Ownership, Corporate Governance, and Bank Performance in Iran

Table 5

Significance of the measurement model.

Latent variables	Observed variables	Factor loading	t value	value
Ownership structure (OS)	HHI	λ 1 = 0.64	2.291	0.022
	IOP	λ 2 = 0.88	3.151
	GOP	λ 3 = 0.91	3.258
Corporate governance (CG)	BSIZE	λ 4 = 0.75	2.685	0.004
	NonEx	λ 5 = 0.61	2.184	0.030
	Duality	λ 6 = 0.89	3.186
Financial performance (FP)	Tobin’s Q	λ 7 = 0.88	3.151
	ROE	λ 8 = 0.71	2.542	0.011
	EVA	λ 9 = 0.54	1.933	0.054