Cluster-robust standard errors are in parentheses. ***p < 0.01, **p < 0.05, *p < 0.1.

This table provides the results of a panel regression with bank and time fixed effects explaining the impact of CoCo issuance on risk-taking incentives of issuers during 2011 to 2018. The dependent variables are Loan loss reserves to gross loans (Columns 1, 2 and 3) and Impaired loans to gross loans (Columns 4, 5 and 6). The variable of interest is CoCo issuance, a dummy that takes the value 1 when a bank issue CoCos in a given year and 0 otherwise. Control variables are the natural logarithm of bank total assets, the proportion of bank net loans to total assets, total customer deposits to total assets, the net interest margin (NIM), total equity over total assets and bank Tier 1 to risk-weighted assets. All variables are winsorized at the 1st and 99th percentile