Dependent Variable: Return on Assets

Estimation method: two-step System GMM

Independent Variables

Coef.

Corrected/robust Std. Err.

p-value

First lag of return on assets

0.2780***

0.1173

0.009

Treasury bill rate

0.0532

0.4725

0.260

Lending interest rate

0.3666**

0.1782

0.040

Core inflation

−0.2490**

0.1271

0.050

Logarithm of money supply

−0.3233

1.282

0.801

Logarithm of total assets

1.3917***

0.4373

0.001

Capital ratio

0.0974***

0.0334

0.004

Constant

−4.378

14.330

0.309

Diagnostic tests

Arellano-Bond test for AR(1) in first differences: z = −2.87***; Pr > z = 0.004

Arellano-Bond test for AR(2) in first differences: z = −1.51; Pr > z = 0.132

Sargan test of overid. Restrictions: Chi-Sq. = 108.55*; Prob > chi2 = 0.051

Hansen test of overid. Restrictions: Chi-Sq. = 39.85; Prob > chi2 = 0.192

Difference-in-Hansen (iv): Chi-Sq. = 12.78; Prob > chi2 = 0.991

Difference-in-Hansen(gmm): Chi-Sq. = 9.40; Prob > chi2 = 0.152

Wald Chi-square = 112.87***; Prob > chi2 = 0.000

Standard instruments for first differences equation:

D. (logcapital logloans logsecurities 2010b. year 2011. year 2012. year 2013. year 2014. year 2015. year 2016. year 2017. year 2018. year)

GMM-type Standard instruments for first differences:

L (1/8). logta

Standard instruments for levels equation:

logcapital logloans logsecurities 2010b. year 2011. year 2012. year 2013. year 2014. year 2015. year 2016. year 2017. year 2018. year

GMM-type for levels equation:

D.logta