Table 5

Bank risk, linear models, sound/unsound banks

(1)(2)(3)(4)
CE RatioLeverageNPLsPrice Volatility
Female Directors (lag) | m_Y = 0, 1−0.0863*** (0.0253)0.0587** (0.0284)−0.0369** (0.0144)0.0238*** (0.00804)−0.0275* (0.0148)0.0128 (0.0175)−0.0816*** (0.0296)0.00160 (0.0322)
Board Size (lag, log)0.00849 (0.0122)−0.000926 (0.00420)−0.00279 (0.00728)−0.0204* (0.0118)
Independent Directors (lag)−0.00156 (0.0125)−0.00396 (0.00266)−0.00490 (0.00636)0.00319 (0.00822)
CEO Duality (lag)0.000372 (0.00491)−0.00103 (0.00236)−0.00248 (0.00288)−0.00205 (0.00409)
Tenure (lag, log)0.0168** (0.00799)−0.00620** (0.00269)−0.0109 (0.00988)−0.0172** (0.00785)
Meetings (lag, log)−0.00346 (0.00426)−0.00491** (0.00192)0.00365 (0.00284)0.00913* (0.00504)
Bank Size (lag, log)0.0366*** (0.0104)0.00703* (0.00387)−0.00779 (0.00881)−0.0473** (0.0210)
ROA (lag)−0.118 (0.148)0.143 (0.100)−0.936*** (0.336)−0.861*** (0.212)
Loans Ratio (lag)0.106*** (0.0330)−0.000855 (0.0139)0.0139 (0.0183)−0.0268 (0.0262)
Deposits Ratio (lag)0.00000776 (0.0326)0.0210 (0.0135)−0.0581*** (0.0177)−0.0326 (0.0605)
Hard Quotas (lag)0.0284** (0.0125)−0.00579 (0.00423)−0.00191 (0.00638)0.0139 (0.00943)
Soft Quotas (lag)0.0111** (0.00474)0.00497*** (0.00147)−0.0102*** (0.00313)−0.00989** (0.00490)
GDP (lag, log)−0.0443 (0.0300)−0.0252*** (0.00912)−0.0385** (0.0149)−0.0879** (0.0341)
Year effects, constantYesYesYesYes
Observations990968995983

Notes:

Panel fixed effects (within) estimation (significant Hausman test); all the explanatory variables are lagged by 1 year (lag); natural logarithmic transformations of Board Size, Tenure, Meetings, Bank Size and GDP are used (log); Bank-level clustered robust standard errors in parentheses; significance levels:

*

p < 0.10;

**

p <* 0.05

***

p < 0.01; m_Y is a dummy variable that takes the value 1 when the risk (measured in terms of Y = CE Ratio, LEV, NPLs, PV) is above the sample median and 0 when the risk is below the sample median; | m_Y = 0, 1 means the coefficient on the left is conditional to m_Y being equal to 0 and the coefficient on the right is conditional to m_Y being equal to 1

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