Table IV. Descriptions of the variables...

Table IV.

Descriptions of the variables used in the study

Variables	Acronym	Definitions	References
Main variables
Bank performance	ROAB	Profit before tax as a fraction of total assets	(Demirgüç-Kunt and Huizinga, 1999; Tan, 2016)
Bank risk	LNZSCORE	Natural logarithm of zscore; where zscore = (ROA plus the ratio of shareholders equity to total assets)/standard deviation of ROA	(Iannotta et al., 2007)
	NPLTL	It is the ratio of non-performing loans to total loans	(Agoraki et al., 2011)
	LLPNIR	The ratio of loan loss provision to net interest revenue	(Baselga-Pascual et al., 2015)
Bank capital	CAR	It is the sum of tier-1 and tier-2 capital as a percentage of risk-weighted assets	(Bitar et al., 2016)
	ETAR	The ratio of total shareholders’ equity to total assets	(Zheng et al., 2017)
Bank-specific control variables
Liquidity	LIQD	The ratio of total loans to total assets	(Goddard et al., 2013)
Cost inefficiency	OETA	The ratio of operating expenses to total assets	(Dietrich and Wanzenried, 2011)
Labor productivity	LP	Net profit after tax generated by per employee	Author Idea
Non-traditional activity	OFBSTA	Off balance sheet items as a fraction of total assets	(Rahman et al., 2015)
Income diversification	INCD	The ratio of non-interest income to total income	(Tan, 2016; Majumder et al., 2018)
Deposit ratio	DPR	Total deposit as a fraction of total assets	(Ashraf et al., 2016a)
Leverage	LEV	Total liabilities to total assets ratio	(Doyran, 2013)
Industry and macro-economic variables
Market power	CONC3	The total assets of the largest three banks as a fraction of total assets of the banking sector	(Tan, 2016)
Economic growth	GGR	Annual GDP growth rate (%)	(Baselga-Pascual et al., 2015; Majumder and Uddin, 2017)
Interest rate	BLINT	Bank lending interest rate (%)	(Geng et al., 2016)
Inflation	INFLR	Annual Inflation Rate (%)	(Tan and Floros, 2013; Akter et al., 2018)

Variables	Acronym	Definitions	References
Main variables
Bank performance	ROAB	Profit before tax as a fraction of total assets	(Demirgüç-Kunt and Huizinga, 1999; Tan, 2016)
Bank risk	LNZSCORE	Natural logarithm of zscore; where zscore = (ROA plus the ratio of shareholders equity to total assets)/standard deviation of ROA	(Iannotta et al., 2007)
	NPLTL	It is the ratio of non-performing loans to total loans	(Agoraki et al., 2011)
	LLPNIR	The ratio of loan loss provision to net interest revenue	(Baselga-Pascual et al., 2015)
Bank capital	CAR	It is the sum of tier-1 and tier-2 capital as a percentage of risk-weighted assets	(Bitar et al., 2016)
	ETAR	The ratio of total shareholders’ equity to total assets	(Zheng et al., 2017)
Bank-specific control variables
Liquidity	LIQD	The ratio of total loans to total assets	(Goddard et al., 2013)
Cost inefficiency	OETA	The ratio of operating expenses to total assets	(Dietrich and Wanzenried, 2011)
Labor productivity	LP	Net profit after tax generated by per employee	Author Idea
Non-traditional activity	OFBSTA	Off balance sheet items as a fraction of total assets	(Rahman et al., 2015)
Income diversification	INCD	The ratio of non-interest income to total income	(Tan, 2016; Majumder et al., 2018)
Deposit ratio	DPR	Total deposit as a fraction of total assets	(Ashraf et al., 2016a)
Leverage	LEV	Total liabilities to total assets ratio	(Doyran, 2013)
Industry and macro-economic variables
Market power	CONC3	The total assets of the largest three banks as a fraction of total assets of the banking sector	(Tan, 2016)
Economic growth	GGR	Annual GDP growth rate (%)	(Baselga-Pascual et al., 2015; Majumder and Uddin, 2017)
Interest rate	BLINT	Bank lending interest rate (%)	(Geng et al., 2016)
Inflation	INFLR	Annual Inflation Rate (%)	(Tan and Floros, 2013; Akter et al., 2018)

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