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Table 4 Geographic diversification and bank performance: additional control variables test

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
1–HHI − 0.005b (0.002) − 0.073b (0.031) 2.671c (0.758) 0.009b (0.004) 0.377c (0.082)
Loan ratio 0.015c (0.002) 0.038a (0.020) 0.471 (0.293) 0.032c (0.002) 0.146b (0.067)
Asset ratio −0.014 (0.009) −0.153 (0.149) −6.556b (2.539) − 0.028b (0.013) −4.494c (0.956)
Capital 0.007b (0.003) −0.300c (0.072) − 0.648 (0.880) 0.010a (0.006) − 0.272a (0.141)
Asset quality 0.064b (0.027) −0.344 (0.857) 5.834 (6.855) 0.030 (0.034) 1.509c (0.470)
GDP −0.190 (0.223) 1.630 (4.167) − 252.737b (105.728) − 0.281 (0.417) −63.497c (19.166)
Age 0.004c (0.001) 0.003 (0.002) −0.590c (0.048) − 0.002c (0.002) 0.054c (0.006)
Size 0.004 (0.003) 0.057 (0.047) 1.493a (0.884) 0.014c (0.005) 1.201c (0.340)
Constant −0.003a (0.002) 0.091c (0.028) 9.881c (0.367) 0.025c (0.002) −0.411c (0.064)
N 808 808 808 808 808
R2 0.704 0.580 0.461 0.633 0.971
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 level, and reported in parentheses. a, b, and c indicate significance at the 10%, 5%, and 1% levels, respectively