Table 6 Panel GMM result of recapitalisation, dividend policy and financial sustainability

Dependent Var

F

ROI

EVA

F

F

F

Part A: Model coefficients

con_

5.154*

3.154*

4.308*

3.077*

4.385*

3.923**

(3.035)

(1.867)

(2.362)

(1.568)

(2.237)

(2.146)

Lag dep. var

0.079***

0.064***

0.036***

0.093***

0.057***

0.059***

(0.021)

(0.004)

(0.006)

(0.032)

(0.005)

(0.013)

DummyCap

0.065**

0.149***

0.056**

0.064**

0.131***

0.043**

(0.025)

(0.058)

(0.020)

(0.019)

(0.045)

(0.017)

Dummytime

0.205***

0.189**

0.362***

0.142***

0.220**

0.386**

(0.058)

(0.071)

(0.091)

(0.044)

(0.110)

(0.186)

Capital strength

0.194***

0.064***

0.072***

0.127**

0.049***

0.062***

(0.050)

(0.023)

(0.016)

(0.052)

(0.013)

(0.007)

Dividend payout

0.107***

0.053

0.031***

(0.051)

(0.006)

(0.007)

DivPay*DummyCap

0.076**

(0.034)

DivPay*Dummytime

− 0.092

(0.029)

DivPay*Capital Strength

0.053

(0.018)

CR3

− 0.024***

− 0.044**

− 0.005**

− 0.008**

− 0.053**

− 0.007*

(0.007)

(0.021)

(0.002)

(0.003)

(0.022)

(0.004)

HHI

− 0.182***

− 0.077*

0.255*

− 0.214***

− 0.034**

0.198*

(0.057)

(0.042)

(0.155)

(0.044)

(0.016)

(0.108)

Market share

0.067***

0.168**

0.068*

0.076***

0.067***

0.051***

(0.007)

(0.082)

(0.031)

(0.028)

(0.024)

(0.006)

Credit risk

− 0.087

− 0.087**

− 0.039**

− 0.039**

− 0.087

− 0.087**

(0.066)

(0.045)

(0.015)

(0.020)

(0.082)

(0.024)

Income Div

0.262***

0.180*

0.287***

0.198***

0.279**

0.179***

(0.092)

(0.127)

(0.107)

(0.033)

(0.076)

(0.013)

Loan intensity

0.021***

0.169

0.077**

0.106***

0.035*

0.176*

(0.006)

(0.111)

(0.030)

(0.030)

(0.014)

(0.097)

Bank Size

0.176**

0.170

0.078

0.196***

0.131

0.203***

(0.091)

(0.070)

(0.057)

(0.069)

(0.073)

(0.051)

Economic dev't

0.310*

0.219

0.161**

0.290*

0.194

0.168*

(0.176)

(0.062)

(0.078)

(0.156)

(0.097)

(0.097)

Fin. Sec dev't

− 0.297

− 0.192

− 0.249

− 0.209

− 0.180

− 0.243

(0.348)

(0.110)

(0.229)

(0.192)

(0.104)

(0.233)

Macro. Risk

− 0.196

− 0.190

− 0.170

− 0.124**

− 0.072

− 0.105**

(0.162)

(0.190)

(0.111)

(0.033)

(0.022)

(0.041)

Part B: Model statistics

F-test

28.714***

22.571**

31.714**

23.143**

22.857**

24.378**

Number of observations

1202

1202

1995

1202

1202

1202

Number of instruments

165

162

167

163

162

161

Number of groups

135

135

135

135

135

135

AR(1) p value

0.092

0.086

0.026

0.079

0.105

0.103

AR(2) p value

0.216

0.216

0.147

0.176

0.137

0.371

Hansen p value

0.265

0.265

0.255

0.176

0.167

0.173