Table 3 Regression results Dependent...

Table 3

Regression results

Dependent	Z-score			Credit risk
Dependent	1	2	3	4	5	6
Control variables
Bank size (ln)	−0.256*	−0.278*	−0.378†	−0.075	−0.078	0.007
	(−2.06)	(−2.12)	(−1.84)	(−1.18)	(−1.31)	(0.12)
Bank age (ln)	−0.012	−0.037	−0.126	−0.056	0.015	−0.004
	(−0.00)	(−0.21)	(−0.47)	(−1.13)	(0.12)	(−0.69)
Business model	0.004	0.011	−0.033†	0.011*	0.011*	0.016*
	(0.34)	0.73)	(−1.69)	(2.04)	(1.99)	(2.23)
NPLs/Gross loans (ln)	−0.688***	−0.739***	−0.734**
	(−3.25)	(−3.31)	(−2.75)
Bank profitability (ln) _{(t –} ₁₎				−0.415*	−0.638*	−0.502**
				(−2.00)	(−2.51)	(−2.61)
Cooperative banks	0.924*	0.754*	0.526	0.202**	0.180*	0.192*
	(2.15)	(2.17)	(1.22)	(2.67)	(1.98)	(2.00)
GDP growth rate _{(t –} ₁₎	0.537	0.485	0.461	−0.398***	−0.361**	−0.376**
	(1.49)	(1.43)	(1.14)	(−3.80)	(−3.14)	(−3.33)
Inflation rate _{(t –} ₁₎	0.984	0.894	0.947	−0.214***	−0.204***	−0.182***
	(1.23)	(1.14)	(1.03)	(−6.54)	(−5.50)	(−4.81)
Independent variables
Training hours per capita _(t _{– 1)}		0.0239*			−0.002
		(2.03)			(−0.68)
Managerial training hours _(t _{– 1)}			−0.025			−0.017**
			(−0.72)			(−2.74)
Technical training hours _(t _{– 1)}			0.019			0.001
			(1.07)			(0.27)
Constant	5.225	4.880	−7.394	0.711	1.519	−0.223
	(1.41)	(1.54)	(1.44)	(0.55)	(1.15)	(−0.18)
Year FE	Yes	Yes	Yes	Yes	Yes	Yes
N	187	143	101	187	143	101
Wald χ²	50.56***	44.83***	50.93***	273.45***	312.80***	200.52***
R²	0.2484	0.293	0.31	0.086	0.07	0.244
LM test Random vs. pooled	49.17***	42.12***	27.32***	69.39***	13.31***	13.86***
Hausman test FE vs. RE	12.81	14.58	13.86	9.82	12.95	6.31

Dependent	Z-score			Credit risk
Dependent	1	2	3	4	5	6
Control variables
Bank size (ln)	−0.256*	−0.278*	−0.378†	−0.075	−0.078	0.007
	(−2.06)	(−2.12)	(−1.84)	(−1.18)	(−1.31)	(0.12)
Bank age (ln)	−0.012	−0.037	−0.126	−0.056	0.015	−0.004
	(−0.00)	(−0.21)	(−0.47)	(−1.13)	(0.12)	(−0.69)
Business model	0.004	0.011	−0.033†	0.011*	0.011*	0.016*
	(0.34)	0.73)	(−1.69)	(2.04)	(1.99)	(2.23)
NPLs/Gross loans (ln)	−0.688***	−0.739***	−0.734**
	(−3.25)	(−3.31)	(−2.75)
Bank profitability (ln) _{(t –} ₁₎				−0.415*	−0.638*	−0.502**
				(−2.00)	(−2.51)	(−2.61)
Cooperative banks	0.924*	0.754*	0.526	0.202**	0.180*	0.192*
	(2.15)	(2.17)	(1.22)	(2.67)	(1.98)	(2.00)
GDP growth rate _{(t –} ₁₎	0.537	0.485	0.461	−0.398***	−0.361**	−0.376**
	(1.49)	(1.43)	(1.14)	(−3.80)	(−3.14)	(−3.33)
Inflation rate _{(t –} ₁₎	0.984	0.894	0.947	−0.214***	−0.204***	−0.182***
	(1.23)	(1.14)	(1.03)	(−6.54)	(−5.50)	(−4.81)
Independent variables
Training hours per capita _(t _{– 1)}		0.0239*			−0.002
		(2.03)			(−0.68)
Managerial training hours _(t _{– 1)}			−0.025			−0.017**
			(−0.72)			(−2.74)
Technical training hours _(t _{– 1)}			0.019			0.001
			(1.07)			(0.27)
Constant	5.225	4.880	−7.394	0.711	1.519	−0.223
	(1.41)	(1.54)	(1.44)	(0.55)	(1.15)	(−0.18)
Year FE	Yes	Yes	Yes	Yes	Yes	Yes
N	187	143	101	187	143	101
Wald χ²	50.56***	44.83***	50.93***	273.45***	312.80***	200.52***
R²	0.2484	0.293	0.31	0.086	0.07	0.244
LM test Random vs. pooled	49.17***	42.12***	27.32***	69.39***	13.31***	13.86***
Hausman test FE vs. RE	12.81	14.58	13.86	9.82	12.95	6.31

Note(s): This table reports the regression results of the model with bank risk as dependent variable. In columns 1–3 the dependent is the Z-score. In columns 4–6 the dependent is the NPLs/Gross loans ratio. Z-score measures the bank stability and is calculated as the natural logarithm of the Z-score. The NPLs/Gross loans value has been calculated as the natural log of the NPLs on Gross Loans ratio. Bank size is the natural log of bank total assets at the end of the fiscal year. Bank age is the natural log of bank age. Business model is the net loans on total asset ratio. Bank profitability is the natural log of (1 + ROA). The cooperative banks variable is a dummy equal to 1 if the bank is a cooperative, and 0 otherwise. Training hours is the average amount of the training hours per capita provided to employees of the bank i in the year t. Managerial training hours is the average amount of the managerial training hours per capita provided to employees of the bank i in the year t. Technical training hours is the average amount of the managerial training hours per capita provided to employees of the bank i in the year t. GDP is the growth rate of the gross domestic product in the year t. Inflation rate is the annual variation in the Consumer Price Index. FE stands for Fixed Effects and RE stands for Random Effects. †, *, ** and *** denote significance at the 10%, 5%, 1% and 0.1% levels, respectively

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