Table 4 Regression results of IFRS 9 and...

Table 4

Regression results of IFRS 9 and cash holding (Conventional banks and Islamic banks)

Variables	CASH	t-statistic	CASH	t-statistic	CASH	t-statistic
IFRS9	−0.036***	[−4.07]	−0.042***	[−3.80]	−0.045***	[−4.12]
ISLAMIBANK					−0.014	[−1.39]
ISLAMIIFRS9*					−0.002	[−0.20]
FIRMSIZE			0.005	[0.43]	0.004	[0.32]
DEBT			0.171***	[4.27]	0.222***	[4.67]
CAPEX			0.544*	[1.87]	0.517*	[1.76]
LOANS2TA			0.006	[0.93]	0	[0.03]
DEPOSIT2TA			0.060***	[4.33]	0.070***	[4.33]
TIER1			−0.141	[−0.82]	−0.081	[−0.48]
TIER2			0.186	[0.49]	0.022	[0.06]
ROA			−0.396	[−0.56]	−0.859	[−1.11]
GOODWILL			−6.661***	[−2.74]	−5.792**	[−2.21]
SIZE_BOARD			−0.001	[−0.91]	0	[−0.35]
INDBOD			0.002	[0.73]	0.003	[0.90]
SIZE_AC			0.002	[1.00]	0.003	[1.41]
INDIRAC			0	[−0.04]	0	[−0.11]
DIVIDEND			0.005	[0.67]	0.004	[0.61]
OCF			0.086	[0.98]	0.08	[0.95]
LNAGE			0.006	[0.81]	0.006	[0.79]
ZSCORE			−0.044	[−1.35]	−0.074**	[−2.12]
PPE			0.041	[0.11]	−0.216	[−0.51]
CONSTANT	0.105***	[17.26]	−0.075	[−0.34]	−0.054	[−0.24]
Observations	232		232		232
R-squared	0.11		0.34		0.35
ADJ. R-squared	0.08		0.26		0.27

Variables	CASH	t-statistic	CASH	t-statistic	CASH	t-statistic
IFRS9	−0.036***	[−4.07]	−0.042***	[−3.80]	−0.045***	[−4.12]
ISLAMIBANK					−0.014	[−1.39]
ISLAMI*IFRS9					−0.002	[−0.20]
FIRMSIZE			0.005	[0.43]	0.004	[0.32]
DEBT			0.171***	[4.27]	0.222***	[4.67]
CAPEX			0.544*	[1.87]	0.517*	[1.76]
LOANS2TA			0.006	[0.93]	0	[0.03]
DEPOSIT2TA			0.060***	[4.33]	0.070***	[4.33]
TIER1			−0.141	[−0.82]	−0.081	[−0.48]
TIER2			0.186	[0.49]	0.022	[0.06]
ROA			−0.396	[−0.56]	−0.859	[−1.11]
GOODWILL			−6.661***	[−2.74]	−5.792**	[−2.21]
SIZE_BOARD			−0.001	[−0.91]	0	[−0.35]
INDBOD			0.002	[0.73]	0.003	[0.90]
SIZE_AC			0.002	[1.00]	0.003	[1.41]
INDIRAC			0	[−0.04]	0	[−0.11]
DIVIDEND			0.005	[0.67]	0.004	[0.61]
OCF			0.086	[0.98]	0.08	[0.95]
LNAGE			0.006	[0.81]	0.006	[0.79]
ZSCORE			−0.044	[−1.35]	−0.074**	[−2.12]
PPE			0.041	[0.11]	−0.216	[−0.51]
CONSTANT	0.105***	[17.26]	−0.075	[−0.34]	−0.054	[−0.24]
Observations	232		232		232
R-squared	0.11		0.34		0.35
ADJ. R-squared	0.08		0.26		0.27

Note(s): *, **, and *** indicates coefficients are statistically significant at 10 percent, 5 percent and 1 percent respectively

Source(s): Authors’ own creation

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