Table 2 Variable description and... | Emerald Publishing

Table 2

Variable description and measures

Variables	Measure	References	Expected outcome
ROA	Measure of bank profitability, computed by the ratio of net income after tax to total assets	Ercegovac et al. (2020), Flamini et al. (2009), Obamuyi (2013)
ROE	Measure of bank profitability, computed by the ratio of net income after tax to total equity	Abor (2005), Rachdi (2013), Soana (2011), Yao et al. (2018)
Leverage Ratio	Computed by the ratio of total debt to total assets	Ayalew (2021), Mkadmi et al. (2021)	+
SIZE	Bank size, computed by the natural logarithm of total assets ln(TA)	Adusei (2015), Ali and Puah (2019)	+/−
LDTA	Long-term debt, computed by the ratio of total long-term debt to total assets	Anafo et al. (2015), Ayalew (2021), Salim and Yadav (2012), Samuel and Samuel (2018)	+
NII ratio	Non-interest income ratio, computed by the ratio of non-interest income to total assets	Hossain and Ahamed (2021), Mkadmi et al. (2021)	+
Operating Efficiency	Computed by the ratio of non-interest expense to total assets	Ahmed et al. (2021)	+
CAP	Capital ratio, computed by the ratio of total equity to total assets	Rana-Al-Mosharrafa and Islam (2021), Shrieves and Dahl (1992)	+
Credit Risk	Computed by the ratio of net loans to total assets	Ali and Puah (2019), Rana-Al-Mosharrafa and Islam (2021)	+/−

Variables	Measure	References	Expected outcome
ROA	Measure of bank profitability, computed by the ratio of net income after tax to total assets	Ercegovac et al. (2020), Flamini et al. (2009), Obamuyi (2013)
ROE	Measure of bank profitability, computed by the ratio of net income after tax to total equity	Abor (2005), Rachdi (2013), Soana (2011), Yao et al. (2018)
Leverage Ratio	Computed by the ratio of total debt to total assets	Ayalew (2021), Mkadmi et al. (2021)	+
SIZE	Bank size, computed by the natural logarithm of total assets ln(TA)	Adusei (2015), Ali and Puah (2019)	+/−
LDTA	Long-term debt, computed by the ratio of total long-term debt to total assets	Anafo et al. (2015), Ayalew (2021), Salim and Yadav (2012), Samuel and Samuel (2018)	+
NII ratio	Non-interest income ratio, computed by the ratio of non-interest income to total assets	Hossain and Ahamed (2021), Mkadmi et al. (2021)	+
Operating Efficiency	Computed by the ratio of non-interest expense to total assets	Ahmed et al. (2021)	+
CAP	Capital ratio, computed by the ratio of total equity to total assets	Rana-Al-Mosharrafa and Islam (2021), Shrieves and Dahl (1992)	+
Credit Risk	Computed by the ratio of net loans to total assets	Ali and Puah (2019), Rana-Al-Mosharrafa and Islam (2021)	+/−