Table 3.

Tobit regression variables

VariableDefinitionSource
Eff_ScoreDependentEfficiency scores obtained from DEA model, both output-oriented and input-orientedBanker, Charnes and Cooper (1984) 
AgeIndependentDifference between 31.12 of the year of the data and the year of establishment of the companyOrbis data base
SizeIndependentNatural logarithm of total assets 
Capital_ratioIndependentBook equity to risk weighted assets 
Liquidity_ratioIndependentTotal loans scaled by total deposits 
ROAIndependentNet income scaled by total assets 
Provisions_ratioIndependentLoan loss reserves scaled by gross loans 
Off_balanceIndependentOff-balance-sheet exposures, where a bank has underwritten the obligations of a third party and currently stands behind the risk 
D_SSMIndependentDummy variable taking the value of 1 if the bank entity is under the Single Supervisory Mechanism, and 0 otherwiseEuropean Central Bank
GDPIndependentAnnual rate of change in gross domestic product of the country where the bank entity is locatedWorld Bank
InflationIndependentAnnual rate of change in Consumer Price Index of the country where the bank entity is located 
Source(s): Authors’ own creation

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