Capitalization and profitability: applicability of capital theories in BRICS banking sector

Singhal, Nikita; Goyal, Shikha; Sharma, Divya; Kumari, Sapna; Nagar, Shweta

doi:10.1186/s43093-022-00140-w

Future Business Journal

Table 3 ARDL Model.

From: Capitalization and profitability: applicability of capital theories in BRICS banking sector

Models	Model 1		Model 2		Model 3		Model 4		Model 5		Model 6		Model 7		Model 8
Variables	DV: ROA		DV: ROE		DV: ROA		DV: ROE		DV: CAR		DV: CAR		DV: CR		DV: CR
Variables	IV: CAR		IV: CAR		IV: CR		IV: CR		IV: ROA		IV: ROE		IV: ROA		IV: ROE
Statistics	Coef.	Prob.	Coef.	Prob.	Coef.	Prob.	Coef.	Prob.	Coef.	Prob.	Coef.	Prob.	Coef.	Prob.	Coef.	Prob.
Long run
BRICS	0.037	0.000***	0.580	0.010**	0.060	0.016**	0.119	0.081*	1.877	0.000***	1.125	0.000***	1.966	0.000***	0.183	0.000***
Brazil	0.457	0.000***	4.440	0.003***	1.923	0.604	18.75	0.066*	1.823	0.006**	0.187	0.002**	1.817	0.000***	0.189	0.000***
Russia	0.030	0.065*	1.027	0.022**	0.036	0.024**	1.241	0.054*	4.291	0.191	0.086	0.325	0.437	0.769	0.106	0.641
India	0.091	0.059*	2.243	0.036**	0.444	0.024**	1.184	0.091*	− 1.048	0.048**	− 0.241	0.043**	− 1.362	0.021**	− 0.078	0.058*
China	− 0.085	0.058*	− 3.367	0.046**	− 0.064	0.029**	− 3.713	0.026**	49.24	0.981	2.072	0.337	1.179	0.867	0.102	0.551
South Africa	− 0.067	0.093*	− 3.016	0.000***	0.076	0.043**	− 1.831	0.031*	− 1.456	0.020**	− 0.254	0.072*	− 2.105	0.000***	− 0.281	0.049**
Short run
BRICS	0.074	0.116	1.005	0.108	0.038	0.348	0.217	0.653	0.988	0.019**	0.086	0.034**	0.365	0.061*	0.018	0.017**
Brazil	0.431	0.114	5.052	0.116	0.353	0.247	3.461	0.299	1.163	0.014**	0.105	0.019**	0.402	0.094*	0.039	0.097*
Russia	0.031	0.649	0.580	0.011**	0.038	0.726	1.871	0.065*	0.114	0.079*	1.018	0.024**	0.125	0.766	0.030	0.618
India	0.016	0.788	0.226	0.815	0.112	0.183	2.452	0.099*	− 0.380	0.151	− 0.394	0.110	− 0.080	0.370	− 0.006	0.680
China	− 0.010	0.138	− 0.670	0.318	0.030	0.401	1.308	0.117	2.582	0.191	0.131	0.111	0.065	0.874	0.041	0.313
South Africa	− 0.760	0.100	− 0.273	0.234	0.073*	0.458	3.907	0.416	− 1.315	0.019**	− 0.084	0.024**	− 0.021	0.074*	− 0.398	0.043**

Notes:*, **, *** indicates the rejection of the null preposition at the 10%, 5% and 1% significance level
DV represents dependent variable and IV represents independent variable

Back to article page