Table 2

Estimation results on the effects of GEPU and bank equity (EA) on bank performance (ROA) and risk (NPL)

GLSTwo-step system GMM
(1)(2)(3)(4)
ROANPLROANPL
L.ROA  0.2019*** 
  (0.0577) 
L.NPL   0.0646***
   (0.0207)
GEPU−0.0082***0.0007−0.0129***0.0479**
(0.0018)(0.0152)(0.0024)(0.0196)
EA−0.4954***0.3967−0.7767***4.4194***
(0.1184)(0.8087)(0.1733)(1.5648)
GEPUxEA0.1196***−0.05460.1759***−0.8382***
(0.0233)(0.1601)(0.0315)(0.2971)
GROW_CRE0.0030***−0.00890.0044***0.0179
(0.0009)(0.0077)(0.0015)(0.0197)
INC−0.0509***0.4678***−0.0674***−0.2324
(0.0141)(0.1324)(0.0164)(0.1876)
COST0.0949*0.67650.2598**3.3180***
(0.0574)(0.4454)(0.1198)(1.2671)
SIZE0.0023***−0.00040.0049***0.0124***
(0.0003)(0.0026)(0.0007)(0.0039)
GDP0.0001−0.0002−0.0001−0.0014**
(0.0001)(0.0007)(0.0001)(0.0006)
INF0.0003***0.00030.0005***0.0025***
(0.0001)(0.0004)(0.0001)(0.0007)
_cons−0.0372**0.0076−0.1018***−0.6696***
(0.0145)(0.1124)(0.0344)(0.1939)
Marginal (net) effect of GEPU conditional on EA (evaluated at mean EA)0.0024−0.00420.0028−0.0267
Observations369337343301
Prob > χ20.0000.000  
No. of instruments  2424
Number of groups26262626
AR(1) test (p-value)  0.0500.079
AR(2) test (p-value)  0.4800.163
Hansen test (p-value)  0.1020.360
Difference-in-Hansen tests (p-value)  0.2350.949

Note(s): Standard errors in parentheses, *p < 0.1, **p < 0.05, ***p < 0.01

Source(s): Table created by authors
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