Table 3 Random effects regression...

Table 3

Random effects regression results

	Equation (1)			Equation (2)
Dependent variable	Agricultural sector loans/Gross loans			Ln (loans to the agricultural sector)
	Full sample	Pre-interest rate cap	Post-interest rate cap	Full sample	Pre-interest rate cap	Post-interest rate cap
Models	A	B	C	A	B	C
	FEM	REM	REM	FEM	REM	REM
Constant	1.090***	0.975	0.472**	26.411***	81.648	−1.766
Constant	(0.277)	(0.913)	(0.192)	(8.701)	(55.272)	(3.337)
Interest rate cap	0.020**			0.302**
Interest rate cap	(0.008)			(0.146)
Bank size	−0.083***	−0.039***	−0.037***	−1.499**	0.832***	0.584***
Bank size	(0.023)	(0.014)	(0.012)	(0.611)	(0.215)	(0.182)
Equity ratio	−0.145***	−0.375*	−0.073	−2.130	−5.180	−0.372
Equity ratio	(0.036)	(0.212)	(0.079)	(1.673)	(6.141)	(1.199)
Liquidity	0.026	0.042	0.236**	−0.001	1.097	3.539
Liquidity	(0.028)	(0.026)	(0.104)	(0.577)	(1.178)	(2.281)
Asset quality	−0.020	−0.002	0.021	−0.913	−0.031	1.001
Asset quality	(0.024)	(0.022)	(0.069)	(0.538)	(0.899)	(1.095)
Revenue Concentration	0.012	−0.031	0.035	0.491	−0.331	2.973*
Revenue Concentration	(0.037)	(0.051)	(0.101)	(0.696)	(1.723)	(1.794)
Bank Concentration	−0.002 (0.001)	−0.007	−0.001	−0.041	−1.542	−0.004
Bank Concentration	−0.002 (0.001)	(0.018)	(0.001)	(0.038)	(1.040)	(0.033)
F/Wald $χ^{2}$	5.11	14.26	14.91	2.69	23.7	16.53
Prob > F/Wald $χ^{2}$	0.0001	0.0269	0.0209	0.0319	0.0006	0.0112
R-squared	0.3736	0.1557	0.3074	0.3613	0.4672	0.4891
Hausman $χ^{2}$ (Prob > $χ^{2}$ ⁠)	−14.73 (0.000)	3.36 (0.7624)	4.01 (0.6752)	15.463 (0.032)	1.81 (0.936)	1.16 (0.8848)
BP/CW Hettest $χ^{2}$ (Prob > $χ^{2}$ ⁠)	66.66 (0.000)	32.65 (0.000)	36.79 (0.000)	6.34 (0.012)	7.18 (0.007)	3.82 (0.051)
Banks	26	23	25	26	23	25
Observations	93	44	49	93	44	49

	Equation (1)			Equation (2)
Dependent variable	Agricultural sector loans/Gross loans			Ln (loans to the agricultural sector)
	Full sample	Pre-interest rate cap	Post-interest rate cap	Full sample	Pre-interest rate cap	Post-interest rate cap
Models	A	B	C	A	B	C
	FEM	REM	REM	FEM	REM	REM
Constant	1.090***	0.975	0.472**	26.411***	81.648	−1.766
Constant	(0.277)	(0.913)	(0.192)	(8.701)	(55.272)	(3.337)
Interest rate cap	0.020**			0.302**
Interest rate cap	(0.008)			(0.146)
Bank size	−0.083***	−0.039***	−0.037***	−1.499**	0.832***	0.584***
Bank size	(0.023)	(0.014)	(0.012)	(0.611)	(0.215)	(0.182)
Equity ratio	−0.145***	−0.375*	−0.073	−2.130	−5.180	−0.372
Equity ratio	(0.036)	(0.212)	(0.079)	(1.673)	(6.141)	(1.199)
Liquidity	0.026	0.042	0.236**	−0.001	1.097	3.539
Liquidity	(0.028)	(0.026)	(0.104)	(0.577)	(1.178)	(2.281)
Asset quality	−0.020	−0.002	0.021	−0.913	−0.031	1.001
Asset quality	(0.024)	(0.022)	(0.069)	(0.538)	(0.899)	(1.095)
Revenue Concentration	0.012	−0.031	0.035	0.491	−0.331	2.973*
Revenue Concentration	(0.037)	(0.051)	(0.101)	(0.696)	(1.723)	(1.794)
Bank Concentration	−0.002 (0.001)	−0.007	−0.001	−0.041	−1.542	−0.004
Bank Concentration	−0.002 (0.001)	(0.018)	(0.001)	(0.038)	(1.040)	(0.033)
F/Wald $χ^{2}$	5.11	14.26	14.91	2.69	23.7	16.53
Prob > F/Wald $χ^{2}$	0.0001	0.0269	0.0209	0.0319	0.0006	0.0112
R-squared	0.3736	0.1557	0.3074	0.3613	0.4672	0.4891
Hausman $χ^{2}$ (Prob > $χ^{2}$ )	−14.73 (0.000)	3.36 (0.7624)	4.01 (0.6752)	15.463 (0.032)	1.81 (0.936)	1.16 (0.8848)
BP/CW Hettest $χ^{2}$ (Prob > $χ^{2}$ )	66.66 (0.000)	32.65 (0.000)	36.79 (0.000)	6.34 (0.012)	7.18 (0.007)	3.82 (0.051)
Banks	26	23	25	26	23	25
Observations	93	44	49	93	44	49

Note(s): Model A denotes the sample period estimate (2014–2018); Model B denotes pre-interest rate cap estimates (2014–2015); Model C denotes post-interest rate cap estimates (2017–2018); BP/CW Hettest = Breusch-Pagan/Cook-Weisberg Heteroskedasticity Test; Hausman $χ^{2}$ = Hausman specification test; Heteroskedastic and autocorrelation consistent (HAC) standard errors in parentheses. ***, ** and * denotes significance at 1%; 5 and 10% respectively

Source(s): Authors' estimates from research data

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