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Table 3 Geographic diversification and bank performance: baseline result

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

Dependent variable (1) ROA (2) ROE (3) NPL ratio (4) Cost (5) Market share
Panel A: 1–HHI
1–HHI − 0.004c (0.001) − 0.064a (0.037) 1.913b (0.796) 0.005a (0.003) 0.528c (0.124)
Constant 0.005 (0.003) 0.099c (0.010) 8.077c (1.200) 0.021c (0.007) 0.884c (0.482)
N 933 933 933 933 933
R2 0.421 0.399 0.381 0.301 0.914
Panel B: Avg distance
Avg distance −0.001b (0.002) −0.005b (0.002) 0.011 (0.088) 0.001b (0.003) 0.022b (0.011)
Constant 0.004c (0.001) 0.101b (0.046) 7.847c (1.318) 0.020c (0.007) −0.921a (0.515)
N 933 933 933 933 933
R2 0.424 0.396 0.369 0.302 0.914
Panel C: Diversification dummy
Diversification dummy −0.001 (0.001) − 0.019b (0.008) 0.675b (0.293) 0.003b (0.001) 0.055c (0.040)
Constant 0.005c (0.001) 0.104b (0.046) 7.682c (1.311) 0.020c (0.006) 0.964c (0.141)
N 933 933 933 933 933
R2 0.415 0.396 0.380 0.306 0.908
 Year fixed effects Yes Yes Yes Yes Yes
 Bank fixed effects Yes Yes Yes Yes Yes
  1. Notes. Standard errors are robust, clustered at the bank-year level, and reported in parentheses. a, b, and c indicate significance at 10%, 5%, and 1% levels, respectively