Table 2 Dynamic panel-data estimation,...

Table 2

Dynamic panel-data estimation, two-step system GMM

Financial sustainability	Model 1	Model 2	Model 3
Financial sustainability	RD	ROE	ROA
L1	0.437 (0.111)**	0.377 (0.041)**	0.251 (0.057)**
L2	−0.089 (0.040)**	0.062 (0.034)**	0.091 (0.028)**
RD	0.347 (0.080)**	0.342 (0.080)**	0.130 (0.026)**
Depth	0.0023 (0.023)**	0.071 (0.024)**	0.008 (0.001)**
Breadth	0.054 (0.021)**	0.047 (0.022)**	0.019 (0.008)**
Leverage	−0.019 (0.004)**	−0.021 (0.002)**	−0.008 (0.002)**
Size	0.041 (0.021)**	0.058 (0.023)**	0.014 (0.007)
_cons	−0.394 (0.327)	−1.489 (0.309)	−0.419 (0.097)**
Wald χ²(7)	201.26	214.0	161.09
Prob > χ²	0.000	0.000	0.000
No. Instruments	19	19	19
No. Groups	444	444	444
Observations	1776	1776	1776
Hansen J-test χ²	7.51	7.28	7.01
Prob > χ²	0.111	0.122	0.136
AR (2) test	−1.07	0.50	0.75
Prob > χ²	0.286	0.618	0.453

Financial sustainability	Model 1	Model 2	Model 3
Financial sustainability	RD	ROE	ROA
L1	0.437 (0.111)**	0.377 (0.041)**	0.251 (0.057)**
L2	−0.089 (0.040)**	0.062 (0.034)**	0.091 (0.028)**
RD	0.347 (0.080)**	0.342 (0.080)**	0.130 (0.026)**
Depth	0.0023 (0.023)**	0.071 (0.024)**	0.008 (0.001)**
Breadth	0.054 (0.021)**	0.047 (0.022)**	0.019 (0.008)**
Leverage	−0.019 (0.004)**	−0.021 (0.002)**	−0.008 (0.002)**
Size	0.041 (0.021)**	0.058 (0.023)**	0.014 (0.007)
_cons	−0.394 (0.327)	−1.489 (0.309)	−0.419 (0.097)**
Wald χ²(7)	201.26	214.0	161.09
Prob > χ²	0.000	0.000	0.000
No. Instruments	19	19	19
No. Groups	444	444	444
Observations	1776	1776	1776
Hansen J-test χ²	7.51	7.28	7.01
Prob > χ²	0.111	0.122	0.136
AR (2) test	−1.07	0.50	0.75
Prob > χ²	0.286	0.618	0.453

Note(s): FSN denotes financial sustainability; ROE is the return on equity; ROA is the return on the asset; RD is the revenue diversification; Depth is the depth of outreach; Breadth is the breadth of outreach. The values in parentheses are standard errors of the. Hansen J-test denotes the overidentification test for the restrictions in GMM estimation. The AR(2) test is the Arellano–Bond test for the existence of the second-order autocorrelation in first

Differences of residuals ***p < 0.01, **p < 0.05, *p < 0.1

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