The consequence of the credit risk on the financial performance in light of COVID-19: Evidence from Islamic versus conventional banks across MEA region

Future Business Journal

Table 6 Impact of NPLs on FP for the whole sample and period

Model	Model 1: Impact of NPL on FP for the whole sample and period
	Impact of NPL on ROA for the whole sample and period Fixed effect			Impact of NPL on ROA for the whole sample and period Random effect
	Coefficients	T	Sig	Coefficients	T	Sig
(Constant)	− 0.09	− 0.169	0.866	− 0.348	− 0.787	0.431
G.NPL%	− 0.043	− 5.041	0.000***	− 0.041	− 5.97	0.000***
SIZ	− 0.00004	− 0.007	0.994	− 0.008	− 0.222	0.823
LD %	− 0.0004	− 5.22	0.000***	− 0.0004	− 7.421	0.000***
EA %	0.021	1.49	0.136	0.019	1.630	0.103**
CA %	0.076	6.050	0.000***	0.094	9.059	0.000***
LLR %	− 0.002	− 2.360	0.018**	− 0.002	− 3.041	0.002**
LA %	0.008	2.24	0.025**	0.008	2.866	0.004**
INF	0.009	1.50	0.135	0.013	2.45	0.014**
UNE	− 0.006	− 0.56	0.57	− 0.004	− 0.564	0.573
Model summary	Adjusted R Square	0.529		Adjusted R Square	0.212
	F	4.706		F	21.48
	Sig	0.000		Sig	0.000
Hausman test	Chiq 8.339	Prob	0.5004

Model	Model 1: Impact of NPL on FP for the whole sample and period
	Impact of NPL on ROE for the whole sample and period Fixed effect			Impact of NPL on ROE for the whole sample and period Random effect
	Coefficients	T	Sig	Coefficients	T	Sig
(Constant)	7.93	1.873	0.062*	5.97	1.77	0.077*
G.NPL%	− 0.279	− 4.231	.000***	− 0.292	− 5.586	.000***
SIZ	− 0.297	− 0.765	0.444	− 0.237	− 0.808	0.419
LD %	− 0.002	− 4.28	.000***	− 0.0025	− 5.848	0.000***
EA %	− 0.313	− 2.84	.000***	− 0.345	− 3.750	0.000***
CA %	0.481	4.998	.000***	0.567	7.187	0.000***
LLR %	− 0.006	− 1.039	0.298	− 0.006	− 1.247	0.213
LA %	0.076	2.73	.006**	0.084	3.88	0.000***
INF	0.033	0.722	0.470	0.067	1.648	0.099*
UNE	0.016	0.212	0.832	0.0079	0.130	0.896
Model summary	Adjusted R Square	0.529		Adjusted R Square	0.129
	F	4.706		F	12.386
	Sig	0.000		Sig	0.000
	Chiq 5.394	Prob	0.798