Table 2 Panel unit root test results...

Table 2

Panel unit root test results under the second-generation test

PESARAN'S panel unit root test results
Variable	Number of lags	Zt-bar statistical value
		Part 1: At level data			Part 2: At first difference
		Without trend	With trend	Inference	Without trend	With trend	Inference
ZSC	1	−2.175**	−0.853	I(1)	−6.631***	−6.324***	I(0)
	2	−0.189	2.721		−2.105**	−2.329***
	3	0.371	−0.850		1.523	2.330
CRE	1	−6.525***	−3.200***	I(1)	−6.053***	−8.773***	I(0)
	2	−2.705***	0.216		−1.566*	−1.412*
	3	0.252	1.458		−1.520*	−3.422***
LIQ	1	−0.635	−0.865	I(1)	−5.103***	−3.943***	I(0)
	2	−0.079	1.360		−1.327*	−0.268
	3	0.088	−0.871		−2.432***	0.866
STABILITY	1	−0.400	1.119	I(1)	−4.486***	−4.412***	I(1)
	2	1.001	3.032		0.502	−1.100
	3	0.972	2.198		4.172	1.657
ROA	1	−4.005***	−2.710***	I(0)	–	–
	2	−2.412***	−1.316*		–	–
	3	−0.990	−3.047***		–	–
ROE	1	−2.471***	−0.962	I(0)	–	–
	2	−2.009**	−0.294		–	–
	3	−1.851**	−3.169***		–	–
NIM	1	−1.679**	−0.991	I(1)	−7.331***	−6.522***	I(0)
	2	−3.648***	−1.841**		−4.159***	−2.729***
	3	2.257	2.906		−0.687	−0.793
PROFIT	1	−4.354***	−3.486***	I(0)	–	–
	2	−1.878**	−1.483*		–	–
	3	−1.877**	−0.960		–	–
GRW	1	−2.357***	−3.932***	I(0)	–	–
	2	−1.859**	−2.533***		–	–
	3	0.576	0.696		–	–

PESARAN'S panel unit root test results
Variable	Number of lags	Zt-bar statistical value
		Part 1: At level data			Part 2: At first difference
		Without trend	With trend	Inference	Without trend	With trend	Inference
ZSC	1	−2.175**	−0.853	I(1)	−6.631***	−6.324***	I(0)
	2	−0.189	2.721		−2.105**	−2.329***
	3	0.371	−0.850		1.523	2.330
CRE	1	−6.525***	−3.200***	I(1)	−6.053***	−8.773***	I(0)
	2	−2.705***	0.216		−1.566*	−1.412*
	3	0.252	1.458		−1.520*	−3.422***
LIQ	1	−0.635	−0.865	I(1)	−5.103***	−3.943***	I(0)
	2	−0.079	1.360		−1.327*	−0.268
	3	0.088	−0.871		−2.432***	0.866
STABILITY	1	−0.400	1.119	I(1)	−4.486***	−4.412***	I(1)
	2	1.001	3.032		0.502	−1.100
	3	0.972	2.198		4.172	1.657
ROA	1	−4.005***	−2.710***	I(0)	–	–
	2	−2.412***	−1.316*		–	–
	3	−0.990	−3.047***		–	–
ROE	1	−2.471***	−0.962	I(0)	–	–
	2	−2.009**	−0.294		–	–
	3	−1.851**	−3.169***		–	–
NIM	1	−1.679**	−0.991	I(1)	−7.331***	−6.522***	I(0)
	2	−3.648***	−1.841**		−4.159***	−2.729***
	3	2.257	2.906		−0.687	−0.793
PROFIT	1	−4.354***	−3.486***	I(0)	–	–
	2	−1.878**	−1.483*		–	–
	3	−1.877**	−0.960		–	–
GRW	1	−2.357***	−3.932***	I(0)	–	–
	2	−1.859**	−2.533***		–	–
	3	0.576	0.696		–	–

Note(s) 1: The null hypothesis of all tests is of panel unit root. 2: I(0) stands for the integration of zero-order, while I(1) as the integration of order one. 3: ***, ** and * corresponding to 1, 5 and 10% significance levels, respectively

Source(s): Author's calculation

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