Table 3 Results of correlation analysis...

Table 3

Results of correlation analysis for the 2007–2022 period

	Profitability (ROA)	Interest rates	Capital adequacy	Growth	Size	Lagged profitability
PF_i,t	1.0000
n	320
CBIR_t	0.2189***	1.0000
p-value	0.001
n	320	320
CA_i,t	0.7537***	0.1586***	1.0000
p-value	0.0000	0.0044
n	320	320	320
GR_i,t	0.2827***	0.0666	0.0965*	1.0000
p-value	0.0000	0.2351	0.0847
n	320	320	320	320
SZ_i,t	−0.2638***	−0.1586***	0.5498***	−0.0175	1.0000
p-value	0.0000	0.0044	0.0000	0.7549
n	320	320	320	320	320
PF_i,t-1	0.7803***	0.2098***	0.6048***	−0.0661	−0.1985***	1.0000
p-value	0.0000	0.0003	0.0000	0.2539	0.0005
n	300	300	300	300	300	300

	Profitability (ROA)	Interest rates	Capital adequacy	Growth	Size	Lagged profitability
PF_i,t	1.0000
n	320
CBIR_t	0.2189***	1.0000
p-value	0.001
n	320	320
CA_i,t	0.7537***	0.1586***	1.0000
p-value	0.0000	0.0044
n	320	320	320
GR_i,t	0.2827***	0.0666	0.0965*	1.0000
p-value	0.0000	0.2351	0.0847
n	320	320	320	320
SZ_i,t	−0.2638***	−0.1586***	0.5498***	−0.0175	1.0000
p-value	0.0000	0.0044	0.0000	0.7549
n	320	320	320	320	320
PF_i,t-1	0.7803***	0.2098***	0.6048***	−0.0661	−0.1985***	1.0000
p-value	0.0000	0.0003	0.0000	0.2539	0.0005
n	300	300	300	300	300	300

Note(s): PF = profitability measured through return on assets (ROA), CBIR = the average annual central bank interest rate, CA = capital adequacy measured as the ratio of equity to total assets (book value), SZ = bank size measured as the natural logarithm of the bank’s book value of total revenue, GR = the percentage change in revenue (book value)

*p < 0.1, **p < 0.05, ***p < 0.01

Source(s): Created by authors

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