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Table 10 List of variables

From: Does the target market affect bank performance? Evidence from the geographic diversification of city commercial banks in China

Variable Definition Source
1–HHI Branches dispersion index as a measure of geographic diversification, 1 − Herfindahl index of branches across cities is one minus the sum of squared branches held in other cities CBRC
Age The number of years since the bank has existed CSMAR
Asset ratio The growth rate of total assets CSMAR
Asset quality Loan loss reserves divided by gross loans CSMAR
Avg distance The average distance between a city bank’s headquarter’s county and the county of its affiliated subsidiary banks CBRC
Capital Book value of equity capital divided by total assets CSMAR
Cost The ratio of operating cost, measured by (Operating cost)/ (Total Cost) CSMAR
Distance the distance between bank‘s “home” city and other  cities CBRC
Diversification dummy A dummy variable that takes on the value of one if a city bank has subsidiaries in other cities and zero otherwise. CBRC
GDP Gross domestic product of the bank’s headquarter city CSMAR
Loan ratio Total loan ratio, measured by the bank’s annual loan divided by the total asset CSMAR
Market share The market share of the loan, measured by the total loan of one city commercial bank divided by the total loan of the city commercial banks’ sector CSMAR
NPL ratio Non-performing loan is given as (Non-performing Loan) / (Total loan), measured by the sum of loans past their 90-day due or more and still accruing, and the non-accrual loans, divided by total loans CNRDS
ROA ROA is given as (Net income) / (Total asset) CSMAR
ROE ROE is given as (Net income) / (Total equity) CSMAR
Size The book value of the bank’s total assets CSMAR