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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