Figures & data
Table 1. Variables, proxies, and expected sign. The research hypotheses are given as expected impact sign against the dependent variable from the correlation matrix, and we have also considered the real facts in the Bank and also used the previous study as a reference
Table 2. Descriptive statistics. This table reports descriptive statistics variables used in the study. The variables are in numeric (up to two digits behind the comma); SP in thousand Indonesian Rupiah (IDR), SIZE, EXCH, and GDPR in IDR; SIZE, EXCH, and GDPR in Logarithmic form; and NIM, ROE, NPL, LAW, LDR, ALR, CAPI, and INTR in percentage. Descriptive statistics presented are average, median, maximum, minimum, standard deviation, percentiles, and number of observation. The statistics are calculated over the whole sample data
Table 3. Correlation matrix. This table reports simple bivariate correlation statistics (Pearson) between variables used in the study. Correlation statistics are calculated over the whole sample data. Correlations are presented as a half-triangle matrix
Table 4. Unit root test. This table reports the summary of unit root tests performed on variables used in the study. The report covers (1) name of variables, (2) name of corresponding unit root test method used, and (3) conclusion of the test (reject or cannot reject the null hypothesis). The levels of significance used as a rule for null hypothesis rejection are 1%, 5%, and 10%, respectively
Table 5. Cointegration test. This table reports the results of the cointegration test based on Westerlund (Citation2007), Persyn and Westerlund (Citation2008), and Blomquist and Westerlund’s (Citation2013) methods. Cointegration is based on various specifications: with SP as the dependent variable. Null hypotheses are (1) global no cointegration (using Pt and Pa test statistics) and (2) subsets cointegration (using Gt and Ga) for all specifications
Table 6. Slope Heterogeneity Test. This table reports the slope heterogeneity test using the method proposed by Pesaran and Yamagata (Citation2008) and Blomquist and Westerlund (Citation2013). There are several specifications based on (1) whether SP is a dependent variable, (2) inclusion of cross-section average, and (3) heteroscedasticity treatment. Null hypotheses are slope homogeneity for all specifications
Table 7. Baseliene regression result. This table reports estimations of the baseline model with a dependent variable. The table presents the estimated coefficients and standard error. The regression model corresponds to specific specifications inclusion of constant and application of cross-section average (DCCE class estimators). Statistical significance is denoted as * at the 10% level, ** at the 5% level, and *** at the 1% level
Table 8. Robustness test with other variables. This table reports estimations of the baseline model with the dependent variable. The table presents the estimated coefficients and standard error. Each regression model (denoted by a number in the first line of each column heading) corresponds to specific specifications inclusion of constant and application of cross-section average, by alternating proxies in the variables of interest (DCCE class estimators). Statistical significance is denoted as * at the 10% level, ** at the 5% level, and *** at the 1% level
Table 9. Robustness test—Bank type. This table reports estimation of the robustness model: bank type regressions with the dependent variable using the DCCE technique with ECM format. The table presents the estimated coefficients and standard error. Each regression model (denoted by a number in the second line of each column heading) corresponds to specific specifications described by inclusion of constant and cross-section average. Estimations are applied to subsamples based on bank types (“SOE” and “PRIV”). Statistical significance is denoted as * at the 10% level, ** at the 5% level, and *** at the 1% level
Table 10. Robustness test—Period. This table reports estimation of robustness check regression with the dependent variable using the DCCE technique with ECM format. The table presents the estimated coefficients and standard error. Each regression model (denoted by a number in the first line of each column heading) corresponds to specific specifications described by inclusion of constant and cross-section average. Estimations are applied to split samples (“Up to April 2009” and “after April 2009”). Statistical significance is denoted by * at the 10% level, ** at the 5% level, and *** at the 1% level