Table 4 ARDL Diagnostic Test.

Model 1

DV: ROA

IV: CAR

Normality J-B value

0.751

(0.686)

2.494

(0.287)

1.579

(0.453)

0.502

(0.777)

1.655

(0.437)

Serial correlation LM test

(F statistics)

0.351

(0.715)

0.679

(0.522)

0.582

(0.571)

1.487

(0.276)

0.141

(0.870)

Heteroscedasticity test (Breusch-Pagan-Godfrey)

(F statistics)

1.101

(0.4301)

0.333

(0.721)

0.477

(0.628)

0.506

(0.765)

0.364

(0.861)

Ramsey reset test (F statistics)

0.933

(0.377)

1.522

(0.148)

0.379

(0.709)

1.872

(0.090)

0.308

(0.765)

Model 2

DV: ROE

IV: CAR

Normality J-B value

0.571

(0.751)

0.598

(0.741)

0.359

(0.835)

0.944

(0.623)

1.390

(0.499)

Serial correlation LM test

(F statistics)

0.259

(0.777)

1.042

(0.396)

0.038

(0.962)

1.279

(0.336)

0.132

(0.877)

Heteroscedasticity test (Breusch-Pagan-Godfrey)

(F statistics)

0.773

(0.590)

0.906

(0.513)

0.541

(0.592)

1.639

(0.240)

2.719

(0.084)

Ramsey reset test (F statistics)

0.975

(0.354)

0.359

(0.327)

0.435

(0.669)

0.091

(0.929)

1.012

(0.329)

Model 3

DV: ROA

IV: CR

Normality J-B value

0.225

(0.893)

1.331

(0.513)

2.707

(0.258)

1.090

(0.579)

1.134

(0.567)

Serial correlation LM test

(F statistics)

1.921

(0.240)

0.784

(0.475)

0.772

(0.480)

0.351

(0.709)

1.268

(0.311)

Heteroscedasticity test (Breusch-Pagan-Godfrey)

(F statistics)

2.069

(0.176)

0.761

(0.483)

0.218

(0.806)

0.098

(0.906)

4.083

(0.036)

Ramsey reset test (F statistics)

1.164

(0.288)

1.075

(0.316)

0.747

(0.466)

1.428

(0.590)

0.412

(0.685)

Model 4

DV: ROE

IV: CR

Normality J-B value

0.147

(0.928)

0.032

(0.983)

2.025

(0.363)

0.363

(0.833)

7.094

(0.064)

Serial correlation LM test

(F statistics)

0.258

(0.782)

0.380

(0.695)

0.465

(0.637)

0.364

(0.703)

0.679

(0.522)

Heteroscedasticity test (ARCH)

Breusch-Pagan-Godfrey

(F statistics)

1.217

(0.404)

0.981

(0.474)

1.109

(0.353)

1.608

(0.235)

3.260

(0.985)

Ramsey reset test (F statistics)

1.595

(0.161)

2.073

(0.068)

0.197

(0.846)

0.163

(0.873)

1.298

(0.213)

Model 5

DV: CAR

IV: ROA

Normality J-B value

0.264 (0.876)

3.080

(0.171)

3.866

(0.144)

0.734

(0.692)

0.191

(0.908)

Serial correlation LM test

(F statistics)

0.988 (0.418)

1.846

(0.212)

0.286

(0.755)

0.340

(0.719)

0.590

(0.574)

Heteroscedasticity test (Breusch-Pagan-Godfrey)

(F statistics)

0.488

(0.801)

0.276

(0.916)

2.770

(0.092)

0.490

(0.777)

0.970

(0.476)

Ramsey reset test (F statistics)

0.576

(0.469)

0.683

(0.510)

1.376

(0.188)

0.373

(0.702)

0.710

(0.493)

Model 6

DV: CAR

IV: ROE

Normality J-B value

0.322

(0.850)

8.788

(0.123)

3.592

(0.165)

1.826

(0.401)

0.419

(0.810)

Serial correlation LM test

(F statistics)

0.765

(0.500)

1.828

(0.141)

0.273

(0.764)

1.237

(0.319)

0.254

(0.782)

Heteroscedasticity test (Breusch-Pagan-Godfrey)

(F statistics)

0.456

(0.823)

0.573

(0.743)

2.727

(0.095)

0.927

(0.415)

3.085

(0.063)

Ramsey reset test (F statistics)

0.841

(0.385)

0.857

(0.415)

1.206

(0.246)

0.490

(0.101)

1.092

(0.306)

Model 7

DV: CR

IV: ROA

Normality J-B value

0.654

(0.720)

0.826

(0.661)

1.529

(0.465)

2.236

(0.326)

1.762

(0.414)

Serial correlation LM test

(F statistics)

0.005

(0.994)

0.230

(0.797)

0.733

(0.497)

0.062

(0.939)

2.129

(0.189)

Heteroscedasticity test (Breusch-Pagan-Godfrey)

(F statistics)

0.652

(0.666)

0.328

(0.724)

0.126

(0.882)

0.195

(0.936)

0.699

(0.657)

Ramsey reset test (F statistics)

0.759

(0.465)

0.060

(0.952)

0.038

(0.970)

1.080

(0.302)

1.038

(0.329)

Model 8

DV: CR

IV: ROE

Normality J-B value

0.599

(0.741)

1.433

(0.488)

1.507

(0.470)

2.638

(0.090)

1.960

(0.078)

Serial correlation LM test

(F statistics)

0.0131

(0.986)

0.407

(0.673)

0.683

(0.521)

0.103

(0.903)

0712

(0.507)

Heteroscedasticity test (Breusch-Pagan-Godfrey)

(F statistics)

1.193

(0.373)

0.062

(0.939)

0.094

(0.910)

0.565

(0.779)

0.206

(0.815)

Ramsey reset test (F statistics)

0.697

(0.501)

0.003

(0.996)

0.060

(0.952)

0.805

(0.451)

0.469

(0.645)