Table 5 Robustness check using alternative control variables
From: Do competition and efficiency lead to bank stability? Evidence from Bangladesh
Variables | (1) | (2) | (3) |
|---|---|---|---|
\({\text{Financial stability}}_{t - 1}\) | 0.628*** (0.045) | 0.635*** (0.098) | 0.789*** (0.116) |
\({\text{Competition }}_{t - 1}\) | 7.798** (3.937) | 15.900*** (4.265) | 26.240*** (5.778) |
\({\text{Competition }}_{t - 1}^{2}\) | − 7.690** (3.736) | − 15.694*** (4.148) | − 23.921*** (5.190) |
Efficiencyt−1 | 5.284*** (1.343) | 2.773* (1.673) | |
\({\text{Competition}}_{t - 1} {{ \times Efficiency}}_{t - 1}\) | − 2.378*** (0.888) | ||
Bank sizet−1 | 0.281 (0.175) | 0.469** (0.221) | 1.098*** (0.331) |
Liquidityt−1 | 0.005 (0.057) | − 0.317*** (0.057) | − 0.347*** (0.055) |
Log(GDP)t−1 | 1.671*** (0.279) | 1.187*** (0.322) | 1.702*** (0.376) |
Financial deptht−1 | − 1.281*** (0.258) | − 1.060*** (0.260) | − 1.733*** (0.364) |
Governancet−1 | − 0.308 (0.214) | 0.243 (0.316) | 0.112 (0.322) |
Regulationt−1 | 0.425*** (0.046) | 0.402*** (0.051) | 0.405*** (0.051) |
Constant | 0.200 (0.138) | 4.102*** (0.965) | 2.236* (1.217) |
No. of instruments | 28 | 28 | 28 |
AR (2) | 0.37 | 0.51 | 0.36 |
Hansen statistics | 0.48 | 0.18 | 0.47 |
Observations | 210 | 210 | 210 |
No. of banks | 30 | 30 | 30 |