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Table 8 Local protectionism

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
Protect×(1–HHI) − 0.097c (0.025) −1.510c (0.401) 12.453a (6.603) 0.113c (0.031) −0.065 (0.644)
Protect 0.013 (0.011) 0.242 (0.177) −2.859 (2.911) 0.002 (0.014) −0.649b (0.284)
1–HHI −0.010c (0.002) − 0.165c (0.030) 2.751c (0.495) 0.013c (0.002) 0.362c (0.048)
Loan ratio 0.004 (0.003) −0.047 (0.045) 0.523 (0.749) 0.025c (0.004) 0.406c (0.073)
Asset ratio −0.001c (0.004) − 0.024c (0.007) − 0.173 (0.120) − 0.001 (0.001) − 0.010 (0.012)
Capital 0.003 (0.017) −0.447c (0.067) −1.198 (1.118) 0.010a (0.005) − 0.248b (0.109)
Asset quality 0.003 (0.002) − 0.016 (0.029) 0.132 (0.479) 0.000 (0.002) 0.012 (0.047)
GDP 0.018 (0.027) 0.083a (0.045) −0.025c (0.007) −0.027 (0.034) − 0.064c (0.007)
Age −0.002 (0.002) − 0.010c (0.003) − 0.320c (0.048) − 0.003c (0.007) − 0.028c (0.005)
Size 0.007b (0.003) 0.001a (0.001) 0.011 (0.010) 0.001 (0.004) 0.012c (0.001)
Constant 0.011c (0.003) 0.322c (0.051) 6.404c (0.822) 0.048c (0.004) 0.860c (0.080)
Year fixed effects Yes Yes Yes Yes Yes
Bank fixed effects Yes Yes Yes Yes Yes
N 736 736 741 729 741
R2 0.504 0.505 0.450 0.621 0.973
  1. Notes. Standard errors are robust and reported in parentheses. a, b, and c indicate significance at 10%, 5%, 1% levels, respectively