Asian analysis – regression results (dependent variable: ROE)
| Variable | (1) Static model (first-difference) | (2) Dynamic panel IV (Anderson-Hsiao) |
|---|---|---|
| FinTech Index (FT_ASIA) | −0.0401 (0.0518) | −0.1005*** (0.0285) |
| Significance | p = 0.4410 | p = 0.0004 |
| Lagged ROE (t−1) | – | −0.0613 (0.1593) |
| Control variables | ||
| Cost-to-Income (CIR) | −0.6452*** (0.0397) | −0.3342*** (0.0721) |
| Equity-to-Debt (ETD) | 1.5182 (1.6533) | 1.3689*** (0.2842) |
| Loan-to-Deposit (LDR) | 0.1649 (3.00) | 0.1710* (0.0960) |
| Bank Size (LNA) | −0.0591** (0.0244) | 0.0231** (0.0116) |
| Non-Performing Loans (NPL) | −0.4426*** (0.1510) | −1.2132*** (0.3138) |
| Capital Adequacy (RAR) | 0.0825 (6.01) | −0.2099 (0.2386) |
| Model diagnostics | ||
| Observations (N) | 80 | 72 |
| R-squared | 0.8509 | 0.9131 |
| F-statistic (p-value) | 59.50 (0.000) | 616.54 (0.000) |
| Result Verdict | Insignificant | Negative & Disruptive |
| Variable | (1) Static model (first-difference) | (2) Dynamic panel IV (Anderson-Hsiao) |
|---|---|---|
| FinTech Index (FT_ASIA) | −0.0401 (0.0518) | −0.1005*** (0.0285) |
| Significance | ||
| Lagged | – | −0.0613 (0.1593) |
| Cost-to-Income (CIR) | −0.6452*** (0.0397) | −0.3342*** (0.0721) |
| Equity-to-Debt (ETD) | 1.5182 (1.6533) | 1.3689*** (0.2842) |
| Loan-to-Deposit (LDR) | 0.1649 (3.00) | 0.1710* (0.0960) |
| Bank Size (LNA) | −0.0591** (0.0244) | 0.0231** (0.0116) |
| Non-Performing Loans ( | −0.4426*** (0.1510) | −1.2132*** (0.3138) |
| Capital Adequacy (RAR) | 0.0825 (6.01) | −0.2099 (0.2386) |
| Observations ( | 80 | 72 |
| 0.8509 | 0.9131 | |
| F-statistic ( | 59.50 (0.000) | 616.54 (0.000) |
| Result Verdict | Insignificant | Negative & Disruptive |
Note(s): Standard errors in parentheses. Significance: ***p < 0.01, **p < 0.05, *p < 0.1. Dynamic Model is exactly identified