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Table 9 Cross-sectional analysis: heterogeneity of city commercial banks

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

Dependent variable Above median Below median
(1) ROA (2) ROE (3) NPL ratio (4) Cost (5) Market share (6) ROA (7) ROE (8) NPL ratio (9) Cost (10) Market share
Panel A:Bank size
 1–HHI − 0.003 (0.016) 0.007 (0.039) 1.598b (1.043) 0.002 (0.004) 0.348c (0.091) − 0.002 (0.026) − 0.007 (0.071) 1.241 (0.825) 0.008 (0.007) 0.254c (0.045)
N 447 447 447 447 447 361 361 361 361 361
R2 0.777 0.780 0.578 0.783 0.979 0.846 0.725 0.702 0.704 0.982
Panel B:Bank age
 1–HHI −0.002 (0.003) −0.049 (0.048) 1.425 (1.103) 0.007 (0.005) 0.332c (0.074) − 0.007b (0.003) − 0.116b (0.048) 1.377a (0.801) 0.009 (0.005) 0.310c (0.056)
N 456 456 456 456 456 352 352 352 352 352
R2 0.648 0.651 0.406 0.625 0.986 0.840 0.741 0.874 0.721 0.981
Panel C:Capital adequacy ratio
 1–HHI −0.001 (0.003) −0.018 (0.038) 0.814 (0.670) 0.002 (0.004) 0.187c (0.054) − 0.007b (0.003) − 0.121b (0.054) 4.410c (1.226) 0.015b (0.007) 0.519c (0.086)
N 427 427 427 427 427 381 381 381 381 381
R2 0.810 0.719 0.532 0.817 0.987 0.652 0.670 0.562 0.595 0.969
Panel D:NPL
 1–HHI −0.005c (0.002) −0.087c (0.031) 3.642b (1.502) 0.013b (0.006) 0.411c (0.093) − 0.004 (0.003) − 0.069 (0.046) 0.699 (0.507) 0.007 (0.005) 0.161c (0.033)
N 419 419 419 419 419 389 389 389 389 387
R2 0.589 0.615 0.611 0.593 0.974 0.832 0.680 0.676 0.797 0.980
Panel E:Non-interest income
 1–HHI −0.010c (0.003) −0.115c (0.044) 3.094a (1.613) 0.001 (0.006) 0.262c (0.075) − 0.003 (0.003) − 0.036 (0.046) 1.806b (0.823) 0.011b (0.005) 0.373c (0.065)
N 432 432 432 432 432 376 376 376 376 376
R2 0.702 0.707 0.510 0.497 0.976 0.832 0.729 0.620 0.865 0.981
  1. This table shows the results of cross-sectional analyses. The sample was divided into two subsamples, Large and Small, based on the sample medians of bank size, bank age, capital adequacy ratio, non-performing loan, and non-interest income. Year and Bank fixed effects are controlled. Standard errors are robust and reported in parentheses. a, b, and c indicate significance at 10%, 5%, and 1%levels, respectively