Note(s): This table reports the regression discontinuity coefficients for the bank performance-related uncertainty measures. The table reports both the local linear and quadratic regression discontinuity coefficients first by specifying a sub-sample of “All Relevant Banks,” which includes banks between $10B and $200B in total asset size, and second, by using the MSE optimal bandwidth measure. The table reports the results for the bank earnings volatility and the cash flow volatility. Regressions are triangular kernel weighted and are allowed to capture more banks in a larger bandwidth in the first two columns and are restricted to having at least 50 observations within the selected optimal bandwidth in the last two columns. Control variables include the first 12 bank characteristics shown in Table 2. All regressions include bank and year-fixed effects. Standard errors are clustered at the bank level and are reported in parentheses while observation counts are reported in brackets. ***, ** and * indicate significance at the 1%, 5% and 10% levels, respectively

Source(s): Authors’ own work