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Table 1 Variable and hypothesis descriptions

From: Impact of learning through credit and value creation on the efficiency of Japanese commercial banks

Output Symbol Description Remark Hypothesis
Expectation Implication
Panel A: Outputs
EVA \({\varnothing }_{eva}\) Economic value-added, defined as a dollar surplus on capital invested Can be cumulated and proxied for experience shareholder in value creation Negative (−) and significant Unit cost decreases with cumulative experience in economic value created
FISIM \({\varnothing }_{fisim}\) Spread between interest received and interest paid adjusted by a risk factor Can be cumulated and proxied for experience in credit/risk management Negative (−) and significant Unit cost decreases with cumulative experience in gross value added to the economy
TC \({\varnothing }_{TC}\) Total credit created (sum of all loans) Naturally reported as cumulative loans issued and can be proxied for experience in total credit creation (interest-bearing assets) Negative (−) and significant Unit cost decreases with cumulative experience in lending to the real sector (loans)
TS \({\varnothing }_{TS}\) Total security investment Naturally reported as cumulative investment in securities and other investment Negative (−) and significant Unit cost decreases with cumulative experience in lending to the real sector (loans)
TI \({\varnothing }_{Ti}\) Interest on total investment Can be cumulated and proxied for experience in credit/risk management Negative (−) and significant Unit cost decreases with cumulative experience in total investment
Panel B: Inputs
Input prices \({w}_{s}\) Widgets of input prices; physical capital (sum of input prices of labour and tangible fix assets) \({w}_{p},\) price of deposit/debt \({w}_{d}\), and price of capital \({w}_{k}\)
NPL \({R}_{i}\) Assets qualities (risk) defined as the amount of non-performing loans
Equity capital \(K\) Equity capital estimated as the sum of shareholder equity, loan loss reserve, Tier 1 and Tier 2 capital