Table 6 Regression with fixed effects:...

Table 6

Regression with fixed effects: Non-middle east countries

	(1)	(2)	(3)	(4)	(5)	(6)
	ROE	ROE	ROE	ROE	ROE	ROE
Leverage Ratio	0.095^*** (0.014)	0.073^*** (0.017)	0.083^*** (0.018)	0.093^*** (0.018)	0.11^*** (0.018)	0.102^*** (0.018)
SIZE	0.003^*** (0.001)	0.003^*** (0.001)	0.005^*** (0.001)	−0.003^*** (0.001)	−0.003^*** (0.001)	−0.002^** (0.001)
LDTA		0.061^*** (0.023)	−0.004 (0.025)	−0.012 (0.024)	−0.01 (0.024)	0.001 (0.025)
NII Ratio			2.361^*** (0.1)	3.677^*** (0.12)	3.85^*** (0.123)	3.727^*** (0.127)
Operating Efficiency				2.55^*** (0.122)	2.854^*** (0.122)	2.683^*** (0.126)
CAP					0.072^** (0.03)	0.086^*** (0.03)
Credit Risk						−0.022^** (0.009)
_cons	0.031^** (0.016)	0.03^* (0.015)	−0.037^** (0.015)	0.166^*** (0.017)	0.166^*** (0.019)	0.155^*** (0.021)
Observations	4643	4616	4541	4515	4484	4357
Year Dummy	YES	YES	YES	YES	YES	YES
Country Dummy	YES	YES	YES	YES	YES	YES

	(1)	(2)	(3)	(4)	(5)	(6)
	ROE	ROE	ROE	ROE	ROE	ROE
Leverage Ratio	0.095^*** (0.014)	0.073^*** (0.017)	0.083^*** (0.018)	0.093^*** (0.018)	0.11^*** (0.018)	0.102^*** (0.018)
SIZE	0.003^*** (0.001)	0.003^*** (0.001)	0.005^*** (0.001)	−0.003^*** (0.001)	−0.003^*** (0.001)	−0.002^** (0.001)
LDTA		0.061^*** (0.023)	−0.004 (0.025)	−0.012 (0.024)	−0.01 (0.024)	0.001 (0.025)
NII Ratio			2.361^*** (0.1)	3.677^*** (0.12)	3.85^*** (0.123)	3.727^*** (0.127)
Operating Efficiency				2.55^*** (0.122)	2.854^*** (0.122)	2.683^*** (0.126)
CAP					0.072^** (0.03)	0.086^*** (0.03)
Credit Risk						−0.022^** (0.009)
_cons	0.031^** (0.016)	0.03^* (0.015)	−0.037^** (0.015)	0.166^*** (0.017)	0.166^*** (0.019)	0.155^*** (0.021)
Observations	4643	4616	4541	4515	4484	4357
Year Dummy	YES	YES	YES	YES	YES	YES
Country Dummy	YES	YES	YES	YES	YES	YES

Note(s): This table represents fixed effect analysis for dependent and independent variables by estimating 4357 observations. The robustness of the findings is checked by considering alternative measure of bank profitability (ROE) as a dependent variable. The independent variable consists of leverage ratio and long term debt ratio (LDTA) as measures of capital structure; size of the bank (SIZE); non-interest income ratio (NII Ratio); non-interest expense ratio denoted as Operating Efficiency; the capital ratio (CAP); the net loans to total assets ratio denoted as Credit Risk. The sign ^***, ^** and ^* denotes the statistical significance level at 1%, 5% and 10% respectively. The p values are shown in the parenthesis

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