Panel A: Sub-sample—fixed effect

Panel B: Full-sample—two step GMM system

Dependent variable

LLPTL

LIQTA

z-score

LLPTL

LIQTA

z-score

Independent variable

(1)

(2)

(3)

(4)

(5)

(6)

L.LLPTA

0.214*

(1.708)

L.LIQTA

0.315

(1.205)

L.z-score

0.103

(0.570)

MD

−0.007

0.002

0.003

−0.241**

0.051

−0.467**

(−0.585)

−0.540

−0.420

(−2.224)

(0.627)

(−2.103)

LLP_2012MD

−0.047***

−0.005

−0.046**

(−2.885)

(−1.570)

(−2.703)

Tier1

−0.037

0.251***

−0.123

0.498

0.366*

−0.418

(−0.144)

(6.951)

(−0.750)

−0.372

(1.890)

(−0.817)

OBS

0.014***

0.001

0.004

−0.009

−0.014

0.044

(3.838)

(0.928)

(1.536)

(−0.182)

(−1.146)

(0.810)

RDI

−0.549

0.029

0.250

−0.716

−0.068

1.659

(−1.120)

(0.819)

(0.885)

(−0.722)

(−0.217)

(1.387)

lnTa

0.299

−0.034

−0.351**

0.855*

−0.148

0.001

(0.859)

(−1.195)

(−2.628)

−1.894

(−1.547)

(0.002)

LLP_2012

−0.129

−0.024

0.266

Model fits

F

40.511

19.622

4.756

8.481***

5.538***

1.62

R2

0.182

0.372

0.066

Hansen J-test

6.20

3.65

9.20

AR(1)

−2.60***

−1.94*

−2.79***

AR(2)

−0.02

0.00

−0.90

N

230

274

274

138

185

185