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Table 6 Number of large size banks in subsidiary city

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

Dependent variable Large subsample Small subsample
(1) ROA (2) ROE (3) NPL ratio (4) Cost (5) Market share (6) ROA (7) ROE (8) NPL ratio (9) Cost (10) Market share
1–HHI −0.008c (0.003) − 0.145c (0.049) 1.382b (0.578) 0.005a (0.003) 0.2875c (0.102) −0.004 (0.003) − 0.049 (0.046) 3.150b (1.209) 0.010a (0.006) 0.254b (0.114)
Loan ratio 0.016c (0.001) 0.053 (0.032) 0.226 (0.303) 0.030c (0.002) 0.1615b (0.062) 0.004 (0.004) 0.016 (0.092) 0.173 (1.438) 0.027c (0.006) 0.581c (0.174)
Asset ratio −0.017 (0.011) −0.265 (0.201) −4.241 (2.786) −0.013 (0.015) −3.829c (0.754) − 0.074 (0.057) −1.228 (0.968) −1.249 (17.960) − 0.151 (0.110) 0.451 (2.600)
Capital 0.009c (0.002) −0.331b (0.137) − 0.262 (0.942) 0.020c (0.005) − 0.4935b (0.219) 0.004 (0.003) − 0.309c (0.114) 0.508 (0.515) 0.001 (0.003) − 0.002 (0.054)
Asset quality 0.006 (0.040) −2.352b (0.887) −3.284 (35.896) −0.003 (0.196) 2.311c (0.726) −1.522 (2.073) − 11.394 (34.576) 2686.574 (2239.584) 8.534 (6.386) 23.227 (35.106)
GDP −0.219 (0.429) 1.520 (8.048) − 128.827 (104.574) 0.230 (0.572) −39.224 (38.386) − 0.117 (0.216) 2.478 (5.024) − 175.864 (150.104) 0.045 (0.447) − 101.269c (21.856)
Age 0.001c (0.000) 0.006b (0.002) −0.519c (0.078) − 0.002c (0.000) 0.057c 0.008 0.001b (0.000) 0.006 (0.005) − 0.507b (0.211) − 0.003c (0.001) − 0.291b (0.013)
Size 0.006 (0.004) 0.095 (0.062) 0.745 (0.885) 0.009a (0.005) 0.943c (0.274) 0.008 (0.007) 0.054 (0.159) −0.486 (2.572) 0.007 (0.010) 1.963c (0.412)
Constant −0.005c (0.001) 0.080c (0.025) 9.031c (1.139) 0.022c (0.006) −0.433c (0.053) − 0.001 (0.004) 0.049 (0.083) 7.330b (2.972) 0.038c (0.013) 0.775c (0.018)
Year fixed effects Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes
Bank fixed effects Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes
N 433 433 433 433 433 375 375 375 375 365
R2 0.809 0.672 0.520 0.799 0.97 0.705 0.633 0.572 0.615 0.983
  1. Notes. We distribute the full sample into two subsamples by the median. The large subsample is the sample larger than the median; others are small subsample. Year and Bank fixed effects are controlled. Standard errors are robust and reported in parentheses. a, b, and c indicate significance at 10%, 5%, 1% levels, respectively