Table 6 The effect of market power on...

Table 6

The effect of market power on bank liquidity creation: robustness check

Dependent variable	FLC_EX	NFLC_EX	FLC_EX	NFLC_EX
Lag of FLC_EX	0.3007^***		0.2160^***
Lag of FLC_EX	(7.40)		(2.86)
Lag of NFLC_EX		0.1483^***		0.1823^**
Lag of NFLC_EX		(3.66)		(2.52)
LERNER	1.1742^***	0.8667^***	0.7773^*	0.6822^***
LERNER	(3.96)	(6.90)	(1.72)	(2.61)
LERNER*D_HIGH			0.2541^*	0.1626^*
LERNER*D_HIGH			(1.76)	(1.86)
CAP	−0.9400^**	−0.9430^***	−1.1455^**	−1.0957^***
CAP	(−2.34)	(−2.82)	(−2.10)	(−2.58)
SIZE	−6.4829^*	−4.2435^**	−6.1679^*	−6.1008^**
SIZE	(−1.82)	(−1.98)	(−1.71)	(−2.17)
NPL	1.7862^***	3.1499^***	3.5232^***	1.8676^***
NPL	(2.80)	(5.03)	(5.56)	(3.94)
GDPGR	−3.5547^***	−2.3613^***	−0.5782	−1.4258
GDPGR	(−4.34)	(−3.21)	(−0.75)	(−1.63)
RATE	−0.2630^*	−0.2774^**	−0.0087	−0.1292
RATE	(−1.86)	(−2.41)	(−0.05)	(−1.23)
Constant	225.5925^**	150.9183^**	201.2365^*	208.9827^**
Constant	(1.97)	(2.16)	(1.75)	(2.26)
Observations	192	192	192	192
Groups	24	24	24	24
Instruments	24	21	24	23
AR(1) (p-value)	0.0250	0.0621	0.0295	0.0353
AR(2) (p-value)	0.1287	0.1487	0.2179	0.4038
Hansen (p-value)	0.2352	0.1499	0.2261	0.1473

Dependent variable	FLC_EX	NFLC_EX	FLC_EX	NFLC_EX
Lag of FLC_EX	0.3007^***		0.2160^***
Lag of FLC_EX	(7.40)		(2.86)
Lag of NFLC_EX		0.1483^***		0.1823^**
Lag of NFLC_EX		(3.66)		(2.52)
LERNER	1.1742^***	0.8667^***	0.7773^*	0.6822^***
LERNER	(3.96)	(6.90)	(1.72)	(2.61)
LERNER*D_HIGH			0.2541^*	0.1626^*
LERNER*D_HIGH			(1.76)	(1.86)
CAP	−0.9400^**	−0.9430^***	−1.1455^**	−1.0957^***
CAP	(−2.34)	(−2.82)	(−2.10)	(−2.58)
SIZE	−6.4829^*	−4.2435^**	−6.1679^*	−6.1008^**
SIZE	(−1.82)	(−1.98)	(−1.71)	(−2.17)
NPL	1.7862^***	3.1499^***	3.5232^***	1.8676^***
NPL	(2.80)	(5.03)	(5.56)	(3.94)
GDPGR	−3.5547^***	−2.3613^***	−0.5782	−1.4258
GDPGR	(−4.34)	(−3.21)	(−0.75)	(−1.63)
RATE	−0.2630^*	−0.2774^**	−0.0087	−0.1292
RATE	(−1.86)	(−2.41)	(−0.05)	(−1.23)
Constant	225.5925^**	150.9183^**	201.2365^*	208.9827^**
Constant	(1.97)	(2.16)	(1.75)	(2.26)
Observations	192	192	192	192
Groups	24	24	24	24
Instruments	24	21	24	23
AR(1) (p-value)	0.0250	0.0621	0.0295	0.0353
AR(2) (p-value)	0.1287	0.1487	0.2179	0.4038
Hansen (p-value)	0.2352	0.1499	0.2261	0.1473

Note(s): significance level (***p < 1%), (**p < 5%), (*p < 10%) and ( ) is t-statistic

Source: Authors

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