Does corporate governance spur bank intellectual capital in an emerging economy? A system GMM analysis from Ethiopia

Future Business Journal

Table 7 2SYS-GMM results

Variables	Model (1)	Model (2)	Model (3)	Model (4)
Variables	HCE	SCE	RCE	M-VAIC
L. HCE	0.592***
L. HCE	(0.055)
L. SCE		0.538***
L. SCE		(0.123)
L. RCE			0.670***
L. RCE			(0.174)
L. M-VAIC				0.732***
L. M-VAIC				(0.083)
BS	− 2.018***	− 0.521**	− 0.170**	− 2.021***
BS	(0.679)	(0.207)	(0.079)	(0.709)
BMF	− 0.013***	− 0.003***	− 0.001*	− 0.013**
BMF	(0.004)	(0.001)	(0.000)	(0.006)
BGD	0.004	− 0.081	− 0.094	− 0.801
BGD	(0.532)	(0.080)	(0.062)	(0.516)
REM	0.119***	0.028***	0.001	0.132***
REM	(0.040)	(0.009)	(0.003)	(0.043)
BSC	0.030	0.005	0.0001	0.052
BSC	(0.033)	(0.008)	(0.004)	(0.054)
ACS	− 0.122	− 0.041***	0.010	− 0.154***
ACS	(0.081)	(0.015)	(0.019)	(0.056)
ACMF	0.029*	− 0.003	− 0.002	0.019
ACMF	(0.017)	(0.008)	(0.002)	(0.019)
LEV	− 0.283	− 0.889	− 0.420	− 1.920
LEV	(2.069)	(0.562)	(0.471)	(2.626)
AGE	0.202	0.072	− 0.069	− 0.911*
AGE	(0.687)	(0.104)	(0.061)	(0.473)
BSIZE	− 0.482	− 0.121**	0.044**	0.079
BSIZE	(0.321)	(0.062)	(0.018)	(0.281)
	7.324***	2.724**	0.188	4.253*
	(2.155)	(1.180)	(0.423)	(2.523)
Diagnostic tests
Observations	154	154	154	154
Number of banks	14	14	14	14
AR (1) test (p value)	0.0139	0.0587	0.0854	0.0054
AR (2) test (p value)	0.905	0.484	0.370	0.433
Hansen test (p value)	0.743	0.539	0.122	0.182

Standard errors in parentheses; ***p < 0.01, **p < 0.05, *p < 0.1; L. HCE, lagged HCE; L. SCE, lagged SCE; L. RCE, lagged RCE; L. M-VAIC, lagged M-VAIC; BS, board size; BMF, board meeting frequency; BGD, board gender diversity; REM, board remuneration; BSC, number of board subcommittees; ACS, audit committee size; ACMF, audit committee meeting frequency; LEV, bank leverage; AGE, bank age; BSIZE, bank size