,534
Adj R²	0.105	0.119	0.070	0.228	0.253	0.237	0.191	0.187	0.162

Note(s): t-statistics are shown in parentheses. ***, **, and * denote statistical significance at the 1%, 5%, and 10% levels, respectively

Source(s): Authors’ calculations

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