Regression analysis of board structures and financial performance and stability
| OLS-PCSE | System GMM | |||||
|---|---|---|---|---|---|---|
| NIM | RAROA | Z-SCORE | NIM | RAROA | Z-SCORE | |
| Dependent variable: Financial performance and stability | ||||||
| Lag | 0.0593 | −1.1784*** | 0.3302** | |||
| (0.7900) | (−2.6400) | (2.2300) | ||||
| BODSIZE | −0.0458*** | 0.0538** | 0.1595*** | 1.1507 | 0.2238 | 3.1568 |
| (−2.7100) | (2.0700) | (3.4300) | (0.5100) | (0.0800) | (1.4000) | |
| BODIND | 3.4059*** | −1.5005 | −6.7698*** | −59.6164 | 54.0004*** | −125.7872* |
| (5.0700) | (−0.8900) | (−9.5400) | (−1.5200) | (2.6400) | (−1.6700) | |
| BODGEN | 5.0318*** | −1.5450 | −12.2409*** | 2.6156 | −12.5609 | −86.7913 |
| (4.3700) | (−0.8000) | (−8.8300) | (0.0200) | (−0.3100) | (−0.7000) | |
| BSIZE | −0.6052*** | −0.5877*** | 0.3471** | −4.8952*** | 3.2714** | 0.3638 |
| (−4.7300) | (−2.6800) | (2.0100) | (−3.3100) | (2.5500) | (0.1900) | |
| CRL5 | 0.0384*** | 0.1261*** | 0.0666*** | −0.1532** | 0.2068*** | −0.2856*** |
| (3.3500) | (7.1200) | (4.9900) | (−2.2200) | (3.0700) | (−3.3100) | |
| GDPpcg | 0.1825*** | −0.1184 | −0.4633*** | 0.0014 | 0.0109 | 0.4593 |
| (3.2600) | (−1.3100) | (−6.6900) | (0.0400) | (0.0700) | (0.6900) | |
| Constant | 4.5217*** | −3.6381*** | 6.0307*** | 36.1085*** | −34.9314 | 25.6101 |
| (4.7800) | (−2.7600) | (4.9000) | (2.8200) | (−1.4400) | (1.1600) | |
| Diagnostics | ||||||
| R-squared | 0.0895 | 0.0560 | 0.1760 | |||
| Number of Groups | 247.0000 | 267.0000 | 268.0000 | 231.0000 | 254.0000 | 268.0000 |
| Number of Instruments | 26.0000 | 11.0000 | 11.0000 | |||
| Observations | 1045.0000 | 1222.0000 | 1239.0000 | 806.0000 | 952.0000 | 1056.0000 |
| Wald χ2 (6/6/6) | 128.3200*** | 114.3900*** | 321.8100*** | |||
| F-test | 2.5300** | 2.1600** | 13.1900*** | |||
| AR(1) | −0.9000 | −0.2500 | −1.5400 | |||
| p-value | 0.3680 | 0.8000 | 0.1240 | |||
| AR(2) | −0.5900 | −0.3600 | −1.2600 | |||
| p-value | 0.5580 | 0.7200 | 0.2080 | |||
| Hansen J | 21.1000 | 2.4300 | 0.8000 | |||
| p-value | 0.2740 | 0.4870 | 0.8490 | |||
| OLS-PCSE | System GMM | |||||
|---|---|---|---|---|---|---|
| NIM | RAROA | Z-SCORE | NIM | RAROA | Z-SCORE | |
| Lag | 0.0593 | −1.1784*** | 0.3302** | |||
| (0.7900) | (−2.6400) | (2.2300) | ||||
| BODSIZE | −0.0458*** | 0.0538** | 0.1595*** | 1.1507 | 0.2238 | 3.1568 |
| (−2.7100) | (2.0700) | (3.4300) | (0.5100) | (0.0800) | (1.4000) | |
| BODIND | 3.4059*** | −1.5005 | −6.7698*** | −59.6164 | 54.0004*** | −125.7872* |
| (5.0700) | (−0.8900) | (−9.5400) | (−1.5200) | (2.6400) | (−1.6700) | |
| BODGEN | 5.0318*** | −1.5450 | −12.2409*** | 2.6156 | −12.5609 | −86.7913 |
| (4.3700) | (−0.8000) | (−8.8300) | (0.0200) | (−0.3100) | (−0.7000) | |
| BSIZE | −0.6052*** | −0.5877*** | 0.3471** | −4.8952*** | 3.2714** | 0.3638 |
| (−4.7300) | (−2.6800) | (2.0100) | (−3.3100) | (2.5500) | (0.1900) | |
| CRL5 | 0.0384*** | 0.1261*** | 0.0666*** | −0.1532** | 0.2068*** | −0.2856*** |
| (3.3500) | (7.1200) | (4.9900) | (−2.2200) | (3.0700) | (−3.3100) | |
| GDPpcg | 0.1825*** | −0.1184 | −0.4633*** | 0.0014 | 0.0109 | 0.4593 |
| (3.2600) | (−1.3100) | (−6.6900) | (0.0400) | (0.0700) | (0.6900) | |
| Constant | 4.5217*** | −3.6381*** | 6.0307*** | 36.1085*** | −34.9314 | 25.6101 |
| (4.7800) | (−2.7600) | (4.9000) | (2.8200) | (−1.4400) | (1.1600) | |
| 0.0895 | 0.0560 | 0.1760 | ||||
| Number of Groups | 247.0000 | 267.0000 | 268.0000 | 231.0000 | 254.0000 | 268.0000 |
| Number of Instruments | 26.0000 | 11.0000 | 11.0000 | |||
| Observations | 1045.0000 | 1222.0000 | 1239.0000 | 806.0000 | 952.0000 | 1056.0000 |
| Wald | 128.3200*** | 114.3900*** | 321.8100*** | |||
| 2.5300** | 2.1600** | 13.1900*** | ||||
| AR(1) | −0.9000 | −0.2500 | −1.5400 | |||
| 0.3680 | 0.8000 | 0.1240 | ||||
| AR(2) | −0.5900 | −0.3600 | −1.2600 | |||
| 0.5580 | 0.7200 | 0.2080 | ||||
| Hansen J | 21.1000 | 2.4300 | 0.8000 | |||
| 0.2740 | 0.4870 | 0.8490 | ||||
Note(s): ***, ** and * denotes significance levels of 1%, 5% and 10%, respectively