Table 3 Robustness check using alternative measure of competition and efficiency
From: Do competition and efficiency lead to bank stability? Evidence from Bangladesh
Variables | (1) | (2) | (3) |
|---|---|---|---|
\({\text{Financial stability}}_{t - 1}\). | 0.486*** (0.036) | 0.422*** (0.057) | 0.519*** (0.072) |
\({\text{Competition }}_{t - 1}\) | 7.261** (2.903) | 11.821*** (4.401) | 11.310** (5.663) |
\({\text{Competition }}_{t - 1}^{2}\) | − 0.953*** (0.340) | − 1.509*** (0.537) | − 1.364** (0.679) |
Efficiencyt−1 | 3.571*** (1.228) | 8.544* (4.984) | |
\({\text{Competition}}_{t - 1} {{ \times Efficiency}}_{t - 1}\). | − 3.129** (1.447) | ||
Bank sizet−1 | 0.272* (0.155) | 0.184 (0.206) | 0.262 (0.208) |
Liquidityt−1 | 0.001 (0.053) | 0.079 (0.079) | 195*** (0.062) |
Log(GDP per capita)t−1 | 0.400*** (0.106) | 0.129 (0.176) | − 0.402 (0.273) |
gGDPt−1 | − 0.265*** (0.033) | − 0.300*** (0.076) | − 0.429*** (0.127) |
Governancet−1 | 0.097 (0.149) | 0.837*** (0.264) | 1.202*** (0.437) |
Regulationt−1 | 0.223*** (0.039) | 0.136 (0.085) | 0.032 (.123) |
Constant | − 13.673** (5.950) | − 21.368** (8.577) | − 21.881* (11.164) |
Year dummies | Yes | Yes | Yes |
No. of instruments | 28 | 28 | 28 |
AR (2) | 0.78 | 0.70 | 0.99 |
Hansen statistics | 0.18 | 0.45 | 0.34 |
Observations | 210 | 210 | 210 |
No. of banks | 30 | 30 | 30 |