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

Li, Xiaonan; Song, Chang

doi:10.1186/s11782-021-00104-x

Frontiers of Business Research in China

Table 7 Ownership of city commercial bank

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

Dependent variable	State-owned				Non-state-owned
Dependent variable	(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	− 0.003 (0.003)	− 0.059 (0.045)	2.635^b (1.087)	0.007 (0.005)	0.383^c (0.110)	− 0.006^b (0.002)	− 0.060^a (0.034)	2.831^c (0.955)	0.012^b (0.004)	0.428^c (0.115)
Loan ratio	0.015^c (0.001)	0.027^b (0.013)	0.208 (0.315)	0.031^c (0.002)	0.130^a (0.068)	0.006 (0.006)	−0.024 (0.076)	2.581 (1.609)	0.031^c (0.009)	0.567^a (0.281)
Asset ratio	−0.093 (0.060)	−1.434 (0.876)	− 19.731 (18.082)	− 0.127 (0.085)	−1.130 (2.053)	− 0.144^c (0.028)	−3.313^c (0.326)	− 14.832^a (8.733)	− 0.036 (0.047)	− 2.632^b (1.186)
Capital	0.008^b (0.004)	− 0.220^c (0.036)	− 0.131 (0.821)	0.013^a (0.007)	− 0.156 (0.116)	− 0.001 (0.009)	− 0.910^c (0.150)	−5.499^a (2.792)	− 0.005 (0.015)	− 1.198^c (0.300)
Asset quality	0.024 (0.038)	−2.114^b (0.978)	−3.382 (10.118)	− 0.006 (0.064)	1.527^a (0.904)	0.083^c (0.022)	0.241 (0.321)	3.451 (12.013)	0.051 (0.041)	1.014 (0.848)
GDP	−0.469 (0.426)	−9.132 (6.666)	− 153.524 (242.428)	− 0.793 (1.055)	−91.503^b (35.007)	0.080 (0.209)	7.948^c (2.783)	− 299.673^c (97.029)	− 0.133 (0.328)	−54.625^a (28.066)
Age	0.001^c (0.001)	0.003 (0.002)	−0.602^c (0.064)	− 0.002^c (0.000)	0.054^c (0.005)	− 0.015^c (0.003)	− 0.366^c (0.035)	−1.673^a (0.979)	− 0.005 (0.005)	0.252 (0.248)
Size	0.006 (0.006)	0.139^a (0.072)	1.982 (1.476)	0.022^b (0.008)	1.358^c (0.295)	−0.001 (0.002)	−0.065^a (0.033)	0.880 (0.749)	0.007^a (0.003)	1.248^b (0.580)
Constant	−0.004^c (0.001)	0.088^c (0.014)	10.271^c (0.468)	0.027^c (0.003)	−0.500^c (0.054)	0.225^c (0.045)	5.613^c (0.532)	24.983^a (14.302)	0.069 (0.075)	−3.357 (3.744)
Year fixed effects	489	489	489	489	489	319	319	319	319	319
Bank fixed effects	0.738	0.568	0.504	0.633	0.975	0.694	0.714	0.453	0.691	0.968
N	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
R²	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes

Notes. Standard errors are robust and reported in parentheses. ^a, ^b, and ^c indicate significance at 10%, 5%, and 1% levels, respectively. Robust standard errors in parentheses

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