Commercial Bank Performance and Ownership Concentration: An Empirical Analysis of Commercial Banks from a Global Perspective

Table 5

Impact of ownership concentration on ROAE.

	Linear			U-shape			Cube
	(1-1)	(1-2)	(1–3)	(2-1)	(2-2)	(2-3)	(3)
Variables	ROAE	ROAE	ROAE	ROAE	ROAE	ROAE	ROAE
SR1	3.193			11.856			10.636
	(1.10)			(0.92)			(0.35)
SR5		−0.142			0.049
		(−0.04)			(0.01)
SR10			−3.846			−4.190
			(−1.17)			(−1.20)
Hfdl1/SR1^2				−7.776			−4.885
				(−0.76)			(−0.09)
Hfdl5					−0.583
					(−0.20)
Hfdl10						1.454
						(0.38)
SR1^3							−1.846
							(−0.06)
Log(Bank size)	3.791	3.779	3.821	3.793	3.779	3.823	3.799
	(1.31)	(1.31)	(1.34)	(1.31)	(1.31)	(1.34)	(1.31)
Log(Net income)	0.345	0.344	0.342	0.347	0.344	0.342	0.347
	(6.16)	(6.12)	(6.13)	(6.24)	(6.11)	(6.13)	(6.36)
Equity/total assets	−0.295	−0.298	−0.266	−0.303	−0.299	−0.266	−0.304
	(−0.83)	(−0.84)	(−0.75)	(−0.84)	(−0.85)	(−0.74)	(−0.86)
Gdp_gr	0.061	0.055	0.065	0.068	0.054	0.067	0.068
	(0.44)	(0.39)	(0.46)	(0.48)	(0.39)	(0.48)	(0.48)
Constant	−73.927	−72.680	−71.571	−75.231	−72.680	−71.649	−75.234
	(−1.27)	(−1.25)	(−1.24)	(−1.28)	(−1.25)	(−1.24)	(−1.28)
Observations	435	435	435	435	435	435	435
R-squared	0.429	0.429	0.431	0.430	0.429	0.431	0.430
Number of bank	87	87	87	87	87	87	87
r2_a	0.417	0.416	0.419	0.416	0.415	0.418	0.415
F	21.25	20.64	23.09	19.35	19.47	22.31	17.87

Note. (1-1), (1-2), and (1–3) show the regression results of equation (1); (2-1), (2-2), and (2-3) show the regression results of equation (2); (3) show the regression results of equation (3). All the models are estimated with the bank- and year-fixed effects and the robust standard errors are clustered at the bank level. t-statistics are in parenthesis. , , and indicate the significance at the 10%, 5%, and 1% levels, respectively.